Lack of Features: If an ERP system doesn’t solve an organization’s business need, it may have outdated features or lack the capacity to manage a growing business. Running an ERP system that is five or more years old most likely means an organization is missing out on new features that can be beneficial to the business. A company that uses a system that hasn’t kept abreast of changing business needs doesn’t have the functionality to operate efficiently – and operating inefficiently severely affects the bottom line. A company that hasn’t implemented cutting-edge features and functionality will be edged out of the market by its competitors that have deployed more sophisticated systems.

Obsolete Technology Foundation or ERP Infrastructure: According to the Aberdeen Group, 32% of businesses replaced their ERP systems because of “obsolete technology foundation or infrastructure of [their current] ERP systems.”2 An older ERP system: limits an organization’s ability to extend functions via modules and extensions; slows a decision-maker’s access to key business data; and also requires additional IT support and staffing levels.

Unable to Customize ERP to Meet Business Needs: More often than not, an organization using an outdated ERP system is unable to adapt its processes to reflect changes in the business, integrate new business units, ensure compliance and increase its return on investment.3

Higher Maintenance and Support Costs: Typically, older ERP implementations are highly customized, which means a company will be on the hook for big money to support and bring these customizations forward during a software upgrade. Additionally, the original ERP vendor may have been acquired by another company, which either doesn’t support the firm’s ERP system or decides to raise support and maintenance fees.

End of Support from ERP Vendor: If a provider has already announced the end of support for the ERP system a company is using, it’s time to replace it. Even though many organizations continue to use systems that are outdated – obsolete software will do more to harm the business than help it. The reason: end of support means a firm won’t continue to receive hotfixes, updates and security patches. Not only will a business experience extended periods of downtime and be less productive, it will also have to pay higher IT costs because free and paid support will also end.
“Sunbridge is Microsoft Dynamics Partner offering services in AX (Axapta), NAV (Navision) and CRM, Pune India”