ERP software has become the backbone of many modern businesses, helping to streamline processes, improve efficiencies, and support growth. However, like any technology, ERP systems are not immune to obsolescence, and eventually, businesses will need to consider upgrading their ERP software.

In this blog, we will explore why upgrading your ERP system is worth doing and the benefits that businesses can expect to see as a result. We will also provide an ERP upgrade checklist and discuss the advantages of working with experienced ERP consulting firms like:

• ERP Ln Consulting
• Infor M3 Consulting,
• Infor Cloudsuite Consulting.

Why Upgrade Your ERP Software?

There are several reasons why businesses may consider upgrading their ERP system, including:

Limited Functionality – Older ERP systems may offer a different level of functionality and features than newer systems, limiting the ability of businesses to optimize their processes and support growth.

Inefficient Processes – Older ERP systems may support a different level of automation and efficiency than newer systems, resulting in manual workarounds and wasted resources.

Security Risks – Older ERP systems may be more vulnerable to security risks, and cyber threats, putting the business at risk of data breaches and other security incidents.

Other reasons to upgrade the ERP system include the following:

• Maintain your technological knowledge.

ERP providers are constantly improving their software by adding new features and fixing bugs. With each release, your company will likely have a new opportunity to optimize day-to-day processes.

Major releases typically include broader improvements, such as user interface updates. So, even with minor changes to the look and feel of your ERP system, work becomes easier and more efficient for the end user. If there is a benefit for your employees with an upgrade, there is a benefit for your business too.

• Ascertain ERP compatibility with IT systems.

ERP systems can only be used with others. The majority of businesses will use it in conjunction with other software solutions as part of a network. An interface will connect these to the ERP.

Each of these systems, like your ERP, will have updates, version changes, and patches. If your ERP needs to catch up, you may encounter compatibility issues.

As a result, ERP updates frequently include interface changes, allowing you to maintain effective integrations with third-party systems.

Benefits of Upgrading Your ERP System

Upgrading your ERP system can bring several benefits, including:

• Profitability

An upgraded ERP system optimizes your business from integration to automation, leading to higher productivity and efficiency. We all know that these two factors result in cost savings and increased profits. If you are debating whether to invest in a new system, the ROI is there.

• Insights into Business

Steering your company in the right direction necessitates sound strategy, and sound strategy necessitates visibility. This includes financial, operational, and process visibility, as well as visibility into your workforce, vendors, and customers. This requires accurate, real-time data.

A quality ERP system provides all of this and more, as well as a single source of truth for your business, allowing you to make more informed, strategic decisions.

• Communication

Silos can become an issue in businesses of any size, resulting in errors and smart ideas never seeing the light of day. The right ERP system connects every aspect of your business, improving communication and collaboration and thus increasing efficiency.

• Reliability of the Supply Chain and Distribution Network

Using demand-driven MRP to forecast supply and demand smoothes operations and prepares you for order and supply chain fluctuations. Many ERPs allow for a more connected supply chain and tighter integration with suppliers, allowing you to work more proactively to mitigate issues and reduce surprises.

• Scalability

A quality ERP will be able to grow you and grow with you. As your company adds requirements, an ERP will be able to accommodate and prevent lapses in operations while enhancing the user experience.

• Encourage business expansion

When a company expands, it frequently outgrows its current system and functionality. For example, you may initially focus on a specific geographical area but then expand into additional regions to open new facilities.

There will be new business requirements, such as tax rates, multiple currencies, or languages, which your current ERP system may not be designed to handle.

If your company is growing or expects to grow shorter, it may be a good idea to evaluate your ERP system and upgrade to one that can accommodate business expansion.

• A higher return on investment

Although an ERP upgrade is an investment, it can reduce your overall IT costs as a business. By letting go of outdated technology that may fail from time to time, your performance and productivity will improve, allowing you to earn a higher return.

It may be worthwhile to calculate how much you expect to gain directly from a new system. Compare this to the investment, both in terms of money and resources. You will almost certainly discover that an ERP upgrade is worthwhile.

What does it take to upgrade an ERP system? What must we include in the ERP upgrade checklist?

ERP Upgrade Checklist

If you are considering upgrading your ERP system, here is an ERP upgrade checklist to help you get started:

• Define Your Goals – Define clear goals and objectives for your ERP software upgrade, including specific metrics and targets for success.
• Assess Your Current System – Evaluate your current ERP system, identifying pain points, areas for improvement, and potential risks.
• Choose the Right System – Choose the right ERP system for your business, evaluating vendors and solutions based on functionality, scalability, and cost.
• Plan Your Implementation – Develop a detailed project plan for your ERP upgrade, including timelines, milestones, and responsibilities for all stakeholders.
• Prepare Your Data – Prepare your data for migration to the new system, ensuring accuracy, completeness, and consistency.
• Test the System – Conduct comprehensive testing of the new ERP system before going live, including technical and operational testing.
• Train Your Staff – Provide comprehensive training to your staff on the new system, including both technical and operational aspects.

Upgrade Your System from The Leading ERP Consulting Firms

To get the most out of your ERP upgrade, consider working with experienced ERP consulting firms like ERP Ln Consulting, Infor M3 Consulting, and Infor Cloudsuite Consulting. These firms can provide valuable expertise and guidance throughout the ERP upgrade process, helping businesses to optimize their systems and achieve their goals.

By following an ERP upgrade checklist and working with experienced ERP consulting firms, businesses can ensure a smooth and successful transition to a new ERP system.

Sign up and contact M3-System today!