January 6, 2015
It takes many resources and a lot of time to go for an ERP system and once it gets installed it is not easy to swap out lightly. Each and every system has life span and you need to replace it when it reach the end of its usefulness. You need to observe the happenings with your ERP system closely and then decide when to make a change.
Some signs which let you make a move towards new ERP system are:
1. Last system was installed 5 or more years before
If your system was installed 5 or more than 5 years ago then you may be missing out on a lot of new features which can be beneficial for your business. It is important to note that this factor is not true in all cases and if your ERP system is working fine for you then there is no reason to go for a new system.
2. Support is not offered
Sometimes it becomes hard to get the support both from third parties and from vendor if system is too old. Support is vital for efficient working of an ERP system so you need to make sure that if there is lack or support or poor support then there is a time to go for a change.
3. People who installed it are not available
If the knowledge base on the system has lost as people have left then it is very difficult to keep system running at the top performance. If this happens then you need to think seriously about going for a change.
4. Workaround Increase
Sometimes a system cannot do what you want it to do and if you start reporting on spreadsheets then it is clear that it is time to look for a new ERP system as your ERP is not functioning properly.
5. You Are Not Getting Reports Timely
Reports are extremely important in ERP and you need reports on daily basis. If your system can only give you a weekly summary then you need think about replacing the existing system.
6. Trouble in meeting the customer needs and expectations
Your ERP must allow you to service your customers efficiently and if your customers ask for something which you cannot give to them due to lack of functionality in your ERP system then you must start thinking about having a new and better ERP system.
7. Vendor Increase support cost too much
Vendors sometimes raise the cost of support when products approach towards the end of life cycle and if the cost climb steeply then you need to start looking for a new system.
8. Vendor merge or stop its business operations
If company that sold you ERP merges or close its business operations then it is likely that you will be left high and dry and you must switch to a modern system before it’s too late and your business start getting affected badly due to unavailability of modern ERP system.
It is obvious that a lot of efforts and pain is involved to switch towards a new ERP system but there is more pain to keep struggling with an outdated and insufficient system. You need to make a quick and efficient decision at the right time before an outdated ERP system start hurting your business growth badly.