As the global economy slows and some capital IT budgets come under increased scrutiny, it is becoming more important to rationalize investments in technology such as ERP. Some of our clients are delaying their ERP implementations, while most are using their availability of resources during the slowdown as an opportunity to implement ERP effectively. While some outside observers speculate that companies are abandoning ERP initiatives in 2009, we simply do not find this to be true with our clients.

Although there is never an ideal time to implement ERP because of the time and resources required to make a project successful, the more forward-thinking strategic companies are finding that current time and conditions are as good a time as any to embark on an implementation. Other companies are experiencing significant growth despite the economic headwinds, which have caused them to outgrow their current systems. Some simply want to have ERP in place when the economy picks up gain so they can leverage new technology to enjoy a steeper recovery in revenue and profit. Others recognize that now is a perfect time to be negotiating with ERP vendors and reduce the total cost of ownership, which was first outlined in my recent blog.

If implemented correctly, ERP should increase revenues and actually decrease costs, which is the perfect reason to implement during an economic downturn. The problem, of course, is that many companies fail to select and implement their ERP system in a way that delivers measurable results. However, the ones that do are finding that ERP is an extremely powerful tool in this global economy.

Whatever the case for moving forward with ERP in the current environment, there are specific tips and recommendations organizations should consider while pursuing ERP in 2009. On January 7, 2009, we will be hosting a free webinar on the topic. ERP software selection and implementation project management will both look different than usual in 2009, and we will use this webinar as a forum to discuss our findings.

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