When is it the Right Time for a New ERP System?
If your business is continually challenged by broken or outdated processes that are causing inefficiencies and keeping your business from moving forward, then it’s probably time to consider investing in a new Enterprise Resource Planning (ERP) system. How do you know when it’s the right time for a new ERP system? Is it now, or can you push the decision out another quarter or two, or year or two?
Every business is faced with their unique set of challenges, and when these challenges cumulate to inefficiencies or the inability to meet expectations, then it’s time to begin researching new ERP systems. The signs may be coming from multiple areas of your business and after a while it may become quite obvious that your ERP is no longer keeping up with your current requirements. If any of the below scenarios sound like you, then it’s time to look into upgrading your ERP:
- Your processes are outdated, and employees are spending too much time on tasks that could be automated.
- Your data is spread amongst multiple disconnected systems and databases, making it hard to get a clear picture when important decisions need to be made.
- You are challenged to keep up with changing regulations.
- Your current system does not allow for team collaboration or the sharing of information amongst team members.
- Your customers are often frustrated by the time and effort it takes to get a response to seemingly simple inquiries.
- You have a hard time managing inventory and are holding onto extra inventory “just in case” it’s needed.
- You’re not able to work with some retailers because of their RFID requirements.
- You’re experiencing too much unexpected downtime because your equipment isn’t maintained on schedule.
- Your management is constantly reacting to what needs to be done instead of being proactive about the future of your business.
- You’re growing and your current ERP system does not provide the flexibility or scalability to grow with you.
- Your ERP software vendor is no longer providing software updates.
- Your current system is getting too expensive to maintain.
- You can’t access essential business data and information when you’re off-site
If your ERP is keeping you from reaching your full potential, then it’s time to start the process of learning about how you can improve your business with a new ERP system. ERP is a big investment, but the ROI can be quite high when one considers the expense of supporting an older ERP system and the efficiencies and improved decision making capabilities gained from a new ERP system; a new ERP system can have a significant, positive bottom line impact on a business.
If you’re not a decision maker, then you’ll need to justify the investment of a new ERP system to management so that they understand the challenges resulting from your current ERP. The above checklist can be used as a basis for creating your unique list of challenges and the list can be further expanded by your talking to colleagues or other functional areas. A list of challenges is a great way to start a conversation with your decision-maker about how a new ERP system could help. Once management understands the challenges of the existing ERP and the benefits of a new ERP system, then they will need to allocate a budget before an ERP project can be moved forward.
If you have questions, or want to learn more about how modern ERP technologies can help your business, contact MIS. MIS has been helping businesses in a variety of industries meet their goals and objectives with technology for over 30 years. Experience counts, and we know what it takes for you to have an Exceptional ERP™ experience and a bigger ROI on your investment. Just ask!
Related ERP Blogs:
Outdated ERP System? How Bad do you Look from the Outside?
How ERP Helps Businesses Become More Customer Centric
How to Select the Best ERP Consultant for Your Business
ERP Selection: 8 Considerations for ERP Selection
ERP Selection: 9 Tips to Quickly Identifying Your Solution Faster