Why do companies change their ERP Systems?
Companies change ERP systems because they are dissatisfied with their current system, or they understand that its limitations are hampering the effective, efficient operation of the business. They want a replacement system that better suits the company‘s needs and their perception of what that might be are greatly influenced by the specific limitations they have encountered in the existing system. These limitations might be functional – applications that are not available or that fall short of what the company needs to support business needs.
Whatever the reason, when a company sets out to replace an existing ERP system, it goes out to the marketplace with several major objectives in mind. They want the new system to provide all of the applications needed to run the company effectively today and into the foreseeable future (functionality). They want some assurance that they won‘t outgrow the system‘s capabilities (scalability). They want a state-of-the-art system built on standard, open technology and a relational database compliant with modern data retrieval and analysis tools (business intelligence). The new system must incorporate current technologies for integration, communication, and collaboration (connectivity and integration). The ideal system will be easy to learn and easy to use (productivity). This is best done by a design that looks and works like ubiquitous office software like Windows, Excel, and Word. And the system must be built on solid, proven, yet the up-to-date technology that assures performance and reliability (foundational technology).
You Know It’s Time For A New ERP System when…..
1. Too Many Spreadsheets: When the current solution is viewed as a data repository and Excel spreadsheets the system of record. Auditors frown on it, management doesn’t like it and you know your people are wasting too much time manipulating and managing data in spreadsheets.
2. New Functional Requirements: Your current solution no longer meets your current and planned-to-be functional needs – driven by business growth, M&A activity, new business models, commercial product offerings, service locations and/or service areas.
3. Deficient Internal Controls: Your current solution lacks the features to automate necessary internal controls to ensure reliable financial reporting and formal SOX compliance – like role-driven permissions, configurable segregation of duties, and audit trails.
4. Business Risk: As users start managing larger revenue amounts, management and your external auditor want a complete audit trail of all accounting entries and adjustments but your current solution does not fully support it.
5. New Technical Accounting Requirements: Your revenue recognition, amortization, and depreciation method requirements exceed the capabilities of the current solution.
6. New Global Operations Requirements: Expanding multi-entity, multi-site, multi-currency, multi-language operations, intercompany transactions, and consolidation requirements exceed the capabilities of the current solution.
7. New Global Supply Chain Integration Requirements: The need to integrate more tightly with one or more supply chain partners (e.g. vendors, contract manufacturers, third-party logistics providers) exceed the capabilities of the current solution.
8. New End to End Process Automation Requirements: Your current ERP solution doesn’t have the breadth of pre-integrated functionality to enable the end-to-end business process automation as desired.
9. Need More Visibility to Business Operations: The business seeks better visibility to timely operations data across major functional areas like CRM, SCM, Production, and Finance/ Accounting in ways not supported by the current solution.
10. New System Integration Requirements: Your current solution does not integrate as easily as desired with other relevant third party applications or support the import/export of management or operational data needed.
Is It Time To Switch To Microsoft Dynamics ERP?
Microsoft Dynamics is helping businesses of all sizes gain greater control, drive bottom-line results, and grow their businesses. More than three million users from a wide range of industries count on Microsoft Dynamics to drive their business forward.
Microsoft Dynamics is a line of integrated, adaptable business management solutions that are designed for companies of all sizes, including SMBs, midmarket firms, and enterprises. They include functionality to support finance and accounting, human resources, manufacturing, supply chain management, project management, and customer relationship management etc.
Microsoft Dynamics ERP solutions stand apart from other enterprise resource planning (ERP) software by offering exceptionally easy-to-use solutions that work with your existing technology, scales as you grow, and delivers the next generation of enterprise resource planning solutions with long-term value.
Move Your Business Forward With A Business Management System From Microsoft! Contact us to discuss your requirements and get a free solution recommendation, demo and a free 30-day trail of the recommended Microsoft Dynamics ERP Solution.
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