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5 Telltale Signs You’ve Outgrown Your ERP

Posted by Indusa Admin on October 19, 2015 5:14 am

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While business growth is undoubtedly something to be celebrated, that doesn’t mean it comes without its challenges: you have to hire more staff, oversee more transactions, analyze more data – sometimes your organization is growing faster than you can keep up with. Software that worked for you last year may no longer be an efficient or practical solution. One such system might be your enterprise resource planning (ERP) software.

Outgrowing an ERP is a natural part of growth for every small to mid-sized business, so you can be prepared when the time comes. After numerous ERP upgrades and implementations, we’ve decided to compile a guide to help you better understand the warning signs of outgrowing ERP software. Here are a few key issues to consider when determining whether or not you’ve outgrown your ERP:

ERP Outgrown

  1. Slow response times: If your software is consistently troubling you with performance issues, it might be time to upgrade your ERP. If the system gets overloaded with data, it will begin to slow down, taking more and more time to generate reports and results. This can hinder your decision making capabilities and impair any business processes that require immediate access to get up-to-date data. An alternative solution is to purge old data, but while most ERP systems allow you to archive historic data, this severely impacts your analytic capabilities. Historic data can be used for numerous forecasting functions. If your ERP lacks modern analytical or forecasting features, then it’s another sign to upgrade your ERP.
  2. Lack of integration: If you’re consistently finding yourself manually entering data across multiple databases, you might have outgrown your ERP. The software should be able to seamlessly integrate with other applications and allow a 360° view of your business without the need for duplicate data entry. The latest ERP systems integrate with CRM and content management systems, providing you with increased efficiency and synergy.
  3. Global expansion: Not all ERPs were meant for international business. If your organization recently expanded into global markets, you may find yourself in need of a new ERP system. Support for multiple languages, currencies, and localizations are needed if you want to maintain presence in the global market. Even if your software supports a global market, ask yourself if it has consolidation capabilities. If the ERP system doesn’t provide global accounting features or offer complete visibility of your international offices, then it might be time to upgrade your system.
  4. Obsolete software: ERPs and their underlying architecture are constantly evolving. If more efficient technology is available, then an older ERP becomes costly to maintain, outdated, and may have its support dropped in favor of newer versions. Using outdated software can become increasingly costly for businesses and hinder overall efficiency. Even if your software still provides basic functionalities, upgrading now will provide a better return on investment than sticking with the outdated system. Some ERP systems even have roadmaps to illustrate how they will stay up-to-date even as time passes. The roadmap will show a progression from past to future versions of the software, documenting new functionalities, compliances, and regulations that become available. This ensures your ERP software has an obvious path forward and prevents it from becoming severely outdated.
  5. Disgruntled employees: Even though blaming software sounds like a poor excuse, there can be some truth to your employees’ claims. If your ERP system is causing mass frustration – whether it be performance issues or a lack of functionalities – chances are you might have outgrown your software. The ease of use and overall efficiency of your ERP is easily measured by your employees’ satisfaction; if they aren’t satisfied with your ERP, then you shouldn’t be either.

If you want your business to be operating to its fullest potential, then you can’t afford to be held back by an ERP. While the initial upgrade may seem like an expensive investment, the ROI of upgrading your ERP software will far outweigh the initial costs. Upgrading to a contemporary software solution can provide you with vital functionalities and improve overall business efficiency. If your business has recently expanded, or is looking to expand, it might be time for an upgrade. Is your ERP software holding you back?

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Sarah Van Wambeke
About the Author – Sarah Van Wambeke

Sarah is an avid writer and digital media enthusiast. Here at Indusa, she primarily focuses on content creation and social media management.

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Topics: ERP