When to Change a Historic ERP: Recognising the Signs

Enterprise Resource Planning (ERP) systems are the backbone of many businesses, they provide the tools to manage everything from finance to inventory and customer relationships. However, there comes a time in the life of every ERP system when change becomes not just a consideration, but a necessity. This is particularly true for historic ERPs that have been in use for many years.

Here we will explore how you can recognise the signs when it becomes time to make the move from your historic ERP.

  1. Outdated Technology – One of the most obvious signs that it’s time to change your historic ERP is when it’s running on outdated technology. Legacy ERPs may struggle to integrate with newer applications, lack mobile compatibility, and could be vulnerable to security threats. Upgrading to a new ERP system can help your business stay competitive and take advantage of the latest technological advancements.
  2. Inefficient Workflows – Historic ERPs may have been sufficient in their early days, but as businesses grow and evolve, so do their processes and workflows. If your current ERP is causing bottlenecks, requires excessive manual data entry, or simply doesn’t support your business operations effectively, it’s a clear sign that you need a change. A new ERP can streamline workflows and increase productivity by aligning with your current business needs.
  3. Scalability Issues – Businesses often start small and grow over time. If your historic ERP wasn’t designed to scale with your business, you’ll run into problems as you expand. A lack of scalability can lead to data management issues, performance problems, and increased maintenance costs. Upgrading to a more modern ERP can provide the scalability you need to support your business’s growth without compromising efficiency.
  4. Compliance and Regulatory Concerns – Staying compliant with industry-specific regulations and standards is essential. If your historic ERP system lacks the necessary features and capabilities to ensure compliance, it’s time for a change. Many modern ERPs come with built-in tools or can make use of a wide range of compatible plug-ins to help you meet regulatory requirements more easily, reducing the risk of penalties and legal issues.
  5. Poor Customer Service – A historic ERP system that doesn’t provide real-time data or a comprehensive view of customer interactions can lead to poor service.  Providing excellent customer service is vital for retaining clients and gaining new ones, and new ERP solutions often offer robust customer relationship management (CRM) modules, enabling you to deliver exceptional customer experiences.
  6. High Maintenance Costs – Older ERP systems often require more maintenance, which can be costly and time-consuming. If you find that your historic ERP is eating up a significant portion of your IT budget for maintenance and troubleshooting, it might be more cost-effective to invest in a new system. New ERP solutions are designed to be more user-friendly, which could reduce the need for extensive technical support.
  7. Data Security Risks – Data breaches and cyber threats are becoming more sophisticated by the day. Older ERP systems may have vulnerabilities that make your business susceptible to security risks. Newer ERP systems have more robust security features and will have regular updates to protect your sensitive data.

The decision to change a historic ERP is often a strategic one. Recognising the signs that it’s time for an upgrade is crucial for maintaining competitiveness, efficiency, and security. While upgrading your ERP system can be a significant investment, the long-term benefits, including improved productivity, compliance, and customer satisfaction, often make it a smart choice for businesses looking to thrive and grow.

As a Microsoft Dynamics Partner, the Tecvia team are fully experienced to support you in the transition to a new Business Central 365 Dynamics ERP solution that aligns with your business’s current and future needs.

Author: Vaseem Ali

Author: Vaseem Ali

Vaseem ("Vas") is the Founder & CEO of Tecvia Ltd. He began his career as a Business Central Consultant over seven years ago.

Since, he's implemented hundreds of solutions across businesses throughout the UK, including many recognised household brands - even featuring in a video case study produced by Microsoft.

To connect with Vas, find him on LinkedIn.

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