Nobody likes change, especially not the companywide ERP system. But change can be completely necessary, particularly if it gives your company advantages such as improved competitiveness, reduced costs, and better visibility across complex operations. These are advantages on offer from the cloud ERP systems which are increasingly seen as the rule, rather than the exception. And, particularly for the small to medium-sized distributed businesses which characterise much of corporate New Zealand, not going to the cloud can put you at a competitive disadvantage.
ERP systems are by nature long-term commitments. Not only are they recognised as difficult to implement and bed down, but they are also so fundamental to company operations that even the regular upgrades with which you are almost certainly familiar, can wreak more than a little havoc. That’s why most businesses using on-premises ERP are at least two versions behind (and every time you are behind on a version, you’re missing out on functionality on the one hand, and are potentially exposed to security vulnerabilities on the other).
The problem with this reality is that it creates huge inertia. You probably still have the willies from implementing your current system; considering a move to the cloud, therefore, while it makes great sense on paper, isn’t something anyone is rushing to do.
That’s a mistake.
For one thing, COVID has served as a perfect example of the advantages of cloud software. Not just for business management, but for the absolute basics of getting work done – communication, for example. Those without cloud PBX systems found themselves with a hard time; those who had to get into company systems using clunky and outdated methods like VPNs, more so.
On the other hand, those with a cloud ERP had no such quibbles or qualms. It was business as usual, except for the whole ‘go to the office’ bit. In fact, for us at Verde, flexible working has proven so advantageous it has become a way of life for far more staff; that’s thanks, of course, at least in some part to forward-looking management. But even if management was on board, none of that would be possible in the absence of comprehensive cloud business systems which means any staff member can be ‘in the office’ no matter where they physically find themselves.
If all of this makes good sense, but you still sigh at the prospect of even evaluating a move from a legacy, on-premises ERP setup, then consider this. Failing to upgrade your systems could be actively harming your business. The most obvious way harm is being done is also the simplest: it probably costs more than it should for maintenance and support, for starters. You might even find yourself paying as much as 10, 15 or 20 percent per annum as an assurance that when things go wrong, someone will help.
Then there’s the reality of digital transformation. We’ve been talking about ‘the DTs’ for some time now, and many companies – your competitors included – have long moved on from chatter, to doing. An on-prem ERP is probably an inhibitor to your own digital aspirations. That’s especially the case when your system is so customised that upgrades are difficult or impossible – and let’s face it, digital transformation depends on upgrades, integrations, and better ways of doing things by leveraging connectivity, mobility, and convenience.
If this has you thinking, hmmm, perhaps it’s worth another look, or indeed a closer look, then you should access this resource 8 Ways Legacy ERP Harms Businesses.
It’s an easy yet good read and makes the case not only for the quantifiable (and increasingly proven) benefits of cloud ERP, but also for the limitations which are a reality for almost every on-premises ERP.
Check it out. And if you’d like to discuss how Verde can help shift your business into the 21st century, do reach out. We’re always happy to hear from you.
PS: Ask us about our Business Requirements Assessment service is ideal for examining your environment and recommending the cloud ERP solution best for you.
