Home Blog 7 Signs It’s Time to Change Your ERP System

7 Signs It’s Time to Change Your ERP System

Jon Roskill | June 16, 2015

Are you wondering if there’s ever a good time to change your ERP system? You’re not alone.

A widely-quoted Forrester Research statistic from a few years ago showed that half of all ERP customers at the time were using old software releases; some as many as four years old or more. The reason? Most small business leaders will say they don’t have the time, personnel, or budget to take on an update to the ERP system—there’s never a perfect time to implement.

7 Signs It's Time to Change Your ERP System

Updating ERP software can look like an intimidating and expensive project, though the gains from increased efficiency and improved operations are a good long-term investment. But long-term investment is still not a great argument for making a leap to a new system. There’s a reason people stick with legacy software: Changing your core software affects the whole organization. In order to accept that the time, training, and disruption of a organization is going to be worth it, there are better reasons for making the leap to Cloud ERP Software. Here are 7 signs it’s time for a change:

1. Small inefficiencies are adding up:

Chances are good that there are more efficient ways to accomplish many of your business tasks. Tech moves fast, and the loss of efficient processes is a hidden cost, especially for non-cloud software. An outdated ERP system also increasingly redirects resources into maintenance instead of allowing you to focus that money and energy on solving real problems.

2. Business needs are outgrowing ERP capability:

You know why you bought your first ERP system—to help manage a growing company. But if incrementally increasing maintenance fees and limited-user license fees are adding up as the team’s headcount grows, you may be dealing with an ERP system that doesn’t scale well. ERP should support and streamline your team’s growth, not hinder it or generate more work.

3. Customer needs aren’t being met

Customers, suppliers, and partners expect direct access to billing, shipping, and inventory data. They don’t want to call someone to get this information and you don’t want to generate unnecessary customer service calls. Older systems weren’t designed for multiple user access and tend to be less customer-service oriented. A Cloud ERP solution can provide instant, anywhere access with real-time information. If you’re not providing that business value, your competitors might have an edge on you.

4. Your workplace dynamics are changing:

Today’s small business leaders are often working with employees or whole branches in remote locations, due to telecommuting or hiring offsite contractors. Operating with a business model that depends on a centralized office is simply not practicable anymore.

5. Employees are mobile and information needs to be, too

Leveraging the potential of this decentralized world, more and more of the workforce is doing work from mobile devices on the road, using tablets, laptops, and phones. A cloud ERP solution turns this mobility into a clear business advantage by providing a seamless transition experience from the office, to home, to mobile, and back. The cloud empowers scalability as you add employees—anywhere in the world.

6. You don’t have access to real-time information

If you have to dig for up-to-date information, it slows critical decision-making and impairs problem-solving capacity. With the Business Intelligence capabilities available in today’s data-driven business environment (Microsoft’s Power BI, Google Analytics, OData, and so much more), it’s going to be critical to add the value of interpretation and curation to that information. You need to know what parts of your business are working and what aren’t—and you need to know fast.

7. Your ERP isn’t keeping up with changing regulations

Tax rules (and other industry compliance regulations) change every year, if not more often. For many businesses, compliance demands are constantly shifting. The Cloud enables ERP to keep pace with changing compliance information. Legacy ERP solutions simply weren’t built for agile business pivots; what would happen if your company hit a sudden demand or opportunity to expand? Would your ERP system scale to meet change?

Admittedly, I’m a little biased, but if you’re a small business leader looking for a way to really make an impact in your overhead, scalability, and growth potential, this is a great time to research Cloud ERP Software and consider the leap. With the time and efficiency gains you’ll almost immediately see, as well as freeing your IT team from the time and cost of maintaining legacy ERP software, you’ll be able to sharpen your focus and shift your budget to mission-critical growth goals.

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Senior Advisor at EQT (Former Acumatica CEO). Passionate about sports, family, community and Cloud ERP with & thru the channel!

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