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PROCESS AUTOMATION IS IT TIME TO UPGRADE YOUR ERP SYSTEM?
The industry is ever- changing, and without a modern ERP system it will be difficult to adapt to future changes
Colin Crow, managing director of digital transformation specialist, Nexer Enterprise Applications UK, identifies four signs which may mean it’s time to upgrade your ERP system
T
he pandemic changed the game when it came to digitisation, with advancements and innovation driving businesses to adopt more responsive technologies.
For process and manufacturing businesses, Enterprise Resource Planning (ERP) software in particular has become increasingly sophisticated in recent years. An effective ERP solution can revolutionise a manufacturing business, enabling enhanced reporting, better customer service, boosted cash flow, effective supply chain management and the competitive edge needed to survive. It seems that businesses are increasingly recognising the advantages that they can provide; with estimates suggesting that the global ERP software market will expand at a compound annual growth rate of 11.0% between 2023 and 2030.
But technology evolves fast, and businesses that were once considered advanced with earlier ERP software risk being left behind if they don’t realise that they’re stuck with an outdated system that no longer meets their needs or is no longer supported by the software provider. Here are key indicators that it’s time to upgrade. 1. Insufficient data utilisation
Data is one of the most valuable assets for organisations today, but if an ERP system lacks robust business intelligence (BI) and reporting capabilities, gathering critical data in any meaningful format may be challenging. Many businesses possess useful data without realising it exists, due to difficulties accessing it. Upgrading to a modern ERP system that offers advanced BI tools can empower management
teams with accurate, timely insights, enabling them to create customisable reports, intuitive data visualisation and performance metric analysis. These new capabilities improve forecasting accuracy and create a more proactive system for risk management and improvement initiatives, helping to drive strategic growth.
2. Communication and collaboration challenges Efficient communication and collaboration are vital for success. However, outdated ERP systems often lack the necessary features to facilitate seamless interaction throughout an enterprise. In a post-pandemic world where remote and distributed work is commonplace, cloud integration and real-time data sharing are essential. Unfortunately, older systems’ weaker communication capabilities often can’t meet these expectations. By upgrading, organisations can meet growing customer expectations by enabling cross-functional collaboration and providing end-to-end supply chain visibility. Moreover, there’s a multitude of separate systems available that focus on specific areas of a manufacturing business, and it is crucial to have ERP software that smoothly works with them. With seamless integration an inherent feature of recent upgrades, navigating separate Customer Relationship Management (CRM) systems and supply chain management tools within a complex manufacturing enterprise is not a cumbersome task. 3. Slow decision making
Even if add-ons are implemented to provide real-time data, most legacy systems are batch-oriented, which can obstruct organisational progress. Data timing couldn’t be more important, and with an outdated system which lacks sufficient analytical tools and reporting capabilities, swiftness and confidence in decision- making are at an inherent disadvantage to businesses that already made the move. A modern system allows an organisation to harness cutting-edge technologies such as artificial intelligence and predictive analytics. By embracing the latest ERP systems, manufacturers can streamline processes and enhance forecasting accuracy and operational efficiency, boosting productivity and competitiveness. 4. Lack of flexibility
Manufacturing businesses must be able to respond to changing operational performance and market demand with ease, while integrating with other systems and applications. Without these capabilities, a business may lack the scalability and advanced functionalities necessary to support modern processes.
Weak integration capabilities can result in essential data being held in silos, preventing seamless collaboration. For example, a system that can work hand in hand with CRM systems can provide sales representatives with immediate access to available inventory. To avoid processes being isolated, it is crucial to prioritise upgrading. With up-to-date technology, a business gains enhanced visibility, flexibility and scalability across the enterprise, enabling growth and easy adaptation to industry advancements. Don’t get left behind
It may be tempting to save money and stick with an outdated ERP system – as the saying goes, ‘if it ain’t broke, don’t fix it’. Unfortunately, many organisations don’t realise that it is ‘broke’. Such systems can quietly drain budgets through frequent downtime, data loss and system issues. And if the software provider has already ended support for the product a business is currently using, this is a clear indicator action is need to avoid losing capabilities. Although transitioning to a new process may seem daunting, digital transformation specialists can help to ensure everyone is up to speed and following the right guidance.
Nexer Enterprise Applications
nexergroup.com/uk/enterprise- applications/
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