Is your current ERP software optimized and up-to-date to tackle modern age business challenges?
If your organization has been using a legacy system for a few decades, chances are high that you are missing out on the advanced functionality of cloud based ERP systems. Most industries, especially manufacturing are leaning towards adopting cloud based ERP solutions to leverage real-time business intelligence.
If you are still questioning the power of enterprise resource planning tools, here’s an interesting fact - ERP implementation led to business improvements for 95% of businesses. It is time to take the plunge and replace your age-old legacy ERP with a sophisticated cloud based platform to drive automation and on-the-job productivity.
Intrigued? Read on to learn more about the benefits of ERP systems and how they can help your business gain an instant competitive advantage.
Top Reasons For Replacing Legacy ERP With A Cloud Based Solution
The global ERP software market is booming and expected to reach $78.40 billion by 2026, growing at a CAGR of 10.2% from 2019 to 2026. This clearly shows how organizations worldwide are moving towards customized ERP solutions that can help them manage core business functions such as inventory management, supply chain activities, HRM, and financial management.
Legacy ERP systems may slow your business down as they rely on older technologies. Some common problems that are often faced by legacy ERP users include:
1. Your software may not integrate seamlessly with critical business applications and this may result in time-consuming manual transfer of data.
2. Your legacy ERP software may not be adequately supported by vendors that may hamper productivity.
3. Slower response time, frequent downtime, and high maintenance costs are common problems associated with legacy ERP systems.
4. Data security may be compromised with legacy ERP and there may be a shortage of data storage space.
A recent survey revealed that 88% of companies believe that their ERP implementation was a success. It is time to jump on the cloud based ERP bandwagon and move beyond your legacy system.
Here are some instant benefits of modernizing your ERP software and adopting a cloud based platform:
1. Real-Time Business Intelligence: One of the biggest advantages of investing in cloud ERP systems is the availability of real-time business data. Older legacy ERP tools provide access to the limited information that may not be up-to-date or relevant. However, cloud based ERP software incorporates advanced technologies such as artificial intelligence, machine learning, and predictive analytics to help managers make informed decisions.Legacy ERP platforms hamper smooth integrations with other business apps, and this results in added costs and maintenance issues. With cloud ERP technology, you can easily add on new applications to integrate vital business data and eliminate complex compatibility issues. Customized reporting in ERP tools provides 360-degree operational visibility and enables managers to monitor key performance parameters round the clock!
2. Low Maintenance: Legacy systems are costly to maintain in the long run as the software does not get updated automatically and there is limited vendor support. There are also issues with outdated hardware, servers, and equipment that results in slower performance. The transition to cloud ERP software eliminates all maintenance problems as it is hassle-free and user-friendly. The best part about cloud ERP solutions is that they constantly get upgraded; hence they do not become obsolete and the updates bring innovative functionalities. ERP service providers take care of all maintenance and technical upkeep aspects ensuring a smooth run for any organization that gives the green signal to cloud based ERP tools!
3. Data Security: One key area of concern with legacy ERP systems was data security as there were high chances of unauthorized access. Cloud based ERP software is the best way to strengthen data security. Since all the company information is stored on the cloud, there is no chance of cyberattacks or any malpractice. Also, cloud ERP solutions are regularly updated, making them less vulnerable to threats in the cyber environment. Most modern platforms implement advanced security protocols such as password protection, firewalls, and data encryption to ensure the privacy and security of sensitive organizational data. Cloud ERP software is more integrated and greatly eliminates the risks associated with traditional multi vendor legacy systems.
4. Cost-Effectiveness: Investing in cloud ERP software can boost your revenues and help your organization surge ahead of the competition! In fact, on an average, an ERP system can reduce operational costs by 23% and administrative costs by 22%. A cloud based ERP platform can help your organization lower upfront costs through a one-time subscription payment model. It enables companies to reduce wastage, keep the right amount of inventory, and lower purchasing costs through accurate demand forecasting.While legacy ERP systems have many hidden costs attached to them, a cloud ERP solution is a long-term investment that will surely pay off great dividends! This makes it vital to transition to automated cloud ERP technology to accrue significant savings and increase profitability.
5. Scalability: It is essential for businesses to grow and expand in the course of time. Legacy ERP systems may hinder organizational growth and diversification as they cannot adapt easily to business changes. Scalability is one of the biggest advantages of cloud based ERP software as it can accommodate the requirements of your business model. Most ERP vendors allow users to purchase additional modules or features to scale up operations. This allows organizations to expand to newer locations or geographies and increase team size without any IT hassles in their ERP system.
6. Anytime Access: Cloud based ERP software delivers tremendous flexibility to new-age business organizations. It enables employees to work from anywhere, anytime, ensuring they have access to real-time information at their fingertips. Your team members will not be restricted to the physical workplace - all they need is a working Internet connection to log in from any device and remain productive, even on the move! Cloud ERP solutions enable employees to remain connected and collaborate on important projects. With a host of productivity-enhancing applications, ERP technology can help team members share files, images, and conduct live chats to improve intra team communication between organizational stakeholders.
7. Compliance: Legacy ERP systems often remain updated and cannot keep up with fast paced changes in the local and global environment. With a cloud based ERP system, you can be assured that your organization is complying with mandatory legal requirements. The system automatically updates the latest changes in policies to ensure businesses do not default on important mandates and helps them avoid unnecessary penalties or legal action.Cloud ERP technology is a huge advantage for global organizations working across various geographies as it eliminates the worry of compliance and ensures operational efficiency.
The Final Word
Did you know that 14% of organizations moved from their legacy systems to cloud ERP in 2019 -2020? Getting the best cloud ERP software for your organization can be a transformational decision with a lasting positive impact. It can help your company manage resources better, remain future ready through efficient planning, and create a healthy work environment.So go ahead now and migrate from your legacy system to an automated cloud based ERP platform to witness a dramatic increase in bottom line results and business revenues!