Key insights and tips to remember when changing your business's ERP system

Through our form we regularly receive inquiries from users who are considering changing ERP. The reasons given are that the current system no longer fits the needs of the company, does not provide recent updates or simply does not provide the solutions they need to face new business challenges.

Generally, the objective of changing from one ERP system to another is to improve the level of integration with other critical solutions used by the company: CRM, e-commerce, WMS, etc.

Why change ERP

Below, we reproduce some recent testimonials that perfectly reflect users' complaints regarding their systems:

"Our company is overly dependent on third-party applications, which means we have to spend time and money on customizing programming."

"The biggest frustration with our current ERP system... We have too many programs and can't do without any of them."

"It's a nightmare to manage different databases - we have duplicate information in several programs and different formats."

What these testimonials have in common is a failure to link the different programs used in the company's departments. They work with multiple interfaces and also have to do custom programming to achieve a workable level of integration. Consequences? The company becomes more inefficient and resource consumption skyrockets.

Your ERP has become obsolete

Perhaps you purchased a system years ago that was state-of-the-art at the time. It allowed you to manage billing and accounting from a single screen. The implementation was probably complex and costly because you had to install the program on the company's servers. Over time your company has grown and now you have sales people using a CRM system to manage customers, you manufacture your own products and you have another tool to control the inventory in the warehouse. Your old software no longer meets your basic needs, it's time to change your ERP.

Tips when changing your ERP

Now that you have made your decision, you can follow these tips for choosing a new ERP system:

Perform an internal audit

First of all, you should conduct an internal audit of your organization to determine what needs, deficiencies and shortcomings the new ERP will cover. Also, take into account the future projection to know if your choice can be maintained over time. If not, you will have to make a new change to adapt to the evolution of your company.

Make sure that the ERP change solves your company's problems.

Analyze, compare and test with your team the different ERP systems, so you can make sure which one can solve your company's problems. It is of utmost importance that you review the specifications and functions of each alternative, to know if it covers the processes related to your business niche. There is no point in changing ERP if it cannot optimize the organization's performance.

Evaluate functionality over cost

Finally, you must evaluate the functionality of the ERP over the price. Savings may be useless if your business plan stagnates because of a software. It will be a long-term investment that has to be projected in every area of the company, with positive results.

Conclusions regarding ERP change

In summary, an ERP project is a platform for continuous improvement in all areas of the business. Complete data integration helps companies achieve key business results, such as improved customer service, reduced lead times, improved quality, reduced asset turnover, increased productivity, and improved and streamlined decision making.

We advise our readers to start at the beginning of the journey when changing ERP: mapping the current state of processes to understand waste and constraints. Subsequently, when choosing a new tool, some of our articles can be of great help:
  • ERP's for SMEs
  • ERP systems in the cloud
  • Free ERP's