If you’re leveraging the benefits of an enterprise resource planning (ERP) system, you are undoubtedly boosting your company’s productivity. But when was the time you upgraded your system? We’re not talking about simple patch updates. Instead, we’re talking about a full-blown system upgrade. Forrester states that ““approximately half of ERP customers are on releases that are two versions behind the current release, which may be four years old or more.” It’s your responsibility to ensure you don’t fall within this category of customers.
Here’s a closer look at the financial and operational impacts that using an outdated system has on your company and how to overcome them.
You fail to keep pace with changes in business regulations
As sales and corporate tax changes take place, your ERP system must be fluid and flexible enough to stay in line with new demands; this is especially true for entities working in the finance industry. As a result, the gap between what your ERP can do and what it should be doing gets filled with inaccurate tax calculations, paper spreadsheets and more; these are all tasks that an upgraded ERP can automate without error. Your on-site ERP system simply can’t keep up with the changes; however, a cloud-based ERP like NetSuite enables you to take advantage of today’s best ERP practices. Upgrades are implemented on a regular basis, ensuring that you always stay in compliance with the latest regulations.
You lose out on potential relationships
One of the primary goals of your ERP is to guarantee enhanced communication with suppliers and vendors. With an outdated ERP, though, you are likely unable to meet real-time demands; this causes suppliers and vendors to take their business elsewhere where real-time information exchange can take place. With a cloud-based ERP, your operations will be adequately interconnected with all involved parties. Customers can view your inventory in real-time, and suppliers can ship your products as needed without you having to ask. Cloud-based ERPs are service-oriented, which enriches all of your operational processes.
You get stuck with a system that can only be used at the office
By the year 2017, it is predicted that nearly 3 billion devices will be in use, including tablets, PCs, smartphones, etc. An outdated ERP system doesn’t sync well with these devices, thus causing you to lose out on potential productivity that can be achieved outside of the office. With a cloud-based system, your company, vendors and suppliers can have instant access to your ERP data, and there’s no need for VPNs, which often result in extremely slow connections. Cloud-based systems also boost productivity because you are able to keep an eye on your IT functions from anywhere that has an Internet connection. Best of all, with a system like NetSuite, your ERP system is easily viewable across a wide range of browsers and operating systems.
When looking for a way to implement and maintain a competitive advantage, a cloud-based ERP can give you the edge you’re searching for.