An enterprise resource planning (ERP) system is critical to a businesses as it typically manages the full range of operations, from purchasing to manufacturing management, logistics, accounting, service delivery and customer management.
Yet, as businesses grow and change over time, their ERP systems may no longer meet their needs. When this happens, business owners and managers must decide whether to upgrade or replace the existing system entirely.
There are many factors to consider when making this decision, and it is not always easy to know the best course of action. In this blog post, we will discuss some important factors to remember when deciding whether to upgrade or replace your ERP system.
Reasons to Upgrade
There are several reasons why you might choose to upgrade your ERP system rather than replace it.
• Upgrading may be less expensive than replacing the system entirely. Along similar lines, your business may not have the budget for a completely new system.
• If your current system works well overall, but just a few areas need improvement, an upgrade may be the best solution. ERP systems have improved dramatically in the past few years, and the latest version of your current ERP system may be what your business needs.
• Suppose you have invested significant time and resources into customizing your current system. In that case, you may not want to start from scratch with a new system. Buying an entirely new system may require spending hours configuring, testing, and launching the new ERP system. Once the ERP system launches, there will be a period of transition as employees learn the new system.
• If you have a good relationship with your vendor, you may be able to get the support you need to upgrade your system.
Reasons to Replace
Alternatively, replacing your ERP system rather than upgrading it has a number of advantages.
• Suppose your existing ERP system is outdated and no longer suits your company’s requirements. In that situation, it may be time for a complete system replacement.
• If your current system is no longer supported by the vendor, replacing it may be the only way to access new features and updates.
• If your current system cannot meet your future needs (and ERP add-ons or apps won’t help), replacing it may be the best way to ensure that you have a system that can grow with your business.
• If you constantly run into errors or problems, or if the system is difficult to use, it may be time to consider a replacement.
• If it lacks connectivity to other systems, is not mobile-friendly, or cannot integrate with new technologies, it may be time for an upgrade.
Bottom Line
When deciding whether to upgrade or replace your ERP system, there are many factors to consider. Upgrading may be less expensive, but if your current system is outdated or is no longer supported by a vendor, replacing it may be the only way to access new features and updates. Be sure to weigh all the factors before making a decision.
We hope this blog post has helped guide your decision-making process. Our team of experts would be happy to assist you if you have any questions. Contact us today for a free consultation.
Additional ERP Resources
ERP Systems 101: How to Choose the Right ERP for Your Business