The Economy and Selling ERP Solutions
With the economy all over the place. With perennially strong companies like Microsoft, IBM and Intel having large layoffs and reporting bad earnings, what’s the prospects for companies like Sage that sell ERP solutions. A long time ago I read a book on the history of IBM. One thing that stuck with me from that book was how IBM transformed from being a small company to a huge corporation during the great depression in the 1930s. Basically IBM was in the business of selling giant desk sized mechanical calculators. During the depression these started to really sell. This was because companies were really concerned with controlling costs and investing in technology to help them control costs considered a huge benefit.
I think we are in the same situation again today. Companies can’t just look to grow out of their problems. They have to really address controlling costs and maximizing the use of their money. Companies are looking for technology to really help them control their business processes. To really understand how their business’s work, where all the money is going. How to do things more efficiently.
If an ERP vendor can really present a vision to help companies do this (which all strive to do), then they have a real competitive advantage and their customers have a real competitive advantage. This kind of win-win relationship can really fuel growth, and allow companies to do well even in really tough economic times.
Another thing that helps is strong leadership. Look at the results of Google and Apple which have done exceptionally well even in the current economy. I think this can to a large degree be attributed to strong innovative leadership.