Now more than ever, companies are increasingly relying on modern ERP solutions to manage their business operations, by integrating new technologies and supporting a broader range of front and back-end functionality. What’s more, organizations are now required to quickly adapt the way they plan, execute, and measure their performance to meet the requirements of a fast-changing business landscape, and adopt new, critical operational methodologies to meet their strategic business goals. Failure to adopt to the technology increases the risk of businesses becoming less competitive and eventually, less productive.

Replacing legacy ERP is not a trivial matter, but the reality is migrating from legacy ERP to new, modern ERP solution is a lot easier than updating an existing ERP solution on-premises. Take a look at the ‘Hidden Technology Debt’ blog for more information on stubborn little fixes. At ACC Software Solutions, we know the ERP journey and have helped companies just like yours to navigate it with ease.

You’re on-premises ERP is probably serving your business needs fairly well—at least for now. Continuing with it, however, presents a number of potential problems in the near future, if not already. Here are four of the most common:


1 . Missed opportunity for growth.

Your current ERP system may appear to be doing to job it’s intended to do; however, you’re more than likely missing out on several business opportunities. With this considered, it’s time that you think about making the change to a modern ERP solution to reap the opportunities that are associated with new technology.

Companies with a reasonable chance of growth are those who adapt, scale, automate, and quickly respond to the demands of today’s ever-changing market. Fortunately, all of this can be done with a modern ERP solution. The most recent technology trends, such as 3D printing and Internet of Things (IoT), is only available if you choose to use modern ERP software. Without adopting a new ERP software, your company will facing a gloomy future as it will have to muddle through the limitations of Legacy ERP.


2 . High system maintenance costs.

An outdated legacy ERP solution actually ends-up being more expensive to maintain and operate compared to newer ERP systems. To read more about the hidden costs of technology, read the ‘Hidden Technology Debt’ blog. Your company is probably incurring huge expenses just to have your current legacy system running. Legacy ERP systems use a stack of software for different subsystems and the more subsystems your company has, the higher the maintenance costs.

With the money your company saves by simply shifting to a new ERP system you can support new initiatives and innovation. According to computer economics, companies that use the Legacy ERP system spend 80% of their IT budget on maintenance as compared to 69% for those that have shifted to the modern ERP software. Your company will improve on its productivity as a result of these significant savings.


3 . Poor focus on customers.

Due to the ever-changing demands of today’s market, it’s more important than ever for businesses to focus on customer relationships. Customers have set high expectations; they want instant feedback regarding their purchases. The ability to provide the best possible customer service automatically makes your business more competitive compared to those who are not keen on meeting the expectations of the customers.

Legacy ERP systems do not have the capacity and infrastructure to support customer-focused manufacturing. The basis of offering customer-centered services is having a system that can collect, share, and act on the customer data. Unfortunately, legacy ERP systems lack these capabilities.

The data in Legacy ERP systems is fragmented with each department having its own set of data. Such fragmented data creates a disconnection between the various departments as it is difficult for the information to be shared. As a result, the customer service team that is supposed to promote customer satisfaction may not have all the data that they may require to deliver on their duties. The effect is poor customer service which can make them move to other companies which are customer-centered.


4 . Failing to adapt to industry standards and needs.

As we’ve said time and time again, today’s business environment is constantly changing due to modern processes and technology. Companies with a legacy ERP system are gradually realizing that it cannot handle modern requirements. There is a big gap between what is needed and what can be delivered by the legacy ERP system. As such, there are many constrictions in the use of the old system that makes it impossible for companies to upgrade to 21st century standards.

To modernize, your company will require an ERP system that is fast and flexible. These important features are lacking in the Legacy ERP system hence the need for its immediate replacement. The old system is also not compatible with modern employees who prefer using smartphones and tablets. The old system is not designed to support the mobile workforce and companies that do not adopt the new system may struggle to find employees in the future.


Don’t wait another year!

If your current ERP system is not meeting your daily business demands, it’s time to make the switch to set-up your business for success. How do you know if it’s time?

  • Your ERP does not support the needs of the business – lacks functionality, is hard to use, response time is too slow.
  • Operating costs are too high.
  • You rely on spreadsheets to get things done.
  • Executives get little useful insight from the system – lack of dashboards, self-service BI, or they are difficult to use.

Click here to schedule a discovery call with the ACC Team! With over 25 years of ERP experience, we’re here to get your business on the right path to success.

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