When is the right time to upgrade an ERP system?

Keeping an enterprise resource planning (ERP) system up to date is critical in maintaining an effective business process. Upgrading an ERP system can be just as daunting a task as selecting one, probably even more challenging. That is because with an upgrade so many things need change and so many pieces are changing at once. But, how do you know when the right time to upgrade is? How do you know if your current ERP system works just fine? Also, what are you upgrading for? These are just a few questions you need to consider when dealing with your ERP systems. Experts from SMC (formerly Solution Minds Consulting) outline some key questions in an article on consultancy.com.au that decision makers should ask themselves to understand when the right time is to upgrade their current ERP systems.

Is your business growing or going through change? “There are several critical events that signal when a business is ripe for upgrading their ERP systems. The most obvious is when an organization is experiencing significant growth or change. A scalable ERP platform will support profitable future growth – meaning you won’t need to increase headcount at the same rate as revenue growth.”

Are you keeping up with your competitors? “If your systems are not up-to-date and lacking in what are now standard features available in newer technology, you will be denied the associated competitive advantages.”

Has your vendor stopped supporting your current technology? “The enterprise software market is rapidly changing and sometimes when a vendor has sold their product there is a sunset clause and you are pushed to ‘upgrade’ to their flagship product, which may not be the best for you. These are signs you need to bite the bullet and take the necessary steps to evaluate your options and potentially upgrade your business systems.”

Are legacy systems expensive to maintain? “Legacy platforms are expensive to preserve and costs will continue to grow over time. Often it is very difficult to find people who can program old code and developers of today are mostly averse to working on antiquated technology when so much more modern technology is available on the market. Decision makers should be asking the question: if legacy software breaks down under a heavy load, how might the business be affected and specifically, can they afford not to upgrade?”


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