IDC: ERP systems not keeping up with change

Underperforming software is leading to lost opportunities worth up to £300m, says IDC.

Many mid-to-large sized companies are losing up to £300 million in lost opportunities, thanks to inflexible enterprise resource planning (ERP) systems.

Respondents to a survey carried out by IDC Group on behalf of business software developer, Agresso, said that not being able to modify their ERP systems slowed decision-making and caused them to delay product launches and acquisitions. 

This lack of agility is estimated to cost companies taking part in the survey between £6m and £300m in lost opportunities.

“Change to ERP paralyses the entire organisation in moving forward in other areas that can bring more value,” said one survey respondent.  Another added: “Capital expenditure priorities are shifted into IT from other high payback projects” just to keep the ERP system in line with business.

According to the research, underperforming ERP systems feed through to the bottom line, with average stock prices experiencing a 20.9% decline, average lost revenues of 14.3% resulting from delays and a 16.6% decline in customer satisfaction.

The High Cost of Business Disruption is available as a free download from the Agresso website.

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