When’s the right time to transition to a new ERP system?

Published on the 13/09/2016 | Written by Zag

The right time to transition to ERP system

The advantages are clear, but often businesses will delay making a decision suffering pain and chaos…

For CFO’s and decision makers of growing Kiwi businesses, the advantages that modern ERP solutions provide are well understood – an integrated view of the entire business being a key promise an ERP is expected to deliver on.

A good ERP system can be the lifeblood of your company. No matter how well your current system performed when you first signed on, there comes a time when the cost of maintaining legacy systems becomes a burden. Perhaps support from the software provider has ended, or your business is currently spending a lot of effort developing customised fixes or workarounds to resolve issues and get visibility across disparate systems.

Upgrading your ERP system

Whatever the reason, all businesses at one time or another have to weigh up the costs and benefits of retaining legacy systems against the costs and benefits of selecting and implementing a new system. In fact, you might even have been out to market before to find a new ERP solution for your business, but for one reason or another have resisted the change.

If this is the case, you’re not alone. It appears many businesses are very patient. In fact, recent Forrester research shows that approximately half of ERP customers’ existing systems are two versions behind the current release, which may be four years old or more. [1]

So why do so many businesses resist the need to implement a new ERP system?
Despite the compounding pain points of legacy systems, most companies defer the decision to change until ‘absolutely necessary’ – or, at worst, until a crisis dictates that change.

In reality, embarking on a new ERP system implementation is a major organisational undertaking. It affects every aspect of the business – requiring time and training, and causing interruption to people’s jobs – and all this needs to fit around ‘business as usual’. Added to this is the disruption that can inevitably occur when employees have to change the way they do things.

Many argue that there is never going to be a ‘perfect’ time to implement. However, from our experience working with many New Zealand businesses facing the challenges of growth, we have found there is a right time. And that time has nothing to do with how much pain legacy systems are causing, or any desire to delay the pain of change.

That’s why we’ve written a guide for CFOs and decision makers struggling with the growing pains of successful NZ businesses – to help you determine when the time’s right to make the transition to a new ERP system, and how to prepare your business so you can hit the ground running when that (inevitable) day arrives.

When you download our guide, not only will you find out exactly how to identify when it’s the right time for a growing business to make the switch to a new ERP system, but how to get the project across the line, and what you can do to prepare your business before implementation begins, making the process as painless as possible.

[1] Trends 2011: ERP Customers Demand Better Flexibility, Cost Transparency, and Mobility

About to embark on an ERP journey? Be one step ahead of your stakeholders and download our guide for useful insights, suggestions and strategies to help you achieve alignment in your growing business. Experience the benefits of a modern, efficient ERP backbone for success.  

Upgrading your ERP system

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