We are currently in the middle of third-quarter financial reporting season. And as more companies report their results, the key question market watchers are asking is this: Will top-line growth return? If not, then the current record-setting rally may not be sustainable. Wall Street experts know companies can’t cut their way to growth. In order to grow they have to, well, grow.
That’s a point CIOs apparently understand as they allocate IT maintenance budgets. Third-party maintenance providers cut costs, obviously. But that’s not where growth comes from. Growth comes from innovation -- and having more money to spend in areas where innovation will count.
Switching to third-party maintenance usually means putting off technology upgrades. So what does that say about ERP? Remember business process re-engineering? Remember process silos? Apparently that is all yesterday’s news. Despite accelerating rates of change everywhere, enterprise software has apparently hit the wall as an enterprise change enabler.
Or it could mean that some ERP companies have hit a wall? Today’s ERP leaders were much younger when they saw the need to tie disparate company activities together into a unified force. Their growth strategy was certainly not to maintain the status quo. They were out to radically change the status quo.That’s something else CIOs might wish to consider as they allocate IT maintenance budgets. Reduced maintenance costs can’t mean reducing the flow of innovation -- of new knowledge -- coming into the company. Growth-oriented support solutions must provide for both.