If your business runs on an Enterprise Resource Planning (ERP) solution, you are relying on that software for your income and wealth. ERP problems are more than just nuisances or obstacles to smooth operations. They can literally threaten the valuation of your overall business. Don’t believe us? Consider the impact of poor customer service, higher than necessary operating costs and a lack of agility on your bottom line. Your ERP system might be failing your organization. Here are some signs that your ERP is falling apart, based on our extensive experience working with ERP clients over the years.
Your ERP lacks customization
This may not necessarily be a big problem, but most of the time, a lack of customization negatively affects your business. Your business is unique. It has its own ways of doing things, its own supply chain, processes and organizational units. ERP should be customized to fit your special needs, not the other way around. If your organization is contorting itself to fit an overly rigid (perhaps legacy) ERP, that’s a sure sign of trouble.
It’s not well integrated with other critical systems
ERP does a lot for your business, but it doesn’t do it all. No one piece of software does everything. For this reason, it’s necessary to integrate ERP with things like Customer Relationship Management (CRM), logistics platforms, productivity tools (e.g. Microsoft Office) and so forth. That way, for example, if there’s a shipping issue (logistics), the problem can automatically get flagged for late delivery in ERP. The ERP solution can then trigger an automated email (Microsoft Office) to notify the customer.
ERP solutions that cannot integrate in this way create two basic problems. For one thing, processes slow down. People have to do things manually, which makes them inefficient and error-prone. There’s also a problem of data getting locked into each system. Such “data siloes” reduce your ability to understand what’s happening and make informed decisions about your business.
It takes a lot of time and money to change the system
You will be needing changes to your ERP solution. If you don’t, that might be a sign that your business is not growing or evolving to meet changes in the market. ERP changes are seldom simple, but if they are so costly and time-consuming that you put them off, something is wrong. Conversely, the ERP vendor might push changes onto you. If those modifications and updates are prohibitively expensive, that’s another indication that your ERP is failing your business.
Your backup and DR plan is obsolete
You have to be prepared to handle a disaster or cyber incident. This means executing a sound backup and Disaster Recovery (DR) plan. If your ERP makes this difficult, you’re not ready for a disaster. The use of tape backs ups is a sign that you’re in obsolete territory.
You’re stuck with client software
Legacy ERP solutions typically require the use of client software. The client is often a so-called “fat client” that runs on the end user’s PC. A reliance on fat client usually means rigidity and sub-optimal user experience. Fat clients are also hard to maintain.
It just costs too much to run
Old ERP systems are costly to run. They come with high maintenance fees. The people you need on staff to keep them going get paid a lot. The hardware is expensive, and on and on. There is no such thing as cheap ERP, but it is possible to spend less, particularly with cloud-hosted options like Acumatica.
It isn’t mobile
Your people need ERP on the road. That’s modern business. ERP solutions have to be available in mobile form factors. If your ERP isn’t mobile, it’s a sign it’s failing your business.
We have experience helping businesses find, and then implement, a modern ERP solution. To learn what we can do for your business ERP, visit https://www.iproerp.com/