4 Signs You Have Outgrown Your ERP

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4 Signs You Have Outgrown Your ERP

To effectively manage day-to-day business activities, we rely on enterprise resource planning (ERP) software. These packages are developed to integrate all the processes needed to run a company. They help with procurement, project management, accounting, risk management and compliance, and supply chain operations. More comprehensive ERP software will offer various other functions such as financial reports. As your business grows, you want to ensure you are getting the most out of your ERP software. If you’re unsure if your business needs a new software package, here are four signs that you have outgrown your ERP.

You Have To Use Multiple Platforms

When your business houses data across multiple platforms, you are losing all the benefits of ERP. The point is to draw all your data into one central system. Without one comprehensive package, you can lose data and efficiency. A newer, more modern ERP solution will make it easier to integrate various functions enabling you to keep track of orders, customers, payroll, and more. When everything is housed on one platform, you can limit data inaccuracy which causes a ripple effect from one department to the next: from sales on one side to inventory management on the other.

Your ERP Isn’t Scalable

If your business is growing or changing, as most companies do, you need an ERP which is scalable. You may need to support additional business functions, additional users, increased workloads, and growing amounts of data without spending too much money. Alternatively, you may want software that can contract during the quieter seasons at a minimal cost. You also need to consider an upgrade if there are new functions you want to perform with your software but can’t. Your software shouldn’t be holding you back.

Your ERP Is a Security Risk

With cybersecurity threats on the rise, an attack is more likely and can devastate your company’s operations. Older, outdated ERP packages may have unpatched security bugs, posing a significant risk to your business. With so much sensitive data on your ERP, your business can become vulnerable to security attacks, data loss, and unplanned downtime to address these issues. Your ERP needs multiple levels and layers of security such as network, infrastructure, operating system, and database security to better protect your data.

Your Maintenance Costs are High

While your IT department is there to support the maintenance of your ERP, when the maintenance costs outweigh the benefits of the software, you’ve outgrown your ERP. Your business needs room to grow and adapt. Still, eventually, you may find that your software’s performance decreases, and you cannot keep up with day-to-day tasks. Rather than adding additional customisation, which may further reduce the ERP’s efficiency and consume more of your maintenance budget, look for new software. A good ERP package will not offer diminishing returns.

If your ERP software is showing any signs of inefficiency, it’s time for an upgrade. The right ERP will grow with your company; you will be able to view data in real-time and most importantly, eliminate manual work from the data management process.

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