ERP SOFTWARE COMPANIES (Part III)

The fundamental problem for start-up ERP software companies rests on the professional skill and organizational experience required to keep up with the demands of customers in real-time, as noted previously in part one of this article series. This presents a further crucial dilemma, considering the highly competitive nature of the IT sector: how to increase market visibility. Commercializing their product on a mass scale would prove to be a daunting task for small businesses. As a result, the majority of the masses - the conventional users and consumers in society- remain for the most part unaware of their existence.

This is an unfortunate state of affairs that clarifies how the modus operandi of monopolies can have negative repercussions on the free-market system, as it restricts the global free-flow exchange of information and communication, destroying the very principles upon which the world-wide-web is founded. And it is a direct result of the power of software monopolies, which limit the potential of smaller competitors by cornering them to a reduced market niche. Because small or start-up ERP software companies do not have the luxury to spread information as quickly and efficiently in order to reach buyers on a large scale, this stumbling block will always affect their potential to rise above competition in the ERP software industry, or regularly upgrade their infrastructures to meet customer demand.

A second issue deal with the price of the commodity in question, since these innovative products offered by small ERP software companies and other small businesses are not only very user friendly, but also inexpensive compared to prices set by monopolies for their services. The dangerous risks run by small ERP software companies, lie in the potential failure to keep up with the costs of running their organization efficiently and providing adequate, reliable access to information for buyers. All of these are factors which, in time, might force the company to eventually disappear from the scene along with their services and products.

Needless to say, this set of circumstances points to a number of dire consequences that, in the manner of a domino effect, adversely affect not only the IT industry, but also the individual in society. First of all, this situation severely deprives potential clients of the benefits of a useful service or software which they may never have heard about previously. All things considered, the negative impact this may have for buyers not only in the IT market, but on the collective patrimony of society as a whole, cannot be questioned.