High Lazy Buying Habits and Low Profits

Well, laziness is one of the seven deadly sins and it results not only spiritual but financial crisis. IDC claims that lazy buying habits are costing businesses millions in hidden consultancy and supports costs.

That sounds quite logical but it is always better to support the statements by facts and in this case evidence to this statement is the research conducted by the IDC. On the bases of an Agresso-sponsored survey "Mid-Market Service Companies' Enterprise Investment Strategies and Adoption Trends", Albert Pang, director of enterprise applications research at IDC discovers that companies today are overspending on ERP software.

According to IDC “Companies need to acknowledge the hidden costs of their ERP software following initial implementations,” said Pang. “Many users need to ask whether they should continue to stick to their current ERP system providers. If they don't, it seems to suggest that they are not willing to consider the options of using new, perhaps lesser known vendors. There is either a sense of complacency or one of hopelessness that costs can never be reined in.”When the cost exceeds for 100 percent the planned budget, one always think over the probable problems, risk management. And people who do think so is about 47%.

Despite 100% growth of costs eighty-three percent of ERP customers stay in the same position and buy from the same vendor. Problem might be only solved by analyzing , says Pang.
“Enterprise software vendors have to wake up and stop taking customers for granted,” said John Crooks, UK MD of Agresso. “Escalating support costs are killing businesses and this is down to a lack of forward thinking by vendors. Change is part and parcel of modern business and enterprise software has to acknowledge this by being agile enough to not demand expensive consultants every time the business grows. Unfortunately with most ERP vendors this is not the case although we have worked hard to ensure our software is agile enough to not incur huge costs after implementation.”The survey is as much reliable as IDC spanned more than 250 companies in the U.S. and U.K.