Is Your Current ERP System Holding You Back? Here are 4 Reasons to Upgrade Your ERP

There’s no shame in embracing tradition. But, if your business is suffering as a result of a legacy ERP system, then it might be time to upgrade your ERP.

Enterprise resource planning (ERP) systems are the backbone of running a successful business, so you can’t rely on outdated systems and processes to get you by.

Technology is always evolving, and it’s important to adapt in order to get an edge on your competition. Plus, modernizing your business helps maintain efficiency, so it’s a win-win.

Before we dive deeper into the reasons you should upgrade ERP systems, let’s get a better understanding of how legacy ERPs differ from modern ERPs.

Although they were once an innovative solution for businesses, legacy ERP systems are outdated in the modern business world. The main function of legacy systems was to streamline business processes, but now they are less effective in doing so.

These systems don’t quite fit the business needs of today because they rely on traditional servers and proprietary programming which has since become obsolete.

Most ERP systems have an average lifespan of about 5 to 10 years, but many companies today are using systems with an average age of about 20 years. So, it is most likely that these companies struggle with antiquated technology.

Do you know the saying, “modern problems require modern solutions”? Well, that perfectly encapsulates the development of cloud-based ERP systems. As technology grew more advanced, a new type of system needed to be created to stay up-to-date with modern business requirements. So, in comes a cloud-based solution.

First launched in the late 1990s, cloud-based ERPs eliminated the need for on-premises systems. Since the system works through the web, important data can be securely accessed with any device simply through an Internet connection.

So, now that you know the difference between a legacy system and a cloud-based system, we can discuss the signs that you should look for when your ERP needs an upgrade.

Having an outdated ERP system is not the end of the world, but it can definitely hinder the productivity of your business. So, if you can relate to any of these issues, you should consider an ERP upgrade.

1. Can’t Adapt to New Technologies

As we mentioned before, it is important to be able to adjust to the changing business environment. If your current system can not adapt to the new technologies that improve your efficiency, then your business might suffer.

Technology is continuously advancing, and you should have a system that can take on those improvements. Embracing the flexibility of these technological advancements is a great business tactic. Mostly, because it ensures that you stay one step ahead in your industry.

2. IT is Overloaded With Responsibilities

Your IT team is usually responsible for the maintenance of your ERP system. So, they already deal with the day-to-day functions and try to ensure everything runs smoothly.

Unfortunately, legacy ERPs can put a lot more stress on IT teams. This is because they have to make up for the areas where the system lacks. When they have to work around the system and create manual shortcuts, it puts a lot more work on their plate.

Overloading your IT with responsibilities can suck your resources dry, and it makes expanding the team very difficult.

3. Lacks Modern Capabilities

Sure, your current ERP system may be getting you by, but it might be lacking the necessary capabilities you need to stay ahead of your competitors. If the system does not have the ability to integrate or customize to your business’s specific needs, then your ERP is not maximizing the efficiency of your company.

When you need to add new features to your system but face roadblocks because it can’t handle the integration, this inflexibility can cause problems that interrupt your organizational processes.

Having a system that can easily integrate add-ons and create customizations is extremely beneficial because it contributes to a long-term ERP solution.

4. Immobility Hinders Business Operations

Legacy systems are great for static businesses that strictly work in an office with on-premise ERP. But, the reality is that it’s 2022, and mobility is a priority.

Some industries need to be able to access important information from anywhere, so legacy on-premise systems are simply not practical. Immobility hinders productivity because employees have to wait to receive data from the proprietary system, and this causes business delays.

The benefits of a cloud-based ERP system are numerous, and they are especially helpful for certain industries that require instant access to real-time data or high levels of security, like security providers.

Here are some of the main benefits of switching to a cloud-based ERP system.

Better Growth Opportunities

With a system that is scalable and adjustable, you don’t have to worry about continuously upgrading your software to fit the ever-growing needs of your company. A cloud-based system will allow you to expand your team and improve overall performance.

Reduces Upfront Costs

Cloud ERPs work through subscription-based packages that streamline all of your business processes. That way, you are not having to pay for multiple software programs for managing accounts, inventory, finances, etc. You pay for one system that combines all of your day-to-day procedures.

Insightful Work Management

As mentioned above, a cloud-based ERP streamlines all of your processes. So, you can oversee every aspect of your business and choose who has access to what information. It also helps you manage your projects easier and can accurately forecast demand to reduce purchasing costs.

If the costs of maintenance, support, and manual processes are holding you back, then it is about time you upgrade your ERP.

We want to help make your life easier with Khameleon’s cloud-based ERP software. Our ERP systems are designed exclusively for project-based businesses.