First, what is an old ERP system? If your system has green screens, you have an old ERP system. If your system has a GUI (Graphical User Interface) but not something that looks like most Windows applications, you have an old ERP system. If the system was introduced in the 80's, you have an old ERP system. If your vendor is no longer enhancing the system in "new areas", you have an old ERP system. If your vendor is becoming a "have not" of the ERP industry, maybe old age is approaching.
If you have an old ERP system and you need some of the business functionality offered by Supply Chain Planning (SCP), Business Intelligence (BI), Customer Resource Management (CRM), New Product Development (NPD) or e-commerce you have a dilemma. Do you replace what you have first and then add these new functions or do you keep what you have and add these functions around your existing ERP system? Every vendor of ERP or any of the functions listed above will have advice for you. But you can rest assured the advice is what is best for the vendor in almost every case. (To be sure, there are some conscientious sales reps out there that will give you honest advice.)
Why are you thinking about getting rid of your existing ERP system? What ever your answers, they must be compared to some of the realities of replacing the old system. Those realities include cost and time, but these two issues go much deeper. You have to pay the cost of buying and installing a replacement ERP system. You have to suffer the cost of disruption, typically a dip in operational efficiency and effectiveness, before, during and after the implementation. You will have to suffer the pain of ripping out the existing system and putting in its replacement. Will the replacement of the existing system be more or less painful that what you experienced the first time? This is a good question, which has no standard answer.
Once the replacement system is installed, will it give you adequate ROI on the replacement investment? The time involved in implementing the replacement ERP system means that the ROI on the added function you are seeking is delayed. Yes, you could try to implement both the replacement ERP system and your shiny new SCP or e-commerce system at the same time, but are you willing to accept the risk and even greater disruption in doing so. The "big bang" horror stories of the late 90's should make you very adverse to this approach.
An ERP system is the backbone of your operations. You need to make absolutely certain that any replacement system functions as well as or better than what you have. The word old means mature. Will the replacement system offer all the function that your old, mature system has today? Your people may not like the existing ERP, but they know it. Can you guarantee that the new system will really be an improvement for these people? Maybe the most important thing that can be said about the old system, which may not be true of the replacement system is, "It works!"
If you are looking for a replacement ERP system as a way to get to some of the newer functions like BI, SCP or NPD, you need to pick a system that is both better than your existing ERP system and provides the best functionality in the new areas you are seeking. You will have to pick a single vendor who is up to both tasks. Although the offerings from the integrated ERP vendors have improved to the level of functionality of the best of breed vendors specializing in a single area for many situations, the exact function you want and the specifics of your industry may mean that the integrated vendor is not up to the challenge.
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