ERP system: when it is time to upgrade?

Keeping your ERP system up to date is one of the most important prerequisites for a fully functioning and efficient ERP system. Upgrading a system can seem daunting to many, and there is even the question of how you even know that you need to upgrade your system. Besides, we might also ask: is it enough to upgrade, or is implementing a new system a better option?

To decide whether it is time to upgrade your system, you should consider the following aspects:

Is your current system meeting your business needs, everything running smoothly, efficiently and with minimal manual operations? If there is a sign of hesitation, it’s probably time to take the first step towards the system upgrade. What changes is the company going through? Can the current ERP system support your business growth? This aspect should especially be considered when a company is expanding, when it enters new markets or start selling new products. The following aspect is the competitive environment, whether the company can keep up with its competitors regarding how developed their system is. It is also important to know whether the vendor still supports the version of the current software the company uses.

All in all, the question whether to decide on an upgrade or a replacement is perhaps best determined by considering that an upgrade contains improvements of the current software features or add-ons, while a new ERP is justified when a company needs new functions that complete the existing ones or different, yet specific functions that the current one doesn’t have.