The evolving of ERP software in the past few years is not unknown to anyone. In earlier times, ERP was rather a static solution with the aim of managing supply chain and operations. But in the present era, the taking place of ERP software upgrade has enabled it to encompass technologies such as Blockchain and Artificial Intelligence. The capabilities of these technologies are leading to digital transformation. Several organizations are now leveraging this software for driving revenue and improving customer experience. However, one important aspect of reaping the entire benefits out of the software is when a business knows when it needs to upgrade ERP software. Most solutions will last 5 to 10 years and it is considered the best time for an upgrade. When a business realizes the reasons for ERP upgrade, it can make better decisions.

The surfacing of ERP Software:

Even a few years before, ERP systems were just an off-the-shelf resolution for businesses that could only consolidate an exact amount of in-house systems. Those systems either could not support various business collaborations or be unable to integrate well. The utility of ERP software was primarily restricted to HR, supply chain, accounting, manufacturing, etc. The 21st century witnesses ERP solutions carrying a wide array of capabilities. Now ERP business collaboration is a common scenario altogether. The taking place of ERP software upgrades is beneficial to businesses in innumerable ways. These systems now incorporate improvements like customization, user interfacing and interchangeable modules.

When we witness this present day, we will find that the ERP system is still upgrading. Cloud, AI and blockchain from the previous 5 years are technologies in demand. This is not only influencing the way of designing today’s ERP solutions but also the number of value businesses can anticipate the systems to deliver. While ERP in the construction industry is utilizing ERP for managing supply chain procedures;  for managing supply chain procedures; ERP in the retail industry is leveraging it for stakeholder satisfaction that is quite mission-critical tasks.

As per current research, the cloud is a massive driver behind the modernization of ERP software. This is because this alone crafts the way for several other technological improvements that can outgrow the dramatic growth for several businesses.

When it comes to cloud based ERP, it amazingly positions big data along with the processing power. This is measured for unlocking robust analytics insights. Along with that, it can extend support to the integration of business software & enterprise mobility. Business continuity is crucial for grasping leads and getting hands-on good revenue on a regular basis. Businesses can accomplish this easily with cloud ERP. The level of flexibility that a cloud system can offer is never possible with a conventional on-site ERP system.

Which is the Correct Time for ERP Software Upgrade?

Business leaders all over the globe now perceive ERP software with completely fresh eyes. The priorities of each organization vary and are also changing on a regular basis. So the things that were possible technically are now perceived quite distinctly from the previous time businesses actually invested in ERP systems. A company can always think of continuing with the present ERP software. However, it is bound to be followed with short-range technology fixes but it will then struggle to enhance the customer experience. Cutting down on costs and accomplishing greater agility will be challenging too. This will by the end of the day hinder the entire business success.

As per a recent survey, 52% of SMBs were of the view that their ERP systems are incapable of delivering the various tasks for achieving business objectives. Only 65% of organizations realize that being at par with technological innovation is a crucial portion of their businesses. However, when businesses encounter the question of whether and when to opt for ERP software upgrade, none of them seemed very sure about their answers.

The most important thing here is to rely on the business priorities for realizing the correct approach. For instance, the organizations that emphasize on revenue growth must be cautious while choosing the cloud. Rather they must try to update the current ERP systems. Businesses that are keen to enhance CX or customer experience must incline more towards making technology investments. They must form an equal interest in both on-premise and cloud ERP software. Irrespective of the business priorities, businesses must move ahead with that ERP strategy that will assist them in accomplishing the priorities. Take a closer look for understanding the correct way of doing it.

Factors Driving the Decision to ERP Software Upgrade:

• Challenges with the Present System –

When the current ERP software runs in a slower manner than the usual processing time, it is time to upgrade ERP software. There is an immense need for an upscale ERP software upgrade that carries recent technologies. This will not just speed up various business procedures but also bring its peak efficiency back.

• Growth –

The reasons why a business must opt to upgrade ERP software can be several. This includes new services; enhanced demand for what the business provides new markets and a lot more. Enhanced growth will always put pressure on the legacy ERP software. Few growth factors will instantly demand additional applications and functions

• Regulatory Requirements –

The thing that takes place most of the time within companies is the happening of regulatory changes. This demands ERP software upgrade. Few of the primary reasons to upgrade ERP software include weak controls, complicated accounting, insufficient functionality, various rules of revenue recognition, etc. Companies not carrying the needed controls will also feel the compulsion of upgrading.

• Legacy Technology –

Any ERP software that witnessed it’s designing more than a decade ago, are the ones that actually require ERP software upgrade. Few organizations sometimes show hesitation for upgrading as they fear that there will be more expenditure or complications will simply follow. However, business objectives keep on changing. When it comes to ERP software upgrade, it will help companies in meeting numerous requisites. Customizations will also not be challenging.

• Incompatibility with Software and Hardware –

When an organization is unable to support new software, hardware devices or any other third-party solution, it must advance towards ERP software upgrade. For instance, if the old software is posing problems to loan on the new laptop and also if it is not compatible with mobile, a business must upgrade ERP software. Upgrading permits the complete realization of the device’s full potential.

• Acquisitions and Mergers –

The one thing that is usual in today’s world is midsize or small businesses merging or when large companies acquire smaller ones. ERP software that has been serving the small businesses might not be sufficient for managing the acquirer’s transactions. In these cases, it is paramount to upgrade ERP software and this is in context to the parent company. This will guarantee streamlined procedures & smooth system integrations. Exactlly is now here to provide efficient ERP software to businesses that are compatible with every new device.

• Not Receiving the Needed Support –

If a business’s ERP is manifold versions behind the recent version, it will be incapable of receiving the support that is required. However, the ERP partner might choose to keep all the things working for the business but it will be missing out on the recent updates and patches. When a business chooses to upgrade ERP software, it will always be updated about all the recent features.

Final Say:

Determining how and when to opt for ERP software upgrade is not a very meek matter. With the number of ERP projects collaboration, businesses can clearly witness an enhancement in the sales order. But this also calls to upgrade ERP software. Hence, businesses must commence by first addressing their priorities that will permit them to understand whether they require the upgrade or not. One such solution is exactllyERP that not just assists with cutting down on costs but also enhances CX. Such ERP systems support business priorities for the present as well as for the long-term. To understand its functioning more, go through the Free Demo. Contact Us today for always staying updated about the latest patches.