Whether or not to upgrade your ERP can be a daunting decision. The upfront cost versus the ROI can be intimidating, and, understandably it could feel safer financially to put it off just a few more months or years (or for as long as you can get away with not upgrading). But what happens if you don’t upgrade? Understanding the obstacles you may face in both the short and long term is important.
If you choose to stay with your current ERP, what are you keeping and more importantly, what vital features might you be overlooking? Although the philosophy of “if it’s not broken, don’t fix it” might seem like it will serve you well on the expense sheet, it may actually cost you dearly on things you have not yet considered. Optimal functionality, agility, integration and the ability to adhere to regulatory compliance issues can make or break the success of a business and greatly affect profitability. However, at first, the pros and the cons may appear to be too close to see an advantage from one over the other.
- Let’s take a quick look at staying with your legacy ERP system:
- Financial – no additional costs by not upgrading
- Employee training – everybody already knows the system and can do their job
- Continuous processes – no interruption in day to day functions
- It’s been customized for your business
These all seem like good reasons to stick with what you’ve got for as long as possible. But that mindset can be very deceiving.
Through a financial lens, ERP upgrading can be expensive, and ROI may take a little time, perhaps longer than makes you comfortable. However, the cost of not having an up-to-date, reliable, software driven system may end up costing you more than you think.
What Can Go Wrong If You Don’t Upgrade?
The support that you currently receive will most likely begin to cost you in fees as the system becomes older and more limited. At some point in the near future that support will cease completely, leading to potential problems. How much will a rescue cost?
You may not have considered whether modifications will be needed for basic functionality. Each of those modifications can be costly and also interrupt workflow. Additionally, they may not be able to keep up with the expectations of customers who are looking for easy interaction with you. Eventually those modifications can also run out of functionality, so not only did they cost you, but they eventually become ineffective.
Security is also at risk of compromise. As systems age and become obsolete, so do the security protocols that protect data. Newer systems have built in protections for keeping data safe and continuous monitoring.
Benefits of Upgrading
Knowing your business is in regulatory compliance is a huge advantage of an upgraded system. Visibility and transparency in your business processes are imperative, and a cloud-based ERP like Microsoft Dynamics 365 further ensures compliance through automation and real-time data, which in turn curtails time and money spent on auditing.
A cloud-based ERP allows for better data security because there is continuous monitoring making it more difficult for an attack to occur. A streamlined single input reduces conflicts compared to a system that has to consolidate data from multiple systems.
The streamlining of business processes and operations helps reduce error and improve efficiency and productivity. Results are dependable and consistent which allows for increased performance.
And although employee training may take some time, when paired with an upgraded ERP, your employees are growing, which can translate into business growth. Better functioning processes and ability to meet customer needs will outweigh the perceived safety of the legacy system.
While employee training will admittedly take some time, it is an investment in both your employees and your business that will reap rewards.
While an ERP upgrade may seem overwhelming, finding the right vendor will go a long way to easing your apprehension. The CuroGens team has collectively upgraded hundreds of AX systems and focuses on giving its customers the highest level of functionality and productivity with the lowest TCO. Ready to hear more? Contact us at firstname.lastname@example.org.