Updating an ERP (Enterprise Resource Planning) system can be a daunting task for any business. There are many factors to consider when deciding whether or not to update your ERP, and some may argue that it’s better to not update at all. In this blog post, we’ll explore some of the reasons why it might be a good idea not to update your ERP.
- Cost of an ERP
One of the most significant reasons not to update your ERP is the cost. Updating an ERP system can be expensive, and the cost can vary greatly depending on the size and complexity of the system, as well as the vendor you choose. The cost of the update can include software licenses, implementation fees, and additional resources needed to manage the update. These costs can be significant, especially for small and medium-sized businesses that may not have the budget for a large-scale ERP update.
- Disruption to business operations and user experience
Updating an ERP system can also cause significant disruptions to business operations. The update process can be time-consuming and requires the cooperation of multiple departments within the organization. During the update, there may be periods of downtime where the system is not available, which can negatively impact productivity and revenue. Additionally, staff may need to be trained on the new system, which can take time away from their regular duties and erode the level of customer service available.
- Customizations and integrations
Another reason not to update an ERP system is that customizations and integrations that were made to the existing system may not be compatible with the updated version. These customizations and integrations are often critical to the day-to-day operations of the business, and without them, the ERP system may not be able to perform as well as it did before the update. This can lead to additional costs and disruptions as the customizations and integrations are updated or re-implemented.
- Risk of failure
Lastly, the risk of an ERP update failure is always present. The update process can be complex and any small mistake made during the update process can cause serious problems that are difficult and expensive to resolve. This risk increases with the size and complexity of the ERP system, as well as with the experience level of the team performing the update.
In conclusion, while there can be many benefits to updating an ERP system, there are also significant drawbacks that need to be considered. Before deciding to update your ERP system, it’s important to carefully weigh the costs, risks, and potential disruptions to your business operations. It may be better to continue using the current system, even if it is not the latest version, if the update is not absolutely necessary for the business growth and there are other more important projects to be taken care of.