Is it time for a new ERP system? Part 3
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Sometime the reason a company changes its ERP system has nothing to do with the software itself or the business processes associated with it. It has to do with what is happening with the software vendor. Two key factors have a big impact on the decision of many companies to move to a new system, the vendor's software development and support, and the effect of vendor acquisition or merger.
Sofware Development and Support
When you buy an ERP system, you are not just buying a static product. You are actually forming a relationship with the vendor in which they continue to develop and support the software in a manner that will be helpful to you for many years. Your annual maintenance fee funds the new functionality technology updates, and support.
As you evaluate your current system, you should investigate what the vendor has done to enhance the product both functionally and technologically, focusing on whether the enhancements are meaningful for your organisation. You are paying a significant annual maintenance fee and you want functionality and technology that is useful to you. Have the improvements been a strategic asset to your organisation, or is the vendor creating new functionality that does not match what you need?
Vendor support is another key element to consider. When a company feels it is not getting proper support from its vendor, it begins to look at other support options. This may include bringing support in-house or looking for some other third-party support organisation.
If dissatisfaction with the vendor becomes too great, some companies end up discontinuing their maintenance payments. They may find it too costly, have too many customisations or do not see the value of being on the latest version of the software. Over time, the system becomes outdated and they get to the point where their version is no longer supported. The company gradually loses operational efficiency and eventually finds they are so outdated and have so much risk of data loss and system failure that they begin to search for a new solution.
