Two years later, the perfect storm of pandemic-related disruptions is still a major source of irritation for manufacturers. Those disruptions have been major contributors to the inflation we are now experiencing worldwide. Will that inflation lead us into a recession? A lot of very smart people say it will, and some say it already has.

Modernizing the enterprise resource planning (ERP) system is usually the biggest lever that companies use to improve organizational performance. ERP is the de facto source of the organization’s operations. It’s the fountainhead of all data that enable analytical insights. However, in an economic downturn, organizations need to balance the benefits of ERP modernization against the costs. Monolithic and costly ERP implementations are generally not justifiable during a recession. Application leaders must be strategic and incrementally modernize ERP capabilities with a business-driven approach to optimize value.

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