Why Companies seek new ERP Software?

SYSPRO, has announced the results of a survey covering the enterprise applications investment strategies and

adoption trends of 250 mid-market manufacturing and distribution companies.

IDC, a leading provider of global IT research and advice, conducted the survey during the first quarter of 2008. 

The survey found firm evidence of growing dissatisfaction with currently installed enterprise resource planning (ERP)

solutions, which respondents say are lacking the business process  requirements and cost controls needed in today's

economic environment. Nearly a quarter of those surveyed said their dissatisfaction with their current solution capabilities

had moved from 17% dissatisfied to 25% dissatisfied, between the fourth quarter of 2007 and the first quarter of 2008.

When asked to describe their current business culture as it applies to technology buying behavior, most (38%) of these

mid-market respondents described their culture as "pragmatic, yet visionary." This was in contrast to cultures

that were more aggressive or more conservative in their buying behavior.

The following reasons companies gave for seeking new ERP software are ranked according to the percentage of companies citing them:

Ø       Process improvement (26%)

Ø       Cost reduction (17%)

Ø       Lean manufacturing functionality (12%)

Ø       Better inventory control (10%)

Ø       Enhanced distribution functionality (9%)

Ø       Additional financial functionality (7%)

Ø       System scalability (6%)

Ø       Compliance/regulatory requirements (6%)

Ø       Interoperability with disparate systems (3%)

Ø       Additional analytics/reporting functionality (3%)

Survey results also indicate that 70% of the respondents are demanding

configurations that meet their industry specific requirements.