Companies have reported a massive uptake of enterprise resource planning (ERP) software this year, according to analyst group, AMR Research. But the year ahead for ERP vendors will still be tough, the group warns.
In June of this year, 36 per cent of European companies interviewed said they were not evaluating or using ERP software, but AMR found that by October this figure had fallen dramatically to just 16 per cent.
The group also found that those with operational ERP systems had risen from 20 to 32 per cent in the same period and those in the process of evaluating and implementing the technology had also risen slightly.
"In order to utilise important applications such as customer relationship management (CRM), companies realised that they need an effective operating infrastructure that works," AMR president Tony Friscia told delegates at a conference in London today [Monday].
"The business case for ERP remains an important argument."
ERP software enables companies to manage areas of their business such as product planning, parts purchasing, maintaining inventories, interacting with suppliers, providing customer service, and tracking orders.
Despite the growth in awareness this year, 2002 will still be tough for ERP vendors, said Friscia, but predicted a six per cent market growth.
"The chief financial officer is now in charge of most IT budgets, and most of those budgets have already been allocated for 2002. However, we anticipate a turnaround in the second half of the year," he said.
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