Big ticket ERP sales struggling to convince users

The price tag on large ERP system purchases has become too difficult for most customers to swallow in the current climate.

 

Not only are the up-front costs a barrier but the on-going requirement to keep the system updated is making some customers blanch at the costs.

According to findings from mid-market ERP player Agresso its larger rivals are finding things difficult with 52% of IT managers reporting that cost is a serious barrier.

 

Added to cost issues there are worries about complexity and the time it takes to make changes to take account of changing business practices.

It is costing mid-sized businesses on average £800,000 a year to maintain and modify ERP software with larger companies spending three times as much.

 

Ton Dobbe, VP of product marketing at Agresso, said that flexibility had to be the key plank of an ERP pitch.

 

“In times of economic recession, flexibility to adjust to changing market circumstances is more important then ever and can mean the difference between a company’s success or failure,” he said.

 

The findings from Agresso back up anecdotal evidence that purchasing on infrastructure projects is taking longer to get signed off and the pressure on resellers to prove a quick ROI has become paramount.