Many businesses don’t recognise the restrictions of their systems, because for so long, their current, outdated legacy ERP system has completed the task. The system your business uses can either aid or hinder its growth and competitive advantage when operating in a digital-first world.
With modern technology, ERP systems can do so much more than they used to.
What Makes Legacy ERP Systems Ineffective Today
Continuing to use a legacy ERP system because it’s still (sort of) getting the job done can actually be more harmful than it seems. Utilising outdated technology and being behind the competition can lead to wasted costs, innovations, and production.
Generally, legacy systems are old pieces of software that restrict a company’s ability to grow, expand, or maintain competitiveness. As IT support for a system starts to dwindle, it can become a legacy system. The same goes for a system which is no longer able to support an organisation.
Want to cut to the chase and speak to an expert? Our ERP consultants are available for a free call about the systems you currently have in place.
Let Go of Legacy Software
“What do you do if the key data becomes corrupted or lost? ”
“Our software stores important business data which is not recorded anywhere else”.
“How do I find a new system that functions similarly to what I have now?”
These are key concerns we have heard in our ERP consultancy journey. But even amidst these concerns, we believe migrating to new-generation software is crucial to achieving digital transformation, making business processes seamless, efficient and integrated!
The 5 Signs Your Legacy ERP System Isn't Meeting Your Needs
Businesses running legacy ERPs all reach a tipping point at some time. Businesses generally reach this point when handcuffs and roadblocks prevent growth, new sales, order filling, etc. These are the top five signs you have reached that point.
1. Older Systems House Outdated Technology
Long-standing businesses often have adopted legacy systems since their early operations. These systems have been in service for a long time. But technology has drastically improved since ERP systems were first established.
The difference between old tech and new tech is growing larger every day. This applies not just to ERP tools and systems themselves, but also to the software they were designed to integrate with. If your business’ ERP system is no longer receiving updates, it is likely that its technology is becoming obsolete.
2. Lack of Scalability, Flexibility, and Adaptability
Computer-based technologies and their advancements are essential in driving fundamental change across your business processes. The older legacy systems cannot use the cloud and must be physically installed on business systems, with only computers and devices directly connected to them able to access them.
Businesses are locked into a treadmill with on-premise ERP systems such as Sage and Microsoft Dynamics GP (Great Plains) with annual maintenance fees of more than 20% for the right to make a support call and download the latest software in today’s world. But what good is a new ERP deployment if it can’t keep up with business changes?
To become efficient and effective, a system that can evolve and acclimate with your business is ideal. Cloud-based systems allow you to access data from anywhere, creating an opportunity for remote work and more.
3. New Compounding Costs
A lack of integration with new programmes, the inability to take advantage of the latest innovations and the inability to perform tasks and processes can cost businesses. Pushing off implementing a next-gen ERP system is not saving your business money. In fact, businesses actually burn money due to stunted performance potential because of outdated technology.
Many competitors are pushing the boundaries of what they’re capable of – through technologies and software that help them do just that.
4. Aging ERP Is a Damper on Business Velocity
The web enables businesses to go global, instantly. Engaging with millions of customers is possible because of the Internet, whereas it used to take decades to reach a global audience. Fast-growing companies are not shackled to their on-premise ERP systems, taking advantage of innovation and digital transformation.
As a result of using a flexible cloud-based ERP platform that supported and aided rapid growth rather than relying on an on-premise system that would have hindered their growth, many businesses are able to build an entire global infrastructure in just a couple of years.
5. Legacy ERP Doesn’t Satisfy the Appetite for Real-Time Data
Running legacy ERP means your business is running on spreadsheets, and management reporting is a punishing and error-prone routine. It often takes days to create bookings, billings and backlog reports. Data is locked and buried in the ERP system, not being used (or even seen).
Once a business migrates to a seamless system that focuses on advanced data-driven insights, that business is then able to measure ad performance, marketing campaign responses, and website visitors in real time. Reporting can be done quickly and effectively.
The advantages of a modern ERP system
Businesses that have adopted a modern ERP system can reap the benefits of what the latest technology can offer.
- Cloud-based business information is accessible to more people in more places than ever before.
- Modern ERP systems eliminate manual reporting with data collection and structuring, creating more accurate reports and drawing attention to useful information.
- Cloud implementation is adaptable, scalable and available on many devices.
- Next-gen ERP solutions integrate digital software tools to solve process problems with ease.
Introducing Oracle NetSuite
Oracle NetSuite is a leading cloud-based and modern Enterprise Resource Planning (ERP) solution, transforming businesses through intelligence and integration. The unified business management suite encompasses ERP, CRM and eCommerce solutions for more than 32,000 customers. Read about the Oracle NetSuite business management tools that can level up your workflow and discover how our functional consulting team can align your technology path with your objectives.
Learn more about what Oracle NetSuite can do for your business.
The Bottom Line
By modelling their business processes and upgrading their existing ERP system, businesses of all sizes will improve their operations and save money. Ditching outdated systems and transitioning to powerful new systems and processes can help organisations reap substantial ROI.
Is your business ready for ERP implementation? Learn more about Oracle NetSuite solutions for specific industries. Contact us to talk about your business.
