Why Change Your ERP System?

By Mitchell Jerine, Sales Executive, InterDyn AKA

You know the old adage, “If it ain’t broke, don’t fix it”? Well, that may hold true for horseshoes and hand-grenades but might not for ERP systems! ERP systems have their roots in the 1960s so it’s really not surprising to learn that many ERP systems are more than 15 years old. So, if it’s not broken, why replace it? There’s a simple answer to that: The “sweet spot” for ERP benefits happens when they are between 2 and 7 years old! The chart below from Aberdeen Group clearly illustrates that systems up to 7 years old provide the highest quantifiable benefits, whereas after 7 years, these benefits drop substantially.

After year 8, your ERP system can actually become a “ball and chain” to your organization.

Today’s new generation ERP systems not only reverse this trend of diminishing returns, they  actually have a dramatic impact on the efficiency and productivity of your organization. For example, consider the following:

  • The inclusion of workflow management can streamline business processes and reduce errors and omissions.
  • The integration of document management can greatly speed up response time and reduce costs.
  • Built-in analytics empowers employees to make better informed decisions

Despite that fact that a new ERP system can make a big difference in efficiency and productivity, the implementation of the last ERP system – even after many years – is one that people want to forget. Yet, today’s modern ERP systems can be implemented much faster evidenced by the figure below:

In closing, older ERP systems can hold your organization back due to their inflexibility, old technology base, and lack of functionality. Do not hesitate to explore the capabilities and benefits of next generation ERP systems as they can offer substantial benefits, be implemented relatively quickly, and achieve fast payback.

By | 2017-10-17T21:25:29+00:00 July 20th, 2012|Finance & Operations (ERP/AX/GP)|0 Comments
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Contributor: AKA Enterprise Solutions

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