We recently came across an article that had been published around the time of the economic downturn (January 2009). It stated many reasons why an ERP implementation is still a great thing to invest in during a downturn.
We feel many of these reasons still apply today, especially as the oil and gas markets in Canada are feeling the effects of global oil price changes.
Here’s some reasons why investing in ERP is a good idea, even in a downturn:
- You May Find Reduced Cost of Ownership: In a downturn, you may find ERP software vendors are pricing their offerings more aggressively than usual. The good news is that ERP systems in 2015 have more robust features, are more mobile, and are more capable than those available in 2009.
- ERP Increases Revenue: ERP that includes Customer Relationship Management and salesforce automation components help companies sell more effectively than “just winging it,” thus increasing revenue.
- ERP Increases Productivity: ERP helps businesses “do more with less”. With a good ERP solution in place, businesses can get more done with less people.
- ERP Increases Efficiency: ERP can help you automate business practices and eliminate non-value-add activities. Also, the better alignment between inventory and manufacturing and sales that results after implementing an ERP system and letting the system run for a few months means that, for your company, carrying costs are less, delays lessened and customer service improved. And, always remember: improved customer service = happier customers = more customer referrals = more revenue!
- There many ERP solution choices available: There are more ERP solution choices out there than ever before with new ones coming on-stream regularly. Including Software as a Service (SaaS) / Cloud Infrastructure and open source.
- ERP Systems Can Scale to Match You: With low monthly packages that easily scale up or down and with lower initial implementation cost than server-hosted systems, cloud-based ERP systems are more flexible, affordable and convenient than ever. That said, ESS doesn’t necessarily do “just cloud” or “just on premises” software. We choose what works best for your situation (types of data you have, how you use it, who has time/task to maintain servers, and so on).
Read the full article and read for yourself how investing in ERP can be great for your business, economic downturn or not.