ERP Updates: A Key to Your Company’s Success
Updating your Enterprise Resource Planning (ERP) system regularly is one of the most important tools in making sure your ERP system is adding value to your business. Software vendors are always releasing new software versions that come with capabilities and functions that can positively impact the way you run your business. Companies can be reluctant to upgrade their ERP systems due to the perceived high cost and the fear of implementations going wrong. Upgrades do not have to be expensive and upgrading your ERP system offers many benefits to your business, if the upgrade is implemented correctly.
Benefits of an ERP Upgrade:
- Increased Quality and Efficiency
Increased quality and efficiency of your ERP is perhaps the most important reason to update your ERP system. The technology has improved rapidly and the overall quality of new versions are exponentially better than older versions: they have often fixed known bugs, improved workflows, and made code updates resulting in ERP software that is more efficient, faster, and more reliable. With each new version also comes new functional and technical features that can potentially add significant value to your business. Newer ERP versions can increase productivity and reduce downtime caused by technical difficulties seen in older, outdated ERP software.
- Lower Costs
You may be wondering, “How on earth can upgrading my ERP system lower my costs?” The answer is simple. It is better to pay more frequent, smaller fees that are a fraction of the total investment of ERP than paying one large upgrade cost after waiting several years. Businesses that wait many years and skip many versions before upgrading ending up facing substantial costs. This is why many of our clients are moving toward our Upgrade Subscription Plan to reduce their total cost of ownership when it comes to their ERP.
- Smoother Implementation
Upgrading your ERP system regularly as needed also allows for a smoother implementation between versions. If you are on an early ERP system version and have to switch to a much more recent version, it is much harder to implement and train employees on the newer version. This can disrupt your organization and reduce productivity. It is better to upgrade on a more regular basis so much that employees will barely notice when the system is upgraded. Again, this is another reason your company may want to consider moving to an upgrade subscription plan.
Another question we always get about upgrades is, “If I upgrade my ERP system, will I be able to bring my customizations with me?” The answer depends on the ERP software. Fortunately, Microsoft Dynamics NAV is quite flexible and allows for many customizations to be brought forward in an upgrade. In addition, with newer versions of NAV and other ERPs you may not need your customizations as the newer versions come with many diverse features and functionality “out of the box.”
To stay competitive in today’s increasingly competitive business world, it is important to have an ERP that works for your business providing the best that the software has to offer. If you want to be a leader in your industry, have employees that work as productively as possible, and get the results your business needs, it is important to upgrade your ERP system (and keep it current) on a regular basis.