Important Signs that Your Business Needs to Update its ERP Solution

Surprisingly, adaptability is an often-overlooked component of business organizations. When enterprises grow, business leaders need to make active decisions to streamline business processes and adapt the workplace environment to cope with the growth. Failure to do so often results in the management processes becoming obsolete or outdated.

ERP software have provided growing businesses with helpful aids to manage business management with business growth efficiently. However, there comes a time in every business’s life cycle when things require a complete do-over.

Have your business management processes been experiencing stagnancy and an inability to keep up with your day-to-day business requirements? Chances are, you might need a new ERP solution to streamline your organization’s processes.

This article will explore the signs that indicate you need to update your software solution, but first, let us discuss what ERP software is all about.

ERP Solution Explained

Enterprise resource planning, better known as ERP software, are computer program used by business organizations to manage everyday business processes, such as procurement, HR management, risk management and compliance, accounting and finances, and elaborate supply chain operations.

An ERP solution streamlines business processes by providing a digital platform to employees, so your business keeps growing smoothly. They enhance teamwork and make business processes seamless by combining them on a central platform for easier access and better coordination. A central digitized platform allows the smooth flow of data between the different processes on the ERP software and can help various departments track transactional data or measure performance metrics.

Moreover, an ERP solution limits data duplication and reduces the chance of fraud, theft, and loss of data. However, like all tech solutions, ERP software has a limited shelf-life and can soon become outdated.

So, what are the signs that you need to update yours? Let’s find out.

Time-Consuming Business System

When businesses are growing fast and there are many departments collaborating, it is hard to keep track of the data piling over from all the points. Accessing the data from across the departments and then cross-checking could be time-consuming. Combining multiple spreadsheets of data and arranging them can overburden you and your employees. To cater to this issue, an updated ERP solution is needed, which not only works in real-time to reduce admin time but also makes it easier to keep track of the changes.

Increasing Complaints Regarding the System

One of the main signs of an outdated system is that complaints about its performance increase. It may not work to its full capacity for employees to work efficiently. You might hear a lot of “the system is incapable of this…” or the goals were not met because the system doesn’t work in a certain way.

When There Is a Lot of Blame Game

It is evident that when there are discrepancies in a system and no one to check it thoroughly, different versions of truth are formed. Since there is no check and balance, or if there is, but it has a lot of loopholes, employees who are just freeloaders or may find ways to work less in a unprofessional way.

Frequent Malfunctioning and Glitches

It is possible that the current ERP system in use has become more susceptible to glitches and might be malfunctioning more regularly. If this keeps on happening, then it is time that you change the system before your data is lost or, worse, hacked by someone. If the manufacturers have no updates in the system and no repair or privacy software, you must protect your business by shifting onto a new ERP solution.

IT Systems Slowed Down

Another issue that will persuade you towards a new ERP system is a slowed-down IT department with enormous complaints or crashing systems with numerous users and traffic. A new ERP solution is upgraded with the latest technology and more space, allowing smooth access for every user. In return, it saves a reasonable amount of time and effort by reducing the additional work on IT guys.

Data Visibility

If you do not own an ERP system that gives you access to everyone’s performance, you may not know the source of the problem. An updated ERP solution can provide total data visibility and can work to keep track of all the employees at work, which can generate reports about teams’ performance every month.

Ability To Integrate Changes

There are instances when you might want to add a few changes to the system, but if the ERP is outdated, it won’t be able to handle the changes, and even if it does, you won’t be able to retain it.

Business Expansion

This is a clear sign that you need an upgraded ERP solution. Constant changes or merging of two kinds of systems can create a clutter of unmanageable data. If your business is expanding or exploring new divisions, it needs an ERP solution to tackle all the new forms of data and be able to generate user-friendly reports.

Unsatisfied Customers

One of the reasons for frequent complaints from customers could be that the ERP system is no longer satisfying your customer’s needs. Today, the customer is less likely to return once he loses interest in your business, so to cater to his needs, you need to change your system.

Difficulty In Data Extraction

When there is just a random mess stored in the database, extracting critical data becomes a time-consuming task. It becomes an unavoidable problem during the audit season and can cause unnecessary delays in procuring legal agreements.

Our Final Thoughts

Running a business these days is not an as easy task as it was 30 years ago. There is still a limited amount of skilled labor in the market, but these ERP solutions can make your work easier by giving both the employees and clients a chance to work in an efficient environment as you gain the profits.