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  • Writer's pictureKwixand Team

6 Reasons for Upgrading Your ERP Software

Should you upgrade your outdated ERP software?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

Upgrading Your ERP Software

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 are often running an ERP version a couple of years old. Upgrades are often pushed back because of the following reasons:

  • No time or budget available

  • Worries of losing or breaking their customization after the upgrade

  • Lack of understanding of what the new version has to offer

However, the benefits of upgrading your ERP software are far greater. This article covers different reasons and explains why upgrading your ERP software is important for businesses.

Why Upgrade Your ERP Software?

Running a business on outdated ERP software can add hurdles to the progress and development of the company. So, it is essential to understand why a company should consider upgrading their system and what the new ERP versions have to offer. Here are the primary reasons which lead companies to upgrade their systems:

Obsolete Technology

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 not have the insights, functionalities, or capabilities you need to run a successful business. 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.

Simplified Compliance

Since companies grow and do business in different parts of the world, it can be difficult to keep up with all the regulations imposed on the business. 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 you improve the user experience and overall efficiency of the product. Installing updates 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 faster. 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.

Security Concerns

Data security has become a significant issue these days since old systems can be vulnerable to hackers and cyber attackers. 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.

Compatibility with Complementary Tools

Upgrading to the latest ERP version is advantageous for the functionality of your ERP 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 ERP experience.

Support Options

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 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 if anything ever occurs.


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.

Consider Cloud ERP for No More Future Upgrades

By moving to a cloud ERP solution, you can permanently say goodbye to ERP upgrades. One of the 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.


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