Our previous blog, 7 reasons your ERP is failing, highlighted that a legacy ERP system that is no longer supported, enhanced and not sufficiently flexible to meet changing business needs is, likely to be costing the business a lot.
As we pointed out in the blog there are multiple reasons why companies make the decision to modernise their software, some of the most common of which are:
- Outdated software and hardware
- Stopping growth and scalability
- Increased support costs
- Inability to integrate with new systems
- Difficult to access information
- Not being able to assist with compliance to regulations
When you are noticing one or more of these issues are happening, then you need to consider:
Evaluating Resources – You need to perform a cost/benefit analysis of your ERP software before coming to the conclusion that it needs to be replaced.
- Do you think about how much time and money your current system is costing you?
- How long does your own or contracted staff spend on “fixing” its glitches?
- Does your software enhance your business processes or stagnate them?
If in the end you have figured out that the benefits of a new ERP solution outweigh the costs of maintaining your legacy system, then it is time for change.
Can you do things better? – An important thing to remember when replacing your legacy system is not to fall into the trap of trying to replicate its functions entirely in the new one. This way you will surely miss out on all the great features and functionality a new system has to offer.
Finding a new ERP system is no easy task. There are multiple systems with similar features and benefits but you need to think about what is right for you. Some approaches we have witnessed in the past are:
Upgrading and enhancing current systems
If you feel that your legacy system still has enough mileage in it to last you a couple more years then you can fine-tune it through enhancements. Keep in mind, though, that enhancements only buy you some time, thereby postponing the inevitable.
Fully replacing the legacy ERP system
Using this complete overhaul approach is no easy task but it can be a fruitful one if you find the right system and partner. We would advise seeking expertise rather than trying to implement the system yourself. Technology and requirements have moved on and are continuing to move fast so it is best to hire experts to help you through the implementation.
Having a partner will also help with human resources as they can train your staff on the new systems and improved processes. Additionally, they will always be on hand with any upgrades and support questions
Don’t wait until the point when you are spending more resources to maintain your legacy system than you would if you were to switch a new ERP solution. Also, when upgrading your enterprise solution, avoid the same pitfall of a rigid system – plan for tomorrow and get an ERP system that is flexible and extendable.
Download our guide on the pros and cons of an in-house system – https://cofficient.co.uk/download-our-guide-pros-and-cons-of-a-homegrown-erp-system