Your ERP system is a crucial, vital, “can’t-live-without-it” asset. From product planning, to purchasing, to supply chain strategy, if your ERP isn’t performing the way it should, every aspect of your business will feel it. So how do you know when it’s time to pull the trigger on a new ERP system and make such a sizeable upgrade? There’s a lot of noise out there and a lot of people trying to sell you different solutions. Luckily, we’ve put together two new (free!) guides to help you decide when the time is right for you.
When is it time to replace your ERP system?
There is no one-size-fits-all solution. What’s right for one company may not be right for another. You have to know your company and know your processes. This guide goes much more in depth, but here are just a few warning signs that your current ERP system might be past its prime, or nearing its expiration date.
- It does not support the needs of the business (lacks functionality, is hard to use, response time is too slow)
- Operating costs are too high
- You rely on spreadsheets to get things done
- Executives get little useful insight from the system (lack of dashboards, self-service BI, or they are difficult to use)
Maybe you’re looking at the guide and thinking, “OK, several of these hit way too close to home. My ERP does lack functionality, our operating costs are through the roof, and we have so many excel spreadsheets we can’t keep track of them all.”
What does a new ERP system actually accomplish?
- Increase sales and improve customer service
- Improve cash management and reduce outstanding receivables
- Reduce purchasing and production costs; increase efficiency
- Improve inventory turnover
- Better utilize people, equipment and materials
Should I move my ERP to the cloud?
Okay, so you’re ready to replace your worn out, decrepit ERP system with something new, dynamic, fresh, and efficient. Now for the next big question: Is a cloud-based ERP system right for you?
Cloud computing is part of nearly everybody’s digital landscape. From Google Drive to Dropbox, from SalesForce to AWS, cloud computing isn’t just for personal computing any longer. But how do you know if an ERP fully hosted in the cloud is right for you? Why should you forgo the traditional on-premise ERP system for a cloud-based approach?
We’ve put together this guide to give you a few things to consider when deciding on a cloud-based system. Though not exhaustive, here are a few highlights.
Remember, cloud computing is a deployment option, meaning it is a technology decision that may have a profound effect on your IT department, but with the goal of not directly impacting the users of the system. When done right, the system being deployed in the cloud is “invisible” to the system users. Your users shouldn’t even know that it’s there. The ideal piece of technology is one that users are largely unaware of.
Also, as highlighted in the guide , when selecting an ERP system, choose the software that’s right for your company, and only then consider deployment and infrastructure options. Most ERP solutions are available in a variety of deployments including cloud and on-premise, but some are only available one way or the other. Making the deployment decision first limits your choice of software, when it should be the other way around.
For more information on a cloud based solution, be sure to check out the free guide.
As we’ve stated, your ERP system is the heart of your business, and nobody looks forward to a heart transplant. However, in the long run, you’re setting your company up for success later, by investing in a dynamically functioning piece of equipment now.
For more information on cloud-based ERP systems, be sure to visit Acumatica.com, and download both of the guides mentioned throughout this post.