Upgrading your ERP Systems White Paper
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The document discusses the increasing dependency of organizations on ERP solutions and the importance of upgrading these systems to remain competitive. It highlights how 80% of surveyed enterprises are either upgrading or planning to do so within 24 months, focusing on areas of inefficiency and new capabilities provided by upgrades. Additionally, it emphasizes the need for a cost-benefit analysis and consideration of infrastructure requirements for future business demands.
Upgrading your ERP Systems White Paper
- 1. Upgrading your ERP Systems July 2014
- 2. Page 2 of 4 Introduction Organisations of all sizes are increasingly dependent on ERP solutions to manage their business. For many enterprises the diversity and complexity of the application landscape continues to grow and evolve in order to meet new challenges. Competitiveness is closely linked to the ability to adopt new technologies, interact more efficiently with business partners and reduce costs. All of these business drivers are enabled to some extent by ERP solutions and, as many organisations will previously have invested significantly in ERP, the notion of upgrading or extending the footprint of existing systems is worth consideration. If your organisation uses ERP then the chances are very high that the software will be upgraded at some point in the next three to five years. A 2012 survey of 327 enterprise application and business managers, conducted among members of the Oracle Applications Users Group (OAUG), showed that 80% of respondents have upgraded, are in the process of upgrading or plan to upgrade within the next 24 months. Figure 1: Current Enterprise Application/ERP Suite Upgrade Plans This chart is adapted from ‘ERP Upgrades: What’s Your Philosophy? 2012 OAUG Survey on Enterprise Application/ERP Suite Upgrade Strategies’ by Joseph McKendrick, Research Analyst. Produced by Unisphere Research, a Division of Information Today, Inc. February 2012
- 3. Page 3 of 4 Making the Upgrade Decision 2.1 Upgrade Drivers When considering an upgrade to a newer version of your current system there are two key areas to focus on. The first is to identify areas of the business where systems are not working as effectively as they could, potentially resulting in negative effects on revenue generation, costs, efficiency and customer service. Secondly, organisations should perform a critical evaluation of new capabilities and enhancements provided by the latest version of the software. This approach holds true whether the initial motivation for the upgrade is voluntary (where you decide to upgrade to improve the system) or forced (where you are obliged to upgrade for technical, regulatory or end-of- life reasons). A firm grasp of the new or enhanced functionality in the system and where improvements are required in the business are essential to evaluate the value that will be gained through your organisation’s investment in an upgrade. At the same time, it is worth gaining an understanding of the proposed pipeline of functionality in future releases of the software package and when it’s likely to become available. (Indeed, some vendors facilitate user groups which can influence product development roadmaps). Other technical factors may also come into play at this point. Organisations should consider their current hardware and communications environment and whether the infrastructure currently in place meets the needs of today as well as the demands of the business for the next three to five years. Where the existing system is running on multiple instances the upgrade analysis should examine the value of incorporating instance consolidation into the upgrade project. Finally a detailed cost benefit analysis should be complied to quantify the value proposition.
- 4. Page 4 of 4 About Lumenia Lumenia is a boutique management consulting organisation, specialising in the development of business systems strategy and the selection and implementation of enterprise applications – particularly ERP and CRM systems. Operating from offices in Ireland and the UK we have delivered ERP or CRM projects in well over 100 organisations across the world. To download the full copy of this report for free, visit our website and register at: http://www.lumeniaconsulting.com/resources/re ports-white-papers/upgrading-your-erp-systems Copyright BSM Ireland 2014. Lumenia Consulting is a registered Business Name of BSM Ireland Ltd. All rights reserved. No unauthorised reproduction without the Author’s written consent. All references to this publication must cite Lumenia as the author and include a link to Lumenia’s website. Lumenia is not liable for any errors contained within this Report. Lumenia Consulting Ireland (HQ) Parkmore Business Park West Galway, Ireland T: +353 91 746940 E: info@lumeniaconsulting.com Lumenia Consulting UK 71-75 Shelton Street, Covent Garden London, WC2H 9BP, UK T: +44 207 4708766 E: info@lumeniaconsulting.com For more information, please contact Lumenia at: