Organizations stuck on old, outdated legacy systems often deal with the pain of manual and inefficient processes for years before they finally make a change.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 inefficiencies building over that time.
Employees often aren’t in a huge hurry to change anything. They simply get used to the challenges and limitations of their old systems. Initiating change often requires an outside perspective to provide a wakeup call or some sort of operational emergency to force the organization to change. However, good business sense suggests that earlier is better when determining timing for a new ERP system.
Assuming you foresee new ERP software in your future, here are five reasons why selecting and implementing a new ERP system makes more sense to do now instead of later:
1. 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.
2. There are too many good ERP software options available. Back when you chose and implemented your current ERP system, you probably didn’t have many 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 what is available to enterprise software buyers. Along with this proliferation of options comes lower costs and more financial flexibility that translates to a better return on your ERP investment.
3. 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.
4. Your operational breaking point is probably just around the corner. We occasionally work with the unfortunate client that has waited too long to replace their enterprise solutions and the results 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 time for change management or business process reengineering.
5. Morale and productivity is suffering. The stories of what people deal with in their current working environment are sometimes comical. 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.
If you know you’re nearing the end of your current system’s lifespan, then getting started on an ERP implementation now will increase your bottom line, allowing your organization to grow and mitigate risk. In addition, it will give you ample time to select and implement the best ERP system for your organization.