80% of our clients only utilize 20% of their ERP system, and they are not alone. So, if this is common across typical companies, why do so many of them call to throw out their current system and find one that will resolve their challenges? It’s a good question!
Changing Systems and Keeping Service Levels
When clients call with this dilemma, we make sure pursuing a new ERP system makes sense. It is NO easy initiative to change systems and keep customer service levels intact. It requires a significant outlay of funds to not only purchase the system but also to implement. Contrary to popular belief, the software cost is SMALL in comparison to the implementation cost. Thus it pays to take a second look at whether it would make sense to more fully leverage your ERP system.
There are some situations that dictate an upgraded ERP system. For example, a few include the following: a recent merger or acquisition; an outdated, unsupported system; a highly customized system that isn’t scalable (and/or dependent on key resources); a system such as QuickBooks that easy to outgrow… It pays to take another look regardless, but especially at the rest of the scenarios that arise. Are there ways to leverage your ERP system more fully? Most importantly, can you leverage the system to support your customer and profit differentiators? What could you learn from the user group community? LinkedIn can provide some answers.
Is it time to take another look at your ERP system?
In our consulting practice, we have seen a few examples of ERP systems that were “hard to imagine” in terms of being outdated and non-functional in terms of basic business tenets. Even in these situations, there were opportunities to further leverage the ERP system to achieve business outcomes while pursuing an upgrade. Why not take a second look? Even if you are above average, you likely have 50-70% opportunity to expand functionality.
Improvement in service levels alone can make a second look well worthwhile.