Are you questioning whether your company would benefit from moving to a new ERP system? Switching ERP systems is a big undertaking, one not to be taken lightly; but there are real scenarios that signal that a switch is not only beneficial, but absolutely necessary.
Following are 5 questions that will unequivocally help you decide if you truly need new ERP.
- Does your ERP lack capability your company needs?
Just because you have an older ERP system, does not necessarily mean you need to get a “new and shiny” version. However, if your system is more than 10 years old, it is possible that your business is missing out on important capabilities such as: real-time data access and AI integration among other business opportunities that come with new ERP technology.
- Are upgrades difficult or nearly impossible to implement?
Often, the older a system, the more likely it has been customized. In past articles, we have discussed how these new updates could potentially cause crashes in your system. Because of this, whenever a new software update rolls out, someone in your company must identify every single customization to ensure the system will not crash once the update is completed. Excessive customizations can make an upgrade to your system pretty much impossible, and it is simply more cost effective to implement a new system.
- Does your company need better data integration?
Most modern businesses also use CRM, accounting, marketing automation, and other applications to seamlessly run their company. If these systems are not already integrated, it greatly hinders your ability to make decisions based on real-time information to monitor your operations. Some companies opt to use ad hoc integrations, but this creates opportunity for breakdown and must be constantly maintained.
- Is your data messy?
The longer an ERP system is in place, the greater chance that there is duplicated and outdated information in your system which could date back years. Switching to a new system means that you will have to eliminate the duplicated data to ensure you are importing only what is needed into the new ERP system.
- Does your current ERP prevent change and improvement?
If your company is planning on expanding into the market share, a new ERP system should definitely be on your radar. Take a look at the goals of your business. If these goals include using real-time data, integrating new technology like IoT, or even offering mobile access, a new ERP system will be beneficial as older outdated systems most likely cannot support these goals.
After answering these questions, there is one last question that you need to ask. Will your company be able to successfully complete the implementation? Implementing a new ERP software is not as simple as pressing a button and being done, it requires much planning, thought, decisions, and work to implement. When replacing your software, you will want to evaluate different solutions to find the right fit for your company. Then, you must “clean house” by cleansing data and do business process improvement. Only then are you ready to implement the new software.
- Identify opportunities for performance improvement
- Help establish priorities based on the magnitude of the opportunity versus the effort needed to achieve it
- Provide an objective “Level of Use” analysis
- Improve overall use
- Better alignment of business processes to corporate objectives
Godlan’s Professional Services Organization (PSO) will assess and analyze the ERP implementation and software usage at your company by major functional area: Purchasing, Sales, Shipping, Production, Accounting and IT.