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When Should Organization Replace Their Existing ERP Software?

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It is very expensive for company to implemented ERP and migrating from existing system can be equally time taking and costly because the company is tied to the present system of working and the employees are convenient with the current system. But there are a few requirements such as - getting higher software quality, improvement in time-to-market, reduction in workload, better predictability, better ROI and easy management, which can prompt a company to go for change.

Causes for New Changes

Company using old methodologies: If a company uses old working pattern which is no more beneficial it can shift to new methods and eradicate the business processes which are expensive. Many organizations go for new ERP to get new reengineered business processes which is more clear and easy to use.

New business requirements: If a company has some new requirements which is not fulfilled by the existing system it may have to go for a new ERP package which can fulfills the new demands.

Get the technical advancement: Sometimes the company is planning a future expansion or it is unable to maintain production units located at various places - because the previous software does not have online features. The new package can meet the new customer demands, and if the company has resource and time to spend on new package, it can decide to go for a new package. The company can work on advanced new architecture which may include ecommerce and mobile technologies integrated to the ERP which also improves the marketing and sales.

Managing the present system is difficult: If the current system is expensive and time taking - the company may shift to a new package.

How To Go For The Replacement?

1. Work on the customer's need and the benefits of the new package.

2. Talk to the customers to know about the new and future demands, and also the company can find the software which is in use with the competitors.

3. The package should be able to provide the customizations and complex features required by the client, and it should be featured for easy integration to the applications in use.

4. The company can meet the vendor to know about the capabilities and experience of the vendor. A company may have to analyze the various benefits of replacing the system before starting one.

5. Estimate the ROI delivered by the new package. A research can be done to find out the ways the package can provide highest profits to the company.

6. The company should find out the best time for implementation and allocate resources to the process. The time when the business is less active enables the end users to invest their time to the process, and then the company can do the complete revision and reengineering of the business processes.

7. Identify the key people of the implementation team and proper training should be provided to them.

8. Critical business applications and legal system should be implemented effectively. The staffing level required for the operation is more and therefore the company should prepare before implementation to reduce the impact of change.

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