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Government Bailouts Raise ERP Compliance Challenges: Why Users of Microsoft Dynamics AX 2009 May Be Well Positioned

by Jason Gumpert

The assorted U.S. government bailouts will likely have a wider impact on manufacturers of all types than anyone can yet imagine, beginning with the necessity to adjust ERP systems to take account of important emerging compliance requirements.

The impact will initially be felt most strongly in the auto industry, "but eventually it's going to affect every industry," argues Sharon Ward, director of ERP solution strategy for Green Beacon Solutions, a provider of ERP business strategy and a Microsoft Dynamics AX partner.

Bailouts of the automobile, mortgage, insurance, and banking industries mean the government will "have tentacles in virtually every industry in the country," says Ward, a former director of ERP and supply chain management at Microsoft..

Many manufacturers "sell at least some products into the automobile industry," she says. "There's very little difference between nuts-and-bolts and screws you sell into the automotive industry and those you sell into the home construction industry."

In addition, "It's going to have a huge effect on supply chains," likely resulting in "a pulling back of the supply chain" from outsourcers as manufacturers seek "communication, collaboration, and visibility across the supply chain."

Smaller manufacturers can expect to be under the same reporting requirements as actual  recipients of government assistance. Among the ERP demands they can expect to have imposed on them by government aid recipients:

  • Simulation capabilities. For the auto industry, in particular, "Simulations will become very important," she says. "Companies will need to continue doing simulations to report to the bailout body...They will need new reporting flexibility."
  • Project management. This capability will assume new prominence "because as Congress says to the ...

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About Jason Gumpert

As the editor of, Jason oversees all editorial content on the site and at our events, as well as providing site management and strategy. He can be reached at

Prior to co-founding, Jason was a Principal Software Consultant at Parametric Technology Corporation (PTC), where he implemented solutions, trained customers, managed software development, and spent some time in the pre-sales engineering organization. He has also held consulting positions at CSC Consulting and Monitor Group.

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