Upgrading your ERP: Should you consider switching vendors?

Should you consider switching ERP vendors

There are many ways that an ERP solution can underperform. Lack of functionality and poor value for money are among the most common culprits. And when you find yourself in these positions, it’s only natural to consider switching to a different ERP vendor.

In this series, we’re looking at the five main options organisations have when deciding the future of their ERP systems:

  1. Migrating their ERP to the cloud
  2. Switching to a SaaS solution
  3. Switching to a different ERP vendor
  4. Upgrading their ERP to the latest version
  5. Sticking with their existing ERP system

Today, we’ll focus on option #3: Jumping ship to a new ERP vendor.

Isn’t that a bit drastic?

Maybe, but there are definitely situations when switching vendors makes sense.

Most organisations stick with the same ERP solution for long periods of time—often decades—and as their needs change, their chosen solution can become less appropriate. Switching solutions provides a unique opportunity to select based on your organisation’s current needs.

Some organisations decide their ERP solution is too advanced for their needs—particularly if they have recently downsized—leaving them paying over the odds for functionality they don’t need. Others discover their provider cannot offer the level of support or functionality they need, which can be a deal-breaker for obvious reasons.

Whatever the reason, if your organisation is not well served by its current ERP solution, one option is to move to a completely different software platform.

However, switching platforms is far from simple. Migrating from one solution to another can take years, and requires a tremendous amount of time and energy to complete. Ultimately, the amount spent on the process will often neutralise any potential savings or advantages that might be gained.

So no matter how frustrated you may be with your current ERP solution, the decision to switch cannot be taken lightly.

Switching to another ERP vendor:

Advantages Disadvantages
Select based on current needs/criteria.
Potential to reduce ongoing costs.
Data migration likely to be complex.
Procurement/transition is resource-intensive.
Users must be retrained.
Can be disruptive to business functions.

What about ERP support?

If you decide to switch ERP platforms, you can—of course—opt in to your new vendor’s official support programme. Many organisations choose to do this, and it’s easy to understand why.

However, switching vendors opens up another highly attractive option: You can make considerable cost savings by choosing third-party support for your existing solution during the changeover. Organisations moving to third-party support consistently see annual savings of 50% or more. With migration potentially taking years, a lot of money can be freed up to help fund the switching process.

Depending on the ERP vendor you choose, your chosen third-party support vendor may be able to support your new system as well—this is worth checking in advance, however, as smaller ERP vendors typically cannot be supported by third-parties.

Upgrading your ERP: Assessing your options

The prospect of upgrading your ERP system probably doesn’t fill you with joy. In fact, if we had to guess, we’d say it more likely fills you with dread. So if you find yourself in the position of assessing your options, we want to help.

Recently, we published a guide designed to help organisations make informed decisions about the future of their ERP systems.

So if you find yourself…

  • Worried about falling “out of support” if you don’t stay on the latest version
  • Receiving pressure from your ERP vendor to move to their SaaS product
  • Wishing you could stick with your current, stable ERP… but unsure if that’s a viable option

…we can help.

If for any reason your organisation is considering upgrading, moving, or switching up its ERP system, this guide is for you.