The number one stigma of ERP systems is the cost. It is also the number one reason a business feels held back from purchasing ERP. In a recent study, a majority of businesses responded that they know they should update their ERP system, but they have no plans to do so in the future. The number one reason these businesses were hesitant to tackle an ERP upgrade was because of the cost. Although this is completely understandable, it doesn’t always make sense. Not investing in an ERP upgrade can actually increase costs in the long run do to a loss of efficiency and competitive edge working on an old system. We’re going to cover the three ways you will lose out by not performing an ERP upgrade.
Technology Gets Better
ERP has changed dramatically over the recent years, offering more functionality and different options of deployment and storage. By not taking advantage of an ERP upgrade, you’re missing out on staying in the competitive race with other businesses in your industry. If other companies are using the functionality of newer ERP systems to their advantage, your old system will not be able to keep up. Further, if you decide to add any new software or applications to your old and outdated ERP system, chances are you won’t even get full functionality out of it.
Cost is Key
Your ERP system may not be broken, but it may not be giving you the efficiency you need either. A brand new ERP system may seem costly at first, but skipping out on an ERP upgrade may be more costly in the long run. When so many companies are trying to do more with less, new ERP systems are keeping up with this state of mind, helping to leverage efficient processes. An outdated ERP system may have a huge hit on your operating budget.
Loss in Security
As technology gets better, so do the people searching for your critical information get at finding it. Your old ERP system may have had great security options when you first bought it, but security measures need to be increased. Imagine how much a security breach would cost your company. A newer ERP system has the best security measures to keep your business away from risk.
When it comes down to the bottom line, an ERP upgrade could actually save you money. Allowing your operations to slow, customer relations to wither and sales decrease all because ERP is a large investment doesn’t make much sense. Everyone is leveraging technology as a way to increase business, and you don’t want to get left behind.
There is no one-size-fits-all and you have to do some research to find the best ERP solution for you. Read more here.