5 Reasons Why an ERP Upgrade is a Waste of Time and Money
If you are considering an ERP upgrade or wondering if you need a new ERP (Enterprise Resource Planning) system, ERP resellers will give you all sorts of reasons why you should change your ERP system. I’m here to explain why you shouldn’t waste your time or money on an ERP upgrade. If you are like many companies, you’ve had your reliable accounting software for 10 or more years (20 if you’re still running something in DOS) and your company has been running just fine. I’ve listed 5 reasons you don’t need to spend the time or the money to change out “Old Reliable.”
1. Implementing a new ERP will cost too much!
Have you seen the price tag on these new ERP systems? Back in the day, we didn’t spend that much on our first house!
Being older has some advantages, one is that I can recall 25 years ago the type of accounting software available to SMBs (small-medium businesses) type businesses. To obtain the capabilities of ERP often meant 6 or 7-figure price tags with customization galore. The fact is that ERP software is now within the reach of more and more SMB-size firms than ever before. The cost has come DOWN while the technology and functionality have dramatically improved. The question to ask is “What’s the cost of NOT upgrading?”
2. We’re so highly customized with the software we have now, that it’ll cost a fortune to recreate that functionality.
The last time we “upgraded” we spent thousands to customize our accounting or ERP software to match what we do. We’d be foolish to upgrade again. We’re stuck with the customizations we have now.
Before the modern ERP systems that we have today, each customization once written locked your company to NOT upgrading your software unless you paid the ransom. In the past, every time you upgraded you needed to re-write the cost of the customization. NO MORE! ERP software isolates the custom code to minimize re-writes of customization. Plus, systems written in Microsoft .NET allow a much wider pool of people capable of writing the “tweaks.” Perhaps even someone within your IT staff.
3. What we have works fine and we’ve always done it this way.
When something is working, why in the world would I want to break it? You just want to sell me your “gizmo.”
The simple fact is (and always will be) that things change. Some things for the better, some for the worse. I think technology is one of those things for the better. Are you still using a flip phone? Incorporating new technology (such as mobile device use) necessitates change. Mature ERP systems like SYSPRO & TRAVERSE were rewritten in Microsoft .NET to enable new technologies. You must update your processes to be an innovator in your industry. If you aren’t the industry leader, could this be the reason why?
4. We don’t have time to change anything.
We barely have time to change our light bulbs when they go out. We don’t have time to change how we do things.
I’m guessing each of us has said this before. We have so much packed into a day, that we barely have time to take a breath. Very few of us like change, but the fact is, change is natural. Everything is always changing and we evolve to change with them. Remember the flip phone? Trust me, your competitors are evolving. They hope you won’t change.
5. Our people don’t want to learn anything new.
Our people are set in their ways, they don’t want to learn anything new and I don’t either. Learning takes time and after reading #4, now you’re just making my brain ache. The nice thing about technology is, often times learning something new comes with benefits which ultimately SAVE you time. ERP systems now offer the ability to email invoices and statements to customers. This eliminates the chore of stuffing envelopes, burning up toner & paper used for printing, not to mention the costly postage. Everyone wins. Now that’s something I want to learn!
Finally, a REAL reason NOT to change your ERP system: “You Don’t Like What Your ERP Tells You About Your Business.”
I was working for a client in completing a customized sales order entry module which was connected to their manufacturing process. Previously, they performed it all manually and if a mistake wasn’t caught in the production documents before the shop floor, it had to be scrapped resulting in huge losses of time and money. I had just automated the process with 100% accuracy. The Production Manager admitted he didn’t believe I would be successful because it was just too complicated. He was quite pleased they were able to eliminate time-consuming reviews of all production documents going back to the Shop Floor.
Shortly after my project was completed, the company was sold and the new owners (without discussing it with me) argued the software wasn’t “giving them the right numbers.” They weren’t familiar with the software in place, so they decided a new ERP system (which they had previously used) was needed. I was out. When I checked back with the controller 4 years later, they were STILL using my sales order module. The new ERP software was still being customized to replicate my module. The controller wouldn’t disclose how much they had already spent, but indicated they thought another $30,000 would finish it. Now THAT’s a reason NOT to upgrade your ERP system.
Complete Programmed Accounting, Inc. (CPA, Inc.), was founded in 1992 with the following mission statement: “The ability to take advantage of the power of timely information lies in the successful implementation of complete, appropriately configured, and properly installed financial and management computer systems.”
