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An ERP system upgrade refers to the process of moving from an older version of your existing ERP solution to a newer version with additional features or customizations or to a newer, more advanced ERP system that better suits your business needs.
An enterprise resource planning (ERP) system is the backbone of any organization, and keeping it relevant and up-to-date is essential. An ERP system upgrade ensures that your IT foundation can meet the evolving needs of your staff, end-users, and business requirements.
In short, an ERP system upgrade is a calculated and planned process in which you transition from your current ERP platform to a newer one, with or without the help of your current vendor. This doesn't always involve replacing the entire ERP system. If you upgrade your current system to a newer version without switching to a different ERP system, you simply adopt the latest and most advanced version to ensure your business remains supported for the upcoming years.
When upgrading an ERP system, version upgrades can be carried out by the same vendor or be automatic if the ERP solution is cloud-based. However, upgrading by switching to a different ERP solution or if your system is set as an on-premise or hybrid infrastructure may require involvement from your in-house IT team to ensure that everything is running smoothly.
As any experienced ERP expert will tell you, even the latest versions of any ERP solution require regular updates to ensure the system is aligned with evolving market and industry needs. Since all ERP systems collect and store enormous amounts of critical data, frequent upgrades are essential to apply vulnerability patches and address compliance issues to protect it.
Purchasing, implementing, and customizing a new ERP is often an expensive, lengthy, and resource-consuming endeavor; therefore, even with technology evolving rapidly, it is not practical to purchase a new ERP solution every other year. Instead, if your solution provides this option, it generally makes more sense to upgrade your ERP system to benefit from new technologies, third-party applications, and easily integrated features that can help you automate processes and reduce the need for manual tasks.
Regularly upgrading your ERP ensures compatibility with advanced third-party tools and in-house applications like HRMS, CRM, or MES, future-proofs and scale-proofs your business. Keeping your ERP up-to-date prevents productivity drains and maintains efficient process performance. Additionally, an updated ERP system contributes to cost efficiency, reducing the likelihood of system incompatibilities and performance issues that could otherwise increase operational costs.
Using an updated ERP also helps ensure data accuracy and enhanced decision-making that benefits customers. However, In cases where the existing ERP infrastructure does not support such enhancements, replacing it with a more contemporary ERP solution is advisable.
Most ERP solutions require a significant version upgrade every 5 to 10 years. This allows the vendor to incorporate newer features, modify the architecture, and uphold the system's relevance. Based on the vendor's recommendation, updating the system every three to six months is best, particularly when the ERP is deployed on-premises.
Failure to implement minor patches can result in poor performance, corrupted files, and vulnerability to security threats, and timely adoption of bug fixes and security patches guarantees optimal performance and security standards for your ERP.
Cloud-based ERP systems may roll out upgrades automatically and regularly. However, it is important to audit your ERP performance and requirements annually so you can choose when to implement a major upgrade or replacement.
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If you regularly audit your ERP's performance, you will inevitably encounter indicators telling you it is time for a significant upgrade. While some signs may be subtle, others cannot be overlooked too long. Here are 5 telltale signs that it's time for an ERP upgrade:
One significant potential issue with ERP is slow data processing. This may lead to productivity issues, as the system may struggle to support regular, day-to-day operations. This can result in frequent downtime, and employees may complain about frequent crashes, leading to poor workplace productivity.
If you notice system performance issues, it could be a sign that your current ERP solution can no longer handle integrations and demanding processes. Unless your hardware is outdated, the issue lies in an older version of your ERP that requires a long overdue update.
Although many ERP systems pose as holistic, complete business solutions, most rarely are. They often need to be integrated with third-party applications in order to enhance their features. Consider upgrading if your ERP is no longer compatible with modern applications and tools.
Outdated ERP tools usually create integration challenges and will not support seamless data syncing over the cloud. You may also experience difficulties integrating artificial intelligence (AI) tools and machine learning (ML) enabled applications with your ERP. These restrictions lead to poor performance and an inability to use available technologies.
The time to upgrade your ERP can also be ascertained by looking at specific indirect pain points. For instance, you may notice that you can no longer scale on demand, and your operations feel curtailed by various factors. Your ERP could be the culprit as it may no longer handle increased data volumes, transactions, and demand.
You may also notice that your business operations have become limited in terms of flexibility, restricting you to certain fixed business models and markets. When you feel constrained, it is time to consider a major ERP upgrade.
You might notice that maintaining the ERP solution is getting increasingly expensive.
