Old ERP, New ERP: The Age of Your ERP Can Alter Your Bottom Line

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Whether your ERP solution is 5 years or 15 years old, how do you know when it’s TOO old?  This is a very good question to consider periodically.  In order for your business to be working at peak efficiency and profitability,  you need your ERP software to be working at peak levels too.  Here are three things to evaluate to determine whether your ERP is too old:

  1. Is your ERP software used by all of your key people?  Ideally, the ERP system should be used by nearly every department of your company including the accounting department, warehouse, inventory and procurement, sales and marketing, human resources, and others.  If you find that employees are using notebooks, spreadsheets, or other disparate software programs, then you have a hiccup in the system.  As soon as your critical business information becomes separated from the ERP system, then you have an indicator that your ERP software isn’t working the way you need it to.  Properly working ERP should be able to organize and manage all aspects of your business operations.
  2. How well do you know your finances?  When you have real time financial data, you can make quick business decisions that can grow your company.  With all of your business data in a single software solution, you will be able to see connections between business functions and profit margins.  Knowing what products or customers generate the highest returns will help you become more efficient and focus on the most profitable operations.  If your ERP isn’t used to maintain current finances or if finances aren’t kept up-to-date, then you don’t have the information you need to make timely decisions.  You could be missing opportunities to drive growth.
  3. Do you have the software provider support you need?  A good software provider will notify businesses when an upgrade is needed and help you implement that upgrade with minimal business interruption.  If your software provider has gone out of business or no longer provides support on your legacy ERP system, then it’s time to upgrade.  Older systems also often require experienced IT professionals who can fix aging hardware and walk employees through software updates and changes.  Fixing aging ERP systems can quickly become more expensive than upgrading to new software.

Properly working ERP should be easy to use across the company, contain real time data about finances and other operations, and have the software provider support needed to keep working at peak efficiency.  The purpose behind ERP software is to streamline operations, improve productivity, and improve profitability.  If your software isn’t working for you, then your bottom line will be affected.  Contact BDO Solutions for guidance and support on ERP software issues.

By Jim Krahn with BDO Solutions, Leading Canadian Microsoft Dynamics ERP and CRM Partner

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