It could be that your current ERP system is nearing its lifespan. It could also be that the vendor is limiting the assistance in the current version, and you are not procuring ample value from the software. It might be time to opt-in for a brand-new ERP system, but it’s a huge undertaking.
Most organizations are shaky to take the leap! It is essential to realize that you need to substitute the current solution. You should also realize that your company is ready for the new ERP software. For that, you need to consider ten essential questions.
- Does the current system doesn’t have capacities that you require?
If you are operating an old ERP system, it’s not a reason to cancel it. But if you are using it for over 10 years and you are missing out on crucial capabilities, such as seamless integration, AI, and real-time data access, you might think about new ERP software. That way, you can unlock new business opportunities with brand-new technology.
- Does your company require better data incorporation?
Most organizations use marketing automation, accounting, CRM, and various other applications to operate a business. If the systems don’t get integrated, you can’t make decisions on real-time data and use the information to manage operations and generate product development. Many organizations will add in ad hoc incorporations to ensure that data keeps flowing between systems. However, such incorporations are brittle and require constant maintenance.
- Are the upgrades impossible or complex?
If a system is old, chances are it got customized by employees who have left the organization. The know-how also remains with them! Hence, when an ERP software vendor comes with a new update, you need to test everything to ensure that the update doesn’t crash the system. You should also recognize all the customization beforehand. The extensive and excessive customizations can problems in upgrades.
- Are the decision-makers getting the input they require?
The stakeholders often require accounting reports, such as P/L statements, to arrive at decisions. If an accounting department should run such reports, the decision-makers should request them to do so and wait. It is extra work for the accounting team. And it means that the crucial data isn’t in the hand of the people who require it.
- Is the business procedure messy?
To leverage the ERP software investment, you need effective business procedures. In several organizations, the business procedures have changed with no or less documentation. It could be something as simple as sanctioning the purchase orders. If you are unaware of the steps, it will become impossible to set the ERP system to cater to your business demands.
- Is the data unclear?
If you have used an ERP software suit for a longer time, chances are you have collated outdated and duplicate data. So, before you can transfer the data to a new system, you will have to remove the duplicates and ensure that all you import is right to avert hindering customer service, decision making, and any other processes.
- Is the current ERP software hindering improvement and change?
Are you planning to increase the market share? If yes, then you will need to opt-in for a new ERP software suite. And if the business objective requires using real-time data, providing mobile access to employees, or incorporating new technology, such as IoT, an outdated ERP system can’t support the capacities.
- Will your staff and employees agree?
It is rather unlikely that your employees and staff will get excited about a change to the everyday work procedures and the requirement to know a new system. However, if they complain about how a simple business task takes a long to conduct, they might not resist the change. Letting your employees know about the advantages of a new system and providing apt training might help get your employees on board.
- Can leadership get a new system?
You can’t get a new ERP system if there is no committed and enthusiastic leadership. You need to ensure that your executives know the business advantages of this new system. It is also vital to secure the required executive sponsorship for your project.
- Can your organization accomplish the software selection and implementation?
Replacing ERP software suite need assessing various solutions to ensure that they are the best fit for your company. After that, you need to undergo the data cleansing, business process enhancement and other demanding tasks and opt-in for the software implementation. All these lengthy and challenging procedures shouldn’t get implemented with an in-house team. According to research, companies that have the correct know-how can implement the software correctly.
Replacing the old ERP software with a new one will have several advantages. Some of the crucial ones include:
- Real-time data
One immediate impact of executing an ERP solution is the uniform and systematic business information flow across every organization department. When you have this real-time data, you can make improved business decisions and ensure that every data is precise and updated. Several companies go a step ahead with the real-time analysis with correct access to reliable and standardized data. To know more about this, you can check out ERP software in Riyadh.
- Enhanced collaboration
Poor communication and lack of collaboration are the outcomes when the employees lack access to the data they require. By providing them the access to the data from various other departments, the ERP software can maximize collaboration, as your employees can see the bigger picture.
- Enables increased productivity
Several businesses experience improvements in their effectiveness and total productivity by investing in an ERP software suite. It can help to remove the repetition in business procedures and tedious manual tasks. It can also enhance the initiatives after executing the ERP software to save valuable time for staff and employees. All these help you to concentrate on other aspects of business processes and functions that require improvement.
These are some of the questions you need to address before deciding to change your existing ERP software.