August 14, 2024
It is one of the most difficult decisions any manufacturer will make: choosing to replace their ERP system.
Putting a superior solution in place can be the catalyst for revenue, innovation, and growth and the solution to deep and long-standing operational issues. First, however, leadership must feel certain that the existing ERP is past its prime and that replacing it will justify the time, cost, and disruption involved.
A new ERP will always be an upgrade—but is it necessary right now? Switching too early or too late both come with consequences, making it vital for manufacturers to get the timing right.
Look for these seven signs to guide when (and why) to replace the ERP.
1. Data Isn’t Actionable
Data contains countless insights to make smarter, faster, more strategic decisions—but those kernels of wisdom exist within massive amounts of raw data, and some ERPs make it difficult, time-consuming, or impossible to turn that data into actionable intelligence. If team members are spending significant amounts of time moving data around manually or struggling to get the information and insights they need, the problem is the ERP.
A better system makes it faster and easier to find insights while increasing the quality and quantity of the analysis. Rather than standing in the way of decision-making, an ERP should help leadership make the right moves more often by supplying accurate, current, and relevant information before they have to ask.
2. Incomplete Lifecycle Data
The interconnected nature of manufacturing makes it essential to track everything—parts, products, customers, etc.—throughout its entire lifecycle. If the current ERP cannot ingest, organize, and integrate data from multiple sources, it leaves an incomplete picture that undermines everything from efficiency to sales.
When an ERP makes comprehensive lifecycle data not just accessible but easy, manufacturers gain invaluable insights about everything they do. A complete and running record makes it possible, like never before, to track trends, patterns, and anomalies from which to make high-impact improvements.
3. Lack of Personalization and Configuration
Every company has different expectations for their ERP, as does every department and every user. The more that an ERP tries to be a one-sizes-fits-all solution, the more it leaves people frustrated by the lack of flexibility and functionality.
A more configurable solution allows companies to align the ERP with their operations and strategy. Likewise, better personalization options let users change the look and feel of their interface. In both cases, the ERP reflects what the company wants to do now and adapts to what it wants to do later.
4. Security and Compliance Concerns
Cyber attacks and regulatory obligations are major risks for today’s manufacturers. ERPs can make either issue worse by insecurely handling data. They can also raise the burden of security and compliance by making it harder to audit data and improve practices.
A quality ERP does the opposite by having robust security and compliance controls built in, alongside tracking and reporting capabilities to assess the current practices as necessary. Security and compliance becomes a source of confidence and strength rather than uncertainty and risk.
5. Inability to Scale
If an ERP cannot accommodate new and expanded use cases, a manufacturer cannot compete in an environment where change is the only constant. When someone is turning away business because the ERP cannot scale to what the opportunity requires, that software has stopped being a tool.
An ERP that excels at scalability can grow almost immediately, to any size, and evolve to do new things. Most importantly, it can keep pace with the company and drive rather than diminish growth.
6. Outdated User Experience (UX)
Some older ERPs still rely on text prompts and simple interfaces that are difficult to use and even harder to learn. These are frustrating to modern users who expect a streamlined interface, and they cause people to either avoid the ERP or use it improperly.
An updated experience not only looks and feels better but gives users greater confidence and control over their most important software tool. When users know and like a piece of software, they use it to its fullest potential.
7. Lack of System Integration
ERPs that cannot integrate with other key business systems leave data stuck in silos. As a result, decision-makers have an incomplete perspective unless someone puts in the time to integrate the data manually.
Integrating more data from more sources under the ERP’s umbrella eliminates the time, errors, and delays of doing it manually. And when manufacturers have a central data repository, they start to communicate, collaborate, and coordinate more effectively and efficiently.
Switch Confidently with Guide Technologies
Is your ERP ready for replacement? Guide Technologies can help you make a thorough, accurate, and objective evaluation based on decades of collective experience with manufacturing ERP systems. Start here.
