Purchasing a new ERP system? Or upgrade old software?

In the dynamic world of SMBs, you as an entrepreneur are constantly facing a variety of challenges. 

One of the questions you probably ask yourself from time to time: 

“Do I go for new (ERP) software? Or do I keep my current systems and make them up-to-date again?”

Both buying a new package and upgrading your existing software come with benefits. Which option is best for you depends on your specific needs and situation. 

On this page, you will discover the following:

• Signs that you are ready for a new ERP package
• Whether it's better to go for new software or upgrade anyway
• After how many years, you should evaluate your current package. 

So let's explore your two options below. After reading this article, you'll know which option is best for you! 

Signs that it's time for a new ERP system 

In many companies, situations arise where the need for a new ERP system becomes increasingly apparent. You may recognize yourself in this. 

For example, one of the most common signs is when the current system no longer meets the company's growing needs. 

Do you recognize yourself in these points below? Then it is time for a new ERP system! 

• You find yourself doing a lot of manual tasks. Also, double entry frequently leads to errors.
• A lack of real-time data makes it difficult for you to make informed decisions.
• Your current system is insufficiently scalable towards the future. This makes it difficult to continue to grow your business. 
• Your competitors, who do use up-to-date software, seem to have an advantage over you. 
• It is hard to retrieve information quickly
• You are working with many different software packages

Purchasing new ERP software or upgrading existing software?

Below you'll discover what the benefits of new software are. We also tell you what the advantages of upgrading your existing ERP package are. In fact, improving your existing software is definitely an option as well. 

Why buy new ERP system?

You should purchase a new ERP system because it provides access to the latest technology, offers flexibility, has better integration capabilities and lays a solid foundation for future growth.

Additional explanation to the above answer why you should purchase a new system. 

• New software provides access to the latest technological developments and capabilities. This gives you an edge over your competitors, who are still working with older software! 
• It is more flexible and easier to adapt to the specific needs of your business. Upgrades are sometimes limited in this.
• It has better integration capabilities with other business systems and external platforms. This promotes efficiency and collaboration within your organization.
• You are laying a solid and long-term foundation for future growth with it. From purchase, you'll be able to move forward with your brand new software for years to come. 

These benefits highlight why it can be worth choosing a new ERP system rather than simply upgrading.

So are there no downsides? Yep, you will have to have your new ERP package implemented. This of course costs a lot of time and money! 

Have you decided? Are you going to buy a new ERP package? Then have a look at our page on the 11 best CRM systems for SMEs. 

Why upgrade existing ERP system?

So while an entirely new ERP system can offer attractive benefits, there are also reasons to choose to upgrade an old system, especially in terms of cost, disruption and retention of existing custom solutions and data.

• You save costs: For some companies, upgrading an existing system can be more cost-effective than investing in a completely new system. For example, you save on implementation and training costs. 
• You minimize disruptions: Implementing a new ERP system can cause significant disruption to day-to-day operations. With an upgrade, you simply have fewer disruptions. 
• You retain custom functionalities: If your current ERP system is already specifically customized to meet the needs of your business, upgrading it can ensure that you retain these customized functionalities. Building these customizations into a new system is complex and time-consuming. 
• Your data will be preserved: When upgrading an existing system, your historical data is retained and easily accessible. When moving to a new system, you have to convert data. This carries risks. 

After how many years are you due to renew or upgrade your ERP solution?

After how many years is it time to evaluate and possibly renew your existing software? 

Our advice: evaluate once every 5 to 7 years whether your ERP system still meets your company's needs and ambitions. 

This provides a good balance between taking advantage of new opportunities and minimizing disruptions in business operations. However, it is important to adapt this timeline to your company's specific circumstances and growth trajectory.

Should you go for brand-new or upgrade? 

Whether you choose to purchase a new ERP system or upgrade your existing software, both options offer you unique advantages.

Our advice: weigh the above advantages and disadvantages against each other! That way you can make the right choice between the two options. ALWAYS consider your unique situation and needs. 

For example, a brand-new system gives you access to the latest technological capabilities, flexibility, and integration possibilities.

On the other hand, upgrading your current system can be cost-effective and offer data continuity. It is important to make an informed decision, based on a thorough analysis of your business needs and vision for the future.

Looking for a new ERP system? Press the button below and learn how to select an ERP package: 

Find out how to select ERP software.