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Tales from the IT Crypt: The Signs and Dangers of Outdated ERP Systems

October 29, 2014

As Halloween quickly approaches, ghastly ghouls and goblins are sure to give you a fright, but did you  know that some of the scariest things can be found in your own IT department? That’s right; we’re referring to your outdated ERP system! *Cues blood-curdling scream* Enterprise resource planning systems are the central nervous systems of many IT organizations. Without the proper business management solutions, enterprises would struggle to keep pace in an increasingly competitive marketplace. With that being said, it’s not uncommon for businesses to hold on to older IT infrastructure or refuse to switch to a more robust ERP system for necessary updates. If you’re worried about whether your organization is still clinging to older platforms because they’re “good enough” or still “work fine”, here are 3 skin-crawling signs that your system is outdated.

  1. Taxing on the IT budget: In an effort to cut costs, many companies try to put off improvements as much as possible. However, with the pace at which current technology moves, it’s crucial that your organization stays up to date on operational systems. The older the system, the more fixes it will likely need; so that upgrade doesn’t sound so bad after all, does it?
  1. Loss of Productivity: Although it seems obvious, an ERP system that slows operations is the antithesis of what it’s designed to do. The goal of ERP platforms is to increase production and business output so if this isn’t happening within your organization, it may be time to move on to newer technology.
  1. Frustrated Clients and Users: Modern ERP systems are great because they allow employees to readily access data and relay pertinent information to clients on the go. However, if there’s growing frustrating among employees about your current management tool, it may be time for an upgrade. Doing so will equip them with the arsenal needed to tackle daily challenges.

When dealing with older systems, any of the issues listed above can strike at a moment’s notice, but there’s another set of risks that you may not be taking into account. Although there’s nothing wrong with taking a conservative approach, many IT organizations are actually doing more harm than good by holding on to their legacy systems. While it’s less noticeable atfirst, older infrastructure may be holding your company back in several key strategic areas.

                Security Risks: Danger can lurk in every corner of your outdated ERP platform. Breach of security is the number one danger of outdated technology, so the older the system, the more vulnerable it is to hackers. If your firmware is not up to date, your organization runs twice the risk of a major security incident.

                Loss of Competitiveness: Without updated ERP systems, you are allowing your competition to gain competitive edge over your business by communicating better, responding more quickly, and strengthening relationship with clients.

                Lower IT Flexibility: Simply put, older technology doesn’t operate as efficiently as modern infrastructure. This puts constraints on organizational capabilities including but not limited to: data analysis, collaboration, new application development.

                Limited Responsiveness to Organization: Your ability to provide timely solutions to your organization is hindered by older ERP platforms. Deploying new apps to users or onboarding new employees become nightmares and responding to company-wide initiatives can take weeks or months, instead of several hours or days.

We hope we didn’t frighten you too much, but with so much at risk for your organization, it pays to take a closer look at the systems within your IT department. As your business and technology demands continue to grow, maintaining your competitive edge is crucial to your success. Be sure you have the right technology needed to move you forward!

How does your organization avoid the dangers and risks created by outdated management systems?

Posted By: Ariana Hampton- Marcell


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