ERP software is neither permanent nor static. It will become obsolete. This is especially considerable given technology’s exponential development curve. The bottom line? You’re going to have to replace it at some point.
Following, a few signs will be explored to help you get an idea whether you need to replace your legacy ERP software:
Unnecessarily High Costs of Operation
Older ERP software will become increasingly expensive over time. Vendors will quit supporting it, requiring specialization for troubleshooting. When half the time you spend with it is eaten up by new installation of modifications, that’s telling.
TCO refers to Total Cost of Ownership. Watch TCO and run some projections. If installing a new ERP software provides you increased functionality and reduced troubleshooting costs, this may mean getting rid of the old and bringing in the new makes sense for your business.
Hardware Changes Facilitating Software Shift
Hardware will become outdated. New software can’t run on old hardware; the old hardware isn’t requisite to the task. And while you can run old software on new hardware, you’re likely limiting potential.
Something else that can happen is that hardware can become so antiquated that only “legacy” IT people know how to deal with it; no new minds can be put to managing things. In any of these cases, you may want to get a new ERP software.
Needs of Your Company Outpacing ERP Functionality
Ideally, your company will scale out given time. The more successful you are, the more you’ll need to expand operational infrastructure. As this happens, legacy ERP systems may not be requisite to handle new operational needs. The larger the “surface area” of your business, the more flexible and swift ERP software will need to be in order to handle it.
If you don’t upgrade, new necessary operational procedures won’t be something you can incorporate into your ERP solution. If you’re operating slower as a result, this will diminish your competitiveness in the market. If the ERP solution you’ve got now was designed to support a business model you no longer operate from, fitting your new business model into it is rather like forcing a round peg into a square hole. It’s better to work with MSP organizations and upgrade.
Acquiring a new ERP software through Michell Consulting Group may be the right move for your business. If you’re losing functionality, upgrading hardware, or experiencing high operation costs, you may want to make the shift. Contact us for more information on ERP solutions and whether you should replace existing options.