If you are like many companies, you have taken advantage of point solutions to address unique business opportunities that have come up since your original ERP implementation (e.g., Cad integration, a PLM solution, sales automation, CRM, etc.). In some cases, there might be what I will call “micro solutions,” such as manufacturing batch calculation, customer credit return, etc. Standing on their own, each piece probably does their one function very well. But when it comes to overall enterprise integration, the trouble starts to creep in.
All those products are hopefully still viable and hence have some sort of maintenance release schedule. However, upgrading any of those products will cause issues for all the touch points, especially the core ERP. At some point it becomes impractical to upgrade the ERP because there are just too many complications.
So, the ERP for which you are still paying expensive maintenance, probably in excess of 20%, is frozen at the release level of your last upgrade. On top of that, you’re still paying for support for it and now also for all the other products and point solutions.
Crunching the Numbers
Looking at all of these often required yet unused expenses is one factor where you will see how an assessment can save you money. In some cases, we have found that the original ERP as an upgraded format now encompasses all the functionality required in a single instance. This would mean you could upgrade the product, perhaps buy some additional user licenses, and eliminate all the peripheral products not used or no longer needed. This can save you thousands annually. For example, purchasing a third-party product like CRM has become very fashionable. Most mid-market ERP vendors provide very comparable functionality in the core offering, but you need to upgrade to the current version to get this.
In many cases a program such as this can save thousands of dollars, improve operations, and easily outweigh the cost of the assessment.
Do you think your instance could stand a review? Let’s discuss.