Many organizations are still using old and outdated ERP software. Some may be using the latest version of a solution that lacks innovation, while others are stuck with older versions of innovative and modern solutions awaiting an upgrade. There are numerous reasons why switching to a more modern system or version may not seem convenient at the moment. However, it's crucial to realize the business impact of continuing to rely on an outdated solution. It's like driving an antique car on a modern highway while your competitors speed past you. How long can your business afford to lag behind?
Working with an outdated ERP system comes with several risks, and we'll discuss five of them in this article.
Missed Innovations
ERP vendors invest their research and development budgets in their modern, cloud-based ERP solutions. By sticking with an outdated solution, you miss out on new innovations, such as Microsoft's Dynamics 365 Copilot powered by ChatGPT. This can result in a decline in competitiveness.
Higher Total Cost of Ownership
Continuing to use your on-premise solution will lead to higher total cost of ownership over time. This is because you'll need to invest in maintaining your current IT infrastructure, and the cost of software support is likely to increase as well.
Decreased Security
Hackers and their methods are becoming increasingly sophisticated. They often target older versions of software that have limited or no support. By persisting with an older system, you increase the risk of cyber-attacks.
Knowledge Availability
Implementation partners invest significant resources in training their employees, primarily focusing on the new(er) versions of software. By staying on an outdated solution, the availability of knowledgeable consultants decreases as older professionals retire.
Dissatisfied Employees and Customers
Working with outdated solutions and outdated business processes is generally disliked by employees and customers. Everyone is familiar with the benefits of modern user interfaces, especially from their smartphones. Continuing to use an old solution raises the likelihood of having dissatisfied employees and customers.
ERP systems serve as the core of your information system. The quality of your solution, business processes, and data determines your business performance and financial results. These strong reasons highlight the importance of not falling behind with an older system. It's essential to consider that migrating to a modern solution would take your organization at least 6 to 12 months if you decide to do it today.
So, once again, ask yourself: How much longer can your business afford to operate with an outdated ERP solution?
