Read the latest in our NetSuite benefits to business series below. Find out the top 4 ways that your outdated ERP software is slowly killing your business.
Despite the fact that it’s vital to their success, many business owners don’t even know what Enterprise Resource Planning (ERP) is. It encompasses all of the various processes involved running a business: from inventory and order management, to accounting, human resources, and customer relationship management (CRM). Business owners often think of these processes as single entities, when they should have a far more gestaltic view of their operations. Each process needs to integrate smoothly with every other for the business to operate without wasting resources. To do it, and do it right, you need the right tools.
“Good ERP software integrates the various functions of your business into one complete system, streamlining your daily operations and transmitting information quickly throughout every level of your organisation.”
In essence, good ERP software integrates the various functions of your business into one complete system, streamlining your daily operations and transmitting information quickly throughout every level of your organisation. But if you’re like most other businesses in the country, you probably have no recollection of giving your ERP system an overhaul. This means it’s probably not performing these functions as it should, and you’re doing yourself a profound disservice.
Technology is changing every day, and business prosperity comes down to survival of the fittest (and most efficient). You won’t just be missing out on the truly transformational benefits offered by the best and latest software and applications; you’ll actually be putting your business behind your competitors.
But it’s not all doom and gloom. There are a few important ways that your outdated ERP software is hurting your business, but there are simple solutions to all of them—in the form of NetSuite.
1. Software Version lock
ERP software has been surprisingly slow on the uptake of web and technological innovations. On-premise ERP systems like Sage, SAP and Oracle offer some support services, but they charge enormous fees for the privilege. Additionally, business owners are still lumped with the odious burden of having to upgrade to use the few new features that do emerge.
Version lock is the Achilles’ heel of so many businesses: the longer you leave it, the harder it is to upgrade. Unfortunately, it means catastrophically complex reinstallation, reintegration and relearning of all the system’s components. With the threat of losing data and financial resources, the risk is simply too big for many businesses. So, you close your eyes and try to put it out of your mind, bumbling through messy and inefficient workflows until the system’s on its last legs.
“While your outdated software is eating into your margins, you could also be losing ground to your competitors, who’ve already moved on to more dynamic and flexible ERP systems that actually support their growth.”
When an ERP system isn’t meeting the needs of the business, the people operating it end up drowning in manual spreadsheets and communication. Meanwhile, they’re still paying for their IT services—and considering that’s around 5 percent of their revenue. It’s pretty unsustainable. While your outdated software is eating into your margins, you could also be losing ground to your competitors, who’ve already moved on to more dynamic and flexible ERP systems that actually support their growth.
Change is instantaneous now. Or, at least, it should be. The expectations of business owners, workers and customers continue to rise. It’s important to remove all logistical barriers to communication with your business’ world. It’s possible to achieve with NetSuite:
- Once it’s in place, software updates are automatic and painless.
- No dithering around with manual information transfers and downtime.
- There’s no risk of losing important data, and
- There’s no maintenance or infrastructure upgrade fees.
You always have access to the latest and best technology, which gives better security and reliability than any locked version software could possibly offer.
2. IT Fees Drowning Profitability
If you haven’t yet taken your business into the cloud, you’re already losing ground against your competitors. Cloud computing is helping businesses to cut their IT costs by 50 per cent or more on average. The ongoing fees for maintenance and feature-adding no longer exist with cloud software. Your outdated software is eating into your bottom line, chewing through valuable financial and human resources that you could be using to improve your business’ efficiency and profitability.
“Cloud-based systems allow businesses to take immediate advantage of functional improvements as they emerge. NetSuite offers rapid deployment so you don’t suffer the downtime you’d expect from making significant changes to your ERP system.”
The evidence is mounting in favour of upgrading to cloud-based ERP systems. Businesses worldwide are consistently demonstrating improvements in their competitive advantage, enterprise security, communication, data recovery, and capacity for growth. On-premise ERP systems make customisations, upgrades and maintenance are disastrously expensive and immeasurably painful. However, cloud-based systems allow businesses to take immediate advantage of functional improvements as they emerge.
NetSuite offers rapid deployment so you don’t suffer the downtime you’d expect from making significant changes to your ERP system. NetSuite’s also sophisticated enough to allow you to completely customise your dashboard as you please. This perfectly tailors your system’s functionality to the needs of your business without paying extra for the privilege.
3. Inflexible Systems Mitigate Your Business Growth
Your outdated ERP system wasn’t designed with change and growth in mind. It simply can’t keep pace with your business’s upward and outward growth, because it wasn’t designed with the flexibility and scalability of cloud-based offerings.
It’s impossible for business owners using out of date ERP systems to remain up to date with government and industry changes, especially with regard to tax and business financials. There’s too much room for error, which is an ever-increasing danger to your business’ viability. It’s terrifying to think of potentially migrating spreadsheets and calculating sales tax manually.
While on-premise ERP is basically unable to track change, cloud-based offerings like NetSuite align with the business’s operations. Meaning they remain fluid, up-to-date and fully customised to your business. So you’re always on par with the latest changes to accounting rules, tax regulations, and compliance standards — and you don’t need manual upgrades to do it.
“While your aging ERP system is basically a handbrake on your business’s expansion, NetSuite has the scalability to adapt its functions as your business changes”
NetSuite’s flexibility doesn’t just keep you on track with your obligations: it adapts to internally driven change, too. While your aging ERP system is basically a handbrake on your business’s expansion, NetSuite has the scalability to adapt its functions as your business changes. This allows you to service new partnerships and connections with seemingly effortless order processing, inventory management, reporting, and customer service.
Your current ERP system is dead in the water: but NetSuite can help you to improve and grow your infrastructure, helping you scale up without the drama of large capital expenditure and odious manual setups.
4. Poor Communication Isn’t Much Better Than No Communication
Whichever outdated ERP system you’re using, it’s certain to have one poignant weakness: the lack of real-time communication. If it’s not built on the automation of cloud-based technology, your management reporting will still be reliant on your time or your employees.It probably takes you days to even receive new information. And even longer to deal with the backlog of changes and reports once you actually get them. Your system probably involves a mess of disconnected spreadsheets and sources of data, which is as much a burden on your employees, partners and customers as it is on you.
“Whether its via on-premise systems or mobile applications you have greater visibility than ever before over what’s happening in your business.”
With NetSuite’s cloud-based integration, communication is instantaneous and real time. You can communicate throughout your business, and with external entities, immediately and accurately. Because you can customise your system with different levels of access, all of your employees can see and reach what they need to, without someone doing it for them. Whether its via on-premise systems or mobile applications you have greater visibility than ever before over what’s happening in your business.
With NetSuite, communication is no longer a manual process: with mobility and real-time analytics, everyone knows where they stand at all times, and they’re able to collaborate and align with the rest of the organisation to streamline your systems and decision-making processes. Your existing ERP system might be blocking you from profitable relationships with your suppliers, channels and customers. It’s never too late for NetSuite to help you restore your communication and cultivate mutually beneficial partnerships to take your business to the next level.
If you’re ready to say goodbye to the limitations of your outdated ERP system and embrace the potential of a modern cloud-based ERP, choose NetSuite. It’s designed to integrate with your business’s existing web applications and platforms, so it’s easier, safer, faster, and more affordable than you might think to transform your operations with real-time visibility and service-oriented communication. To move your business into a powerful, unlocked and scalable future of ERP, contact Applejack: we’ll be happy to show you how NetSuite can help you reach the clouds.