The Out-Dated ERP Software Is Impeding Your Company’s Growth
Procuring the latest technologies and software systems for your organization might seem like an extensive and expensive process. However, the truth is, with the right ERP implementation partner, you can steer your company away from facing huge losses in the coming days. According to experts, the average lifespan of ERP software is about ten years. If you still have ERP software that is older than that, you must get it replaced at the earliest. You might find the idea of giving your ERP software a shot in the arm intriguing but, it will eventually have a counterproductive effect on your company’s significant operations.
Why Are Companies Reluctant To Replace Their Aging Software?
There's no denying the fact that aging software can create innumerable backlogs for your company. Nonetheless, the reality of the situation is grimmer and a lot more maligning than you think. Several reasons explain why companies are reluctant about upgrading their software. Firstly, more than 65% of small businesses take a step back because of an inadequate budget and technical support. Secondly, around 43% of the enterprises are still compromising with their out-of-date software because the company leaders and employees aren't quite familiar with their uses and benefits.
Considering how uncertain the current market scenario is, organizations are constantly looking for areas to cut down the additional costs. Nevertheless, the verity that making efforts to breathe life into aging software will prove incredibly costly in terms of security, cash flow, productivity, and customer engagement and confidence cannot be ignored. Also, the maintenance costs to keep archaic devices running beyond their capacity can give you a headache! Apart from this, here are the most noticeable ways in which the out-dated ERP software is impeding the growth of your business.
Ways In Which Out-Dated ERP Software Is Affecting Your Business
Lagging Business Intelligence
Gathering, filtering, and analyzing data from various sources is something that old ERP software cannot conduct proficiently. As customer trends and behaviors are continually changing and market conditions are always in flux, it becomes immensely crucial to have powerful ERP software for your business to transform large volumes of unstructured data into actionable insights. Furthermore, modern ERP software can automate a lot of your intricate and repetitive tasks. Assessing buyer preferences and information from time to time to spot hidden patterns can instantly boost your employees' efficiency, increase profit margins, and improve customer satisfaction.
You Are Missing Out On the Competitive Edge
Every sector of the market today, regardless of its popularity and reach, is welcoming more and more competition and growing in size. Additionally, if you are still using aging software, you must be prepared to lose customers to your competitors because of security and consumer support. Therefore, for your company to thrive amidst this ever-evolving arcade, you must have robust tools at your disposal. ERP software equipped with the latest technologies would derive crucial data about your competitor’s performance and compare it with yours to offer a fair idea about your position in the market.
Rigid Business Reports
Gone are those days when business leaders depended only on their instinct and a set of amorphous statistics to formulate decisions. The functionalities of older ERP systems were not only limited but also, rigid and non-scalable. They can neither effectively report on the available sets of data nor tally internal data (company data) with external data (competitor’s data).
As opposed to this, the latest ERP software systems can facilitate collaboration across multiple platforms, skim through large stores of data, and produce interactive reports. These reports can be accessed and updated by all the authorized users of the company at any time and from anywhere. This way, you can persistently keep track of the progress made on the on-going projects, and complete them way ahead of the deadline and reduce scopes of errors.
Unlike their modern counterparts, older software systems aren’t fortified with frequent security updates. Besides the alarming data threats, the workforce of the organizations that still use outdated software is of the opinion that the companies' security solutions are dilapidated. Moreover, the out-dated software allows very little scope of data integration which is indispensable in the cases of product management, customer relationship management, and manufacturing and delivery execution. Thus, to safeguard the confidential data used by your organization from serious vulnerabilities, investing in cutting-edge ERP software is necessary.
One of the biggest disadvantages of using aging software systems is the friction brought about in communication. Compelling employees to be present at their desks all the time to gain access to make use of the ERP software applications would retrieve your organization by at least 10 years. Modern ERP software systems, on the other hand, are hosted by cloud solutions, meaning, they can be accessed from any location and device as long as there is an active internet connection.