Business Automation and Software Blog

Staying Current with ERP Selection and Maintenance

Posted by Robert Baran on Tue, Jun 09, 2015 @ 09:02 AM

Problems arise when companies do not keep their enterprise resource planning (ERP) software current. Not only is ERP selection of a solid system important, but maintaining that system is equally important. Problems stem mainly from the effects outdated technology can have on forcing business operations to lag behind optimal speed and performance. To learn more, visit here.

In order to alleviate the effects of outdated systems, it is important to stay current. According to a recent study by Aberdeen, ERP in the Midmarket: Enabling Functionality and Simplicity to Combat Complexity, the highest performing or best-in-class midmarket companies are staying current. This is helping in their success.

How does staying current with ERP releases really make a positive impact? The proof is in the numbers.

The following facts illustrate just how important it is to stay current. For best-in-class companies, the time to close out a month was less than the industry average companies and laggards. They took 6.4 days and 8.1 days, respectively, to complete this task while the highest ranked companies did this in just 3.9 days. Best-in-class businesses has sales outstanding for just 39.1 days while those with average to laggard performance took as much as 12 additional days to close the sales cycle. The percentage of complete and on-time delivery is equally impressive for the highest performers at 96% while laggards were only complete and on-time 82% of the time. Every company is looking to increase profit margins, but not all businesses meet these goals. Staying current with ERP can help, though, and translated into a 16% increase in profit margins for best-in-class businesses over the past 2 years. This was only 11% for the industry average businesses. No increase in profit margins was achieved by the laggards.

In summary, staying current reduces time to close out the month and days that sales are outstanding. At the same time, it increases the percentage of complete and on-time delivery and profit margins. Organizations that are not best-in-class status are not enjoying these benefits and are 46% more likely to be at least one version behind in their ERP release. Updates allow the most successful businesses to take advantage of the newest advancements in technology and use those same tools to help accelerate the performance of the business even more.

Why is upgrading ERP important?

It can certainly be daunting to replace ERP software with the selection and implementation of a new one. Burdens are placed on resources, and new ERP selection is no easy decision. The good news is that these challenges are relieved by upgrading instead of completely replacing ERP solutions and help to combat the reasons ERP is usually replaced in the first place. It is important to upgrade ERP in order to get more support from your ERP vendor and to maintain ongoing commitment and help. Upgraded ERP solutions are tailored to integrate business changes and make for more adaptable and usable structures with enhanced and personalized support. Upgraded ERP solutions maintain qualified resources and support of the system, and they help avoid encountering obsolete technology infrastructures that will then require an ERP replacement.

If you are finding that you don’t want to upgrade because the upgrades are not attractive to your customers and your needs, you may need to identify a vendor that continually offers impactful updates that don’t significantly disrupt the business. One change to a new vendor may make significant improvements over the long haul for ERP selection and for future upgrades.

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 next week as we look at the benefits of upgrading ERP. To learn more, download the Aberdeen study here

Topics: ERP, ERP Software, ERP Selection