Six Reasons to Update Your ERP System Frequently

Six Reasons to Update Your ERP System Frequently

Everyone involved in the ERP implementation is motivated from the very beginning. Every business process is meticulously recorded by the project team and used to create the core requirements for the new ERP system. They keep their colleagues informed and help optimize processes. Management ensures that ERP projects and daily business don't get in the way of each other.

This enthusiasm for action typically lasts only until the ERP implementation is complete. The excitement quickly fades after the ERP implementation is completed. Many companies expect that the ERP solution will run silently in the background. Assuming that maintenance and care are done automatically.

Do not give away valuable potential with this setting, but use an always up-to-date ERP system and the associated advantages for your company. Here's how it works:

Stay on top of technological advancements

ERP service providers are always improving their software. They fix errors and add new features. ERP systems are constantly improving. Each minor release brings optimizations that support business processes.

A majority of ERP providers also regularly release major releases, which increase the functionality and expand the application's scope. This is important because the market environment for every company is always changing. These changes often result in changing customer requirements. If the ERP system is to continue to provide added value, it must keep up with these developments.

Major releases often include improvements to the user interface. This improves the system's usability and makes it easier for the end-user.

Unplanned events are easier to plan for

A company cannot exist in isolation. There are always events that require decision-makers to react quickly. This could include legal, political, or technical factors.

If an unexpected event occurs, companies that have been neglecting their ERP system for years can be faced with problems. Your ERP solution is often not up to the new requirements and the latest software version is missing for a necessary patch

IT must install multiple updates quickly, make technical adjustments and then test them. This requires IT to have the resources necessary for an ad-hoc IT project.

Example of legal factors: The GDPR surprised many companies in May 2018 (despite the transition period). A data subject can request the deletion of all their personal data, according to the regulation. It will be difficult for an organization to comply with such requests if the database is not maintained properly.

You can spread the maintenance effort by making sure your ERP system is always up-to-date. This allows you to avoid unforeseen events and saves time.

Your ERP solution is compatible with other IT systems

A network of software solutions is what almost every ERP system is. Many companies also have other IT systems that are connected to their ERP system via an interface.

Each system has patches, updates, and version changes. An ERP system that is slow can cause compatibility issues, especially if the database or operating system is updated. The connection to a third-party system may not work anymore because it requires a standard that was only updated in the new ERP version.

ERP updates are often accompanied by interface adjustments to ensure compatibility with third-party systems.

Hackers are less likely to be targeted by security patches

Older software versions pose a risk of being attacked by third parties. An attack is more likely if a security flaw is not discovered sooner.

Attacks via the operating system could cause severe damage to the ERP area.

An ERP system is a repository of important business data that forms the technical basis for many business operations. Ransomware, data theft, and DoS attacks can cause significant damage.

It is important to ensure that security patches are applied as frequently and quickly as possible.

Your team's ERP expertise is strengthened

Your employees will gain in-depth knowledge about ERP software during the ERP implementation. Special processes can make it difficult to apply the knowledge gained in ERP implementations.

The company-wide loss in knowledge is often only apparent when ERP competence is required - and that is too late.

Although they have no direct impact on knowledge management, regular updates and data maintenance can counteract knowledge loss. Maintaining an ERP system up-to-date does not mean that IT is in charge of it. Every function update requires that the concerned department checks that the ERP system is compatible with its processes. If it is not compatible, the responsible parties must change the ERP software configuration or their processes.

This means that employees should be regularly updating their ERP systems. This increases the ERP expertise of your employees.

Data quality is not at a critical level

Everybody knows that master data is the core of any ERP system. Master data maintenance is an integral part of maintenance, more so than any updates.

Data quality can impact the complexity of data maintenance. The more errors in a database, the more time it takes to fix them.

The generation of movement data is another factor. Example: The delivery address of your customer is wrong. You deliver to the wrong address after the customer places an order. You have a customer who is disgruntled because the goods did not reach him, or that his receipts were misprinted.

An ERP perspective shows that the ERP data showed that the ERP master data was inaccurate and the business processes generated transaction data that was not clean.

Consistent data maintenance will ensure that maintenance efforts do not exceed a critical level.

Get a Free Estimation. Talk to Our Business Manager

Summary

Unsanctioned ERP updates or insufficient data maintenance can be caused by many factors, including incorrect prioritization or completely missing in system maintenance, excessive effort due to unstructured modifications to the system, and overloaded employees.

It is not the solution to ignore ERP updates and bury your head in sand. You can take action and make sure you are aware of the benefits of an updated ERP system. Your reliability is maximized, security gaps are closed, employee satisfaction increases, and employees are happier. And last but not least, you also benefit from new features and functions, for example in the trend areas of AI and Indus

Six Reasons to Update Your ERP System Frequently

Everyone involved in the ERP implementation is motivated from the very beginning. Every business process is meticulously recorded by the project team and used to create the core requirements for the new ERP system. They keep their colleagues informed and help optimize processes. Management ensures that ERP projects and daily business don't get in the way of each other.

