When is the Right Time to Upgrade Your ERP System?

All businesses at one point or another have to weigh the costs and benefits of retaining anERP upgrade_small ad old ERP system versus the cost/benefit of implementing a new one.

The day-to-day demands of running an organization can sometimes interfere with long-term investments such as out-of-date IT systems, but there comes a tipping point when upgrading becomes essential for business innovation.

For many of our clients, the challenge is recognizing when this moment arrives, before the balance tips out of their favor. While small problems might seem easily solved in isolation, when added together, the shortcomings of legacy IT systems can cause costly operational disruptions.

The rapid development of technology and pace of digital transformation also creates difficulties, as existing systems are not fully integrated across businesses, and departments are relying on different independent software applications to function. This becomes especially true at moments when organizations undergo fundamental structural changes. Even companies who recognize these problems may avoid investing in an IT upgrade to avoid financial outlay and disruption to business.

However, the longer you ignore the shortcomings of your legacy IT system, you may risk depriving, rather than driving, business revenue.

For instance, a business enhancing solution should have state-of-the-art reporting and data analysis tools; processes should be automated without involving manual input or requiring reconciliation between reporting and management systems; senior personnel should be able to gain easy access to critical business information across the entire organization.

Not only that, but it should be flexible and scalable. One of the key issues with many existing systems is that they can no longer stay in line with technological innovation, or with the changing demands of a growing business. If it takes complicated integration that is hard to support, or complex business process to overcome the gaps within current systems, then the pain of deploying the new system is far outweighed by the long term gains of using a system that can adapt to internal developments and ever-changing market demands.

While the optimum moment for change may be unique to each company, if your current IT system falls short in any of these areas, you should be considering an upgrade. In fact, the moment you even start questioning whether the time is right, is usually the signal that improvements need to be made. 

But what if your current ERP version is highly customized?  What if it has value-enhanced functionality that has proven to drive return on investment to the organization?  Does it make sense to upgrade to less functionality that would cost tens of millions of dollars?  Are there “other solutions” or “other answers” beyond an upgrade?

CREDO offers both implementation services and upgrade assessments. CREDO can also develop creative options to deliver solutions outside of an upgrade. Contact us today to ensure the success of your next IT project.

Greg Bair President, CREDO Technology Solutions

Greg Bair
President, CREDO Technology Solutions

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