You’ve read the title and you are now wondering what on Earth has this got to do with ERP and technology.
Well, having been at the sharp end of advising on and selling ERP solutions to UK companies for the last 20+ years, I’ve seen a few trends come and go. But also it is clear there are some constants we can hold on to as well.
One thing is clear, with the investment required for an ERP implementation, companies that do so are generally in a strong position. If you are reading this the chances are you are considering your first or a replacement ERP solution. Congratulations, that places you ahead of the race to begin with.
With some notable exceptions (multi-million pound SAP implementations come to mind) companies do not fail because they implement an ERP. Certainly most projects could have performed better but very few are ever catastrophic.
Next consideration to take into account is the macro-economic environment we are in and the effect that has on decision-making. At the time of writing we have a new Labour government and we are all awaiting what is being billed as a “tough” Budget.
Now, fear of the unknown is a powerful emotion. But that should be tempered by experience of the past. Whilst our financial advisors will always quote that the past is no indicator of the future, we should not ignore it if it is giving us some clear signals. The run up to a Budget brings about many scare stories but few ever come to fruition. Life goes on for most people and most businesses and we all adapt to the new picture.
We should also consider the effect of scale. Whilst a government may decide to increase taxes for individuals and/or companies, how much of an effect does that actually have? Undoubtedly some will suffer and some businesses may fold, but only those that are already hovering over the breakeven line.
My point here is that, as I said before, those businesses considering an ERP system are amongst the strongest in the marketplace and the type of change that happens in a Budget is unlikely to have a drastic effect on their fortunes. Indeed the quality of their management normally means that adverse effects are deflected or passed on to customers.
The reasons you are looking for an ERP system are usually that you recognise there are some efficiencies you can make in your processes and those efficiencies will outweigh the costs of the implementation. They must do or else you wouldn’t do it.
Changes brought about in any Budget are small-fry compared to the benefits you will get from your new solution. So, your ROI may extend from say, 2 years to 2.5 years. Is that a reason for not doing it or delaying it? As I have written before in other articles, delays to the project solidify costs that you will never get back.
All situations are, of course, different and there are other factors that I haven’t considered here that may apply to you. But my challenge to you now is to look realistically at the market and your place in it and question if emotions are overcoming logic in these turbulent times?
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