What are 5 Signs that You Need to Upgrade Your Company’s ERP System?

Many companies hesitate to undertake enterprise resource planning (ERP) upgrade projects because business owners are unsure if they’ll be able to handle the risks and costs associated with overhauling incumbent systems. In most cases when an upgrade is sorely needed, however, the rewards do tend to outweigh the risks. What are 5 signs that you need to upgrade your company’s ERP system?

5 Signs that You Need to Upgrade Your Company’s ERP System

Despite all the best efforts a company does to regularly update and run maintenance on its incumbent ERP system, there may also come a time for the business to consider a bigger upgrade. In contrast to regular system updates, which can take place frequently and may only involve small changes or bug fixes, an upgrade involves making wider-scale, more drastic changes to your company’s ERP.

An ERP upgrade project may involve switching to a newer and more advanced version of the same system or retiring a legacy system entirely and replacing it with more modern software. Deciding to upgrade your company’s ERP system is likely to be a challenging, labor-intensive, and expensive choice, no matter the size or nature of your business.

If you’re considering getting an ERP upgrade for your company, here are 5 signs that now may be a good time:

Your Business Is Growing

As your enterprise grows, you’ll find yourself hiring more employees, handling more business transactions, and consequently managing more data. You may also end up offering new products and services or even branching out into new markets with different business requirements than those you already have experience with.

When this happens, you may find that the ERP system you’ve been using is no longer powerful or flexible enough to handle the demands of your growing business. Once you have the resources to do so, it’s worthwhile to invest in comprehensive ERP solutions that can immediately address your current business needs.

Business growth is one of the most common and compelling reasons for companies to pursue an ERP upgrade. This is especially the case for small-to-medium enterprises with a decided commitment to expanding in the future.  You’ll also want a scalable solution that you can continually reconfigure as your business continues to grow.

Your Company Has New Leadership

New leaders at companies are always looking for ways to drive business operations to higher levels of efficiency and productivity. They’re also often interested in launching fresh initiatives, increasing visibility, or making major changes to incumbent workflows. Naturally, none of these lofty goals are possible if your leadership can’t or refuses to work with your company’s current ERP.

Hence, if someone new has assumed an executive position at your company, you may want to start looking into ERP systems that align well with your new leadership’s business objectives and desired direction.  

Your Current System Lacks Mobile Functionality

Businesses have adjusted to remote working environments in the last few years, with many companies around the world having adopted remote or hybrid work setups. Contemporary employers and employees today prize workplace flexibility and appreciate the ability to work on the go if necessary.

To adapt to these significant changes in global work culture, companies should make sure that they’re running ERP systems with good mobile functionality. This means that at least certain features of the system must be accessible and usable through cellular phones, tablets, and other mobile devices.

At present, mobile apps offer a more limited range of features and functions than desktop versions of the same software. The best applications, however, allow you to complete essential tasks like recording and logging company expenses without having to report to the office. Being able to perform these seemingly simple business activities anytime, anywhere makes a huge difference to company productivity and efficiency in the long run.

Your Current System Is Losing Vendor Support

All software providers eventually withdraw support for their older products over time, as they usually prefer to spend their time on resources developing and fine-tuning the most recent versions of their software. Running an antiquated, unsupported ERP means missing out on useful features that are only compatible with newer version of the software. It also deprives your business of access to the latest security features, bug fixes, and other essential updates meant to keep your ERP running smoothly. 

Over time, refusing to upgrade legacy software may put your company’s productivity and data security at risk, as it will be more difficult to get support in the event of technical malfunctions or data breaches. Waiting too long to upgrade your ERP may also make it more difficult and costly for your company to transition into using the new system, as your users will have to accustom themselves to an unfamiliar interface and a whole slew of new features. 

You Have New Regulatory Requirements to Meet

While ERP software providers will always develop their products to help users comply with compliance mandates promptly and easily, older versions are likely to become uncompliant once they lose developer support. With global and local regulatory demands changing at dizzying speeds, running legacy ERP systems without access to crucial compliance updates is too great a risk for companies. Uncompliant companies can face hefty fines, as well as damage to their productivity and public reputation.

Signs that You Need to Upgrade Your Company’s ERP System

While the costs of an ERP project may seem to be high upfront, your company stands to make considerable gains from the investment. Implementing smart and timely ERP upgrades is one surefire way to ensure that your business operations stay secure, productive, and efficient over the long term.