Enterprise resource planning (ERP) systems are an important part of running a business in 2022. Whether you’re a startup or a large-sized business, an ERP system can help streamline your operations. However, there comes a time when your existing ERP software can no longer handle your rapid growth.
Whether you’re willing to make the change or not, it is crucial to determine if your growing company has outgrown its legacy ERP. Let’s get started!
1: Internal Teams are Bearing the Weight
Your employees will have to bear the maximum weight of an old ERP. According to Accenture, 92% of ERP systems require manual intervention for data sharing, while 33% need custom APIs to extract and transform data.
If you find your employees struggling to organize data, you should upgrade to an advanced ERP with automation capabilities.
2: Inability to Use the Latest Technologies
AI, IoT, big data, and blockchain are some of the latest technologies that can make the ERP system smarter and more effective. However, old ERPs cannot effectively integrate newer technologies or require you to pay for expensive customizations.
3: Doesn’t Integrate with Other Business Tools
As your business grows, you will use more third-party systems to streamline your workflow. If your legacy ERP doesn’t integrate with these tools, it will probably hurt your productivity and increase operating costs.
4: You Don’t Have Access to Real-time Data
Modern businesses need real-time data so they can make smarter decisions quickly. However, if you don’t have access to real-time information anywhere (and any internet-connected device), it’s time to modernize your ERP systems.
5: Overall Costs are Increasing
ERP systems are meant to provide complete visibility into your operations so you can better optimize them for profitability. However, if your legacy ERP cannot keep up with your growth or require costly modifications, it’s probably time to replace it.