It’s easy to get stuck in your own ways. Organizations stuck on old, outdated legacy systems often deal with the pain of manual and inefficient processes for years before they finally make a change. Our average client has been using their current system for 12 to 15 years – dealing with pain and inefficiency building over that time.
Employees often aren’t in a huge hurry to change anything. Much like a frog in boiling water, they simply get used to the challenges and limitations of their old systems. It often takes an outside perspective to provide a wakeup call or some sort of operational emergency to force the company to change. However, good business sense suggests that earlier is better when determining timing for a new ERP system.
Assuming you foresee a new enterprise solution in your near future, here are five reasons detailing why selecting and implementing a new ERP system makes more sense to do NOW instead of later:
- You are leaving too much money on the table. Chances are, your organization is wasting a lot of money on inefficient business processes, poor customer service, employee stress and turnover and other hard-to-quantify but not-so-hidden costs of broken legacy systems.
- There are too many good ERP software options available. Back when you chose and implemented your current ERP systems, you probably didn’t have a ton of options, and you definitely didn’t have as many options as you have now. SaaS ERP systems, niche solutions, best of breed software and two-tier deployment models are just a few examples of the variety available to enterprise software buyers. The other good news? Along with this proliferation of options comes lower costs and more financial flexibility that ends up translating to a better return on your ERP investment.
- Your organization can’t grow or scale effectively without a new system. Most organizations are struggling to find sources of growth and don’t need any additional headwinds to slow their progress. Even when demand for your product or service is strong, the last thing you need is an operational framework that can’t deliver to that demand. Think about how a new ERP system – along with more efficient business processes and employees – would enable your organization to scale and grow faster.
- Your operational breaking point is probably just around the corner. We occasionally work with the unfortunate client that has waited too long to remediate their enterprise solutions and the results typically aren’t pretty. Although the pressures and limitations of your current system may have been survivable for some time, you will eventually reach a breaking point where you simply can’t continue with the old system. By correcting this situation you can avoid putting your team under the gun to implement a new solution quickly, which doesn’t allow for the timely transition that you need.
- Morale and productivity is suffering. The stories of what people deal with in their current working environment may border comicality at points. However, these pain points undoubtedly have a very real impact on your overall employee morale, which is inevitably undermining your bottom line. Everyone’s morale and job satisfaction – including yours – will increase exponentially once you have a new ERP system in place to address some of those issues.
The bottom line: if you know you’re nearing the end of your current system’s lifecycle, then getting started on a replacement initiative now will increase your bottom line, allow your company to grow and mitigate risk. In addition, it will give you and your team ample time to take the time necessary to select and implement the best ERP system for your organization.
Learn more about preparing for your ERP transition by registering for our webinar tomorrow, ERP Software Selection Success: 10 Tips from the Pros at Panorama.