Executive Briefings

Does a Seven-Year Itch Make Us Switch ERP Providers?

In the '90s, ERP officially became a technology market segment challenging MRP, accounting and financial-only package sales. At the time, companies worried that they would confront major replacement challenges when their business changed, grew or (most often) new and better technologies came along, making a compelling argument and value opportunity to replace and migrate upward.

But the seven-year application turnover - the seven-year itch, perhaps - seems to be outmoded. Well into the third decade of "ownership" by many companies, ERPs have been lifetime application purchases. However, ERP revitalization is occurring.

If we look more deeply, we know that many of the companies that have purchased ERPs have had significant changes, upgrades, platform changes and add-ons over the years. Although they may be working with the same provider, they may have a new version of that ERP or have purchased new applications and integrated them into the old version. But not too many companies have switched providers. The point here is not to say that replacement does not occur, but rather, why it doesn't happen more.

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Keywords: supply chain management IT, supply chain systems, supply chain solutions, ERP refreshes

But the seven-year application turnover - the seven-year itch, perhaps - seems to be outmoded. Well into the third decade of "ownership" by many companies, ERPs have been lifetime application purchases. However, ERP revitalization is occurring.

If we look more deeply, we know that many of the companies that have purchased ERPs have had significant changes, upgrades, platform changes and add-ons over the years. Although they may be working with the same provider, they may have a new version of that ERP or have purchased new applications and integrated them into the old version. But not too many companies have switched providers. The point here is not to say that replacement does not occur, but rather, why it doesn't happen more.

Read Full Article


Keywords: supply chain management IT, supply chain systems, supply chain solutions, ERP refreshes