When it comes to technology, what worked for a distribution company a year ago may not work for them now. In fact, legacy operating systems or accounting software is probably holding your company back from achieving its full potential.
Some businesses might be turned off by the idea of replacing outdated systems, thinking it will be prohibitively time-consuming and expensive. And yet, those businesses are likely losing time and money already by sticking with a system that is no longer keeping pace. A Forrester study found that updating from legacy software can save up to $10.6 million in three years. In the study, organizations avoided legacy license, maintenance, hardware and systems administration costs by adopting the cloud-based Microsoft Dynamics 365 for Finance and Operations.
The costs of sticking with legacy systems extend to customer loyalty, as well. In a Microsoft-commissioned study, 90% of consumers said they would actually stop doing business with a company using outdated technology. To meet customer expectations and stay competitive, it’s become essential to employ the latest technology.
How can you avoid the pitfalls of legacy system lag, and move forward with a system that will lead to the growth and customer expectations you need?
Start by Moving to the Cloud
In a recent study, Microsoft found that many companies were using legacy systems that weren’t matching up with their performance needs as a business. These outdated ERP solutions tend to hinder performance, adversely affect the user experience, and lack functionality overall.
Moving to a cloud-based ERP offered top-tier capabilities to speed up deployment without the hassle of legacy-system disruptions. Migrating systems to the cloud can also cut down on systems administration pain points for smoother operations across departments.
Other benefits to moving systems to the cloud include connecting your business and your people for a comprehensive business management solution. Cloud-based software can:
- Transition quickly from your previous system for minimal downtime
- Automatically run systems and expedite processes
- Create the right reports when you need them
Microsoft Dynamics 365 is one such cloud-based ERP that can move the needle for companies experiencing legacy system lag.
Focus on Operational Efficiency
The benefits you’ll find with up-to-date systems include greater operational efficiencies and streamlined employee processes, as well as real-time analytics and forecasts so users can be nimbler and reduce time-wasting activities.
Data collection and analysis is one area where legacy systems tend to experience significant lag time. With a cloud-based solution, data collection moves from clunky and backward-looking (and even paper-based) to automated and real time. Businesses can view their entire operation to optimize systems, track issues and more. And predictive analytics, driven by AI, can drive better decision-making.
Enhance Employee Productivity
Legacy systems often have a way of holding employees back from doing their best work. Cloud-based software offers improved automation capabilities, with opportunities for streamlining forms, reducing data entry needs automating inventory management and even driving more sales, freeing up employees to put their skills to greater use, such as problem-solving and improving customer experience.
For organizations, modern ERP solutions can also help control labor costs. For example, Microsoft Dynamics 365 Finance and Dynamics 365 Supply Chain Management enable greater visibility and control of labor hours. Using smart forecasting, organizations can reduce the need for overtime and double shifts, saving time and money over time.
If legacy systems are holding your business back from your growth potential and customers’ expectations, it’s time to make a change.
About the Author
Ole has spent nearly four decades in technology, with a history of success leading growth for resellers for Microsoft, IBM, Hewlett Packard, and Oracle. In 1995, he joined Damgaard Data to build a channel for Concorde XAL and Axapta (now Microsoft Dynamics AX and Dynamics 365 for Finance and Operations). Ole served as Partner and Vice President for Columbus IT, a major Microsoft AX reseller, followed by Evergreen Data Systems, Inc. and EFS Technology, supporting both Microsoft AX and Oracle technologies. Ole lives in California and he loves crossfit and indoor cycling.