Not all ERP and finance systems are created equal and over time may become outdated or misaligned with the changing needs of the business. In this case, an upgrade or replacement may be considered necessary to keep up with the market demands, leverage new opportunities and achieve the businesses growth strategy.

The initial appeal to upgrade or implement a new finance system is clear with the ability to leverage benefits such as:

  • Access to new features and functionalities that can boost productivity, business performance and competitiveness. especially with the emergence of AI.
  • Reduced ongoing costs in the form of lower maintenance, service and (often) licence fees.
  • Risk mitigation by removing dependency on complex inhouse developments, unsupported applications and inferior reporting & analytics.
  • Alignment of your ERP system with your businesses short and long term strategic objectives, with a more resilient platform better able to adapt to changing market, customer and industry demands.

There are many other benefits available with the quantifiable gain often unique to each company. However, the decision to implement a new system can be costly and may not necessarily be the right decision for everyone. Key factors to consider when performing this assessment include:

  • An assessment of your current ERP/finance system to identify its strengths and weaknesses. Ask yourself questions such as; How well does it support your current and future business needs? How satisfied are the users with its performance, usability, and reliability? Do you often face technical downtime/disruption?  It’s worth noting that one of the common drivers for a new system can be a lack of reporting and analytics. However, discrete reporting solutions such as Power BI, Solver BI, etc. may be a more appropriate solution.
  • Perform a market evaluation of the current solutions and upgrades with a comparison to your current system. Note – ERP systems are not a ‘one-size-fits-all’ solution and often have performance, costs, and features applicable to business and industry tiers. What are the features and benefits that they offer and how do these align to your current system weaknesses and business challenges? How compatible are they with your existing infrastructure and processes?
  • Complete a cost/benefit analysis of upgrading or replacing your ERP system. How much will it cost to implement, maintain, and train your staff on the new system? How much will you save or gain from the improved efficiency, productivity, and profitability? This activity is key to properly understand and quantify the potential benefits to derive an informed ROI.

The key considerations and specific benefits of whether to implement a new ERP system or upgrade a current solution will be unique to each customer, but the above can act as baseline when embarking on this journey.

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