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The Risks of Maintaining an Out-dated ERP System

Year 2019
January 2019
The Risks of Maintaining an Out-dated ERP System
25 Jan 2019

The risks of maintaining an out-dated ERP system The risks of maintaining an out-dated ERP system

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As ERP technology market has evolved significantly with lightening-speed changes in technology, legacy systems developed on older technology/ platforms such as PIC, Progress or even DOS, are no longer stable and may lack functionalities as well as security, which makes businesses prone to errors, security risks, and even legal problems.

Missing Innovative Features and Benefits

Contemporary ERP solutions are often designed with cloud computing technology, mobile application, reporting and analysis functions to offer 24/7 access, real-time data synchronised and optimised management to ERP users.

Such benefits to ultimately provide the convenience and efficiency in business management are often not provided by the early ERP systems. Thus, an aging system can be a huge impediment keeping your corporate behind competitors.

Unresponsive to Regulations and Industry Changes

It is a fact that political stances and regulations as well as in businesses with emerging products and new methods of operation, such as e-Commerce, are changing yearly. An early ERP system, which was developed based on the industry expectations and regulations in the past, are generally not equipped with the capability to process new types of data/workflows or handle necessary adjustments to conform to altering laws.

Lack of Scalability

Many of the early ERP systems are designed only for specific sets of business management without flexible customisation or integration. Thus, additional manual processes are required to fill in the gaps of what the legacy system cannot do, which evidently fail to efficiently assist businesses with expansion plans.

Lack of Security

If an in-use system is no longer supported with security updates/patches,  organisations had better consider getting a more advanced ERP system with security standards to deal with evolving cyber threats as well as to eliminate security vulnerabilities.

ERP System Solution To Eliminate Risks Of A Legacy System

As businesses and technology evolve, especially in the Industry 4.0, the tools to monitor business operations need to be upgraded. There are reasons to keep using the legacy system which you have been using for years and your staff members have been familiar with it. However, it is necessary to re-consider the risks and the cost for maintenance and upgrade of the old system to make sure they are not the obstacles for your business growth.

An advanced cloud ERP solution can provide you with:

  • Full-option functionalities
  • Integration for all departments
  • Transparent information flow at real-time
  • Customisation to specific requirements
  • Frequent automatic updates
  • User-friendly mobile apps
  • IT support from the ERP system provider
  • Regulatory compliance

Maintenance or Innovation?

While technology and business continue to flourish rapidly, digitalising your business operation and management is not only vital for your organisational growth but also helpful in competing with other rivals.

Therefore, it is high time for businesses to make the decision on digital transformation by either maintaining an aging system or investing in the latest ERP technology.

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