Some companies have hesitated to adopt other business solutions. This is because what they are using now is either working well, or they are not ready to invest in another system. Unfortunately, if your business solution is not working as effectively as it once did, you may need to decide if it is time for a better Enterprise Resource Planning system (ERP).
Examine the limitations of your current system
Before looking at the financial implications of acquiring a better ERP system, it is important to look at the limitations of your current system to your company. If you bought the system when your business was still small, how adaptive has the system been to your company’s growth? If your client base has widened, or if you have entered new markets, does the system capture the additional information? If the growth is too fast for your system, you need a better ERP solution.
What solutions is the current system offering?
It is easy to say you presently do not need a better ERP solution because what you have is working. However, before writing off an alternative system, you need to compare the business solutions. This way, you will know what you are missing from the current system. For example, besides providing a financial solution, what other components of your business can use the system? How does this system help the human resource department? Can you collect data of your clients to help you when coming up with a marketing strategy?
Can the system be integrated with others?
Having multiple systems can be overwhelming, especially for Directors. This is because every aspect of the business needs updating. It is difficult to see the relationship between the different components of the company when you are not using one system that shows a link in the operations of the various departments.
For example, if your clients place orders online, how many of these orders translate to sales? How many goods are returned? How does this affect the financial standing of the business? If your current system is inefficient, you may need a better system to manage your business.
Can you easily look at future projections?
Running a business involves making informed decisions promptly to avoid losses. Some businesses fail because entrepreneurs took too long to take steps to save the company. If your current business solution does not provide you with adequate information to project growth, a better ERP system is required.
Is access to the system on-premises or in the cloud?
Easy access to information is essential, especially in today’s global economy. Many businesspeople travel to various countries when seeking new markets or products. Some companies have become international after opening branches in other nations. Directors and entrepreneurs use modern ERP systems because they can access data from anywhere.
If your current system keeps you in the dark when you are away, you should think about investing in a business solution that is deployed in the cloud. This will help you to take the necessary steps to solve problems that may arise in your absence.
If you are torn between getting a new system or retaining the current one, it is important to look at the gains of the new system over the limitations of the system currently in use. If the benefits outweigh the cost, it will be a worthwhile investment. Remember, an excellent ERP system will spur growth.