5 Signs Show Your ERP System is Outdated


It’s not uncommon to see organizations hanging on to an older IT infrastructure. For myriad reasons, some companies don’t want to make the switch to a more robust ERP backbone and make the necessary updates to their existing systems. While there’s nothing wrong with a conservative approach, businesses that hang on to old systems are actually doing more harm than good to their success. Listed below are five signs that an ERP system is out of date along with examples of the negative impacts it has on a company’s operations:

Old ERP can be taxing on an IT budget
The perceived notion of system upgrades is that it will cost money to do so, and to cut costs, some companies may try and put off improvements as much as possible, especially in today’s tepidly recovering economy.

ERP is slowing operations
Although it seems obvious, an ERP that slows business productivity is the antithesis of what it’s designed to do, so if that’s actually the case, then it’s time for a company to move forward with new software.

There are multiple offline components
The beauty of traditional ERP is that it was always kept on premise, which meant that IT teams had direct access to the infrastructure. However, in today’s digital age, companies that are running multiple aspects of their ERP offline are way behind the technology curve. Newer tools like cloud-based software are helping companies improve their flexibility and agility in the marketplace – both of which are key factors to business growth.

A lack of younger employees
Millennials are known for their technological acumen, so a good indicator that a business’s ERP and peripheral IT infrastructures are outdated may lie in the absence of young adults working there.

Both clients and users are frustrated
If staff members are growing frustrated with the current business management tools a company has, that’s a strong indicator of an outdated system. Employees want to be equipped with an arsenal ready to take on whatever daily challenges they may face, and in today’s digital commercial landscape, the need to be agile and flexible is of the utmost importance.

Source: 5 signs of an outdated ERP system