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When is it a good time to say goodbye to your old ERP?

When is it a good time to say goodbye? Is replacing ERP the right thing to do at this moment?

The Irish company Luminia Consulting, last week in the article "When is the right time to change your ERP?", presented a number of signals for replacement of ERP.

I regularly speak to companies and there is no ready-made answer. Said signals do not always have to lead to immediate replacement.

Sometimes other choices better align with ambitions of companies.

Such as implementing Distributed Order Mngt via a Unified Commerce platform to take Customer experience to a higher level, ensure increased efficiency and job satisfaction of employees, and increase turnover / profit.

Every situation requires a critical look and in-depth investigation.

We all recognize these signals:

✅ The end of the road is in sight

When ERP suppliers announced they were stopping support for older software versions, there was a lot of unrest.

Slowly this faded away. Some companies accelerated down an upgrade path, not always what they really needed, and others are still refocusing.

✅ Consolidate and harmonize

Especially companies that have grown considerably through acquisitions or launching new activities, should find answers to these questions "Where are we now? What are our ambitions and priorities?" in order to make the right choices.

šŸ“Œ In my view, however, two more important reasons that call for action are:

☛ (1) grip on the ecological and social footprint

Recently, the European Commission announced a load of new or revised laws and regulations.

Rules that oblige companies to reduce their water, air and soil pollution and eliminate their greenhouse gas emissions (scope 3 emissions).

Regulations requiring companies to report on their environmental and social footprint.

For example:

  • Corporate Sustainability Reporting Directive (CSRD)
  • Carbon Border Adjustment Mechanism (CBAM)
  • Deforestation Regulation (EUDR)
  • Construction Products Regulation (CPR)
  • Regulation on Packaging and Packaging Waste
  • The announced Ecodesign for Sustainable Products Regulation (ESPR) and the Circular Economy Action Plan (CEAP) are mandating the introduction of a "Digital Product Passport (DPP)".

    ☛ (2) enhance the employee and customer experience

    The better and easier employees have access to customer channels and information, the better the service they can offer to customers, the more satisfied the customers.

    Reorienting is the KEY to structural CHANGE!

    Rethink business processes, organizational structure, culture, customers and suppliers relationships, growth strategies & scenarios - who, what, when, how, why!

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