Should you upgrade your outdated ERP software to the latest version? Here’s why it’s essential for long-term success.

In this day and age, enterprise resource planning (ERP) is the driving force of any business. Whether you’re a small to medium business or a multinational organization, your ERP solution is likely the backbone of your company. Your ERP software stores data in a single database, removing data silos and ensuring collaboration between departments. In addition, ERP solutions bring all aspects of your operations, from human resources, business intelligence, inventory, supply chain, financial management, and customer management capabilities together under one platform.
Despite the importance of an ERP solution within a business, many companies often run an ERP version a couple of years old. Upgrades are often pushed back because of the following reasons:
Lack of time and resources
Limited budget
Fears around losing or breaking customization after the upgrade
Lack of understanding of what the new version has to offer
However, the benefits of upgrading your ERP software are significant. This article covers different reasons and explains why upgrading your ERP software is important for businesses.
🔎 Learn More: Is It Time to Replace or Upgrade Your ERP System?
Why Should You Upgrade Your ERP Software?
Running a business on outdated or legacy ERP software can impact your company’s growth and profitability down the line. That’s why it is essential to understand why a company should consider upgrading their system and what the new ERP version has to offer. Here are the primary reasons why companies to upgrade their ERP solutions:
✅ Outdated or Obsolete Software
Businesses and processes keep changing over time, and software versions are released to offer organizations new and improved features and technological benefits. Often, it is easy to justify that you don’t need advanced features because your business has always worked fine without them. However, the solution you are currently running on may be lacking the functionality or capabilities you need to stay competitive and ahead of the curve. You must stay up to date to capitalize on the benefits of advanced and more cost-effective technology. In some cases, upgrading your ERP software may be the only way to ensure major functions are not degraded. The upgrade may also enable IT to add needed capacity at a much-reduced cost.
✅ To Ensure Compliance
Some companies operate in multiple locations, which can make it difficult to keep track of all the different regulations and rules required. Even local businesses need to be concerned about different environmental, information security, and human resources regulations. ERP software simplifies regulatory and security compliance processes by unifying valid and secure data. When your ERP system is up to date, it helps ensure you are compliant with present regulations and have access to available features to simplify doing so.
✅ Better Performance & Higher Productivity
When your ERP software is updated, it will help improve the user experience and overall efficiency of the system. Staying updated also helps you ensure that your software is running at optimal performance. Software upgrades bring many performance and multi-user environment improvements and enhancements throughout the solution, enabling you to perform daily tasks effectively. Older software may not be able to match that speed. If you are using an old version, routine tasks could take longer than necessary for employees to accomplish, resulting in frustrated users and slower processes.
✅ Data Security Concerns
Data security has become a significant issue these days since legacy systems can be vulnerable to hackers and cyberattacks. In recent years, there have been numerous data breaches involving top companies. So, having reliable security in place is vital as the release of software update notes can often disclose exploitable entry points to the public. New version upgrades will also include newer security patches that will help you safeguard your data.
✅ Seamless Integration with Other Applications
Upgrading to the latest ERP version is advantageous for the functionality of your ERP software and any third-party applications you may use. Newer versions are designed to be compatible with the latest features offered in these solutions. When you use an older version of your ERP software, you are missing out on significant features in the upgraded complementary solutions that could improve your experience.
✅ Access to Support
As systems age, you may find that you lack some support options and availability. As older versions are phased out, you might find limited to no support available for those outdated versions. For example, if you’re using Microsoft Navision versions 2015 and older, your system is no longer in mainstream support. Once a solution reaches beyond the end of support, you no longer receive any security updates. Once you’re at this level, it is also challenging to find IT partners who can provide support, leaving your system at risk when issues inevitably arise.
Takeaway
There are significant costs and challenges when running an outdated ERP system, Businesses that delay upgrading their software are more likely to be less efficient, successful, and prone to issues with their solution. Regular software updates can benefit the way your business operates. Upgraded systems deliver stability, long-term support, and a functionally rich business environment for companies when they need it the most. So, if you haven’t considered it before and you are currently running outdated software, start planning for the future now and opt for an upgrade.
Eliminate Upgrades by Switching to Cloud ERP
By moving to a cloud ERP solution, you can permanently say goodbye to ERP upgrades. One of the biggest benefits of cloud-based ERP solutions is that future upgrades occur automatically, so your company will always have the latest software version without any hassle or additional expense. To learn more about cloud ERP solutions and whether they are right for your business, here are some resources for you.