How old is your legacy, on-premises ERP system? Probably quite a few years. Have you considered an ERP upgrade to a state-of-the-art cloud-based solution? Maybe more.
And that means you might not be maintaining your competitive advantage in the market.
Initially, ERP systems were avant-garde and inventive. They assisted businesses in enhancing efficiency and carrying out essential daily tasks.
However, roll forward to today, and things are changing.
With the introduction of lightning-quick technology that is developing rapidly, they have become obsolete. In other words, your ERP system from 10 years ago might not be able to support your current and future business objectives.
We’re talking about legacy ERP issues today and how they can indicate that it’s time to switch to more cutting-edge systems.
Legacy ERP vs. modern ERP
Early material requirements planning (MRP) platforms gave rise to the earliest ERP systems. While these systems dominated the market in the late 1980s and early 1990s, early models emerged as early as the 1940s.
Manufacturers benefited greatly from the systems during the peak of MRP. That’s because they incorporated elements and operations that made life easier and more ordered, such as:
Finance and accounting for inventory
The sole disadvantage? These systems were difficult to implement due to proprietary or outdated code.
The sites had to be connected using cutting-edge networking methods for a business to have multi-site capabilities. They had to be installed on-site by the manufacturers. Plus, each site required an identical instance.
These ERP and MRP systems lacked comprehensive business intelligence and were slow, compartmentalized, and hard to operate.
Many firms still use these systems, and many more will soon follow suit.
So, there you have it – the skinny on legacy ERP. Now, how about contemporary ERP?
Modern ERP systems receive regular upgrades from the manufacturer. They are no longer limited to the manufacturing industry and closely align with the demands of today’s businesses. Today’s systems are built to consolidate and automate many functional areas.
4 Challenges with Legacy ERP
Is your company’s ERP system a legacy system? If you’re unsure, here are a few indicators:
Companies that have made a solid commitment to digital transformation are increasingly those that stand out in the post-digital era. They are updating their company strategies and spending money on innovative equipment and technology.
Many businesses continue to use some of their legacy systems in the hope that the new technology will work in unison with them.
Sadly, new systems frequently have trouble interacting with older ones. Failure to do so may result in processing problems, traffic jams, data loss, and other problems.
Out-of-date operating systems
What are among the most significant drawbacks of an outdated ERP system? For one, an original operating system is necessary.
Unfortunately, this forces you to use antiquated platforms dating back to Microsoft DOS. If you have a sophisticated workstation, many features are still unsupported.
Multi-core CPUs were just not available when legacy systems were first released. As a result, there’s a significant likelihood that you have already maximized your investment and are simply using up the available computational power.
Problems with Data Security
Using outdated software has inherent hazards to the security of ERP data. Older systems lack the strength to sanitize and safeguard the data that passes through them continuously. Therefore, continuing to rely on an outdated ERP system to protect your intellectual property is a risk.
The system can’t adjust to emerging threats without frequent upgrades. Because of this, it cannot protect your data as it flows within your organization.
Failure to Encourage Innovation
Technologies like cloud computing and advanced analytics are altering how businesses operate. Executives can make quicker, more informed decisions with access to these tools.
They can pivot whenever the market shifts or an innovation appears, and they can also adapt their business models to suit the needs of their customers better.
You might be unable to support these new advancements if you still use an outdated ERP system. This forces you to manage workflows and handle issues in the short term. It ultimately prevents you from keeping up with the competition – and maintaining your competitive advantage.
Swapping out your old ERP system
Do these issues with vintage ERP sound familiar? If so, switching to a contemporary ERP solution might be necessary.
Even though remaining with your current system saves you money, keep in mind that it might cost your company more than you think to maintain and support these systems.
Their restrictive design makes it difficult or impossible for your corporation to adopt digital business transformation while maintaining its competitiveness.
Strategic System Group (SSG) is a top ERP Integrated Solutions supplier that can meet your business needs. The company has experience developing specialized software solutions and handling information systems difficulties, from ERP Migration for Businesses to ERP Management Reporting. The company’s primary goal is to satisfy and surpass clients’ expectations by continuously raising their performance.
As an ERP Integrated Solutions Provider, SSG can help you accelerate and define your company’s future in the ideal way possible.
About the Author
Since 1991, SSG has been a leading enterprise resource planning (ERP) application and information systems consulting firm. It started as a group of partners who helped manufacturing and distribution companies improve the functionality of their ERP software systems through custom software development. Many older ERP software packages didn’t have enough features and reporting tools, so SSG had to make custom solutions to meet client business needs.
SSG still works with clients who use old ERP software, but it has also become an expert in ERP software packages that are the most advanced on the market. SSG is an expert at moving companies from older ERP programs to newer, more modern ERP systems.