Throughout 2020 and even now, the priority for many businesses has been to save costs and maintain a healthy workforce. Plans to upgrade out-dated ERP systems were left stagnant because management teams felt it wasn’t the right time.

Across the world, businesses have faced the brunt of the pandemic and are gaining momentum in the market again. However, new challenges approach for small and large businesses. To be prepared for this year and beyond, now is the time to consider upgrading your ERP system.

What are the drawbacks of a legacy ERP system?

Businesses often use the same ERP system for years and initially see real benefits for their business. However, the rapid development of technology (automation, artificial intelligence etc.) means their legacy system cannot be relied on for continued efficiency and success.

Every year, ERP trends are investigated across industries, company sizes, and geographic locations. One organisation conducting research (Panorama Consulting) found that:

“Legacy systems and other outdated technology are becoming increasingly burdensome as we move into the post-digital era. As a result, more organizations are replacing their old systems with modern ERP systems and gaining a competitive advantage.”

Legacy systems create multiple disadvantages, including:

    Vulnerable security

    Legacy systems may no longer be getting regular security patches which can make them more vulnerable to security breaches and bugs in the system.

      Slow Systems

      In the same way that Windows Vista isn’t going to run as efficiently as Windows 10, an old ERP system will limit the productivity of your workers with slow operational speeds and an increased risk of crashing.

      Difficult Access

      Older on-premises solutions make it difficult to access the ERP from devices outside the office, whereas cloud-based ERP solutions can be accessed seamlessly from computers, mobiles, and tablets anywhere in the world.

      Substandard analytics

      One of the critical drawbacks is that legacy systems are unable to integrate and analyze large amounts of data. These real-time data insights are especially crucial for improving the customer experience or optimizing a supply chain. For example, when inventory is managed through a legacy system, it is not always accurate and may not integrate with other systems.

      This causes various problems:
      – It is difficult to confirm and schedule orders when there is no simple way to determine if there is enough inventory on hand to complete the order.
      – It can cause supply chain issues as buyers can’t determine when to re-order inventory since they don’t know how much inventory they currently have.
      – Assigning inventory to jobs and tracking lot numbers throughout the production process becomes manual and time-consuming.

      On top of this, UK businesses are currently affected by Brexit. To cope and keep moving forward, back-end systems need to adapt and work consistently with regulation changes.
      What benefits can be gained with the right ERP solution?
      The majority of ERP vendors make enhancements to their software multiple times a year. Therefore, if an organisation has not upgraded their ERP in years, they are likely missing key functionality which addresses their pain points.

      In fact, businesses often experience immediate benefits when their ERP system is upgraded.

      3 of the major benefits gained by implementing the right ERP are:

      Reporting and Visibility
      • Gaining access to real-time data
      • Ensuring regulatory compliance

      Today’s ERP software has more detailed insights than ever before. To take full advantage of this advanced reporting functionality, many organizations improve business processes within their customer journey. This allows them to identify areas where they could create a more personalized customer experience.

      Operation Efficiency
      • Improving productivity and efficiency
      • Reducing operating and/or labour costs
      • Optimizing inventory levels
      • Removing silos

      An ERP implementation or upgrade project makes people consider how their business works. What process improvements can be made? What key performance indicators will be measured? By understanding their processes and how these are affected by the functionality of modern software, companies can utilise their ERP for greater productivity as workflows are streamlined.

      Growth and Competitive Advantage
      • Improving the customer experience
      • Improving interactions with suppliers
      • Building new operating models

      More organisations are achieving these benefits by moving away from legacy ERP systems and focusing on change management. Change management is vital because business benefits would not be possible if end-users aren’t using the new software. Therefore, training employees early is fundamental to success.

      What is the right ERP to use?
      The answer to that depends on your business, particularly its size and complexity.

      Is your business already using Microsoft Dynamics NAV?

      Would you like to talk to our experts about the right way to upgrade?

      Without trying to sound too biased, in your search for the right ERP, we recommend Microsoft Dynamics 365 Business Central. Obviously, this software solution is one of our specialities, but for good reason. It is ideal for small to mid-sized organisations, with outstanding features making it is the best ERP currently available.

      The 5 points below give some insight into why Microsoft Business Central is at the top of the ERP game.

      Deployment & Accessibility

      Start and grow your solution either On-Premises, in the Cloud, or as a SaaS solution. Access your data anywhere, from any device.

      Customisation & Integrations

      Extend and customise the solution to fit your business perfectly with AppSource extensions, extensive industry add-ons and seamless integration to other Microsoft applications like the Power Platform, Office 365, SharePoint and other Dynamics 365 applications.

      Functionality

      Business Central is filled with intelligent functionality such as natural language search, AI/Machine Learning and workflows all inside an easy-to-use user interface to increase productivity and make work easier.

      Reporting & Analytics

      Business Central utilises data to help you thoroughly understand your business performance and make informed, decisions supported by data. Embedded Power BI visualisations provide instant insights into key data metrics.

      Compliance & Security

      Regardless of your deployment method, Business Central ensures your organisation is protected by using a layered approach to application security alongside user authentication and data encryption. Business Central is also up-to-date and compliant with all recently introduced legislations such as Making Tax Digital (MTD) & GDPR.
      Mercurius IT is a Gold Microsoft partner and for over 15 years, we have blended business process knowledge with IT capability to deliver value to customers.

      We are the UK’s only Microsoft Dynamics solutions provider that offers a Fixed Price NAV Upgrade.

      Want to know more about upgrading? Read the full series of blogs below.

      For further information:
      Upgrading from NAV? Join the webinar by Mercurius IT- the UK’s Top Dynamics NAV Partner

      Upgrading from NAV? Join the webinar by Mercurius IT- the UK’s Top Dynamics NAV Partner

      What is Business Central? Dynamics 365 Business Central is Microsoft’s latest Enterprise Resource Planning (ERP) solution developed for small to medium enterprises (SMEs). A refreshed User Interface, increased automation capabilities, and actionable business insights...

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