“When is the right time to upgrade the existing ERP?”- this one question concerns most entrepreneurs who are still using age-old ERP systems to support their core operations. Over the years, they got accustomed to all the little quirks or faults in their old systems. But, when those quirks become major obstacles, decelerate processes and cause a delay in delivery of services, they should start considering upgrading the legacy system to a new one. In other words, running your business with old outdated systems can risk your IT security and data, reduce productivity and hamper customer satisfaction.
There are stark differences between the modern ERP software (which are sometimes cloud-based too) and traditional on-premise software. Thus, no doubt, upgrading your old system implies substantial investments and prepping up employees for the change beforehand. So, before it’s too late know when it is the time to upgrade your existing ERP.
#1 The existing system lacks integration
If your current ERP system is unable to integrate with other functional modules like HR, CRM or accounting, then you need to think about it. It means the system cannot communicate with those modules and hence needs dual data entries in every step which disrupts the otherwise seamless workflow.
#2 Your business has outstripped your ERP capabilities
Every business is evolving over time and so does yours. As the business gets bigger, the number of members, task or processes, customers, and volume of production, all multiply. To help you cope with such might growth in business, you need a standalone ERP that will streamline, mechanize, pace up the processes and take care of the outgrowing contacts.
#3 The software does not adhere to industry standards
Earlier, there was no as such need for businesses to comply with industry regulations. However, with competition at its peak, clearly, the companies that are complying with the same are going to stay in the game. So, by sticking to your outworn system that lacks new sets of functionalities that help to adhere to the industry standards, you might be losing your scopes to compete in the market.
#4 Your employees still have to put data manually
We are in the 21st century! Automation is spreading everywhere, in every business process like a wildfire. So, if your employees have to still sit down with piles of files, and put data of the departments one by one manually on the system, then you clearly you’re falling behind. Further, duplication, manual errors while entry is common and can cause you huge losses.
#5 There’s no proper reporting and analytics function
If you cannot use your rich datasets with your present system to prepare comprehensive reports and analyse business outcomes and market trends, then its high time you take the decision to upgrade seriously. Both modern cloud-based or on-premise ERPs can fetch up-to-date and relevant data, and use them for creating reporting.
There are no as such flat rules for upgrading your ERP. However, when you face these above hassles, it is a signal that you’re running out of time and others business players are ahead of you. So, start evaluating your criteria, changes you administered, new processes introduced and datasets you work with now and ask your software vendor to upgrade the present system accordingly.