Signs You’ve Outgrown Your ERP and What to Do About It

Your ERP solution can be one of the most useful pieces of technology you have at your disposal. By automating and streamlining many of the processes that take up so much of your time, you can focus your teams’ efforts on the business of growth, expansion, and better serving your customer base. But, as Steve Jobs once said, all software has a sunrise and a sunset. If your legacy ERP is doing its job right, you won’t use it forever. With time, you’ll expand operations and, eventually, you’ll find that you’ve outgrown you ERP and it won’t be able to keep up with your new needs.

But growth is often gradual, and sometimes we don’t realize we’ve outgrown our solutions until after the fact. Most organizations don’t recognize the need for a new solution until it’s long overdue. What are the telltale signs that you’ve outgrown your ERP? And what should you do once you’ve noticed them? Let’s explore the answers.

Signs You’ve Outgrown your ERP Software

Limited Scalability

This is by far the effect most people feel first. The ability to scale is something that all your software solutions need, not just ERP. Businesses can lower costs, optimize employee engagement, and enhance overall customer satisfaction by expertly navigating operational performance with agility and balance. Staying ahead of the curve requires scaling business needs with precision, such as production capacity, pricing models, and workforce augmentation. This is where an intelligent ERP system comes in, providing the accuracy and agility necessary to meet the diverse challenges of modern business. What are some symptoms of hampered scalability?

• Frequent crashes/system failures.
• Inability to handle larger data sets.
• Running slow and missing deadlines.
• Cannot handle increase user numbers as your team grows.
• Limitations on transactions.

While some of these symptoms can be worked around in an isolated setting, experiencing more than one of them is a surefire sign that your ERP isn’t keeping up with the increased demands of your organization’s newfound growth.

Data Inefficiency

We at BrainSell cannot stress enough the importance of data. The lifeblood of growth, data gives your team the insight to predict future outcomes and respond to changes in the market with a well-informed perspective. Inefficient ERP systems have a way of depriving you of the data you need to most effectively run your business. Older, less intelligent systems have a way of compartmentalizing data in silos, isolated data not accessible by all parts of an organization. Isolating from the larger organization may seem innocuous, but can keep different departments in harmful echo chambers instead of letting them work in lockstep.

If you’ve used your outdated ERP for any number of years, the amount of data that can end up in these silos is almost incalculable. Most companies gather large amounts of data internally and externally every day. However, when growing organizations transform from legacy ERP to more advanced systems, they are often surprised to find a plethora of untapped, valuable intelligence. Harnessing this unused information is vital to gain a competitive edge and drive business success.

Low User Adoption

Are fewer of your team members using your legacy ERP? That’s a bad sign indicative of a negative user experience. Shirking the solution in favor of handling things manually leads to decreased productivity and increased human error. Older systems may have clunkier, outdated UIs, making them difficult and time-consuming to navigate. With the digital transformation of organizations globally, it’s more important than ever to have a modern system that is easy for employees to learn and use.

Delays and Bottlenecks

In order to achieve swift thinking, deep understanding, and confident decision-making skills, all employees require data-driven insights. Unfortunately, even with add-ons that promise to augment the system with data, legacy ERP systems operate in batches, impeding real-time updates. By upgrading to modern systems, organizations can overcome these constraints and unlock real-time insights, thus improving operational efficiency and decision-making capabilities.

Industry-Specific Requirements

Different industries have unique requirements and compliance standards. Your existing ERP system may not cater to industry-specific needs, causing inefficiencies and compliance risks. For example, manufacturers may require features like demand forecasting, supply chain management, and quality control, while service-based businesses may need project management and resource allocation tools. Exploring industry-specific ERP solutions ensures that your software aligns with the specific demands of your sector, helping you optimize operations and meet regulatory standards.

What To Do When You’ve Outgrown Your ERP

Once you’ve identified the problem that you’ve outgrown your ERP, you can react and solve the problem. There’s a few steps you can take to ensure that your next solution isn’t just a good fit, but the perfect fit.

1. Perform a comprehensive business analysis: Take a step back and reevaluate your current processes, pain points, and future goals to identify the specific needs your new ERP system must address.
2. Engage with key personnel: Involve your staff. People who will be engaging with your new solution should have a seat at the table when it comes to your next steps. They may provide valuable, boots-on-the-ground insights into what you should be considering.
3. Research and prioritize potential ERP vendors: Explore the market for solutions that fit with your needs. Consider factors such as functionality, scalability, integration capabilities, vendor reputation, and customer support.
4. Request demos and conduct trials: Request demonstrations from shortlisted vendors to assess the software’s usability, features, and user experience. Additionally, consider conducting a trial period to evaluate the system’s performance.

There’s so much more we can say about these platforms and what they bring to the table. If you want more information about ERP solutions and how they can benefit your growing company, check out our video here!