Seven Reasons to Replace Your ERP System

Your ERP system is a vital backbone of your business. You need a system that provides the functionality necessary to run the business, is easy and convenient for the users, and delivers a competitive advantage. The system you have in place today may not be meeting those needs or may not be able to support the growth and innovation that are part of your company’s future success.

Here are 7 reasons to take a serious look at replacing your current ERP system with one that is better able to support your company’s needs:

1. The current system lacks function, is hard to use, slow, and/or inflexible. These are probably the most obvious reasons, and companies experiencing these kinds of issues should not hesitate to find and install a replacement system

2. Operating costs are too high. Older system can get increasingly expensive to operate, especially if the software is no longer supported by the developer, the hardware is antiquated and increasingly unreliable, or if there are a lot of modifications (made to overcome limitations mentioned in the first bullet).

3. It doesn’t support current business needs like web sales, collaboration or business intelligence.

4. Your people rely on spreadsheets to get their jobs done. This is a big red flag. If the function can’t be accomplished within the system (or usability is lacking so it’s perceived to be easier to use spreadsheets) you are not getting the benefits you paid for and the system is not supporting your business needs.

5. You lose business to competitors because they are simply easier to do business with or their customer service is better. This may not be entirely the fault of the system but the system may be hampering or limiting your effectiveness in pleasing the customers, answering their questions, or delivering products on time.

6. Your company is growing or changing faster than the system can support and you need better control of your processes. When new processes and technologies start showing up in your market, do system limitations prevent you from moving forward against the competition? How long does it take your ERP supplier to add new functionality?

7. Decision-makers are frustrated by lack of easy access to the information they need about the business, sales and markets.

A properly selected and implemented ERP system should be an enabler, not a preventer of efficient and effective operations and market-leading customer service. You can’t afford to let an inadequate ERP system hamper your business. If your current system is not the solution, it’s the problem.