Tuesday, August 02, 2005

Lack of usage impairs ERP | CNET News.com

Lack of usage impairs ERP
Published: August 2, 2005, 11:16 AM PDT
By Matt Hines
"In a statistical illustration that software adoption remains a top challenge in enterprise applications, researchers said Tuesday that nearly half of all licenses for enterprise resource planning software go unused.

According to a report released by AMR Research, based on the Boston firm's recent survey of 271 companies that have already purchased the systems, some 46 percent of all ERP 'seats' remain uninstalled. ERP applications, marketed by vendors such as Oracle and SAP, typically address the automation of fundamental business processes such as accounting, finance and human resources.

AMR said the high number of unused licenses most likely explains the relative sluggishness of the ERP market over the past several years. The research company believes many customers purchased more licenses than they actually needed during the economic downturn from 2001 to 2003. Those companies were likely attempting to invest in systems they had already installed rather than spend on new technologies and subsequently went too far....
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