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Is It Time To Replace Your ERP?

Posted: 2020-02-06

The top-notch companies trapped by ERP make right change in a timely manner and take themselves to the next level.

Image by Gerd Altmann from Pixabay

Top-notch enterprises always know to turn crisis into opportunity.

Which enterprises should replace their ERP?

Enterprises, government departments, and schools with any of the following phenomena should replace their ERP software!

Enterprises are forced to upgrade ERP software within a limited time by ERP software vendors.

The so-called "upgrade" is nothing more than the fact that ERP user companies are forced to take responsibility for increasing the revenue of ERP software vendors, and the risks associated with "upgrade" are many.

Only one or two modules such as accounting and sales are actually used in the entire ERP.

After investing heavily in purchasing a full set of ERP, the enterprise struggles to implementation it for many years, but in the end, only 1 or 2 modules like accounting and sales are actually used. The remaining modules were thrown into buttom of the drawer, and the enterprise continues to pay the annual license fee for all modules of the software vendor.

Because modules are unusable, they are frozen. However, the information service needs of each business department must still be met, so the IT department starts to show its magic power – using various third-party software tools, developing plug-in software, and calling ERP software's proprietary interface. It builds the United Nations ERP software system, also known as "hybrid ERP system". It barely hands over to the users of each business unit, and the users of each business unit will barely use the UN ERP software system.

The causes and consequences of the UN ERP software system:

  1. Because the purchased ERP software modules are unusable, IT staffs are forced to "research and develop" complex UN ERP software system.
  2. Because the UN ERP software system is complex, IT departments must recruit a variety of software talents, and the departmental scale becomes amazing.
  3. Because the IT department has a staggering size, IT department consumes a lot of cash.

The enterprises who run UN ERP software systems:

  • Enterprises with strong finance power actively help society create job opportunities for IT people.
  • Enterprises with weaker finance health suffer long-term losses or even closed down because of ERP.
Companies that reduce IT spending can turn a profit.

A careful chief financial officer (CFO) will find: by reducing IT costs, the enterprise can turn a profit. And he knows: IT expenses can indeed be significantly reduced. They also know that IT costs include:

  • IT personnel costs
  • software maintenance costs
  • hardware and network lease fees
Enterprises are not in the ICT industry, but the staffing of the IT department is huge.

The productivity of IT staff is low because ERP software is large and improper and unmanageable.

Due to the low productivity of IT staff, the staffing of the IT department is huge.

Such businesses are like charities - with the primary purpose of creating jobs for society. The misallocation of resources has obscured the main business objectives.

The company has been in a state of “recruting ERP talents due to business expansion” or “urgently recruiting freelance consultants with high payment” for a long time.

HR staff wonders: "Why are IT talents so difficult to find? Why did newly hired IT staff quit so soon?"

ERP software is buggy.
  • The software is complex and difficult to use. It takes 45 days to close monthly accounting book.
  • Obvious and hidden errors a numerous.
  • The business functions that should have been many years ago are still not delivered yet.
  • Software responds like a turtle crawls slowly.
Staff in various business units have long been dissatisfied with the IT department.
  • Service requests submitted by staffs from various business depatments to IT department have not been fulfilled by the IT department for a long time.
  • The problems of ERP software reported by end users to IT departments have not been solved for a long time.
The IT department is in low productivity and morale.
  • IT staff is not respected by people in various business units.
  • IT personnel are in a state of fire emergency every day.
  • IT staff have a long backlog of information service requests submitted by staff in various business units, so they frequently say "Sorry!" to users.
  • IT staff face an endless list of software errors every day.
  • IT staff lacks sense of accomplishment and confidence.
  • IT personnel are only allowed to access parts of the ERP software, and the technical growth space is narrow.
  • ERP software is complex and black-boxed, and IT personnel cannot fully understand and master it.
Companies are not happy with vendors that provide ERP software or cloud services.
The service quality of software vendors and cloud service providers is poor.
  • The phone calls to the service provider for helps were transferred around and eventually lost. Their standard response is: "We will have our engineer call back to you."
  • Their engineers do not want to come. Even some did come, they left with the problems unsolved!
  • They refuse to answer our questions: "Please pay the service fee that has not been paid in the past 3 years!"
  • We are using orphan software: "We have stopped maintaining this ERP software used by your company."
  • ERP software cannot be upgraded: "This abc ERP software used by your company is suitable for small companies. We recommend that you re-purchase our xyz ERP for large enterprises."
The costs of software is high:
The annual contract fee is high, and the cost of engineers' on-site maintenance is high.

How To Replace Inferior ERP Software?

Please refer to article zero-failure ERP implementation strategy.