Don’t Ignore the Warning Signs that You’ve Outgrown Your ERP System

There are four signs that you’ve outgrown your ERP system. The first sign is that it has limited functionality. Second, your ERP system is neither user-friendly nor intuitive. A third sign is that your support costs are growing ever higher. Finally, you can’t connect to all of the data that you need.

It’s easy to ignore these signs. How many rationalizations have you come up with to justify not investing in a new ERP system? “It still works. The ERP system isn’t broken. We can still afford these support costs… for the time being.” Read on to learn why these signs are too important to ignore, and what the consequences are for not updating your ERP system.

Old ERP Systems Kill Productivity

Many companies make the mistake of treating their software solutions as cost centers. Yes, you have to spend money on them. However, software is more than an expenditure – it’s supposed to be a business enabler.

Or at least, it would be a business enabler if it allowed you to be productive. Out-of-date ERP systems don’t enable business. In fact, they can actually bring the flow of business to a screeching halt. When you can’t connect to a vital data source or your ERP system isn’t user-friendly, your employees aren’t productive. And that ultimately hurts your bottom line.

A Hidden Security Risk

There’s a further danger to using an out-of-date ERP system: employees will find a way to work around it. And there’s no guarantee that the workaround they create will be safe.

Frequently, employees don’t see anything wrong with using cloud services in their work and personal lives. Unless those cloud services are enterprise grade, though, they’re not secure. If your employees are using an insecure cloud service or another type of workaround, it’s most likely vulnerable to hackers. Your valuable, vital proprietary information could be up for grabs.

A Drain on Your Finances

In addition to the productivity losses associated with out-of-date ERP software, there’s the issue of how much money support costs. The older your ERP system is, the more you’ll spend on support costs.

It’s not within the best interests of software vendors to continue supporting old products when they can introduce new products and reach a greater market. They raise the cost of support further and further until their customers decide it isn’t feasible to pay for it any longer.

If you think that support costs are getting out of hand, don’t worry – eventually, the software vendor will stop supporting your ERP system altogether. While it will save you money, it also means you’ve got no choice but to purchase a new ERP system.

An ERP system can give you a competitive edge and allow you to discover ways to become more efficient… as long as you have the right one. The best ERP systems have lots of functionality, are user-friendly and intuitive, have low support costs, and connect to many data sources. If those terms don’t describe your ERP system, it’s time to switch.

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