This enthusiasm for action typically lasts only until the ERP implementation is complete. The excitement quickly fades after the ERP implementation is completed. Many companies now expect that the ERP solution will run silently in the background. Assuming that the ERP solution can also be maintained and cared for on its own.

This setting can be a waste of valuable potential. Instead, use an ERP system that is always up to date and all the benefits it offers for your company. Here's how it works:

1. Stay on top of technological advancements

ERP companies are always improving their software. They fix errors and add new features. ERP systems are constantly improving. Each minor release brings optimizations that support business processes.

A majority of ERP providers also regularly release major releases, which increase the functionality and expand the application's scope. This is important because the market environment for every company is always changing. These changes often result in changing customer requirements. If the ERP system is to continue to provide added value, it must keep up with these developments.

Major releases often include improvements to the user interface. This improves the system's usability and makes it easier for the user to use the system.

2. Unplanned events are easier to plan for

A company cannot exist in isolation. There are always events that require decision-makers to react quickly. This could include legal, technical, or social factors.

If your ERP system has been neglected for a while, you may find yourself in a difficult situation when an unexpected event occurs. You may find that your ERP system is not meeting the requirements of the new regulations or that the most recent software version is unavailable for the necessary patch.

IT must install multiple updates quickly, make technical adjustments, and then test them. This requires IT to have the resources necessary for an ad-hoc IT project.

Example of legal factors: Many companies were surprised by the GDPR in May 2018, despite the transition period. A data subject can request the deletion of all their personal data, according to the regulation. It will be difficult for an organization to comply with such requests if the database is not maintained properly.

You can spread the maintenance effort by making sure your ERP system is always up-to-date. This allows you to avoid ad-hoc actions, and also means that your ERP system does not have to be reacted to unexpected events.

3. 3.Your ERP solution is compatible with other IT systems

A network of software solutions is what almost every ERP system is. Many companies also have other IT systems that are connected to their ERP system via an interface.

Each system has patches, updates, and version changes. An ERP system that is not up-to-date can cause compatibility issues, especially if the database or operating system is changed. The connection to a third-party system will not work, for example, because it requires a standard that was only updated in the new ERP version.

ERP updates are often accompanied by interface adjustments to ensure compatibility with third-party systems.

4. Hackers are less likely to be targeted by security patches

Older software versions pose a risk of being attacked by third parties. An attack is more likely if a security flaw is not discovered sooner.

Attacks via the operating system could cause severe damage to the ERP area.

An ERP system is a repository of important business data that forms the technical basis for many business operations. Ransomware, data theft, and DoS attacks can cause significant damage.

It is important to ensure that security patches are applied as frequently and quickly as possible.

5. Consolidate the ERP expertise of your team

Your employees will gain in-depth knowledge about ERP software during the ERP implementation. Special processes can make it difficult to apply the knowledge gained in ERP implementations.

The company-wide loss in knowledge is often only apparent when ERP competence is required - and that is too late.

Although they have no direct impact on knowledge management, regular updates and data maintenance can counteract knowledge loss. Maintaining an ERP system up-to-date does not mean that IT is in charge of it. Every function update requires that the concerned department checks whether the ERP system is compatible with its processes. If it is not compatible, the responsible parties must change the ERP software configuration or their processes.

This means that employees should be familiar with the ERP system regularly. This increases the ERP proficiency of your employees.

6. Everybody knows that master data is the core of any ERP system. Master data maintenance is essential for any maintenance and more so than any updates.

Data quality can impact the complexity of data maintenance. The more errors in a database, the more time it takes to fix them.

The generation of movement data is another factor. Example: The delivery address of your customer is wrong. You deliver to the wrong address after the customer places an order. You have a customer who is disgruntled because the goods did not reach him, or that his receipts were misprinted.

An ERP perspective shows that the ERP data was inaccurate and the business processes generated transaction data that was not clean.

Consistent data maintenance will ensure that maintenance efforts do not exceed a critical level.

Summary

Unsanctioned ERP updates or insufficient data maintenance can be caused by many factors, including incorrect prioritization or completely missing in system maintenance, excessive effort due to unstructured modifications to the system, and overloaded employees.

It is not the solution to ignore ERP updates and bury your head in sand. You can take action and make sure you are aware of the benefits of an updated ERP system. Your reliability is maximized, security gaps are closed, employee satisfaction increases, and employee satisfaction is increased. Last but not least, new functions and features are available, such as in the industry 4.0 and AI trends.