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Strategic View of ERP in Pakistan

Strategic View of ERP in Pakistan

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Published by bradbutt
A research on ERP future in Pakistan.
A research on ERP future in Pakistan.

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Published by: bradbutt on Mar 24, 2010
Copyright:Attribution Non-commercial

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10/23/2012

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Strategic View of ERP in Pakistan
ERP market has evolved recently in Pakistan. Going for any ERP (especially off the shelf) is no moreconsidered an out of the box decision. However there is still long way to go before the objections of being Risky, Too Big and Not for us get sorted out industry wide. Asia and Middle East are marketswith huge potential and lucrative opportunities for all ERP vendors. Although the disruption caused bycurrent economic meltdown has been painful on one level but therapeutic on another level, because ithas made people rethink the things. It has made companies of every size, in every industry and in everycountry to do a thorough re-examination or their ERP investments and strategies.Recession has altered the future of business software and we can observe ripple effects having strongimpact on Pakistani market as well. Outdated pricing models (such as ERP maintenance agreements) arebeing revamped, innovations are no more turtle paced and companies (even implementation partners)are re-inventing themselves with more flexibility around service offering.Following are some imperative factors outlining strategic sketch of Pakistans ERP market in comingyears
1.
 
Globalization
L
arge global manufacturers that have established their facilities in Pakistan are investing and willcontinue to invest in ERP solutions to streamline their back-office processes and also integrate theseprocesses with their Head office.
L
ocal suppliers/manufacturers will adopt IT automation such asERP as part of the conformity to global manufacturers requirements when trading with them.
2
.
 
C
ompetition
C
ompetition not only within local market but also from neighboring industrial giants will forcemanufacturers to invest in technology such as ERP solution to streamline their back-end processingsuch as accounting, procurement, and order management. Besides workflow efficiency, theinvestment will lower the cost of producing the goods.
3
.
 
C
ompliance Risk
Pakistani manufacturers are required to comply with international standards and regulations whenexporting to Europe and US etc. Thus companies are in need to change some of their businessprocesses to comply with international requirements. In addition to compliance, association with aproven ERP solution increases clients confidence in internal processes of the supplier.
4
.
 
Resource management
Scarcity of raw material and resources, such as fuel, will demand manufacturers to improve theirefficiency in consuming these components. Manufacturers will need to invest in solutions that willassist them in better planning and execution in producing the end product.

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