If you can no longer use the ERP according to your vision without encountering additional costs, it is time to consider upgrading. Trying to fix an older version of ERP is like using your fingers to plug a leak in the dike. Get the professional help you need to address your pain points.
ERP products tend to become vulnerable to newer security threats over time. This is primarily due to outdated security protocols and features. You must consider upgrading if your ERP product no longer offers the latest encryption or multifactor authentication.
Using an outdated ERP may also make you vulnerable to compliance issues, resulting in fines and legal issues. Hence, if you notice any security vulnerabilities, make sure that you upgrade your ERP tool immediately.
Deciding between upgrading or replacing an ERP platform can be challenging. While upgrading an ERP is advisable in some situations, replacing it might be a better decision in many others.
If your current ERP system can withstand your business's perspective scalability requirements and minor customizations and integrations render it future-proof, upgrading might be the more sensible, cost-effective option.
To decisively decide if upgrading is a better decision, do the following:
Sometimes, upgrading an ERP to its next version is not an option. You may notice that your current ERP solution no longer serves your business needs or is severely curtailed in functionalities and features. It may also not be compatible with modern technologies and solutions, making it difficult to integrate with essential applications.
While replacing may entail a higher cost than upgrading, it provides access to the latest features and functionalities in the long term, thereby ensuring the efficient operation of your business.
If you decide to upgrade your existing ERP and make it suitable for shifts in the market dynamics, it is essential to go step by step, and plan ahead.
Before upgrading your ERP to the next version, you must audit your existing platform and accurately identify different pain points. This will allow you to identify bottlenecks, loopholes, and potential hurdles your staff experiences.
Speak to all the stakeholders involved, including staff who use your ERP solution regularly. Make sure that fixing the identified problems will align with your future goals. Once you know where the gaps are, you can move to the next step.
The success of an ERP upgrade project depends on how you set your future goals. Ensure you include crucial factors such as enhanced scalability and system flexibility, better security, improved reporting, and excellent productivity. Prioritize your objectives and have an honest conversation with your vendor.
This will allow you to set aside a budget or gain stakeholder buy-in to complete the upgrade process. Remember that you may incur additional consultations, testing, and customization expenses.
Your vendor may offer you a variety of upgrade options. If you are currently on an on-premise plan, consider moving to a hybrid or cloud-based solution.
Quite often, vendors offer more than you currently need. A modular and incremental upgrade may help you more than a dramatic upgrade. Researching what's on offer is important, and choosing an upgrade plan that resolves your pain points is essential.
Implementing a new version of your existing ERP requires as much diligence and planning as deploying a brand-new ERP. You must ensure that your existing hardware is compatible with the upgrade, migrate data carefully, monitor the system's performance, and maintain regular contact with your ERP vendor.
Although training and preparing your team may hint at a new ERP deployment, a successful ERP upgrade requires the same. ERP upgrades entail changes to existing features and functionalities and differences in interfaces.
Your employees will require assistance and encouragement to make the switch smoothly. You can ask your vendor for help training and preparing your team or assign an internal manager to ensure a smooth transition.
An upgraded ERP should help you achieve the goals and objectives you listed in Step 2. The best way to track its performance is to identify industry-specific key performance indicators (KPIs) and monitor them rigorously over the first few weeks.
You may also use employee communication tools to gather feedback and inputs from your staff regarding the upgraded version. Based on insights and feedback, you can continuously improve your ERP to achieve your objectives.
Despite the proven best practices, measures, and precautions, an ERP upgrade may not go as planned, and the results may not be what you expect. Here are 5 common issues to avoid during an ERP upgrade.
Businesses sometimes overlook critical details, such as ensuring data integrity during migration, customizing features to match unique business processes, or planning for adequate user training. Their implementation strategies might not fully prepare the business for future challenges, like business growth, compatibility with emerging technologies, or compliance with new regulations. This oversight can lead to operational disruptions, increased costs, and lost opportunities.
Many companies take upgrades for granted, assuming that employees are used to the previous version and can handle the new version just the same. However, vendors may often change existing ERP solutions dramatically, making them unrecognizable to users.
Hence, ensuring your staff receive all the training and support they need during the initial few weeks is essential. Thiswill give them the time to transition smoothly to the upgraded ERP.
While you might not be deploying an entirely new ERP, the upgrade requires the same diligence. You must still cleanse your data and prepare it for the upgraded version of your existing ERP.
This is an opportunity to delete corrupted files and redundant data and unify datasets. Remember that older versions usually store data in incompatible formats, so converting datasets to formats recognized by newer applications and technologies may be a good idea.
