The great thing about technology is that it is always changing. However, the bad thing about technology is that it is always changing. It can be a full-time job just keeping up with latest and greatest. This is especially true when it comes to ERP systems. The following are the five reasons it may be time for a new ERP system.
1: It’s All About the Cloud
Cloud computing has brought a major shift to ERP systems. With the advent of cloud computing, companies no longer need to make enormous investments in architecture, multi-year licenses, and operations and maintenance. Today’s ERP systems are moving towards a Software as a Service model. This allows smaller companies to purchase only what they need and offload all of the heavy lifting to firms that have the required expertise to manage these complex systems.
More and more firms use mobile devices and apps to do business. As a result, it’s imperative that ERP systems can be viewed on small screens and on compatible mobile technology platforms (Andriod, iOs). It’s also necessary that certain mobile workforce apps can be utilized and can integrate with an ERP system.
3: Internet of Things
IoT is an emerging field that needs to be considered when planning for a new ERP system. Every device your ERP system interacts with should be evaluated to ensure tighter integration. Furthermore, if an ERP system can’t fully integrate with all of an organization’s various devices, including IoT, it may be time to upgrade.
Information security is making headlines every day with things like ransomware attacks freezing critical ERP systems (like the recent NotPetya outbreak that impacted Maersk and other large global logistics companies among others.) If an ERP system lacks security awareness and enhanced security measures, the system may be vulnerable to attack. Thus, newer ERP systems are better positioned to guard against new threats.
An ERP system is only as strong as its ability to integrate with other applications or software. If an ERP system can’t fully support certain modern-day applications (such as CRM software, new PoS implementations such as Square or other mobile PoS platforms, etc.) or software, it may be time to re-think the existing system.
Implementation Concerns: Learn from Under Armour
The above notwithstanding, an organization needs to thoroughly think about implementation when considering a new system. In October 2017, Under Armour reported less than desired earnings. They blamed their poor numbers on the implementation of a new ERP system. Due to issues with deployment, their ERP system negatively affected change management. This caused ripples through their supply chain and severely impacting their bottom line.
A Critical Assessment: Room for Improvement
When in doubt, consult a solutions provider for an assessment to determine if it’s time to invest in a new ERP system. They will be able to provide guidance on the best fit for your organization. In addition, a solutions provider will also craft a successful implementation strategy. This will assure the most cost-effective and best solution for your situation.