1. Outdated Technology
Updating an older system to modern requirements and new hardware needs can be an expensive and time-consuming project that only delivers short-term benefits. If the underlying software and database infrastructures have aged past support dates and the system’s growth capability is limited, it’s time for a cloud ERP system. The older an ERP system is, the higher the current maintenance and future upgrade costs will be. Moore’s Law, which predicts the systematic increase of computing power, also applies to ERP systems.
2. User Unfriendliness
When IT staff and the technical savvy are struggling with the ERP system, it’s a good indication that it’s time for a software change. Bear in mind that their comments are quite useful for planning and customizing the future ERP system. User complaints should be collected and analyzed to highlight needed tools and under-performing areas. Some of the most important aspects of user-friendliness include agility, usability, transparency, and smartphone mobility. The best cloud ERP software will contribute to growth opportunities and business-building activities.
3. Information Overload
Some companies suffer from having so much data that there are too many answers and possibilities. Having a centralized source of information minimizes conflicting evidence and solutions to critical business questions. Global expansion and acquisition growth outside of core markets may also create internal gaps and miscommunication. On the other hand, some companies suffer from information under load when they cannot access and leverage basic data. This tends to occur when there are unstandardized data formats and a confusing variety of data tools and warehouses.
4. Changing Needs
Legal, financial and regulatory compliance requirements continue to increase. This includes investment and health care industries that will suffer serious penalties and consequences for misreporting data and mishandling private consumer information. The current ERP hardware may offer robust capabilities, but heightened departmental needs may collectively slow down the system’s overall performance. Cloud-based ERP systems often offer unlimited agility and scalability to respond to changing business trends and demands.