When an ERP is upgraded, things can change dramatically, from hardware resources to energy requirements. Resource requirements can further climb when multiple integrations are enabled across locations.
An upgraded ERP may require higher processing power. Failing to estimate the resource requirements might contribute to a failed implementation. Ensure you have ample space to make hardware purchases if necessary.
Upgrading your ERP influences practically every business process and deeply affects your operations. If you do not list your objectives and goals as stated in Step 2, you may receive an upgrade that does not align with your business processes.
If this happens, you will have to settle for costly customizations to ensure that the upgraded ERP is in sync with your goals.
You may require a major upgrade if you have been using an ERP system for five or more years. It is important to remember that technology evolves rapidly.
Major upgrades may require waiting between three and six months to ensure that your ERP platform is ready for the changes that have taken place and those that will.
Minor upgrades, and security patches, may take just a few weeks. However, you may need to make contingency plans to ensure your business operations are not affected during upgrades or implementations.
If you need to upgrade your ERP, the first step is to begin the evaluation process. Explore your current requirements and assess your ERP system. If you cannot decide or need further information, you can always seek expert advice.
Priority Software would gladly answer your queries and help you determine if it is an upgrade or a replacement. Contact us today to learn how you can make the most of your existing ERP system.
Microsoft Dynamics NAV (formerly Navision) reached its mainstream end of life on January 10, 2023. Extended support continues until January 11, 2028. Microsoft encourages users to migrate to Dynamics 365 Business Central, which is its modern cloud-based ERP successor. Both small and large organizations need efficient ERP tools to manage everyday business operations, and given […]
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An ERP system upgrade is the process of moving from an older version of your existing ERP solution to a newer version with additional features, customizations, or to a more advanced ERP system that better suits your business needs. This can involve upgrading within the same vendor or switching to a new solution, and may be automatic for cloud-based ERPs or require IT involvement for on-premise or hybrid systems. [Source]
Keeping your ERP system current ensures alignment with evolving market and industry needs, applies security patches, addresses compliance issues, and maintains compatibility with advanced third-party tools. Regular upgrades help prevent productivity drains, reduce operational costs, and ensure data accuracy for better decision-making. [Source]
Most ERP solutions require a major version upgrade every 5 to 10 years, with minor updates or patches recommended every three to six months, especially for on-premises deployments. Cloud-based ERPs may roll out upgrades automatically and regularly, but it's best to audit your ERP annually to determine if a major upgrade or replacement is needed. [Source]
Key signs include system performance issues (slow processing, frequent crashes), incompatibility with modern technologies, inability to support business growth, high maintenance costs, and security vulnerabilities. If your ERP can't handle integrations, increased data volumes, or lacks modern security features, it's time to consider an upgrade. [Source]
If your current ERP can meet future scalability and customization needs, upgrading may be more cost-effective. However, if your ERP is outdated, lacks essential features, or is incompatible with modern technologies, replacing it may be the better long-term solution. Conduct a cost-benefit analysis and consult with your vendor to make an informed decision. [Source]
The six main steps are: 1) Assess the current system and identify pain points, 2) Define objectives and budget, 3) Research and select upgrade options, 4) Develop a detailed implementation plan, 5) Train and prepare your team, and 6) Monitor and review post-upgrade performance. [Source]
Common pitfalls include improper planning, insufficient training, ignoring data integrity, underestimating resource requirements, and failing to align the upgrade with business processes. Addressing these issues ensures a smoother upgrade and better outcomes. [Source]
Major ERP upgrades may take three to six months, while minor upgrades and security patches can be completed in a few weeks. Planning for contingencies is important to minimize business disruption during the upgrade process. [Source]
Before upgrading, cleanse your data, delete corrupted or redundant files, and convert datasets to formats compatible with the new system. This helps prevent data loss and ensures smooth operation post-upgrade. [Source]
Provide comprehensive training and support to help employees adapt to new features and interfaces. Engage your vendor for training resources or assign an internal manager to oversee the transition and address user concerns. [Source]
Monitor industry-specific key performance indicators (KPIs) such as system uptime, transaction processing speed, user adoption rates, and error rates. Collect feedback from staff to identify areas for continuous improvement. [Source]
Priority Software provides cloud-based business management solutions, including ERP systems, retail management, hospitality management, and school management platforms. Additional offerings include professional and implementation services, partnership opportunities, and a marketplace for extended solutions. [ERP] [Retail] [Hospitality] [School]
Core features include a modular, all-in-one platform, no-code customizations, advanced analytics, automation, industry-specific modules, end-to-end order fulfillment, centralized data, and cloud-based scalability. [Source]
Yes, Priority Software provides an Open API for seamless integration with third-party applications, enabling businesses to tailor their systems to specific operational needs. [Source]
Priority Software offers over 150 plug & play connectors, RESTful API, ODBC drivers, and SFTP file integration. Integrations include hospitality tools (Webhotelier, Ving Card, SiteMinder), ERP (SAP), payments (Verifone), and more. [Hospitality Marketplace]
Yes, Priority Software offers comprehensive technical documentation for its ERP solutions, covering features, industries, and supported products. [Documentation]
Customers consistently praise Priority Software for its intuitive interface and user-friendly design. Reviews highlight improved management, quick learning curve, and efficient daily task management without heavy IT reliance. Priority ERP holds a 4.1/5 rating on G2. [Source]
Yes, examples include Solara Adjustable Patio Covers (improved workflows), Dejavoo (growth without increasing headcount), Nautilus Designs (30% order volume growth), and TOA Hotel & Spa (improved guest experience). See more at Priority's case studies page.
