ERP, which is a widely used acronym for Enterprise Resource Planning, is one of the most valuable modern business technology tools that there is. These complex software programs are capable of integrating multiple data computing processes into one easy-to-access platform, and this whole ERP idea started to bloom around the mid-1990’s.
If you have an ERP solution you’ve been using for a while, especially if it is not cloud-based, you may be considering whether or not it is time to replace the system you have and move onto something a bit more updated. Here’s a look at some of the direct and indirect benefits of replacing an older ERP system.
Direct Benefits of ERP Replacement
There are some pretty obvious direct benefits to replacing an ERP system. First and foremost, the newer ERP is going to be more efficient, which means less downtime, fewer problems with lost inventory data, and things of that nature. A few other direct benefits include:
- Increased productivity in the workplace
- Avoided costs of downtime and system maintenance
- Potential for increased revenue due to seamless customer service
- Probable sales increases because of ease of transitioning new inventory into the market
Indirect Benefits of ERP Replacement
Indirect benefits are a little less concrete, and of course, these benefits can vary according to the type of business and how well the new system works with existing processes. Some of the more noteworthy things to expect from an ERP replacement would be:
- Improved employee retention because there will be fewer glitches and frustrations with work processes
- Greater insight into business and marketing decisions due to rapid availability of information
- More streamlined back-office processes because of greater efficiency
Overall, replacing an ERP system that has been in use in your business for several years can be a wise decision. It will almost assuredly yield a good return on the investment, especially if you are using cloud-based ERP programs that have not been properly updated with changing technological availabilities and the needs of your business.