Businesses should frequently assess their need for an upgrade in their business operations system. Some symptoms that can help identify this need might be a slowdown in the technology, your company is growing rapidly, transitioning workforce away from the office, or poor software compatibility.
It is estimated that most hardware and software latest between 2 and 5 years in most companies. Older systems will take longer to boot up in the mornings, potentially with more bugs and reboots during working hours. This can negatively impact productivity, and the cost of having outdated legacy systems should be weighed up with the costs and benefits of upgrading (or replacing) them.
Here are 3 solutions to upgrading.
Data management can be improved when enabling better integration between SAP and non-SAP systems, as middleware solutions can help optimise data extraction and flow. Costs can be saved too with SAP integrations from having a broad set of add-ons, centralising the location of where business processes are conducted, as well as centralising the point of contact for support.
The quality and availability of data can also be enhanced through integrations, with real-time synchronisations and faster data exchanges. Much of the integrations can be done between the cloud and on-premise apps if you want a hybrid environment.
If you find that you’re spending a lot of time on repetitive and/or simple tasks, then it’s likely automation can offer a more time-effective solution. Automation allows business processes to be completed by pieces of software or code, freeing up more time for employees to focus on more abstract or complex tasks. Automation is also the key to scaling up operations, as the workload doesn’t strain the software as much when it increases.
Automation can also improve the quality of tasks, often being more accurate and reliable. It can even be used for better customer service, providing faster response times and tracking complaints faster, as well as tracking goals using KPIs. An automated quality management system can set quality goals that become more visible to the workforce.
The decision between upgrading or replacing your ERP system can be a difficult one. You may decide to upgrade a legacy ERP because you’re addressing and fixing a specific problem – a problem that may arise from new software. Furthermore, the upgrade may provide a better user experience whilst users do not have to undergo an on-boarding process, saving time. It’s also likely cheaper too, and you should be better able to forecast the result of the upgrade compared to the implementation of an alien system.
However, replacing the legacy system may be the only option (i.e. due to a merger) or that the firm has outgrown the legacy ERP. It’s about understanding the scope of the upgrade and replacement in relation to the expected future growth of the business – but don’t think too far ahead as some of the tech may become obsolete in a few years anyway.
Ultimately, it may just come down to migrating to cloud software; something that is more flexible in the era of COVID-19.