An organisational change is always a strategic decision. Before we begin with the change there are so many considerations and questions that an organisation considers to make the right decision.
Moving from the legacy ERP to Dynamics 365 is one of those important decisions which change the working of the organisation at a very large scale. Why ‘Now’ could be the best time to transition from your legacy ERP to Dynamics 365 has several reasons.
Challenges with Legacy ERP
The possibility of adopting a new ERP arises first when the organisation is facing challenges with their legacy ERP and a few of those common challenges we have mentioned further:
- Outdated Technology: Legacy ERPs were built on old programming languages and data management systems which have now turned obsolete. These structures were constructed on older-generation platforms that are less adaptable to the changes required in the current competitive and dynamic business environment.
- Lack of Integration: Integration between different tools and ERPs is one of the most wanted features these days which makes the organisational operations efficient. The legacy ERPs have become obsolete due to the lack of integration capabilities with the newer tools leading to inefficient data entry in between the systems.
- Limited Mobility: In the contemporary era, the mobility of the tools we utilise stands as one of the most crucial features. There are instances when accessing vital data in areas with limited connectivity is imperative, and legacy ERPs often lack such mobility access. This makes it difficult to be efficient at all times and is a major drawback making’ NOW’ the best time to switch.
- Scalability Issues: Businesses grow and evolve over time, and when selecting their ERPs initially, it is advisable to opt for those capable of expanding and meeting evolving business demands. Failing to address this issue could become a bottleneck, ultimately reducing the efficiency of the business.
- Data Security Concerns: Breaches and security concerns continue to increase year over year. Times have changed widely and cybersecurity issues and data breaches are one of the biggest needs and concerns. Legacy ERPs may lack robust security features which are needed to protect the data in the organisation from modern security threats.
- Compliance Challenges: The regulations change constantly and adapting the system to remain compliant becomes increasingly difficult and costly and it would be more efficient to have a new ERP which is compatible in all scenarios. New ERPs come with updates and easy-to-adaptive regulatory changes.
- Limited Support: It becomes difficult to find support and maintenance for legacy ERPs due to the new updates and needs in the business environment. Such situations cause a lack of support in times of need. The support could cost more or vendors might discontinue their services. This makes it a more obvious choice to move from legacy ERP.
- High Maintenance Costs: The software and hardware turn obsolete with time and become expensive to keep running. Issues like compliance and safety could keep rising substantially making it harder to keep the system moving while being efficient at work.
- Limited Customer Engagement: Legacy systems may lack modern CRM capabilities, thereby limiting a company’s ability to effectively engage with and understand its customers. In the current business scenario, where customer-centricity is the most crucial shift, it becomes important to prioritise a transition from legacy ERP systems.
- Inefficient Upgrades: Upgrading a legacy ERP system can be a complex and costly process, often involving extensive downtime and data migration efforts. While change can be uncomfortable, so is inefficiency. Consistent upgrades and the efficient execution of day-to-day operational activities provide compelling reasons to transition from legacy ERPs.
- User Resistance: Employees may resist using outdated and cumbersome systems, resulting in lower productivity and frustration within the organisation. Following a customer-centric approach, it is crucial to prioritise employee friendliness. Introducing new techniques can be achieved through effective resources and proper training, ensuring employees are well-equipped to adapt to the evolving business environment.
- Reporting and Analytics Limitations: Older systems may offer limited reporting and analytics capabilities, posing challenges in extracting meaningful insights from data and making informed, data-driven decisions. The business scenario has evolved significantly, and with cutting-edge technology, it has become imperative to make swift decisions to stay competitive.
- Inflexible Workflows: Legacy ERP systems often feature rigid workflows that cannot easily accommodate process changes or customizations. This lack of flexibility can delay business agility and competitiveness. The smoother the workflow, the faster and better the results, making the decision to transition from legacy ERP a more straightforward choice.
The Dynamic 365 advantage
According to a report by IDC(International Data Corporation), the cloud ERP market is growing at a rate of 8.3% annually, indicating that more organisations are recognizing the benefits of cloud-based ERP solutions like Dynamics 365.
Microsoft Dynamics 365 offers a wide range of cloud-based application services which are suitable to streamline and integrate various aspects of an organisation. These could be sales, marketing, HR, operations, finance etc.
- Wide Range of Applications and Services: Dynamics 365 offers a very wide range of applications which are tailored to various needs of an organisation like sales, marketing, customer services supply chain etc. These can be seamlessly integrated with other tools to enhance organisational efficiency.
- Cloud-based and Mobile Ready: The COVID-19 pandemic accelerated remote work adoption. A survey by PwC showed that 83% of employers planned to make remote work a permanent option for their employees. Cloud-based ERP systems like Dynamics 365 enable remote access and collaboration, making them more suitable for modern work environments.
Dynamics 365 is a cloud-based solution, which enables accessibility from anywhere, at any time, and on any device with an internet connection. The mobile-friendly design empowers your workforce to stay productive on the go. - Scalability: As the business grows over time, this system encounters no challenges in implementing significant changes. It seamlessly accommodates evolving business requirements without disrupting any operational tasks.
- Integration with Microsoft Ecosystem: Dynamics 365 seamlessly integrates with other Microsoft products and services, such as Office 365, Azure, and Power Platform. This promotes collaboration, data sharing, and productivity enhancements across the organisation.
- Real-time Insight and Analytics: It offers robust reporting and analytics capabilities, enabling you to gain real-time insights into your business performance. With data-driven decision-making, it becomes easier to identify trends and make informed choices.
- Automation and Workflows: Dynamics 365 helps in automating repetitive tasks reducing errors and improving efficiency. The system of workflow customisation allows for improvement processes according to the business requirements.
- Better Security and Compliance: Cybersecurity threats and data breaches continue to rise. In 2021, there was a 600% increase in cyberattacks compared to the previous year, as reported by Cybersecurity Ventures. Modern ERP systems like Dynamics 365 offer enhanced security features to mitigate these risks.
- Customer Engagement: Salesforce’s “State of the Connected Customer” report indicated that 80% of customers believed that the experience a company provides is as important as its products or services. Modern ERP systems help businesses provide a better customer experience through data-driven insights and enhanced customer relationship management. Dynamics 365 enhances customer engagement, tracks interactions, and provides a personalised experience to your clients. This helps build and maintain strong customer relationships.
- Efficient Financial Management: It supports multi-currency and multi-language operations, making it suitable for global businesses while making budgeting and financial reporting easier.
- Better Upgrade and Easy Maintenance: A survey found that 65% of organisations cited outdated technology as the primary reason for considering an ERP upgrade. Cloud-based solutions like Dynamics 365 simplify the process of upgrades and maintenance. Microsoft regularly releases updates and new features, which are applied automatically, reducing the burden on your IT team.
- Cost Efficient: Research by Spiceworks indicated that 32% of IT budgets are allocated to maintaining legacy systems. Over time, moving to Dynamics 365 can result in cost savings by reducing infrastructure expenses, and maintenance costs, and enhancing overall operational efficiency.