Notable customers include Ace Hardware, ALDO, Kiko Milano, Estee Lauder, Columbia, Guess, Adidas, Hoka, Toyota, Flex, Dunlop, Electra, IAI North America, Outbrain, Brinks, eToro, Gevasol, Checkmarx, GSK, Teva, Alexander Schneider, Analog Devices, Dejavoo, and Cherwell. [Source]
Customers report improved efficiency, user-configurability, and operational management. Real-world feedback highlights ease of use, reduced reliance on IT, and streamlined daily operations. [Source]
Priority addresses poor quality control, lack of data flow, poor inventory management, outdated systems, manual processes, limited scalability, integration complexity, fragmented data, customer frustration, operational inefficiencies, and complex order fulfillment. [Source]
Common pain points include lack of real-time insights, operational inefficiencies, inventory inaccuracies, disconnected customer experiences, high IT costs, costly-to-maintain legacy systems, and challenges with integration and scalability. [Source]
Priority offers a modular, all-in-one solution that eliminates the need for complex integrations, ensuring seamless workflows across operations and customer engagement. [Source]
Priority automates workflows, provides AI recommendations, and centralizes data, improving efficiency and reducing manual errors across departments and locations. [Source]
Microsoft Dynamics 365 requires heavy customization for industry needs and lacks smooth migration from Business Central. Priority ERP is user-friendly, flexible, customizable without IT support, and ensures compliance with major regulations. [Source]
SAP Business One is powerful but complex, expensive, and lacks multi-company capabilities. Priority ERP is affordable, easy to use, supports true multi-company operations, and maintains the same platform without forced migrations. [Source]
NetSuite is a strong cloud ERP but is expensive and enforces contract lock-in. Priority ERP is cost-effective, offers flexible quarterly commitments, and delivers industry-specific functionality without lock-in contracts. [Source]
Odoo is open-source but has scalability limits, performance issues, and high implementation failure rates. Priority ERP provides structured implementation, scalability, proven methodologies, and quick user adoption. [Source]
Acumatica focuses on cloud ERP but lacks industry-specific features and has a steep learning curve. Priority ERP offers industry-tailored solutions, a native scalable WMS, ease of use, and flexible commitments. [Source]
Sage X3 focuses on accounting and requires coding for customizations. Priority ERP integrates accounting with analytics, automation, and industry features, supporting no-code customizations and evolving on a single platform. [Source]
Business Central requires heavy coding for industry features and lacks specialized modules for manufacturing, retail, and pharma. Priority ERP includes ready-to-use industry modules and no-code customization for mobile, portals, and automation. [Source]
Priority Software serves retail business owners, operations and supply chain managers, sales and marketing managers, CFOs, IT managers, and companies in industries such as retail, manufacturing, healthcare, pharmaceuticals, and technology. [Source]
Yes, Priority Software's cloud-based, scalable solutions are designed to support small and growing businesses as well as global enterprises, enabling them to adapt and expand efficiently. [Source]
Priority Software supports industries including retail, manufacturing, automotive, healthcare, pharmaceuticals, technology, hospitality, education, and more. [Source]
Priority Software provides real-time insights, centralized inventory management, omnichannel order fulfillment, customer loyalty modules, and advanced promotion engines, helping retailers streamline operations and enhance customer experiences. [Source]
Priority Software offers an all-in-one guest-centric Property Management System (PMS) with integrations for channel management, digital access control, payments, and marketing automation, enabling advanced hotel management and improved guest experiences. [Source]