Not making the decision to implement, or upgrade to, a cloud ERP can limit your business’ growth. Read about the financial effects of your non-decision in the new Aberdeen Group Whitepaper, The Cost of Doing Nothing: Why You Can’t Afford to Sit on an ERP Software Decision.
Not making a decision is making a decision. And the lack of decision regarding the need to replace or upgrade your current software platform from either a legacy system – or possibly an outdated ERP system – to a new ERP is possibly negatively impacting the future success of your business. When a business decides to skip a major upgrade, the costs and effort associated with the upgrade is simply deferred, not eliminated.
Every month you delay or decline to make your decision could be hampering the efficiency of your business and hurting your bottom line. This is what Aberdeen Group – a technology and services company that helps tech sales and marketing executives distill smart data science into actionable moments – concluded in their new Whitepaper, The Cost of Doing Nothing: Why You Can’t Afford to Sit on an ERP Software Decision.
Download your free copy here for more in-depth insights into why business’ who want to grow and remain competitive in our ever-evolving technological field should move forward with the decision to implement a cloud ERP.
Why companies put off the decision to implement or upgrade to cloud ERP
It doesn’t seem like moving to a cloud ERP should be a hard decision. But deciding on the correct system that provides the best functionality, technology and usability can be a challenge.
According to Aberdeen, the thought of committing to a new ERP system can cause companies to hesitate. Buying a new ERP system is a major investment; tearing out an existing system and replacing it with a new one is an expensive decision.
A surprising number of small-but-growing companies do business without an ERP system in place. For these companies to develop, they’ll need to move beyond spreadsheets – but many still hesitate to pull the trigger.
In a recent survey, Aberdeen found that 49% of these companies believe they’re too small to justify an ERP system. Some 26% believe they’ve functioned well without ERP in the past, and 23% think they’ll function well without it in the foreseeable future. Respondents could choose more than one answer.
However, Aberdeen also found that the lack of ERP is holding these companies back in many ways. In the same survey, 35% of respondents said that having no ERP caused redundant data in their organizations. One-third also said their business systems can’t interact with one another, and 28% admitted that their system can’t track their company’s business processes.
The bottom line? Once your company reaches a certain size, you’ll need to implement an ERP system, such as Acumatica’s, to reach your full potential. There’s no reason to wait.
How a new ERP can enhance your business performance
Aberdeen notes that many companies that do use ERP systems aren’t achieving full value from their solutions. Among those that want to replace their current ERP systems, the top reasons cited are obsolete technology and a lack of features.
New England Tile is a company who needed to replace their existing ERP system. The company provides thousands of tile and stone options for interior and exterior home projects; owner Pat Mobilio decided to do an ERP upgrade due to the demise of their server and the lack of options from their current ERP solution. In 2013, they chose Acumatica.
“To have the kind of a system that does accounting, inventory and sales is a huge plus. To have all that functionality integrated together just makes our job a whole lot easier,” says Mobilio. “Acumatica makes us professional, modern— on the cutting edge of ERP software.”
Read more about how New England Tile’s decision to embrace a new ERP provided impressive benefits including improved connectivity, productivity, peace-of-mind due to a cloud-based ERP, and ongoing monthly savings.
Many companies are happy with their current ERP, but choose to update it anyway. In the Aberdeen survey, the top reason by far was a desire to take advantage of new functionality. For companies like these, the light is “on.” They know that implementing a modern ERP and staying abreast of the latest version is an important part of growing their business.
According to the Aberdeen survey, companies that run their businesses on the latest version of their ERP platform perform better across key business metrics including Days Sales Outstanding (DSO), complete and on-time delivery, inventory accuracy, customer satisfaction and more. Their counterparts who use outdated ERP lag in comparison.
Making the big decision to move to a new ERP platform has measurable positive impact on your business performance.
To get the full story, download the Aberdeen Whitepaper here. It’s time to make the decision to implement a new ERP or to do an ERP upgrade; grow your business and hone your competitive edge now – not later.
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