Benefits from ERP implementation:
- reduction of general administrative costs
- better utilisation of resources
- reduction in waste (i.e. scrap, rework)
- reduced time to decision
Aging ERP:
- limits the ability to extend functions through modules and extensions
- slows the access to critical information for decision-makers
- the systems require greater support and staffing levels
- they usually require harder to find and higher cost IT skills
Recommended actions:
- if the system is less than two years old, just keep plugging away but make sure to keep it as current as possible
- between two and seven years old, limit customisation and stay as current as possible
- if system is between 7 to 15 years old, standardise the features the company needs to get current or replace it
- if system is more than 15 years old, replace it
