Migrate To A New ERP System
ERP systems help drive business growth, organizing data, making forecasts, collaboration between departments, integration of information, and keep a pulse on their efficiency and performance. However, an outdated ERP system can affect the business productivity, security, and customer satisfaction adversely. When is it time to migrate to a new ERP system?
The following signs will help you determine if you need to migrate to a new ERP system:
An outdated ERP system puts many of your resources into prevention, risk, and maintenance mode, instead of allowing them to focus on the core business. If your processes are outdated, or very manual, because of your current systems inefficiencies, it means your employees are spending too much time on tasks that should be automated. You will start to experience too much downtime and lose of business.
User Scalability Issues
Your organization’s ERP system exists to manage a growing business. But if increasing maintenance fees and limited user license fees are adding up as the organization’s personnel expands, you may be dealing with an ERP system that does not scale well. A suitable ERP system should support and streamline your businesses’, as well as your team’s growth, not impede it or produce more work. If your company grows your ERP system should grow with you.
Customer/Partner Expectations Not Met
Your customers, suppliers, and partners expect direct access to billing, shipping, inventory data, and other live updates. Any delayed or unfulfilled order can all too easily damage customer relations and a business’ hard-won reputation. Upset partner’s because of problems with out of date data being sent, causes churn and a waste of resources to resolve. Make sure your system links properly to external teams, or migrate to a new ERP system.
Full Mobile Accessibility
You want to take advantage of this decentralized world, where workforces are shifting times, moving remote and out of office locations. Employees need to work with a system that supports them while they are on smart phones, tablets, and laptops. The new age ERP solutions available these days have turned mobility into a default feature by providing a seamless transition experience from the office, to home, to mobile, and back.
Deficiency Of Real-Time Information
If you need to dig for real-time information, it slows down critical decision-making and impairs problem-solving capacity. With growing business intelligence capabilities, it’s going to be essential to add the value of instant information. It’s important you know what parts of your business are working and what parts are not – and in a timely manner. Obsolete ERP systems lack real-time visibility that the latest ERPs provide. For example, order management, inventory tracking, product trace-ability, procurement, product shipping, etc. all require real-time tracking to ensure smooth operations and order fulfillment. If your existing ERP doesn’t provide real-time information it creates confusion within your organization and slows down your growth. Also, data errors creep in owing to old versions breaking down. Lastly, managers and senior management executives rely on fast data to help understand forecast sales, production and business growth.
Lack of Integration
Having a system that doesn’t integrate seamlessly with third-party software or plug-ins will make it extremely difficult for your organization to run efficiently. You are very likely to end up with disjointed software, which will eventually lead to redundancies, omissions, errors, rework, disputes, and frustration, thus making your team less efficient, and unproductive.
Rising Operating Costs
If your existing ERP acts like a vintage automobile that needs frequent maintenance and overhaul, then it is time to replace it. The symptoms usually involve something breaking down within the system due to system incompatibility or database issues. Any issue that needs repair will involve calling up the ERP vendor and making them fix the issue, which adds to the overhead costs, loss of precious production time and revenue loss.
Termination Of Support By The Vendor
If your vendor has announced the termination of support for your current ERP version you’re using, it’s time to upgrade. Although many organizations continue to use outdated versions, an obsolete solution can do more damage than good. That’s because termination of support means you’ll no longer receive updates and security patches. Therefore, your business will encounter prolonged periods of downtime. This downtime will result in loss of productivity, decreased customer satisfaction, and lower revenue. You will also have higher security costs because that lack of support will make your ERP system an easy target for hackers.
Most ERP systems focus on a specific business module or two. Some of these are great at managing manufacturing operations but completely inefficient when it comes to CRM. While others can are great at finance and accounting but not human capital. Or some systems can handle almost everything but get stuck in supply chain management. What happens in one part of your business will impact the other parts. Ideally you need an advanced ERP system that has modules for everything to keep your business efficient and profitable.
Outdated UI: Reports & Dashboards
Today’s ERP systems streamline business processes and make accessing and managing data easier for your team and management. If you have an outdated system, it’s likely your employees will find the technology time-consuming and difficult to use when creating reports and dashboards. Before upgrading speak with the users who management who will build and use the reports and dashboards. Their input will be valuable when you migrate to a new ERP system.
If you see any of these signs, you should consider migrating to a newer and more efficient ERP system. Before making your choice, establish an evaluation team, identify the main business needs, and investigate all the associated costs. The right ERP system will definitely help you reach all your mission-critical goals.
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