Business Automation and Software Blog

ERP Selection: The Problems with Outdated Software

Posted by Robert Baran on Thu, Jun 04, 2015 @ 12:13 PM

When your business started the process of ERP selection, did you think through the longevity of the software as well? Not only is ERP selection important, but maintaining the most updated versions is also important. Although the need for ERP is known, do you understand the need to consistently update it as well?

Virtually any organization would say that enterprise resource planning (ERP) software is a necessity that helps carry out daily processes and overall support to businesses. The benefits of ERP are many. It offers the necessary data and information that makes decision making easier, makes collaboration and information sharing simplified, promotes efficiency and productivity, and provides comprehensive data and records that are essential to operations. With a software that does so many tasks for businesses, it is a wonder that so many companies have such outdated ERP solutions. Let’s take a closer look at the problems facing companies that are not current on ERP software.

This information is based upon a recent study done by the Aberdeen Group meant to provide the analyst’s perspective on research done about modern ERP. The research was done using surveys, interviews, and data analysis and was comprised of a combination of best-in-class, industry average, and laggard organizations. Best-in-class companies are classified as being in the top 20% of respondents based on performance while average businesses represent the middle 50% based on performance. The bottom 30% of performers are referred to as the laggard businesses.

The Problems:

-ERP Systems Averaging over Seven Years Old are the Ones Being Used by Most Midmarket Businesses

According to the Aberdeen Study about modern ERP, the average age of ERP solutions being used in midmarket companies is over seven years old. These organizations have between 100 and 1,000 employees. With over seven year old ERP systems being used, this makes ERP tools some of the oldest applications in use in midmarket businesses.

-A Lot has Changed in the World of Technology and Businesses Themselves have Likely Evolved as Well

The reality is that a lot has changed in the world of technology over seven years, and using these older systems isn’t keeping up with modern technology trends. Outdated technology lacks mobile and social capabilities that are now available in addition to modern best practice. Without upgrades, outdated ERP software likely does not have these offerings. Not only has technology changed, but businesses have also likely changed to some extent over a seven year period. This can include everything from expansions to added product lines to new regulations to other developments in business.

Over the course of this month, we will be taking a closer look at the insights found through Aberdeen’s research. This study, ERP in the Midmarket: Enabling Functionality and Simplicity to Combat Complexity, concluded that the midmarket organizations that are considered best-in-class are the ones that are more likely than those that meet industry averages or lag behind to accept ERP upgrades and keep ERP current. As we dive into these findings, the goal is that these insights will help you and your company to understand the reasons an ERP upgrade could be a great choice and what technological capabilities and benefits can be enjoyed through these upgrades. Ultimately, we hope you will consider the importance of staying current and take action with regards to your ERP selection and use to be sure your company is current and prepared for the future instead of lagging behind.

For more information on ERP selection, visit here.

If you are ready to discuss your needs and how to plan your next ERP selection or upgrade please contact us for a complimentary consultation.

Stay tuned this month as we look at the importance of staying current with ERP, reasons to upgrade ERP, the benefits of these upgrades, how to take advantage of the latest technology, and more. To learn more, download the Aberdeen study here

Topics: ERP, ERP Software, ERP Selection