Enterprise resource planning (ERP) software has been evolving over the past few years, and newer ERP modules are solving a problem modern businesses face: How to reduce costs and complexity associated with business software.
We are living in the 21st century, but most companies are still operating with software built decades ago. Because traditional (or legacy) business systems we’re expensive to obtain, companies are finding migrating to a new system an extremely difficult decision. As a result, businesses are forced to work on make-shift systems comprised of old accounting systems and expensive add-ons.
How Can You Conquer this Tech Chaos?
First thing you need to be asking yourself is how complex is your business system are you, and what pieces can you either let go of, or replace. Because of high costs, many business owners feel locked into their legacy systems. (Read about how The Gravity Cartel kicked QuickBooks Enterprise and never looked back). However, modern cloud-based ERP systems are not only more affordable, but come as a complete, feature-rich system. As a result, some businesses are finding the upgrade as a measure of cost savings, not expense.
The barriers from migrating have never been lower. Companies like VersAccounts Cloud ERP are even offering self-service options for migrating, and are including training and service fees in the cost of the software. It’s never been easier or affordable to implement a new system!
Cost Savings Through Consolidation
When consolidating software, one should look at the true cost of associated with different systems. Start by mapping out how your core systems (typically an ERP or accounting system) and branching out.
When comparing solutions, especially cloud vs. on-premise, one difficult question to answer is determining the true full cost. Many ERPs require 3rd party software consultants to implement and service your products. These service fees need to be added to the total cost of ownership. Additionally, include any costs associated with new hardware required for the system (computers, services, etc.). As a result, you may find that your current software costs up to 3-5x what the initial sticker price was.
Modern ERP is removing the need for costly add-ons by providing robust ERP modules. The final piece in figuring out how the total cost is to add up all the add-on products your company runs on. These could be inventory and warehouse management add-ons, multi-channel sales management add-ons, CRM add-ons, etc. Once you’ve determined those costs, you may be surprised at how expensive your system really is.
Modern ERP product are more robust than ever. Instead of paying for 3rd party software to complete you system, you should start with determining if your core system is up to par with modern business.
Utilize ERP Modules, Not Add-ons
As seen above, add-ons increase cost to your business in the long run. While add-ons seem like an inexpensive way to get by, the more you add, the more complex your system becomes. As a result, many companies have systems resembling Frankenstein rather than a well-oiled machine. Consequently, these systems tend to break down, causing company down-time and expensive software consultants for modifications. Alternatively, ERP modules are the building blocks to modern ERP systems, and typically are serviced by the software provider, not a 3rd party service. This saves you time and money, and lets you get back to business.
Things to Consider with ERP Systems
There are an increasing number of modern ERP solutions on the market today, which is great news for SMBs. Some of these are industry specific—with a special set of industry-related ERP modules. However, some are complete all-in-one systems with an à la carte ERP modules list. These all-in-one systems offer a customizable solution to fit your business today and grow with your business tomorrow.
Unfortunately, selecting these products is still a tedious task. As modern ERP systems are entering the market, legacy companies are trying to compete. And not in the most ethical way. They are relying on their brand names to sell a product that is built on outdated technology that will cost your business in the long run.
To learn more about thing you should be consider when consolidating your business systems, please read and share our comparison sheet – The Seven C’s for Evaluating ERP. In it, you’ll seven criteria that will help you choose a solution that will support you today and tomorrow.
Our multi award winning Cloud ERP solution could help-check out the features!