Enterprise resource planning (ERP) software helps your company to automate many processes such as technology, services and human resources. Due to the changing business strategies and model, companies typically look for the upgradations in the ERP software they deployed in their process. Normally, companies adopt the ERP software for seven to ten years. Once the software completes it's full life-cyle, you need to upgrade it as per your changing business aspects and requirements.
The upgrdation of the application is equally challenging as deploying the software for the first time. You'll find that since you've already used the software, so you'd be knowing it's advantages and requirements as per your business model.
You need to upgrade the older version as per the latest demand and design in the market. Considering the costing aspect, you can get it updated by the existing vendor, who deployed the application. The latest technology will help you to run your business smoother and the older version of the software might not be useful in delivering you the speculated growth. Make sure that you'd consider the modern business aspects and requirements while updating the ERP software.
Here are the seven things you should consider while upgrading your ERP software.
1) Suits Your Business Model: You need to verify that the existing ERP software really fits into your business environment and working models. After identifying the gray areas in the existing application, you can upgrade the software by adding your new requirements. Also, you need to check the expertise of the vendor you’ve hired for the customization of the ERP application, assess the technical skills and years of expertise the vendor has in the specific industry you are in.
2) The aspect of ERP Software: While upgrading the application you need to focus on the aspects such as business fit, industry fit, and ease of use, deployment, and functionality. The upgradations should deliver you the benefits immediately. A pre-configured application could be useful which will give you pre-built content so that you can use the product directing without doing any further customization. This will reduce efforts and valuable time. You should look for the business drivers always while upgrading your ERP software.
3) Vendor’s Commitment: You need to check the technological portfolio and domain expertise of your vendor are very important for your business growth. While upgrading the software, you also need to focus on the deployment process of the vendor. Make sure that your vendors possess all the technical skills and expertise in delivering the final product as per the industry requirement before you plan for upgradations of the ERP software.
4) Vendor’s Project Management Skills: It is very important to look for the project management skill of the vendor before signing up for application development or deployment. Your vendor should have a clear working style with specific timelines for each of the phases of the project, development milestones and the role of the resources or staff working the project. This will give you an estimation of time for upgrading the software without much delay, as delay in the process would cost you more in your business. It is recommended to focus on the education and change management aspects of the project. Your staff should not face any difficulty in using the new version of the application.
5) Meets Modern Business Environment: The modern business environment demands your application should be up to date one. It should be embedded with business intelligence (BI) tools; these will help you to take the real-time analytics. The modern era of the business depends on the use of latest technology. Thus, your application should be compatible with the latest technology.
6) Cloud ERP Software: Deploying your application into the Cloud is the best thing for your business. It is speculated that the cloud packaged software use will rise by many folds in the next couple of years. According to IDC, the software in the cloud would account for $1 of every $6 spent on software in 2016. By moving to the cloud you can cut down your hardware expenses and the vendor would charge the amount as per the use. Make sure that your vendor is taking care of data management and provides support for hardware and upgradations. You can assign your technical staff to look after the cloud application management from your end.
7) Scalability of the ERP Software: Ensure that the new release of the application is scalable. The latest ERP software should help you to grow and come handy as your business expands day-by-day. The application should scale up as per the business expansion and growth.
You need to upgrade your ERP software keeping the growth of your business, changing technology and business dynamics.