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ERP Market Dynamics for Midsize Governments

By Hoekstra, Jason
Publication: Government Finance Review
Date: Wednesday, December 1 2004
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Most analysis of public sector enterprise resource planning (ERP) systems focuses on the most technologically

advanced products - those offered by large, multinational corporations such as SAP, PeopleSoft, and Oracle. However, these "Tier I" systems typically are not an affordable option for the many small and midsize governments. These governments are often best served by "Tier II" ERP products. The purpose of this article is to help fill the gap in the public finance literature with regard to these Tier II systems and, more importantly, to help existing and prospective customers of Tier II products better understand the market forces that impact their investment in enterprise technology.

The article begins with an introduction to the Tier II market. The reader will then learn about the current dynamics of this market, most notably the consolidation of Tier II software vendors. Finally, we offer practical advice to governments on how to select the best product for their needs and then protect their ERP investment in this era of shifting market dynamics.

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