Similar to using old appliances, keeping an obsolete and outdated Enterprise Resource Planning (ERP) system within your company is more detrimental than beneficial for your business. Let’s face it — these systems do not age like fine wine. If a business wants to compete with the giants and maintain its edge in the competition, the management has to upgrade when they can. This is especially true for ERP systems.

However, there are companies that do not want to embrace changes since the current system works well for them. They tend to be sceptical about the costs they shell out and the profits they earn from upgrading. Little do they know, they are already lagging behind a swarm of competitors who own updated ERP systems in place.

Enterprise Resource Planning Defined

Enterprise Resource Planning is a system that works to unify and integrate various computer systems and networks within a single organization. The old practice is to have separate infrastructures for different departments within the company. However, as most tasks are now preferred to be automated and accessible in one platform, ERP systems are put into place for these benefits.

Companies are now reaping the benefits of advanced technology through updating their ERP systems regularly to suit the best business practices. This competitive era has called for various strategies to keep up with the competition. One of these means is to upgrade ERP systems and make them cloud-based. To determine whether an ERP upgrade is worth the money and effort, below are the top 10  reasons to modernize your ERP system.

1. Access to More Standard Features

In the past, upgrades were considered a luxury, and companies did not mind them at all. However, as technology advances, upgrading your ERP system has become a standard and indispensable practice requiring your utmost attention. Whether it involves upgrading a functionality or a system feature, your business will definitely benefit from it.

Otherwise, if your competitors have access to these upgrades and you don’t, you might fall behind in the competition. The upgrades are standard features you need for the basic operations of your business. You have to start from there because you’ll need more. You’ll need more cutting-edge technology to rise above others. An example is Cloud ERP, which big businesses use nowadays to access ERP over the internet.

2. Seamless Integrations

ERP is similar to a glue that holds various systems together for a big company. Thus, if one system fails, the others will have the tendency to malfunction as well. This is mostly the case for obsolete and outdated ERP systems.

It’s inevitable for old ERP systems to become faulty in the long run, and no one is to blame. Meanwhile, an updated ERP system can seamlessly integrate your networks and systems with another, which can lead to better work strategies and increased efficiencies in operations. The better integration, the better output your company will create through your ERP system. Latest ERP systems are more flexible in terms of integration. Thus, your company’s developers will also find troubleshooting and diagnostics easier with these upgrades.

3. Improved Inventory Management

The various departments in your company are likewise connected through your ERP system. If there’s a certain disconnect with your workforce because of your outdated ERP system, the whole situation may also affect your inventory management. When these departments sort their inventories separately, there is a huge tendency that precision and timeliness may be sacrificed.

With a single updated software in place, you can manage your inventory in a more unified and efficient manner without fail. This is why some companies resort to Oracle ERP, which is a cloud-based solution where employees can automate daily business activities and manage back office processes such as inventory management.

4. Mergers and Acquisitions

Let’s say an investor is interested in your business. However, they might not be so pleased when they found out that your ERP system is rusty. If you’re a growing business, expect more investors to evaluate and examine your processes. Moreover, once your business acquires another, the system you currently have may not be able to adapt to sudden changes. Your operating system must be able to handle all of the ever-changing requirements in the long run. The only way to do that is to upgrade your ERP system.

5. For Mobile Functionality

Companies are now taking advantage of the fact that mobile phones are now an indispensable part of the corporate world. People are glued to their phones all the time, whether for business or personal use. Now that most operations and processes are done remotely, it’s ideal for businesses to optimize ERP systems to allow access to mobile features.

Adapting to this culture change can benefit your company in ways more than one. Allowing your employees to take their work on the go and work on real-time analyses, insights, and other data. This will make their workflow more efficient even when there are contingencies involved in the process.

6. Eliminate Server Downtime

More server downtimes mean fewer customers in the future. These downtimes make companies appear unreliable and not secure. To avoid lengthy waiting periods for solutions, especially during downtime, your company needs to amp up your game and ensure faster performance and pace for your customers. Don’t wait for them to get agitated; make sure they don’t experience downtimes at all, if possible. These glitches can break your customers’ trust and loyalty.

This is where an ERP system upgrade should come in. A Cloud ERP system is now the most viable solution to countering these downtimes since most of the data used in your operations is accessed online. This strategy will help your business stay afloat and maintain your clients’ loyalty.

7. Avoid Expensive IT Infrastructures

Creating separate IT infrastructures is now a thing of the past that should not be considered by companies anymore. Large cost overheads and performance declines are often attributed to expensive and separate IT infrastructures that no longer work. Moreover, keeping these separate infrastructures can cause miscommunications among various departments that work together for a single project.

However, with a unified and integrated ERP cloud-based system, your staff can deal with problems closely with other departments and avoid causing further problems in the system. You can get rid of complex issues that may arise out of expensive and obsolete systems that are no longer applicable.

8. Strengthened Data Security

Having an integrated and updated ERP system also means better security for your company’s data. While it can be worrisome to think about having all your company’s information in a single source, securing your data is actually easier with a single system. Your developers can manage one system better than separate IT infrastructures with separate infiltrators.

You can easily track the activities in your company without having to worry about other existing systems you may have. With an updated ERP system, you won’t need to have multiple systems to guard. The latest version of an ERP system will allow you to limit access to some information and control data-sharing. These are automatic features once you decide to upgrade your ERP system.

9. No More Vendor Support

No software developer will spend their time and resources updating an old version of their software. Rather, they would choose to enhance the more recent ones. Staying in an old version of your system also means that you will no longer get updates from the vendor, and your system will run obsolete. This is one of the main causes of businesses lagging behind the competition.

Also, if you let the upgrades pile up, you will likewise incur more significant expenses that may hurt your profits. Getting all the upgrades in one go can be expensive. Moreover, your late transition to a newer version of the ERP system may have already caused your customers to look for another company.

10. For Business Growth

Increased demands and new products or services also mean that you have to upgrade your ERP system. This is so you can accommodate these changes and tailor new strategies based on your new and improved cloud-based system. Expansion is a wonderful thing about businesses, and if you want to rise consistently to the top, you might want to employ state-of-the-art systems to suit the rising trend of your business.

A Modernized ERP for a Better Business

These are some of the reasons why it’s time for you to modernize your ERP system. With these new upgrades, you’ll notice big changes in the way your company operates. You’ll observe how your employees are more motivated to accomplish more tasks than before. This will all be possible with a cloud-based ERP such as the Oracle ERP that can help you transform the way you do business.

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