Upper management often has different opinions with IT department about Enterprise Resource Planning or ERP upgrade. While IT department feels that constant upgrade is essential for the company’s operations, upper management thinks about expenses and costs. However, questioning the decision to upgrade the ERP system is legit: a full upgrade, especially for a company that has run on old system for many years, is expensive. Careless upgrades can also cost the company much money, but without proper ROI in the future.
Fortunately for the concerned IT people, ERP system upgrade has become popular business decisions in the past decade.
ERP Upgrade Benefits to Consider
ERP upgrade is a huge industry, and US companies have invested in ERP system upgrade for more than $4 billion in just a year. While the cost is definitely high, ERP upgrade is essential because of several benefits:
- Supporting the company’s operations in all aspects. System upgrade will help all departments keeping up with current trend and demands, and also increase efficiency in finishing tasks.
- Keeping up with the current technology, market trend, and competition. Customers and markets now demand faster and better services, and good ERP system will support the business in fulfilling those demands.
- Increasing revenues. The obvious improvements in business activities will increase the profits and return the investment.
However, ERP system upgrade must be done with the right methods and timing. Such high-cost program must bring long term benefits for the company and contribute to revenue. Otherwise, the system will cause huge loss and even complaints from customers that are unable to access the company’s service the way they used to be. When this happens, companies are often forced to revert back to their old system, rendering the expenses useless.
ERP system upgrade is a great investment for company, but it can turn into huge losses when done without good plans.