The risks of running your business through an outdated ERP solution

A common problem for today’s organizations is that their current (and often outdated) ERP solution is not able to keep up and perform up to standard with today’s challenges from a business and technology perspective. This gap is considered an important problem and consequently is convincing many businesses to change their underperforming ERP system with a cloud-based solution. Resulting in a digitalization of the company’s different departments. But what if a business decides to continue to use their increasingly outdated ERP system? Let’s evaluate some potential dangers the company could get exposed to:

Wasting of IT budget

Generally, maintaining on-premise software can take up a substantial part of the allocated budget, in addition to the required time and energy from dedicated IT personnel. Upgrades get more complex over time, particularly when businesses are trying to blend various systems together to facilitate operational changes. Simultaneously, the business will start to face the risk of end-of-life software and hardware failures, potentially resulting in problematic and costly data loss.

In fact, the longer a business is running on an outdated IT environment, the more challenging it will be for the IT department to function properly. This is the current situation at many companies where the corporate needs extent beyond the capabilities of the outdated on-premise software. This should raise the question if managers want to continue to invest in maintenance or make the switch and aim for innovation.

Falling behind the competition

Consider the likely fact that your on-premise ERP system may hold your company back from further growth, since the software is becoming more outdated and will force the company to work-arounds that will hinder productivity. In time, a company might even be forced to take some steps backwards by (re)-introducing manual processes to fill in the blanks of the outdated ERP system.

In the same way, when different business systems are not interconnected, decision-makers will miss valuable insights and likely not follow with the best possible choice. For example, if the CRM system is not able to sync with the data on pricing or inventory displayed on the website, you could be missing out on important marketing or sales opportunities. Outdated ERP software that is unable to meet today’s business needs, such as software integration, will inevitably obstruct the growth and progress of your business. Leaving you behind your competitors.

Failing to meet compliance requirements

Compliance is one of the biggest issues for food companies, leading many of them to be lost and covered in different spreadsheets. With the continuous change compliance is subjected to, a raising concern is whether the software can keep delivering the required information. Regulatory compliance is also a growing concern within any regulated industry, as the number of regulations and standards is still increasing. Emphasizing the need for an updated system that can address this ever-evolving environment.

(Dis)engaging with your workforce

Nowadays, employees are becoming increasingly tech-savy, both in their personal and professional life. If your company is planning to expand, and needs to hire talented IT staff to facilitate this growth, you should be able to provide them with the appropriate technological tools and resources. Oftentimes, when IT staff experiences issues related to a lack of these resources such as the use of an outdated ERP system, they build up a lack of patience and may even end up leaving the company.

Neglecting Cloud features and benefits

Today, the internet serves as a platform for data exchange. Consequently, leading to cloud-based ERP solutions gaining popularity over on-premise alternatives. Particularly companies that aim to grow and want to benefit from the latest cloud features to benefit business management without being forced to hire more employees. Furthermore, since both system support and maintenance is done by the cloud vendor it is hard to argue in favor of a traditional ERP system. Microsoft in a similar way is also moving is this direction, with “no more upgrades, only updates” through their continuously updated Dynamics 365. Leading to your data being secured, accessible on multiple locations on dimensions, ready to audit at any given time.

Need help to upgrade your current ERP system? Get in touch and we can show you the possibilities.