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New ERP System-If employees in your organization regularly have to spend mind-numbing hours manually entering information into an outdated enterprise resource planning (ERP) system, it’s possible you’ve forgotten the reasons, such as efficiency, why the business invested in the ERP in the first place.
Often described as the backbone of a business, ERP systems capture and connect the data that powers your industrial operation.
An ERP is a significant investment. Not only are there perpetual licensing or subscription costs, but businesses must pay for implementation costs, including customizations and training, and ongoing costs such as customer support, IT staff, and maintenance. It’s little wonder, then, that the decision to replace an industrial business’ ERP system is not taken lightly. Like all technology, ERPs can become outdated and can end up hindering rather than helping your organization reach its goals.
Here are seven ways to tell that your ERP system is outdated.
1. It Isn’t Cloud-based
A 2019 report by Aberdeen found that “on-premise licenses are giving way to cloud-based ERP platforms that can offer a more easily integrated solution across all entities and provide ready access to new technologies.” Aberdeen found that the top four reasons companies choose a cloud-based ERP are:
- Standardization onto a single system for multiple entities
- Collaboration needs across multiple locations
- Difficulty recruiting IT staff
- Dated technology infrastructure limiting the organization
Aberdeen also noted that ERP users expect that moving to the cloud will give them access to the “always up-to-date-economy” with ongoing updates and technical support.
2. It Isn’t Mobile
If you’ve ever had the experience of someone saying to you, “Sure, I can get that information for you, but you’ll have to wait until I’m back at my desk,” your ERP was likely built before the rise of smartphones, or you use an ERP with a mobile version that isn’t as comprehensive as the desktop experience.
Outdated ERP systems can be the key factor holding organizations back from achieving full mobility, hampering flexibility and efficiency. While just about every modern ERP will have mobile functionality, some are simplified versions of the full offering. It’s therefore important to find out if there are any key features that can’t be accessed via mobile.