• John Hannan

Key Considerations Before ERP Replacement

Updated: Aug 1

The need to replace your enterprise resource planning (ERP) system can be stressful and time-consuming, especially if you don't know where to start. It's easy to focus on the new system and get lost in the hype of cloud ERP—but there are many things you should consider before moving forward with an ERP replacement project. When it comes to choosing your next enterprise resource planning (ERP) system, be sure to consider these important factors.


Situation Analysis

In today's business climate, the advantages of digital transformation are too great to ignore. But before you replace your ERP system, there are a few key considerations. First and foremost, you must ensure that your data is clean and organized. Otherwise, the migration process will be more complicated than it needs to be. Secondly, you need to consider the scalability of your new system. Will it be able to handle growth? Finally, you need to think about the total cost of ownership. How much will this new system cost in the long run? Considering these factors will help you make the best decision for your business.


Competitor Analysis

A key consideration before replacing your ERP system is to analyze your competitors. What advantages of digital transformation do they have over you? How did they achieve these advantages? Understanding your competition ensures that your new ERP system will give you a competitive edge.


Financial Benefits

One of the advantages of digital transformation is the potential for cost savings. A company that replaces its legacy ERP system with a cloud-based solution can reduce its IT infrastructure costs by up to 50%. In addition, there are often significant reductions in software license fees and maintenance costs. The payback period for an ERP replacement project is typically two to three years.


Time Frame and Project Management Team

The first step is to establish a time frame for the project. This will help ensure that the project stays on track and does not get delayed. You will also need to assemble a team of qualified individuals who can manage the project. The team should include a project manager, business analyst, and technical lead.


Resources Required

Many businesses replace their ERP system when they outgrow their current ones. However, there are a few key considerations you should take into account before making the switch. First, you'll need to ensure that you have the right resources. This includes things like having enough staff to manage the new system, as well as budget for any necessary training. You'll also need to ensure that your data is backed up and easily accessible.


Additionally, you should consider the impact of replacing your ERP system on your business operations. Will there be any downtime? How will this affect your customers? Lastly, you'll need to compare different ERP systems to find the best fit for your business.


Risk Assessment

Conducting a risk assessment is a key consideration when deciding whether to replace your ERP system. This will help you identify and quantify the risks of making a change. It's essential to consider both the risks of staying with your current system and implementing a new one. Other factors to consider are the cost of replacement, the impact on productivity, and the potential for disruption to your business. Considering all these factors, you can make an informed decision about whether or not replacing your ERP system is the right move for your business.


With that in mind, contact us via phone or email if you're looking forward to replacing or customizing cloud ERP for your business.

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