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ERP optimization: Prolonging the life of your technology investments

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During the life of your enterprise resource planning (ERP) system, you will inevitably question whether it’s time to replace your platform or continue using it. As product offerings evolve and operations change, your ERP platform must keep pace, either through a new solution, or further optimizing your existing system. The decision is often difficult, and has a direct impact on your ability to meet your organization’s goals and objectives.

Choosing a new ERP system will integrate new capabilities within your organization, but it also requires a sizable time and capital investment. Any new implementation causes disruption through retraining and process normalization, and you assume the risk that the system will not deliver on its expected value. With these uncertainties in mind, many organizations undergo an ERP optimization process, to extend the life of a current system and increase its functionality.

ERP optimization incorporates periodic, incremental adjustments and configuration, along with functionality upgrades and process revisions. The end result is a higher level of process efficiency and lower overall operating expenses from a familiar platform. An ERP optimization initiative often follows changes to your business environment, such as:

  • Changes to functional requirements
  • New process requirements
  • Increased system functionality requirements
  • Enhanced accounting or regulatory requirements     

Unfortunately, some situations cannot be addressed through ERP optimization, and require system replacement. Understanding your specific ERP challenges and how they align with your goals can help determine the right course of action for your organization.

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