Do you know when is the right time to invest in an ERP? Read through to understand further:
The right time to invest in an ERP is when there is an economic slowdown or recession. Yes, you heard that right!! Still wondering, we will explain you the reason why a recession is the right time to invest in an ERP.
Economic slowdown is a phase wherein there is a general decline in economic activity irrespective of the sector. So, we have the following reason for you understand the importance of this slowdown & help you prepare your business for a full-fledged operation after the recession:
- All organizations have employees with idle time during the economic slowdown phase and usage of this time to learn & implement a new system or align with new processes can be productive & rewarding in the long run.
- It is also the best time for the management to spend more time on improving the business by standardisation of processes.
- An added advantage to this recession would be an extra discount from capital expenditure solution providers.
- As it a slow phase, management team can take time to evaluate all the available solutions and choose the best for their usage.
- Having an ERP implementation at a time of slow growth/small business also gives a competitive advantage down the line when business flourishes. For example, painting a new room in a house is much easier than painting existing rooms in a house as the painting in existing rooms requires disruption of daily activities whereas the new one is much easier. The same applies for ERP implementation as well, the more your business growth, the harder it is to implement which can also lead to expensive operational expenses compared to implementing when the business is still small scale or in slow phase.
To summarize, if you ask us when is the right time to invest in an ERP? We say ‘NOW’ is the perfect time. The sooner, the better when it comes to ERP implementations. If you are waiting for problems to arise and then prepare to handle them, it will be a chaos for your organization. Be prepared when your competitors are asleep so you can soar when it’s time for the real show 😊