Enterprise resource planning or ERP softwares are widely used in organizations to manage, analyze and upgrade the data related to various functional units in the organization. It collects and integrates data from all the operating systems like HR management software, finance management software, supply chain management software, CRM software etc.
As ERP software upholds and works on number of operating sites, links, systems and functions, there are maximum chances of it to get flooded with some cloud or internal errors. There may be some cyber security issues from an outside party after a long period of ERP implementation. The files may or may not get processed with much accuracy in old versions of ERP software. Hence it is very necessary to upgrade the ERP software into its latest versions as provided by the ERP vendor. The major fields of industry where ERP upgradation is a must are government agencies, security services, payment card making companies, banks etc. The highly sensitive data about company and clients is needed to be secured by advanced security measures adapted in the upgraded versions.
ERP upgrade strategy is not an easy go process as it is meant to upgrade a fundamental tool of integration of all the functional units of the organization. Hence it requires lot of research, knowledge and detailed analysis about the need and criteria of ERP upgradation.
-A team of highly experienced analysts is organized to find out the need and actual timing to upgrade the ERP.
-The disadvantages, shortcomings and errors that have developed in old ERP software are to be found out with the help of mutual coordination with ERP vendor.
Expertise judgment is made to check the total cost of ownership (TCO) and total value of ownership(TVO) to estimate the total cost raised under the process of ERP upgradation.
-The purchase of ERP upgraded version is done by the senior executives of the company after analyzing the TCO and TVO involved in all the process.
-Gaining knowledge and idea about all the modifications in new version of old ERP software and matching those required for managing the operations in the company. This enables access over required variables of ERP and saves the extra budget to purchase all the services.
-The upgraded version is successfully implemented into the business operations of the company.
-All the employees are trained to work efficiently with new version and get the best output from it for the speedy growth of company.
Many times ERP upgrade strategy is neglected and perceived as unnecessary and costly. Wheras it is budget friendly and time saving as it evades the need to purchase an all new ERP software from a new vendor. It would take years to show confidence in a new vendor. It requires more time and coordination with new vendor and the employees would face difficulty to understand the concepts of all new technology.
The upgradation in ERP software corrects all the shortcomings, disadvantages and errors in the old ERP version. It minimizes all the errors in processing of data from all functional units by organizing and evaluating it with upgraded technologies.
