An Enterprise Resource Planning (ERP) system is an enormous boost to the productivity and profitability of any business at any scale. It manages sensitive data, increases organizational transparency, and streamlines the business process, thus effectively reducing lead time and operational costs. Simply having an ERP system, though, is not always enough.
A dated system could stunt business growth, jeopardizing the productivity and profitability of your business. An enhancement, then, is a sensible next step for your organization.
Systems That Fall Behind Could Slow You Down
Let’s say you have a perfectly working ERP solution that helps your workforce get the job done efficiently. It doesn’t show any signs of slowing down, you think, and so you decide that it can skip an upgrade and save your business some capital, but you overlook the fact that while the software isn’t slowing down, there are software upgrades that can speed up your business process.
That’s not to mention the fact that pushing back the necessary upgrade would just make the costs pile up. Technology will continue to evolve, and compatibility will become an issue.
The longer you delay a system enhancement, the more your current system will miss out on lucrative opportunities. It will hamper your business’s efficiency and affect its projected return on investment (ROI) in the long run.
Generating Redundant Data
All businesses start small; it’s only a matter of time and effort before you reach your full potential and expand. Nevertheless, many small-but-growing businesses are hesitant to upgrade—or implement, even—ERP software because they started and got used to transacting and tracking data without it.
As your business grows, the data you handle grows alongside it. You will face challenges regarding unstructured data, which your ERP system has no control over. Your organization will also struggle with structured data, which the system processes. Without meticulous data management, your organization will have to deal with duplicate data.
Duplicate or redundant data will take up space in your system, slowing down processes. In time, this will affect your business’s competitive edge. A software upgrade can prevent this outcome.
When you have a system that seamlessly integrates the different aspects of recordkeeping and data processing, from sales to inventory, it gives your business an edge. It enables your workforce to dedicate their efforts to actions that drive tangible results rather than on trying to keep sensitive company data up-to-date.
If you are on the fence about upgrading the system, think of it this way: the outdated technology may just be the only thing hindering your business from generating better profit. The upgrade could process data more efficiently, giving you a better business outlook.
SAP vs. Oracle Case Study
SAP and Oracle both invest heavily in cloud technology. However, our client was skeptical about cloud scalability and unsure if the products were mature and proven.
Getting Behind Schedule
You can check whether your ERP system is performing well through a series of key business metrics. Data and inventory accuracy is one way of determining the system’s functionality.
On the other hand, the complete and on-time delivery of reports is a measurable way of determining your business’s general performance.
An ERP system acts like a live diary that takes note of the different operational aspects of your business, gathering information you can use to improve the business process.
A dated system might have some difficulties keeping up with your growing business demands. It might have difficulty processing information if it does not support existing technology or is not compatible with other systems. As such, it could set back operations and affect your overall schedule.
Delaying system enhancements will prevent your current system from operating to its maximum capability. It just deprives your system from features that can speed up the process and potentially get you ahead of schedule.
Don’t worry about enhancements terminating jobs in your company—people still need to operate them, after all.
Know When Your System Needs an Update
When did you last have an ERP system update? This step does not refer to the occasional patching up of glitches with the system. Rather, it refers to the actual enhancement of features that unleash an entirely different level of productivity from the software.
Consider investing in new software features if your system is struggling with next-generation technology and related systems. You might just be wasting time on irrelevant data, limited access, and stalled growth if the system is not in line with external technologies that it works hand-in-hand with.
You can also consider updating your system if low productivity is evident among your employees.
They could be spending more than necessary time on trying to operate the system, access stored data, or verify whether the operational process is efficient. These factors could distract them from drawing up on implementing strategies for your business’s overall profitability.
ERP does not have an expiration date, but system lags and glitches are enough to tell you when you seriously need system enhancements. It will improve productivity by providing easier access to accurate data, increase organizational transparency, and reducing lead time.
It could even reduce your company’s spending on the business process and related operations.
Delaying System Enhancement Stifles Productivity and Profitability
ERP system enhancement is one way of allowing your business to grow without expanding your workforce. It improves the way your company processes data and takes on repetitive yet necessary backroom tasks, even with heavy workload. This is because developers, who are aware that many businesses rely on such software, build up on existing features to handle greater tasks in a more efficient manner.
You no longer have to add people to the company to take care of crucial yet mundane tasks that your ever-growing business requires.
The system can handle it.
As such, current employees who are already well-versed with the ins and outs of your business can focus on expanding profitability and generating higher ROI. Their enhanced productivity, then, enables your business to remain competitive in the market.
Outdated software could make your business fall behind—don’t wait for this to happen. If you want to find out why investing in an ERP system enhancement is particularly beneficial for your business, take advantage of our obligation-free consultation and talk to us today.