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Tuesday, 18 January 2011 15:28

Growth and Adoption Rates of ERP Systems in Recessions

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The foundations of ERP are found in manufacturing resource planning, traditionally used by companies which produced tangible goods in factories. The adoption of ERP and MRP systems was initially quite slow – management were content with the status quo and saw no reason to change what seemed to be working. However, the recession experienced in the late 1980s and early 1990s forced many companies to make a choice: Either find new ways of operating more efficiently and effectively, or go under. This created a massive boom in the ERP market, which lead to massive changes in the ways in which fundamental business operations were conducted, and those organizations that made it through the recession came out stronger.

North America is no longer the goods-producing collection of nations it once was and is instead dominated by service industries. However, many of the same problems that existed in manufacturing organizations twenty years ago still exist in these businesses: Lack of integration, inability to respond and take advantage of environmental change, time and money wasted on data entry and redundancies, and so on. Much like the recession twenty years ago, the economic downturn caused by the subprime mortgage crisis has forced many modern companies to find new ways of performing more effectively and efficiently.

This is the time to get ahead of the competition, and Microsoft Dynamics GP is the perfect solution for organizations looking for more than simple accounting and reporting features without high maintenance costs and complexity.

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