Is your ERP Software clock running out?

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Change is inevitable and this holds true for ERP systems too. However, timing the change is not easy. It mostly is when meaningful processes in the ERP software are absent in an organization or it is using obsolete technology which hampers business efficiency. Lack of right technology will affect day to day functions, there by affecting planned business operations and thus dampening the growth of the company. According to industry experts, desired ERP software lifecycle in a company is between four to six years.

Mentioned below are some of the pointers that indicate that it is about time a new ERP life cycle starts in the company:

  • Primarily, the ERP software should support the strategic program of the organization like becoming leaner, helping in growth, or offering better customer support and easy collaboration with suppliers. For instance if people are working out of an ERP system for processes that should have been part of the ERP system, then it is not a good sign for the company. The company had implemented an ERP system in the first place with an aim of profitability and growth and this is entirely defeated in this case. An ERP system that efficiently uses customer centric processes will provide excellent customer service and this is an extra edge to one’s business. This is an important differentiation in business and absence of this support directly implies that the business is suffering.
  • The environment in which an ERP system operates plays an important role in its lifecycle. An organization needs to change its ERP system much earlier if it is working in a dynamic environment as opposed to working in a slower environment. To sustain in an aggressive environment, the system has to be agile and flexible to meet the demands of the business and if these features are not there, the ERP software most definitely needs to be reassessed.
  • Replacing an ERP project is a huge task both financially and operationally. So, it is always suggested that the next time your ERP clock runs out, one has to ensure that the next implementation has a longer lifecycle. For this choosing an ERP system that has features including scalability and flexibility will help and thus it is important to choose the right vendor who will invest in the right technology going by changing times and help the company achieve its long term objectives.

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