A blog by Oleg Shilovitsky
Information & Comments about Engineering and Manufacturing Software

2011 ERP Slowdown. Will PLM Gain Benefits?

2011 ERP Slowdown. Will PLM Gain Benefits?
Oleg
Oleg
14 January, 2011 | 2 min for reading

I read the article in Yahoo News – ERP investments to slow in 2011. According to the Forrester research, many companies are holding back their plans to run ERP implementation. Also, many companies are running ERP systems that two releases back from the current release. Here are few interesting quotes:

The number of companies planning to invest in their ERP (enterprise resource planning) systems will drop slightly this year, according to a Forrester Research report, even as IT spending overall is expected to rise.

Roughly half of ERP customers are running product releases that are two versions behind the current one, according to the report. But expiring support windows and related price increases will spur more upgrades over time.

I found it interesting. My hunch, customers are reluctant to make huge investments and big implementation plans. They are more interested in what Enterprise 2.0 and multiple Web Technologies and Social initiatives can bring. The time for huge ERP programs is going to end. Therefore, the appearance of Oracle Fusion Apps this year will be specially promising. Will it be able to pump a new air into ERP implementations?

At the time ERP can be troubled, what will happen to PLM mind share vendors?  Vendors like Dassault, PTC are rolling out huge programs with new releases and features. At the same time, customers are getting “cold feet” when thinking about a grandiose move to platforms like V6 (Daimler case).

What is my conclusion? My view is that customers are stopping believing in big programs and multi-year investment in enterprise programs. ERP is associated with such a level of programs. End of the story, in my view. The new way of business making a-la salesforce.com is coming. So, it reflected in customer decisions. In the past, PLM vendors got to think about taking some market from ERP folks. It sounds like time is coming. What is your view?

Best, Oleg

Recent Posts

Also on BeyondPLM

4 6
18 January, 2012

I’d like to talk about BPM again. I was writing about BPM in the past. Navigate to this link to...

26 June, 2022

In the digital age, it’s more important than ever to keep track of your data. Managing the complexity of the...

6 July, 2013

Graphs are fascinating. I think, we like graphs more and more these days. I like graphs a lot because in...

19 October, 2017

I’m still at Gothenburg, Sweden attending PDT Europe and CIMdata PLM Roadmap conference. If you missed my blog from yesterday,...

15 January, 2018

IoT became a huge buzzword over the past few years. I’m following this topic and sometimes I feel lost in...

10 July, 2019

Aras announced Innovator 12 with a list of few new features and functions. Some of them triggered my special attention....

21 February, 2017

Last week I blogged about PLM selection politics. People are hard and political games in an organization are unavoidable.Existing PLM...

31 August, 2009

Interesting prompt today came out of Google’s US7,580,568 “Methods and Systems for Identifying an Image as a Representative Image for...

20 January, 2015

An interest of customers in cloud PDM solution is growing. I guess there are multiple factors here – awareness about...

Blogroll

To the top