If you are waiting for time to update your ERP system, you are living by wrong assumptions because time heals all wounds except obsolescence. Therefore, do not wait! Continuously monitor your ERP systems to upgrade them to the changing needs of time and your organizational challenges and objectives.
Table of Contents
What is ERP?
From a theoretical and conceptual perspective, ERP refers to a mechanism to achieve process and information integration, thus making them lean and efficient, across the organizational strata.
Practically, this involves integration of all the business processes/functions so as to allow for real-time interaction of organizational resources and sharing of information through a centralized interface in a coordinated and value-adding fashion.
Why is ERP system important for your organization?
The efficiency, effectiveness and leanness that ERP creates in organizational processes allows for growth at nil or thinner outlays on information system and human resource.
When to change/upgrade your ERP
The decision to scrap the incumbent ERP system so as to replace it with a newer one or apply upgrades to it in view of the contemporary requirements is a blended call involving objective conclusions and subjective judgment.
Below are some of the signs you should watch for in order to decide on upgrading or replacing your ERP system.
Depreciating functionality
Loss of functionality and/or functional output in individual features of the ERP system due to technological advancements or changing business requirements harbinger a strong need for upgradation.
Erosion of efficiency
If process inefficiency is compounding, even in bits, it is time to intervene: upgrade or replace your ERP system.
Expansion Burdening Existing ERP
ERP systems are not inherently flexible and need upsizing with an increase in the size of the organization. Therefore, if you are expanding, make sure your organizational size is not stressing out the incumbent ERP system.
Absence or discontinuation of vendor support
Like any management information system (MIS), ERP needs support over the course of time. If the vendor installing the ERP system is not committing support or has discontinued it for the particular version of the ERP system that your organization is using, it is time you replace it with or upgrade it to a newer version for which support is available.
Recurring integration failures
If your incumbent ERP system is suffering from integration issues, especially for processes that have been introduced to effect strategic shifts in the business, it is a clear sign for you to go ahead with its replacement or upgradation.
Poor mobility and agility
One of the key features of strong and successful MIS is its ability to be mobile and agile, not just in terms of accessibility but also portability. If your ERP system is not friendly to a geographically-dispersed team or shift to a modern cloud-based platform, it warrants replacement or upgradation because embracing emerging technological trends is as important for a system as it is for the organization.
Lesson for the day
The contemporary times see a pandemic-hit, war-torn global economy, which makes competitiveness the cornerstone of survival. The importance of resource optimization is, thus, more important than ever before, which can be achieved through a robust and agile ERP system. However, having the system alone is not enough. Its periodic monitoring to spot any deficiencies is not just important but mandatory. Equally important is its upgradation or replacement, when required.
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