Enterprise Resource Planning (ERP) systems perform an important role in any organization. They provide visibility about core business processes and provide for resource tracking and reporting, asset management and data sharing that allow for advanced reporting and planning. It is vital, however, that ERP systems be kept up to date to take advantage of new features and the latest technology and why an ERP upgrade strategy is a significant aspect of ownership.
Part of any upgrade strategy is ensuring that the management team and outside partners understand why an ERP system needs to be kept up to date. Such a strategy should be based on a five year planning period that includes a plan for the timing and frequency of updates. The main issue is the significant risks that can result from running critical business functions on unsupported or out of date software. A strategic upgrade plan will ensure management understand the risks and benefits if upgrading solutions and provides defined timeframes for upgrade projects so that financial and resource planning can be put in place.
While ERP upgrades can appear costly, they are much less expensive and disruptive than having to deal with poor information or errors resulting from unsupported software versions. Decisions about whether upgrades should be made must not come solely from IT but from an overall business planning function. Educating management, employees and external partners about the necessity of upgrading ERP solutions is also an important part of any strategy.
Upgrade projects for ERP upgrade strategy methods for beating the competition through the ability to integrate, standardize and improve all business operations across the entire enterprise. Providing an up to date ERP system is more than chore for IT – it provides a means of re-assessing business procedures and transforming them. This is because ERP systems are closely linked to core business strategies that impact processes and procedures across the entirety of the organization.
The employees that are impacted by the upgrade must be provided with training for enhanced features of the system and management buy-in is essential. This is best achieved by outlining the strategic plan and showing how process improvements will lead to tangible cost savings and improved return on investment. While these can be subjective and dependent on individual business circumstances, the upgrade plan should show how improvements to the ERP system will transform processes and cut costs so that productivity is improved in order to justify the costs and resources involved in an ERP system upgrade.