Legacy ERP is perhaps hurting your business more than helping it. These old ERPs might feel like a giant boulder between your business and its growth. It’s high time you face the short-term pain of upgrading your legacy ERP to avoid long-term repercussions to your business. Once you upgrade to a modern ERP system like SAP ERP, your business will experience unfettered growth fueled by efficient work processes.

4 Reasons to Upgrade Your Legacy ERP to a Modern Cloud ERP

The Legacy ERP system has passed its prime time. It’s now time to let go of them and move towards a promising future where ERPs and cloud computing work hand in hand.

Unlike Monolithic Legacy ERPs, Modern SAP ERPs Are Extremely

Flexible One of the biggest problems associated with using legacy ERP is that it has remained the same while your business has undergone a sea change. As a result, your business is forced to compromise its work process to fit into the uncomfortable structure of your monolithic ERP.

Modern ERP systems are flexible, and they promote an agile work process. The modules of these ERP systems are made in a compartmentalised way and hence, can be moulded based on your business requirements. The overall ecosystem can be customised. SAP Business One is a poignant example of a flexible ERP.

Can you scale up and down your legacy ERP system at will?

This is the era of big data. Modern enterprises are generating huge amounts of data every day. Legacy ERP systems can’t manage such huge data. They partially rely on manual data entry and manual export of data to spreadsheets. With growing data, these manual processes become too cumbersome, leading to additional delays in order completion.

From an infrastructure point of view, most legacy ERPs are deployed on-prem. There is no opportunity to deploy them in the cloud. Hence, the backend can’t be scaled up or down flexibly.

Modern ERP systems, on the other hand, are built for flexibility. The systems themselves can take in as much data as needed and can be deployed in the cloud. This gives the flexibility to scale up or down the system without any upfront cost.

Modern ERPs Can Handle the Entire Business Process

Legacy ERPs don’t usually have all the modules needed to handle every business process in a company. For example, some ERPs need to connect with external MES to track the manufacturing process. Some ERPs need to export data to excel in providing accurate financial reports. This dependence makes working with legacy ERPs cumbersome. There is no automation. You must constantly keep in touch with the PoC of other departments to know the status of a process.

Modern ERPs like SAP ERP can manage every aspect of the business. They don’t require the support of other systems to work.

Businesses Using Legacy ERPs Can’t Avoid Manual Reconciliation

The purpose of using an ERP is to reduce manual processes. However, over time, continued use of legacy ERPs leads to a loss of structure in the work process. As we said, most legacy ERPs depend on external tools to work properly. This invites the problem of reconciling the legacy ERP’ s report with the external tools generated report.

Modern ERPs automate the information flow from one department to another. There is no need for manual reconciliation. Again, modern ERPs like SAP S/4 HANA Cloud leverage the cloud &  power to let users remain connected with the business process from anywhere. This further leads to a connected experience and reduced manual work processes.

To conclude

Change is scary. However, if, like other tech assets, companies don’t upgrade their legacy ERP, it can lead to some unpleasant consequences. To avoid that, get in touch with an expert service provider who can help you with a hassle-free SAP implementation.