Why legacy ERP systems are a threat to your bottom-line

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Ah, ERP the system that keeps your business afloat and helps you manage your day-to-day. It’s the heart of any business, however, do you remember the last time you upgraded your system?

Not just patched, fixed or messed around with it, but implemented an upgrade that enabled business innovation, generated excitement and unleashed a wave of productivity?

In the current fast-moving environment, this may as well be in the Stone Age. More than likely, your ERP was designed in an era where fax machines were still relevant, channels were slowly grown over time, and going global meant owning expensive global infrastructure to support growth.

The world is innovating faster than ever, but ERP installations seem to stay standing still time. It’s hard to believe that an outdated, five-year-old ERP system can be relevant to a business in a hyperactive world. Technology has transformed the broader world of business software and consumer applications.

Employees interact through mobile devices and social media. But many deployments have remained ignorant to these changes—it’s as if smartphones were never invented, social media was a revolutionary concept and connecting to internet channels was a concept for the daring few.

Why version-lock is bad for business

The sad reality is that for almost every business, “version-lock” is the Achilles heel of their on-premise ERP. Customisations that seemed so harmless at the beginning of an implementation years ago have built up over time.

Gradually, your ERP becomes hardened to change because an upgrade to on-premise technology means re-implementing and testing those custom schema changes, integrations, workflows and reports.

Faced with risk, cost and resource requirements for what may seem like an incremental upgrade, your company can be effectively forced into “version-lock,” with an ageing ERP system that’s increasingly out of alignment with the needs of the business.

Your users begin working around your system with unproductive manual processes and spreadsheets to fill in the functional gaps that have grown over time.

With businesses already spending an average of 5 per cent of their revenue on IT operating and capital budgets, there’s little appetite to further erode margin by growing the IT budget without delivering sustained transformational value and real competitive advantage.

Your business needs ERP that supports real transformation, and that outdated ERP system you’re running simply isn’t aligned with the business environment in which you and your competitors operate.

Cloud ERP to the rescue

That’s where cloud ERP comes in. Cloud ERP frees businesses from the change-resistant ERP of the past. With the cloud, businesses can run on ERP that is “version-less.”

It means that businesses get the latest modernisations automatically, from new features to support for the latest regulations.

“Version-less” cloud ERP enables enterprises to experience ERP modernisation as fast as customers experience innovation in the enhanced web applications they use every day.  

A recent Forrester Research survey found that the top four reasons that businesses move to the cloud are improved business agility, speed of implementation and deployment, faster delivery of new features and functions and to support business innovation with new capabilities.

At Ogg, we couldn’t agree more, we’ve seen the companies that run on NetSuite cloud experience the same benefits.

Get in touch below for your free ERP system evaluation

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