The Value of Replacing a Legacy ERP System During Disruptive Times
Yes, you can survive business disruption, just not with an outdated legacy ERP system at the core of your business.
Disruption. Nobody likes to think about it, but everyone knows it could be coming soon to their market—with or without warning. Disruption isn’t just new competition. It’s more than just an upstart business that comes along and starts doing what we’re doing, only a little bit faster and cheaper.
Disruption is a fundamental change in the way products or services are provided. It’s Amazon.com sending major bookstore chains into financial turmoil. It’s the iPhone and Android making pay phones obsolete—and threatening the existence of even the mighty landline.
Fortunately, according to Mint Jutras, an independent research and advisory firm specializing in ERP software, choosing the right ERP technology can help your business stay agile during disruption.
Disruption Comes in All Shapes and Sizes. Are You Ready?
If you’ve ever lost sleep thinking about potential disruption in your industry, you’re not alone. In the 2016 Mint Jutras Enterprise Solution Study, 88% of respondents said they believe there’s a risk of their businesses or industries being disrupted. This disruption could come in the form of new products, new sales approaches, new pricing models, entirely new business models, or a combination of the above.
Not surprisingly, Mint Jutras points to the internet and the digital economy as the primary enablers of disruption. When most of us ponder what will be the next disruptive force in our industry, we may very well picture a historically labor-intensive service being provided online for a fraction of the cost.
But as Mint Jutras reminds us, we can’t ignore traditional disruptors such as growth and regulatory change. Now, many businesses can respond to the growth of their competitors by seeking their own opportunities to expand into new markets—using the internet as a tool to level the playing field. But doing so may require rapid restructuring of the business. Agility will be the order of the day.
As for regulations, Mint Jutras warns that the impending changes to revenue recognition as a result of the merging of accounting standards (ASC and IFRS) will present accountants with some of the most significant challenges they’ve encountered since Sarbanes-Oxley. This, too, will put the onus on companies to manage their finances with highly flexible accounting software.
Don’t Let a Legacy ERP System Hold You Back
With the risk of disruption always looming, companies are responding by innovating—and they expect their ERP solutions to keep up. The need to customize ERP software hasn’t gone away. All that has changed is that companies now seek ERP solutions that won’t take months—and thousands of dollars—to customize or upgrade.
And that’s the rub. Too many companies want to innovate but are held back by an inflexible, monolithic legacy ERP system that won’t adapt. Is your company stuck in this situation? Are you frustrated with an ERP platform that either won’t keep up with your business, or will only do so after heavy, costly customization?
If so, you won’t want to miss this Mint Jutras report. Read it to learn the three signs that show you need a new ERP system—and to get recommendations on how to find a solution that’s agile enough to help you overcome the inevitable disruptions in your market and industry.