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Implementing ERP system at the first place is very hefty task. But once it’s done, you will get to see a lot of positive results. The important thing to keep in mind is that ERP industry keeps on improving day by day. New technologies like artificial intelligence & more are being integrated with it.

That’s why, there comes a time that your recent ERP system becomes outdated. Rather than updating it, you might look to replace or upgrade your ERP system. It’s a very big business to take as it can affect almost every aspect of business. But to determine, you must analyze & perceive the current situation.

So, we are here with some key reasons to upgrade your ERP system. These most common reasons will let you know about importance of upgrading and what worth your business will get for it.

Difference between ERP Upgrade & ERP Update.

The easiest method to determine the difference between an upgrade and an update is to consider the latter as being a more frequent significant alteration to the program you’re currently using. This usually requires an ERP upgrade or implementation project. It can also be considered an added burden to the business through costs and resources as well as risks.

A software update is when newer versions of the software are made available; it could be more frequent to fix minor bugs or even make minor adjustments, and can be utilized to fix the software. Software manufacturers frequently release new features in the latest version of software.

Key Reasons to Upgrade your ERP System.

If your business is experiencing any of these reasons then it might be the most right time to upgrade your ERP system. So, you can ensure it’s functioning productively and efficiently.

Experiencing Growth.

Growth in business is among the most frequently cited and motivational motives to consider an upgrade to your ERP. For any growing company you must examine all of your ERP systems to make sure they are able to handle future demands. The growth indicators you should be looking for are:

Further Business Transactions: The more business comes more information and the requirement to manage it efficiently.
Introduction of new Products or Services: If your products or services or business model shift, you could need a more complete system.

If your company expands to a new branch of business, you will require an ERP system to manage the change and the additional capacity could be required. When your company is growing rapidly and expanding, it could be an ideal time to review the ERP system you have in real-time and pick a program which can adapt to the needs of your company’s growth.

Change in Leadership.

It’s typical for new leaders to take on new initiatives and move operational processes to the next step. They might also require greater visibility or prefer a system that they’ve worked with previously.

In these instances an upgrade to the ERP system could be necessary in order to accommodate their requirements and the direction they wish to take the company. So, it will be an upgrade that good for both business and employees.

Using Outdated Technology.

Some businesses are running outdated versions of the software and some of them are not supported. A legacy system is typically an application built by a specialist that the company has used for many years, or even many decades. A lot of companies are reluctant to make changes due to the existing system working perfectly for their needs or the numerous customizations they’ve made over the years.

Another issue we encounter in companies that depend on old technology isn’t solely a lack in outside suppliers that support an application. However, also within the organization, there are typically only a few employees who are aware of the way in which the program runs and operates.

Lack of Mobility.

Sometimes old ERP systems require employees to be in-office whenever they have to work. There is a lack of ability to work remotely. But with the new cloud-based ERP system, people can efficiently work from wherever they want to. Most importantly, all the data is stored over a cloud that’s remotely accessible.

So no matter if you are at home, office, or traveling somewhere, you can work or get access to any information. An ERP system upgrade eliminates the lack of mobility to improve the productivity of employees.

Not Meeting Standard Compliance.

The most compelling reason for upgrading your ERP is in order to be compliant with regulations. If you’re not in compliance with these requirements or are aware that your system won’t be able to cope with what’s coming, the need for an ERP upgrade is required urgently.

More complicated regulations are released more frequently than ever before and your system needs to be equipped with strong controls and features to minimize risk and comply with the requirements for compliance.

For instance when the Sarbanes-Oxley Act came into effect at the time of 2002, a lot of firms had existing ERP systems that didn’t have the necessary controls. In most cases, the motives for updating an ERP system are due to weak controls, as well as weak functionality and inability to effectively manage risks.

Undertaking Mergers & Acquisitions.

As mergers and acquisitions happen, they bring many modifications. If investors are studying your business, you might require an ERP upgrade to accommodate their needs and requirements. If other companies have merged with yours the ERP system you choose to use should be able to handle everything associated with the merger.

If your company acquires another or acquires a competitor, it is possible that the ERP Solution you currently are using may not have the capacity and capabilities to support the transition. It is essential to make sure your system can manage all business operations both in the present and for the future.

Lack of Vendor Support.

Like every software manufacturer There is a limit to how long they’ll be willing to support and update the outdated version of their software. This leaves their legitimate motivation to spend the time to develop and support the most current version and, in the majority of cases that is, the version before it.

While this can save costs in the short-term however, waiting longer to update your ERP system will mean you need to upgrade multiple versions at once and your company will have to take on a massive upgrade. Your customers will also encounter an array of new features and a new interface, resulting in the need for a longer and more costly upgrade.


Being able to find your business for any of these reasons, you must look towards upgrading your ERP system. It will indeed prove the best decision in the long run. These key reasons to upgrade your ERP system can guide you through the decision-making process of upgrading ERP or not. But, it’s essential to evaluate your business and analyze it properly before you make any decision.

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