Submitted by Plex Systems, Inc. www.plex.com
Today’s volatile economy causes many manufacturers to look at their ERP implementations as a way to increase efficiency and cut costs.
Yet taking on an ERP selection project in such a challenging business environment isn’t for the weak-hearted.
Fluctuating markets, rising material costs, overburdened IT departments and uncertain customer demand all work to create uncertainty and perception of risk.
A recent research paper shows that the SaaS or Cloud model is worth the look for today’s ERP selection teams.
This analyst report notes a 70% increase in willingness to consider ERP delivered as a SaaS or Cloud solution.
The increase in appeal is due to the manufacturing sector’s desire to avoid complex upgrades and control IT costs.
Analysts note ERP fit and function are also cited as extremely important, in addition to vendor viability, data security, references, ease and speed of implementation, and ease of use.
The report concludes with an in-depth case study showcasing how one manufacturer better manages IT costs, improves production throughput, reduces inventory costs, and increases customer satisfaction.
The Challenge of Customizations, Maintenance
Of special note is the issue of system customizations and maintenance. The ability to add new functionality as customizations to on-premise software implementations is a common challenge.
After paying for the customization, manufacturers must pay the software vendor extra maintenance costs or have to rewrite the customization when upgrading.
In a SaaS model, the software vendor is responsible for all system enhancements, upgrades, and maintenance. This advantage works to help deliver a fast ROI for most manufacturers.
Be sure to attend the Vendor Shootout™ for ERP for help in this important process of ERP selection.