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Enterprise resource planning

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


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