“Should I upgrade my ERP software?” No, no, no.
This is most likely what came to mind when you read the headline. And you're definitely not alone if that was your first thought.
Upgrades, as uncomfortable as they may be, are essential to the success of your software!
For many businesses, switching to an integrated ERP system is a major step, but it's also a sign of success.
ERP systems aren't a cheap, short-term investment, so it's fair that you'd like to keep them running as long as possible. However, they do become outdated and inefficient throughout time, making it more difficult for your company to fulfill its objectives and develop.
How can you tell if your company's Enterprise Resource Planning (ERP) software needs to be upgraded?
It's not like realizing you need a new refrigerator when your milk goes bad the day after you buy it.
Unfortunately, you must recognize the red flags that indicate that it's time for a change, therefore we've compiled a list of the most common indicators that your organization is being slowed by its existing ERP system.
What is ERP, in a nutshell?
ERP stands for Enterprise Resource Planning, and it is a type of business management software. An ERP solution is a collection of programs that work together to handle business processes.
An ERP system is vital to successful business operations, but only if it is operating at its best as a user-friendly, one source of truth for the entire organization.
When your ERP isn't working properly, it can lead to plenty of issues, including inaccurate financial data, missing inventory, late deliverables, lost revenue, and customer unhappiness, to name a few.
If you're wondering, "Is my ERP out of date?" The answer is almost certainly yes.
It's critical that you recognize the warning signs and replace your ERP system as soon as possible.
Here are nine indicators that it's time to start looking at new ERP options:
1. Extreme Customer Complaints
Increased complaints or a high volume of negative feedback indicate a problem in the business process.
Furthermore, without an SAP or other enterprise-wide data-gathering technology, it may be difficult to determine where the breakdown is occurring.
SAP B1 centralizes information and simplifies communication, operations, and data analytics across an entire organization to improve efficiency, accuracy, and customer experience.
2. Delays and miscommunication caused by different departmental systems
It is difficult to find all-in-one software that can be a solution for all parties, so you may need different systems in each department.
However, SAP Business One has made the impossible possible.
SAP B1 is customizable and customizable, so one centralized module-based system can do everything.
3. Data Entry Duplication
When we think about duplicate entry, we see a department that requires two or more systems to manage procedures, forcing them to manually transmit data back and forth.
However, it can also include activities that waste time, money, and paper, such as:
- Taking data from one system and entering it into another
- Calls from people in the field who are unable to access or enter data
- Printing large quantities of paper for on-the-go personnel
- Transferring documents from one department to another is a time-consuming process.
4. Unidentified Inventory Numbers
Have you ever been surprised by shrinkage numbers revealed during a physical inventory?
Inaccurate inventory leads to delays on multiple production lines as well as last-minute demands, which might result in higher costs. A company's time and money are wasted when inventory is incorrect or delayed.
It's just another indication that your company should invest in SAP Business One.
5. Management Struggles to Assess Employee Productivity and Quality
Employees may receive subjective, unhelpful, or misinformed feedback during employee reviews due to a lack of software or the presence of an outdated ERP that has trouble capturing this data.
This can result in poor firing and advancement decisions as well as missed opportunities for improvement in these areas.
6. Business forecasts are more or less educated guesses.
It's even more difficult to take the right steps to get where you want to go if you can't see where you're going. On limited data, you can't make true data-driven decisions. Cross-departmental analytics are embedded into a SAP, and an ERP delivers this data in real-time and in a comprehensible way.
7. Inefficiencies in Operations Putting an End to Productivity
Because SAP is centralized, it can track productivity, bottlenecks, delays, and quality issues, allowing management to discover areas where systems can be improved and the entire operation optimized.
8. The vendor no longer supports the system.
Software and server vendors may continue to maintain their products for up to 20 years, but it is no longer time or cost-effective for the vendor or the business to do so.
Many modern technologies, such as mobile capabilities, the Internet of Things, and third-party apps, are incompatible with older systems, further increasing integration and maintenance expenses.
Consider This When Upgrading Your ERP System
Your business's requirements - before you start the procedure, figure out exactly what you need. What are the essential functions? What features would you like to see in the new system? Make a list of "must haves," "optional" items, and "can live without" items.
Putting together an evaluation team — have your team come up with a list of requirements that best match your upgrade requirements. Make sure the prerequisite list includes all of the requirements you stated earlier. It should also include fundamental information such as pricing, size, storage capacity, and what your team believes they require to thrive, as well as a comparison of that data with what you believe the firm requires.
Prices - look into all of the costs associated with the update so you aren't caught off guard later. Check to see whether there will be any recurring or internal support fees. It is critical that you obtain all relevant information in order to completely comprehend the financial commitment. A solid ERP solution, when implemented correctly, will save you money in the long run.
It's difficult to know when you should upgrade your ERP. Red flags, on the other hand, will greatly inform your decision if you take the time to assess your current system.
ERP software was designed to make a business function more efficiently and successfully, so don't cling to old programs just because you're used to them. Take the plunge, take a calculated risk, and reap the benefits of efficiency.
Upgrade your ERP system with SAP Business One
There are many advantages obtained by implementing SAP Business One software.
The most perceived advantage is an integrated system so as to reduce data input errors, more consistent data, integration between one department and another, better standardization.
Another benefit that you can take advantage of by using SAP is to improve monitoring and control functions because this data is more real time, reducing costs due to better needs analysis, the data presented is accurate and fast.
If you are experiencing any of the signs of an ERP need, specifically SAP, you may want to talk to us. Themis Biz Pro has extensive experience in evaluating enterprise needs for SAP Business One and then implementing the right SAP B1 solution.
Schedule an expert consultation and start your journey with Themis Biz Pro today.