Is it reasonable to stick with the old ERP system?
The ERP system is the heart, lungs and veins of the company. Over the years, the system has been adapted and developed to fit changes in the business environment and requirements. It’s gradually been moved away from the standard solution, and you’re stuck in a customized version. In addition, new needs have been solved with extensive use of Excel and other simple solutions. The setup and workflows have become personal dependent, and represent a risk to the company if key personnel leave the company or get sick.
At one point, it will be contra-productive to continue adjusting. You will meet technical limitations and possibly financial constraints. Your company has thus accumulated a technical debt, which can be difficult to handle.
The initial response to this situation is to look around for a completely new solution. Most people understand that changing everything is like having a heart-, lungs- and veins transplant, and will consequently be an extensive exercise. The solution are to try to avoid getting in this situation again.
You must get out of the ’80s’ …
The next generation of ERP solutions will most likely be in the cloud. This means that you buy ERP as a service (SaaS). Currently, the selection is somewhat limited, and especially for the more advanced industry solutions and solutions for industry and production. Some of the established vendors are re-launching old solutions, rewritten for the cloud. Others sell “cloud”-solutions that are in fact just your current ERP solutions outsourced to the vendor. The third option are vendors that have started with blank sheets, and made an ERP cloud solution from scratch, specially designed to be a real multi-tenant solution, and offered as a service in the cloud.
Say goodbye to the server park and maintenance costs
With a cloud solution, one avoids installing technology, infrastructure, upgrades, and maintaining old servers. Mirroring of servers, backup routines and physical security is included in the service.
There is the possibility of getting some resistance from existing IT personnel, but they will instead be able to spend their time supporting users, optimizing routines and workflows, focusing on what’s really creating value for your business.
Predictable budgeting and cost page overview.
Buying the ERP system as a service delivery will be more predictable, and cost will start running from the time you start production. This means that there is money to save in the project / implementation period.
Your data is stored in a safe place and in a country without legal or political challenges.