“You remember the boiling frog story, right? Yeah, the frog (who is pretty smart) when placed in boiling water will jump out. But, if placed in cold water and gradually heated will not perceive the danger and will be cooked,” ponders Mark Hoekstra, CPIM and a NAV Consultant for The TM Group.
“I was thinking about this story when reading about our recent Great Recession and its macro-economic conditions that seem right now to be improving and what effect it has had on my industry – ERP Software,” continues Mark. “During the 5 year economic crisis, which some suggest in Michigan has actually been a decade, many corporations have postponed their capital investments including upgrading or replacing their ERP systems. Instead they have adopted a “limp along” strategy while ignoring the risks associated with the IT status quo.”
During the Great Recession, many IT Managers were asked to make do with their existing infrastructure and old, legacy ERP systems. Their budgets were slashed as top line revenue results were the primary focus of top management. As their dismal business results continued, reductions in staff and minimized strategic considerations for IT investment became the reality.
Now that the economy shows signs of improvement, demands on companies' business systems are heating up. The growing popularity of Apple’s iPhones/iPads and other mobile and tablet devices are also putting pressure on outdated business systems. Many IT managers and CIOs are now in the hot seat and need to upgrade their aging Enterprise Information Systems so they’ll work with all the “new stuff”.
Of course, changing technology isn’t exactly a new trend. But recent economic conditions had effectively hobbled IT’s ability to upgrade aging programs to newer .Net platforms and 4th Generation programming platforms. Whereas many businesses built custom developed applications on which to run their business, there are now many cool off–the– shelf (COTS) ERP systems like Microsoft Dynamics GP, NAV or SL.
“What we have here is Moore’s Law in action and it wasn’t on vacation during the recession,” explains Mark. Technology in general and ERP applications have continued to improve while many companies' IT have slumbered during the Great Recession. Many organizations have still been limited by post-recession budgets and smaller, less knowledgeable staff. However, the economy is changing and demands on IT and their business systems are slowly rising.
If companies don’t want to be like the slow cooked frog, they need to start planning now before the water gets too hot. You don’t want to be like the frog happily going along until – whoops – a new paradigm and things are now really hot! The TM Group has been guiding companies though the process of selecting, implementing and supporting business systems since 1984 and we’d love to help you. So, don’t get your business cooked because of outdated CRM or ERP applications, contact The TM Group and we’ll help you realize your goals for 2013. Contact us at 888.482.2864 or visit our website at
by The TM Group, Microsoft Dynamics Partner