ERP SOFTWARE COMPANIES

The Relationship Between Government and ERP Software Vendors- Microsoft and the Relevance of Technological Innovation to Global Market Expansion

As is the case with Microsoft, other top players among the ERP software vendors - like SAP and PeopleSoft - are also involved in preparing ERP packages to improve the efficiency and management of governmental departments. This is a big plus for these companies, as it strengthens the networking between the ERP software industry and government sectors, sponsoring reciprocal support between the two and all within the bounds of legality.

Of course, there are major opportunities to be gained for those ERP software companies that enter into a partnership with governmental departments, among which the advantage of maintaining up-to-date on a regular basis with government regulations regarding business laws, open market transactions, and global market rules in general. The widespread access to government R&D facilities and the resources of government-sponsored institutions like universities, academic or private research laboratories, private institutions and public organizations, that such a system offers to ERP software companies is another special point of emphasis. It allows them to assess market potential on a larger scale, and gather more reliable data concerning market diversification globally, as well as target audiences in specific country demographics to attract new customers from the most diverse professions.

At the same time this environment has some negative and quite obvious side-effects, because it also increases the illegality of lobbying operations, along with the risks and dangers posed by their exposure.

While Microsoft does actually cater in larger measure to both medium and small businesses- and this element is securing its position among the top ERP software vendors- it is also generally recognized by professionals that one of Microsoft's basic problems, and common to all major ERP software companies, as we have seen previously, is adapting to technological innovation. The success of this endeavor depends for the most part on the process of diversification.  

Out of all the principal ERP software giants, Microsoft in particular needs to diversify its business operations rather than center on the standard global business practices and technologies already in existence. In order to expand and attract greater market demand for new products and services, it must shift from focusing primarily on conventional software updates and add-ons, to sponsoring new technologies which can be applied to other industries and fields of human knowledge. At the same time, Microsoft must also develop adequate customized ESP software packages to support those small innovative high-tech companies developing emerging new technologies.

Written by :

Amy Cruz