Key points
An effective ERP solution can completely revolutionise a business, enabling enhanced reporting, better customer service, improved inventory costs, boosted cash flow, and more effective supply chain management.
While organisations from a variety of industries can benefit from implementing an ERP system, with the market predicted to exceed $49.5 billion by 2024, research has shown that 47% of ERP users are a part of the manufacturing sector.
However, while some businesses are still yet to invest in an ERP solution, those that were once ahead of the curve may now find themselves stuck with an aging, outdated system that no longer meets their needs or their customers’, and have therefore lost their competitive edge.
The prospect of upgrading or moving to an entirely new system can be daunting, not only due to the expense, but also the upheaval to the business and its employees. While this may be true, there are ways to keep the disruption to a minimum, and the benefits to profits, productivity customer relationships, and employee satisfaction from using a modern ERP system far outweigh the potential difficulties associated with implementation.
So, for businesses that have been putting their heads in the sand when it comes to their existing ERP system, here are five definitive signs that it’s time for an upgrade.
Lack of real-time data
Having access to real-time data can be the key to securing a competitive advantage in manufacturing, where speed-to-market and informed decision-making are crucial.
An effective, modern ERP system will connect all departments and stakeholders involved in production processes, standardising procedures and capturing data across all sites.
This data should be easily accessible at the touch of a button on any device, including mobile devices, enabling employees to make fast, effective operational and business decisions, capturing more sales and satisfying customers.
Lack of support
Software providers will only commit to supporting and updating older versions of ERP systems for so long. Understandably, they instead like to devote their efforts to developing and improving their most recent, most effective versions.
While it may be tempting to remain on an outdated ERP system to save money in the short term, a lack of support from the vendor can cause serious problems. If it begins to malfunction, it may be impossible to fix without the vendor’s help, and even if it doesn’t, older software is more susceptible to things like cyber-attacks and data breaches, and can contribute to increased downtime and reduced productivity.
Integration difficulties
One common marker of successful, efficient businesses is how seamlessly their systems work together. Without access to integrated data, it can be very difficult to keep customers happy.
For example, both CRM and ERP systems house data that is vital to a business’s growth and success, but this data was traditionally held in silos. By integrating the two, sales representatives can have immediate access to available inventory, complete sales orders faster, and provide a better purchasing experience.
Modern ERP systems are more likely to have been designed with this sort of integration in mind, making it far easier to ensure that the business’s various processes are not working in isolation.
No cloud capabilities
On-premise ERP systems offer many drawbacks compared with their cloud-based counterparts, not least the associated ownership costs. They require large upfront and ongoing investments to purchase and manage the software and the related hardware, servers, facilities, and IT expertise necessary to run them.
They are also much more difficult to update and upgrade. On-site ERP software can be customised, but those customisations are tied to your current software deployment and are not easy to re-implement with future versions. When the ERP provider releases new product updates and enhancements, previously implemented customisations will be wiped out when following the upgrade.
Perhaps most importantly, a cloud-based ERP solution is required for access to the aforementioned real-time data, meaning that staff can see accurate information on laptops, smartphones, and tablet devices even while they travel or work remotely.
Too complex
While digital transformation projects should aim to make companies more profitable, enhance the customer experience and enable them to keep up with competitors, they should also always improve the employee experience. Only when used correctly and consistently can any digital solution make a tangible difference to business operations and outcomes.
If your employees are currently having to deal with slow loading speeds or complicated user interfaces, for example, this may be having a serious impact on productivity and morale. An overly complicated system also makes it difficult to onboard new employees, and may contribute to high staff turnover.
Advances in technology mean that ERP systems are becoming increasingly user friendly, so a new solution will likely encourage greater adoption and engagement amongst staff, thereby unlocking the technology’s full potential.
With ERP technology constantly improving and developing, implementing a cloud-based ERP system will help to ensure that businesses always have access to the most advanced features and maintain their advantage of their competitors. If the idea of migrating to a new system is too overwhelming, then the help of a third-party with specialist expertise can be invaluable, making the whole process as pain-free as possible for all involved.
