Legacy ERP System, Upgrade or Replace? Consider Your Best Options
There are many reasons that indicate that it is time for organizations to upgrade their ERP systems. All of these reasons have to do with technological advancements or business evolution. Ultimately, an outdated system may no longer be effective.
It can be difficult to reflect new business processes in existing solutions or hard to get the real-time visibility that most companies desperately need.
The following are some other reasons why companies may want to upgrade their ERP:
· Outdated User Interfaces are difficult to use or require more steps than newer systems.
· Software that is inflexible and cannot support new, more efficient ways of working.
· It is impossible or too expensive to increase system capacity to match business growth.
· Reporting and data analysis are slow to keep up with the pace of business today.
· Limited or no support for mobile devices.
The choice between an ERP upgrade and a full replacement is a significant decision that depends on how much business value each approach can bring, as well as the costs associated with both to the company.
There are strong arguments in favor of either option depending on the business needs and limitations of the existing software.
Benefits of Renewal:
Generally, updates are less disruptive than replacements. In the best situation, the integrations and customizations you have made in your ERP system remain in place, the user experience changes little, and you don't have to partner with a new software provider (this benefit only applies if you are satisfied with the quality and service of your current ERP provider).
Also, if your business team is comfortable with the current system, the update should involve lower change management barriers.
Pros of Replacing:
There have been significant technological advancements since many companies purchased their last ERP system, and different providers may have innovated in certain areas that are valuable to companies. Switching to a different ERP platform allows you to capitalize on more business opportunities and process efficiencies than simply upgrading to the latest version of the current system.
Moreover, in situations where a merger or acquisition forces you to operate two separate legacy systems, switching can reduce complexity and improve collaboration between the two business units.
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