Investing in Dynamics GP ERP Software in a Down Economy

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As our economy continues to struggle, many businesses are putting off IT purchases. Investment in ERP software like Microsoft Dynamics GP can often times seem unnecessary to top management who are concerned with cash flow and meeting immediate business needs. But is it wise to put off ERP upgrades right now? Consider the following:

Your competitors are investing, you need to keep up

A recent survey for CIO Magazine found that 48% of companies say their overall budgets will increase in the coming year – compared to 14% who said that a year ago. Half of that was predicted to go to application software. If your competition is investing in new functionality and better reporting for their ERP needs, are you going to be able to keep up?

Despite the doom and gloom, businesses have cash

The Wall Street Journal reported that businesses have record amounts of cash right now. The article notes that this due in large part to concerns from the credit crunch in ’08, but the bottom line is that businesses have cash and nowhere to earn interest on that money. Eventually businesses will re-invest that money in themselves in the form of increased purchasing. Simply put, when the economy turns around, will you be ready?

It’s a down economy for software publishers as well

As evidenced by Microsoft’s recent effort to essentially give software away, there are deals out there for Dynamics GP that may never be seen again. When the economy picks up, software vendors will be much less likely to offer the discounts they offer now. Now is the time to look for bargains

While an investment in ERP software during slow times may run counter to the conventional “get more down with less” philosophy, there are many compelling reasons to act now. Investing in the rich functionality of Dynamics GP may be a smart move that will pay off in a recovery.

By Intellitec Solutions, Microsoft Dynamics GP Partner serving Pennsylvania