Is Your Legacy ERP System Impeding Modernization?
The world of enterprise and business IT solutions exists in constant flux, with players and technologies entering and leaving the public eye in a blink. There is an ebb and flow involved. Currently, on the ebb side of things, the number of players on the field has increased, leading to a sense of freshness and discovery in the market. A key factor in this increase in ERP players is the development of modern infrastructure ideologies that have broken down barriers to entry. This is particularly a result of the advent of software as a service (SaaS) and cloud-based business IT solutions.
Over the past couple decades more and more business owners have noticed the plethora of headaches and limitations stemming from the ownership and use of outdated, onsite business systems. Indeed, they have begun to realize that the degree to which their business takes advantage of technology has a direct impact on their ability to grow their market share. Refusal to do away with these inefficient, problem-causing systems can lead to ineffective data management, inaccurate information, conflicting reports, poor customer engagement, profit loss or even total system failure.
Of Necessity and Reluctance
Unfortunately,some companies feel they are too far down the rabbit’s hole of onsite ERP implementation to back out now. The inclination is fathomable given the enormous costs involved in getting an onsite ERP system up and running smoothly, not to mention the maintenance efforts that take time and money to sort out. Unfortunately for those who continue down this path, the fiscal requirements don’t end there. Indeed, thepersistence of a legacy system running your business can often lead to excessive maintenance and IT expenditure.
The Inevitability of Obsolescence
As with any aspect of your onsite IT to date, it's true that these systems were always fated to fall to the wayside and become largely obsolete. When you stop to think about it, how many seemingly key technological elements from 20 years ago are you still actively using for your businesses today? Do you still have zip drives and floppy disks? Hopefully, for the sake of your businesses competitive positioning, the answer is no.
That’s why it's so concerning that companies feel the need to latch onto these systems, refusing to let them go. In fact, the Gartner Research group ran a study which reported that more than 80% of a company’s yearly IT budget is squandered on on-site system maintenance, rather than on technological innovations to increase competitiveness.
Now is the Time for Modernization
Among the best run companies are those that are aware of, and willing to adapt to change. Today, most of these changes which bring tools and competitive advantage are coming in the form of advancements in the world of IT solutions. Using modern technologies, companies can react quickly to emerging trends, enhance the customer experience, and increase the accuracy of their recorded data. All of this ultimatelyserves to improve the bottom line of your organization.
The critical thing to understand is that 80% of an IT budget going towards patching your existing system is not an efficient use of your funds. Instead, it's time to step away from simply bandaging the problem in favour of genuine modernization of your business systems. The need to advance has increased dramatically over the past decade and with it so too has the requirement of developing astrategy for phasing out your legacy system.