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Legacy Systems – Are You Showing Your Age?

Posted by Indusa Admin on September 28, 2015 4:42 am

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Before we get started, let’s define exactly what Enterprise Resource Planning (ERP) is. ERP is a business management solution that is used to integrate and manage an organization’s finances, supply chain, manufacturing, operations, reporting, and human resources functions.

As technological innovations are happening at lightning quick pace, changing customer and employee expectations tremendously. While everyone seems to be flaunting the latest gadget, it is surprising that there are plenty of systems and applications at the core of many businesses’ processes that are still outdated.

Legacy Systems
When ERP solutions were first invented, numerous organizations took the plunge and implemented. Over time, new solutions have emerged and others abandoned. Today, CIOs worldwide recognize the relevance of modern day ERP systems and believe that they are the main driver for creating competitive advantage. However, factors such as considerable capital investment and the implementation time pose as a hindrance in adopting a new ERP solution. Despite these considerations, an outdated ERP solution can not only be detrimental to your business, but also harms your position in the industry.

5 Benefits of Updating Your ERP Solution

Ensuring your ERP solution is compatible with the core business strategy is imperative for success. Below are five significant benefits that go hand in hand when you update your ERP solution:

1. Enterprise Growth

The unprecedented development of technology and business has influenced every facet of computing systems across organizations. Enterprises today are inundated with changes in the technological, industrial, and regulatory spheres. They are in need of systems with B2B and B2C features such as ecommerce and dealer management to streamline and fasten the supply chain management (SCM) process. Simultaneously, business environments have become increasingly complex, necessitating extreme interoperability between systems and smooth flow of data for timely and efficient operations and improved decision making. Legacy ERP solutions consist of highly disparate modules that restrict this flow of data, thereby limiting organizational growth.

2. Improved Technological Innovations

In order to stay ahead of competition, organizations are restructuring their business and reassessing their strategies continuously. They are investing huge capital in modernizing business processes so as to keep pace with industry fluctuations. Organizations are looking at modern technologies like business intelligence (BI) to deliver accurate and real-time analytics to management for better decision making and strategy planning. Additionally, hybrid production control activities like discrete, lean manufacturing and process manufacturing are required for making business processes efficient. Outdated ERP solutions are no longer supported by their vendors, forcing enterprises to redirect critical business resources into their maintenance and upkeep. Also, old ERP systems do not provision current business prerequisites like BI or big data, limiting enterprises from focusing on innovation and transformation.

3. Collaboration with Other Platforms

With organizations expanding their operations to various product lines, services, and locations, they are looking for systems with multi location and language handling capabilities to manage multiple legal business units across different demographics within the same instance. Business user reporting capabilities are being sought in order to augment the decision-making process. Moreover, technologies like cloud and the Internet of Things (IoT) are transforming how the business world connects; but out-of-date ERP solutions hamper collaboration between various entities. Legacy ERP solutions were not designed to be connected across multiple stakeholders. Expensive integrations and third-party applications are required to be installed for such systems to be in-sync with businesses.

4. Mobility Capabilities

Along with employees, organizations as a whole are also becoming increasingly mobile. In order to achieve success, businesses are looking to attain dexterity and flexibility in their business structure. Businesses are running their operations with multiple departments spread across multiple locations; they require their systems to have mobile capabilities for their warehouse, field-sales and services teams. But old ERP systems do not have mobility capabilities; they do not integrate these spaced entities thereby hampering decentralization of business.

5. Improved Employee Satisfaction

With every industry facing intense competition, organizations are undergoing radical transformations. Massive technological advances have made employees’ jobs easier in all spheres of work, but an outdated ERP bogs them down. Old ERP solutions were built with limited computing resources and possess interfaces which are not only difficult to use but are also slow and inflexible. There is limited access to information, causing frustration and displeasure among decision makers. Today’s dynamic business needs have outgrown ERP capabilities, leading to a dissatisfied, unproductive workforce.

Final Thoughts

In order to stay agile and prepare for the future, it is vital for businesses to shift to modern ERP solutions. ERP solutions in today’s market possess several powerful features like BI and big data, and can be offered to customers either on-premise or over the cloud. Cloud-based ERP solutions offer several benefits like automated upgrades, enterprise-scale security, lower cost of deployment, extreme scalability, and flexibility. Cloud based ERP solutions continuously align with your operating environment ensuring your business is up-to-date thereby creating true competitive advantage.

 Do you think it’s time to have a modern ERP? Learn more about Dynamics AX, as it’s one of the best ERP solutions available.

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Elena
About the Author – Elena Britton

Elena Britton is a leader for Indusa’s strategic marketing efforts.  She’s worked on digital and traditional marketing projects in various B2B industries with a focus on brand management, digital strategies and event management.

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Topics: ERP