How Modern ERP Systems Drive
Growth and Efficiency
When the American Kennel Club (AKC), a leading authority on dog breeds and canine health, faced challenges with their outdated Enterprise Resource Planning (ERP) system, they partnered with Net at Work. After a comprehensive business review process, Net at Work helped the AKC successfully migrate to Sage X3, a cloud-based ERP solution. This transition enabled the AKC to streamline operations, improve financial reporting, and enhance overall efficiency across their organization.
Unleashing the Power of a Modern ERP: A Game-Changer for Small and Medium-Sized Businesses
As a small or medium-sized business (SMB), you’re constantly looking for ways to streamline operations, boost efficiency, and stay competitive. If you’re still relying on a legacy ERP, you might miss out on significant opportunities for growth and innovation. Let’s explore how migrating to a modern ERP solution can transform your business and set you up for long-term success.
“Making the move to a modern, flexible ERP can be a game-changer for SMBs. From improved efficiency and decision-making to enhanced customer service and scalability, the benefits are substantial and far-reaching.”
The Limitations of Legacy ERP Systems
If, like many SMBs, your original accounting system served your needs well at first, you may have been using it for years or even decades. But while these systems may have served their purpose in the past, they often struggle to keep up with the demands of today’s dynamic business environment. Legacy ERPs typically suffer from:
- Limited scalability
- Lack of real-time data access
- Inefficient manual processes
- Poor integration with other systems
- High maintenance costs
These limitations can hinder your ability to make informed decisions, respond quickly to market changes, and provide the level of service your customers expect.
The Power of Modern ERP Solutions
Modern ERP systems offer a range of benefits that can help SMBs overcome these. Let’s dive into some of the key advantages:
Centralization and Efficiency
One of the most significant benefits of modern ERP systems is their ability to centralize all your business processes onto a single platform. This consolidation eliminates the need to manage multiple systems, reducing duplication of efforts and ensuring that all departments have access to consistent, up-to-date information.
Real-Time Data Access and Improved Decision-Making
Modern ERP systems provide real-time visibility into all aspects of your business, from financials to supply chain management. This capability allows you to make more informed decisions quickly and respond effectively to market changes and customer needs.
For example, Liz Marr, CFO of Genesee Country Village & Museum, uses her Sage Intacct dashboard daily to monitor income statements, balance sheets, and departmental analysis at a glance. This real-time access to financial data has empowered the museum’s leadership to make timely, strategic decisions.
Cost Savings and Resource Optimization
While the initial investment in a modern ERP system might seem significant, the long-term financial benefits often far outweigh the costs. By automating processes and reducing manual errors, modern ERPs help SMBs cut down on labor costs, optimize inventory management, and improve resource allocation.
Genesee Country Village & Museum, for instance, estimates that without Sage Intacct, they would need at least two more staff members to handle their workload. The efficiency gains from their new ERP system have allowed them to focus their resources on strategic initiatives rather than manual processes.
Enhanced Reporting and Analytics
Modern ERP systems come equipped with powerful reporting and analytics tools that enable SMBs to analyze historical data, identify trends, and forecast future outcomes. These insights allow businesses to make strategic decisions that align with their long-term goals and objectives.
Scalability and Flexibility
As your business grows, your ERP system needs to grow with you. Modern ERP solutions are designed to scale easily, allowing for the addition of new features, modules, or users without significant disruptions. This scalability ensures that your ERP system continues to provide value as your business expands.
Improved Security and Compliance
Modern cloud-based ERP systems offer stronger security frameworks than legacy systems, as cloud providers handle critical regulatory compliance requirements and implement the latest security protocols. Regular updates ensure that the system remains secure against evolving cyber threats.
Enhanced Customer Service
A modern ERP system can significantly improve your ability to serve your customers by providing a unified view of customer interactions and transactions, enabling businesses to respond more quickly to inquiries and process orders more efficiently.
Real-World Success Stories
The benefits of migrating to a modern ERP system are not just theoretical. Many SMBs have experienced significant improvements after making the switch. For example:
- Polycoat Products partnered with Net at Work to implement Sage X3, which supported their growth from 2 to 10 locations and cut the time needed for their annual business audit from a few months to a few hours.
- Riley Sales, after implementing Acumatica with Net at Work’s help, reduced their monthly close from 22 days to 5 days and eliminated the need for an additional full-time position.
- Children First partnered with Net at Work to migrate to Sage Intacct and predicted a TCO savings of more than $20,000 over five years thanks to the move.
Red Flags: Is It Time to Update Your ERP?
According to Net at Work’s experience with SMBs across many industries, there are 11 red flags that indicate it might be time to migrate to a modern ERP system:
- Your team feels their productivity is hampered by the current ERP.
- You’re using disconnected applications that don’t meet all your needs.
- Your operations costs are increasing.
- You need to move from server-based applications to cloud-based systems.
- It’s cumbersome to add new users to your existing ERP.
- Your current ERP doesn’t provide deep operational insights.
- You’re having difficulty finding new talent due to manual processes.
- Your current employees are frustrated by manual processes.
- You have frequent and/or recurring accounting errors.
- Accounting errors take many hours or days to resolve.
- You’re unable to create and quickly pull customized reports across departments using current data.
If you recognize any of these warning signs, it may be time to investigate migrating to an ERP that better suits your needs.
Making the Move: A Foundation for Success
While the benefits of modern ERP systems are clear, the process of migrating from a legacy system requires careful planning and execution. Here are some key considerations:
- Assess Your Current System: Start by evaluating your existing ERP’s limitations and identifying areas that need improvement.
- Define Your Requirements: Involve key stakeholders from various departments to ensure all perspectives are considered when defining your new ERP requirements.
- Choose the Right Solution: Consider factors such as scalability, industry-specific features, and integration capabilities when selecting your new ERP system.
- Plan for Data Migration: Develop a comprehensive strategy for transferring your data from the old system to the new one, ensuring data integrity and consistency.
- Provide Adequate Training: Invest in thorough training for your staff to ensure they can effectively use the new system and take advantage of its features.
- Partner with Experts: Consider working with experienced ERP consultants like Net at Work to guide you through the selection, implementation, and optimization process.
The Net at Work Advantage
Net at Work is one of the top technology solutions providers in the United States and the only solution provider that represents the top three ERP products. With over 6,000 clients and 16 office locations, Net at Work has the expertise and resources to guide SMBs through their ERP migration journey1.
Their comprehensive approach includes:
- Software selection and implementation
- Managed IT services
- Fractional CIO & Advisory services
- Cloud hosting
- Programming and customization
- Industry-specific solutions tailored to your organization’s unique needs
Making the move from a legacy ERP to a modern, flexible solution can be a game-changer for SMBs. From improved efficiency and decision-making to enhanced customer service and scalability, the benefits are substantial and far-reaching. As you consider your technology roadmap for the coming years, don’t underestimate the transformative power of a modern ERP system. It could be the key to unleashing your business’s full potential and setting you up for long-term success in an increasingly competitive marketplace.
Ready to take the next step in modernizing your business software? Contact Net at Work today for a complimentary Business Health Assessment.
