The 7 most important reasons to upgrade your ERP system
Are you questioning why you should upgrade your ERP system to a newer version? Here are the 7 most important reasons why customers decide to upgrade according to a Microsoft Dynamics NAV customer survey on upgrading amongst customers worldwide.
1. Higher quality systems
There is no doubt that information systems are evolving rapidly. Ten-year-old, or even five-year-old software can already be outdated. The quality of ERP software continues to grow rapidly and top quality is what we are all looking for. The better your ERP system is, the better you support your business and the more successful you will be.
2. Better performance
Performance is always an issue when it comes to ERP software. That is, because performance issues can be complicated. Is a problem caused by the software? Is it a server issue? Are the connections poor? Over time, performance issues with ERP software arise more frequently and cause more trouble. Upgrading to a new and modern ERP solution and checking the complete IT environment can improve performance.
3. Higher user productivity
To make your people do more in less time is one of the most important reasons for companies to upgrade their ERP system. Less time on administrative work, quicker insight into crucial data, or simply a more pleasant job with the new software. It all results in more satisfied and more productive employees which ultimately drives your business results.
4. Higher process productivity
ERP software supports business processes. When upgrading your system, you take a critical look at your business processes. Most software vendors will even start with a diagnostics phase to analyze your process flows and how these can be automated by the software. In the new system you seek to streamline your processes as well as to support processes you previously did manually or in a less efficient application.
5. Better integration in company
If your organization uses more than ten different software applications across all departments, you are not an exception. Some of these stand-alone solutions can easily be replaced by one ERP system. It ultimately leads to more cohesion and better cooperation throughout the company. Sales knows what rental is doing, administration knows what is going on at service, etc.
6. Better integration to other software
A better integration between ERP and other software applications can bring great benefits. Think for instance about the integration with a field service solution, a CRM application, a web portal or the systems of your suppliers, customers and partners. It will make daily operations much easier.
7. Lower IT costs
Although an upgrade of your ERP system is an investment, it can also lower your overall IT costs in the end. That is actually because of the reasons mentioned above. You let go of outdated technology that fails from time to time, your performance goes up, you improve on your processes and productivity and you get one integrated complete solution.
You can do a simple ROI check for your organization. Calculate yourself how much you expect to benefit from the new system directly and indirectly, and compare this to the investment, monetary and in resources.
Philip van Kemenade is marketer at Dysel and is in contact with software end users every day.