Thursday, 12 January 2012

Software / ERP Confusion

Many a times, it looks like companies are investing more and more money into buying ERPs and other software to ease out operations pain. On the contrary, managing IT Systems especially ERP becomes a nightmare in itself and eventually companies end spending more money for installation, implementation (re-implementation in some cases), maintenance and upgrades. Above all, time it takes to take care of all these.


"Milking" the customer -
Consulting companies look at these confused customers as potential $$$ buckets from which they can start sipping and slurping. Various consulting and advising firms even tie up with product owners. They create situations to customers to confuse them even further. Adding to the confusion, product companies constantly keep releasing upgrades & patches. To incorporate these changes in most cases is a nightmare as well.  These consulting companies will keep making more money. Who would want to kill a "Golden Egg laying Goose".  Gone are those days when IT budget of a company was estimated to be <3% of overall company spend. Now things have changed.  With added confusions and advice, these companies are forced to invest 5-10% or even more.

Can something be done to ease out this pain? Moving from lower version to updated / current version need not be so painful. There is no simple mechanism for the same. Customers will have to go thru the entire cycle.

All the products were created to support business. Unfortunately, managing these softwares is becoming a bigger business. Now Customers are investing more money into in it than ever. Not even sure on what the ROI is going to be. Companies are focusing more on these overheads than their core business. This is taking bigger toll on the inward revenue.

Eventho the main parameters for any project are CAPEX, OPEX and time involved, it is always proper selection of software, partner that decides the end-result.


Thank You for reading. You can send in your feedback / comments to info@venitsolutions.com

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