Implementing an enterprise resource planning (ERP) system is highly profitable as it is risky. It needs time, capital, and lots of labor. However, as many companies will testify, a reliable ERP system will serve as the business’s backbone for years to come. Through it, you can streamline various operations, boost productivity, increase profits, and expand your company.
As such, it can be hard to let go of an old ERP system that has served the business for many years. However, bear in mind that technology quickly evolves, and so does the market. Hence, it is inevitable that many programs, including old ERP software, have a limited shelf life.
Replacing ERP systems is not easy, so it is crucial to seriously consider your options and carefully decide if this is the way to go. To help you decide if this is the next step your company needs, here are the common signs that it is time to retire your current legacy solution.
ERP systems are often customized to suit a specific company’s needs. There are ERP systems designed for middle-sized businesses and those meant for large enterprises. While there are software solutions that offer scalability for quickly developing companies, ERP software can only go so far beyond its design.
Take an exponential increase in transactions, for example. If your ERP system is not equipped to handle the rising amount of orders, users may experience issues and problems with the software, thus affecting product deliveries and customer satisfaction.
Some other common changes in business processes include venturing into other markets, adding new product lines, and opening new stores and franchises. If your ERP system cannot keep up with these changes, it may be time to replace it.
The market today is exceedingly competitive, and having excellent customer service is one way to stand out. The average modern customer expects a carefree shopping experience, which translates to accessible products and easy-to-process information. These are difficult to achieve with old ERP software that usually does not feature access to billing, shipping, and inventory data. This issue extends to suppliers, partners, and other stakeholders as well.
Without these features, it becomes difficult to build brand loyalty as customers go to competitors who may be offering these services. As such, the need to reconsider your current software becomes more apparent.
Years ago, opening a business meant having a brick-and-mortar store where your employees go to every day. Today, the decentralized business model has become more common. Personnel can work from their homes and even work on the go as long as they have their computer or mobile device and an internet connection.
If you have employees that work remotely—whether locally or internationally—switching to a cloud-based ERP system could be the next step for your company. In this manner, employees can work in the safety of their homes and still access the relevant up-to-date company data they need to complete their tasks.
Each year, the regulations for maintaining a business change. Data privacy, tax rules, and business permits are only some of the things that companies need to consider. However, keeping up with all of these regulation shifts can be difficult, even with an IT team on board.
ERP software vendors may have upgrades that offer new features and modules compliant with current regulations. However, maintenance bills rack up, and keeping up with regulations becomes more difficult, it is worth considering implementing a more suitable ERP system. Through this, you can address the new needs of a changing company and become more equipped with new challenges that come the business’s way.
Indeed, replacing an old ERP system is not easy. Beyond budget allotment and new adjustments needed for the new software, there can be a reluctance to retire a program that has helped bring the company to where it stands today. However, this is all part of the company’s journey. With a more compatible ERP system, your enterprise will be more capable of reaching new heights.
This is what ANSI strives to achieve for all its clients. Serving as a Philippine-based software solutions vendor for many years, ANSI has built a thick portfolio of satisfied local and international businesses. With ANSI’s guidance, expertise, and resources, finding the right software match is within your reach. Start the hunt for the best ERP program for you, and contact us today.