An outdated ERP can be taxing on the overall health of a business. While making the switch to a cloud-based system isn’t one that can be made overnight, these warning signs are a give-away that it may be time to upgrade your ERP.
1. Lack of Communication
Lack of communication between employees is a critical problem for businesses. This can have a much more significant business impact than on just water cooler talk. So much so, that a survey found that large companies with 100,000 employees had an average loss of $62.4 million each year because of poor communication between employees. This is also true for smaller companies, those with fewer than 100 employees reported a whopping $420,000 loss per year due to miscommunication.
This lack of communication can result in businesses hiring the wrong staff, losing business opportunities, piling on unnecessary expenses, bottlenecks and other productivity issues. The best way to circumvent this is to invest in software that encourages communication. Cloud-computing ERPs, like that of NetSuite, eases collaboration and communication with unified data and real-time accessibility across departments.
2. Duplicate Data
Outdated processes, like manual data entry or transferring data, are just some of the headaches of an outdated ERP. Whether or not you use a combination of systems, duplicate data results if information is not available on one platform. Duplicate data is a time-consuming problem to fix and can cost a business more time, money, and resources than expected.
Having a reliable cloud-based ERP software fast tracks processes with automated tools that eliminate costly human errors. So stepping into a modern-day solution, like NetSuite, means that businesses can effectively end duplicate data.
3. The IT Budget Is Being Drained
Another recurring problem is the IT budget, one study by Forrester and Garner Research found that businesses exhaust nearly 50-90% of a typical IT budget on maintenance costs. Your IT budget should be moving your business forward and innovating your technical resources—not going into maintenance costs.
That’s why it’s so vital today to invest in a cloud-based solution. With cloud ERP software, like NetSuite, businesses see an average of 45% reduction in overall IT support costs. This leaves companies the remaining budget to spend on more vital technical advancements and not on outdated hardware.
4. Decision Making is Delayed
When it comes to decision-making, companies need to be able to collaborate between departments and make quick and well-informed choices. In a study conducted by SMB, the average employee will waste 17.5 hours a week trying to bridge communication barriers. This delay ranges from time spent waiting around for information to inefficient coordination between team members. Consequently, if your ERP requires you to double-check, reconfirm, and delay processes to make the best decision, your software is working against you.
With a centralized and modern ERP software, information is readily available at the touch of a button. For example, NetSuite centralizes data between departments, forms, and people so that everyone from the accountant to the CEO can make the most informed decision.
5. Increasing Customer Complaints
Customer service demands that the customer is always right. But if customer complaints have become overwhelming, it could be a sign of slip-ups in the supply chain or operations. The problem is, with outdated ERPs, businesses have no real way of investigating customer complaints or processes to get to the core problem.
NetSuite’s forward-thinking cloud ERP lets companies gain a centralized look into customer interactions, operations, and supply chains. This enhanced insight into the entire organization helps leaders make better-informed decisions that enhance productivity, accuracy, and overall customer experience.
What’s Your ERP Doing For You?
Now is the time to stop and analyze if your ERP is truly worth the cost of running on outdated software. Are you losing more than you gain? If you find that the warning signs are all symptoms your business struggles with, now is the time to save your business from future costly expenses. The team at Kodella can help you and your team upgrade to NetSuite, a cloud-based and forward-thinking ERP. Contact us today to schedule a free consultation and quote.