Bringing value through modern ERP
It’s weird to think about the fear or disinterest in using new technology, however, it is still very prevalent today. I often get the comment that companies aren’t looking to move from their bespoke ERP systems and everything is made for their “specific needs”. These individuals need to be hearing that the old way isn’t the only way. And here’s why…
You may often hear or see the term ‘Digital Transformation’ get tossed around a lot when looking at tech companies’ social media posts and even on their website, especially when it comes or some tech solutions like ERP. But, what does digital transformation actually mean for a growing business?
Digital transformation is not about just adding new technologies into the business. It is about the improved business processes that have enhanced your people’s and organization’s structure. So your business has been completely transformed. Before going through an entire digital transformation with a new system, you will need to ensure that you recognize and define your overall strategy. From these strategic objectives, you will need to figure out whether the digital transformation is right for you.
Before you look into changing your ERP system it is necessary to understand your pain points and how they impact your business. So let’s look at a few examples:
ERP software is not integrated with the rest of the business processes
Not having a fully integrated ERP system can lead to a lack of productivity. This may not seem something that is so serious, but this can be incredibly costly for a business in the long run. Having an updated fully integrated ERP system will allow for better communications is critical to many business processes. What you might see is that you are spending more on time and IT resources due to the separate functionalities that are needed to run your business. A fully integrated ERP system can easily automate manual tasks and create complicated workflows as the data is shared. Automation can help eliminate errors from manual processes and help teams to increase workloads and productivity. With full integration, your people can focus on the tasks that need to be concentrated on.
Outdated ERP software
Having outdated systems is a common problem for different types of businesses, and is a problem that should be tackled. Although it may seem that your bespoke ERP system is made for your exact needs, this may not be the case. Businesses are coming to find that these old systems reduce productivity in the overall business process. Some of the common pain points that are caused by having outdated systems are inconveniently large IT budgets, rising competition, falling out of compliance, or having a disengaged workforce.
When considering your possible ROI, you need to consider whether you are getting the most out of your system. If it doesn’t add up then it’s time for a change. The signs to be looking out for to see whether your system is outdated are if you have to manually input your data, lack of real-time data, integration challenges, security risks, and higher maintenance costs. One of the most common ways to fix these issues is to replace them with a modern cloud-based ERP system. Don’t let outdated ERP software hinder the progress of your company’s growth.
Maintenance costs of your ERP system
It seems inconvenient to look for a new ERP system, as it is a time-consuming process that involves many demos. However, with breakdowns of the system, licensing, and maintenance costs are more of a nuisance to handle. With on-premise ERP there are many hidden costs especially when it comes to upgrades and maintenance. Even though it is the same case for Cloud ERP solutions, when looking at the overall cost implications you will find that the cloud is cheaper. Within a study taken in 2020, 93% of businesses currently use cloud-based or hybrid software increased from 19% to 57%. This growth was in one year alone. Cloud ERPs are therefore best-suited for small and midsize businesses seeking lower upfront costs, system stability, and ease of access. You need to consider two main factors: what you pay and what you are getting.
Security system being compromised
Cyber security issues can become a serious issue especially when there isn’t regular upkeep. It takes commitment to ensure that your business data is safe. Issues with old or outdated software can open access to cyber threats, which may mean viruses, hackers, and malware. When attacked look for weaknesses in the software this is a threat to your personal and financial data. Therefore, there need to be regular updates to patch up the gaps.
Also, you may face the issue of not having the proper training for your staff to be up-to-date and confident. This issue with staff that isn’t confident using the system will resort to storing information in more than one place. Running reports in excel can actually cause more problems than assumed. This is why more and more companies resort to adopting cloud-based ERP systems. The cloud offers secure gateways for remote access, document management systems that prevent the download of sensitive data, and on-site archival of sensitive information to avoid it falling into the wrong hands. With reduced costs and increased flexibility and security, the cloud offers more advanced capabilities than other ERP formats.
How can pecen help?
With automation, there is the potential to solve your hardest problems, but this is only through the right solution for you. It isn’t the case of one-size-fits-all, you need to find the solution that is right for your needs. At pecen we make sure that we have the right solution for you and give you our best insights into the industry. Most importantly we help you get bang for your buck.
Being partnered with Unit4 means that we have a great opportunity to provide the next generation of smart cloud ERP to customers. Unit4’s solution is made for people’s experience and to help mid-sized organizations within various industries, and we will make sure it is right for your business. At pecen we ensure that updates, training, and knowledge are maintained to help you solve your problems.
We are a Unit4 preferred HCM and Payroll partner and take a people-centric approach to everything we do. If you have any queries or need any help don’t hesitate to contact us and book a call.