Upgrading to new ERP systems: why bother?

Peter Linnell's picture

Enterprise resources and assets rarely remain optimal through periods of rapid or long-term sustained growth and this is especially true of IT systems. Legacy systems that once coped now creak and refuse to speak to other systems particularly within acquisitive groups. Meanwhile senior managers demand more and better information to aid decision-making. So the nettle of systems change has to be grasped: a systems/process specification process provides the basis for a systems search & selection process followed by an implementation project. All time consuming and expensive so why bother? Typically the benefits include higher more complete billings cycles; improved gross margins through better pricing; role rationalisation through better processes; reduced back-office costs; improved CRM and marketing data; better asset controls; improved procurement data; a stronger internal control environment and better senior manager decision-making. It is an opportunity to "renew" all internal processes and link operational and back-office systems so that quality information is available throughout the enterprise. So compared with the alternative of struggling on most managers think it's definitely worth the effort.

Comments

Graham Richardson's picture

As Peter states the benefits to be derived from the purchase, installation and correct configuration of a finance system are vast and varied.

In a number of system implementation projects that I have undertaken over the last four to six years a number of hidden benefits only became apparent as the system projects progressed.

These benefits included process and procedural related efficiencies and streamlining, the enhancement of internal segregation of duties, facilitating better and more appropriate access to the finance system, the imposition of additional security controls over all financial information and not just that contained within the finance system and the move to a more paperless environment within the business.

As the above projects progressed we made our clients aware of the potential benefits that had become apparent. A pleasing result for our clients.

When looking at the introduction of a new finance system, you will need to involve your auditors from a sign off point of view to ensure that they are happy with the transfer of financial data, the controls around the system and the way that you intend to use the system.

We are able to assist you with the end to end process from Procurement through to go-live and are happy to address your thoughts in respect of your own system requirements.

By Graham Richardson