Over the past 3 years, I have often asked SMEs and Enterprises about moving their business processes to SaaS(Software as a service) or to Cloud. If there was a common denominator, the system they find most challenging to migrate would be ERP. While Cloud ERP has been in the Malaysian Market for a while now, a lot of the Sdn Bhds and Bhds just said no to it.
Why? Well, first off:
1. New Cloud ERP means better process. Internal company processes won’t be able to accommodate a new change at the base.
2. Change means pain. Bad processes, poor governance, and a new way of working are seen as obstacles; Nobody likes change- which is why businesses are reluctant to undertake this approach even if it is to streamline their business processes.
3. Best and most common response: wHy FiX sOmEtHiNg tHaT iS nOt BrOkEn amiriteeee??!!!
If there are any lessons to be learnt from this year, its this, legacy systems don’t work anymore.
Outdated computing software which are still in use are a safety net for many big ERP corps like Sage who exited the Asian and Australian Markets. However, they failed to weather the pandemic because of old economy tactics and their over dependency on legacy systems.
With the e-commerce boom and heightening customer expectations, those still clutching to legacy systems are done for as their competitors take up more leaner, meaner, powerful systems.
So Legacy Systems are folding, where do you go from here?
ERP has become more of a business operating system than an accounting, inventory or billing system. Newer solutions like HIVE BizOS allow you to port in completely from your old systems
Here is what you should be looking at when purchasing a new Biz OS.
1. Price: Buying a business operating system that does not come with a premium. The subscription cost per year should be 70% cheaper than a legacy ERP. This takes into account servers, on site and online support costs, the software price itself and the expertise to run it. Efficiency is a key factor too. You can have the best ERP in the world but if it can’t automate 20% of your work, you’re wasting your money.
2. Proven: You'll want a system where maintenance is a breeze. Simplicity is key. Compare them to your current company processes and governance. Sometimes it is necessary to move on to a better system as some organization’s processes are simply dreadful and must be fixed. Look for proven systems as they are evidently more reliable. Besides, it will be easier to implement as you will have a provider who actually shoulders the responsibility and gets the job done.
3. Agility: If you can adapt your business in a short period, your software should too. You're going to want a system that updates regularly but without the fear of your files or data disappearing or getting deleted. You’ll want APIs as well so that multiple software can interact- meaning if you have this on your eCommerce platform, customers will be able to track their orders. You want to link your ERP to your website, you got it. You want a Customer and Vendor Portal, you got it. You want a basic CRM. Boom. There it. You want a payment gateway, all setup! It’s the 21st Century, if your current choice does not include any of the above. Forget it. Save it for your CNY reunion dinner.
4. Lifespan: Most ERP vendors market themselves as usable on a 5 year lifespan. What you should be looking for is something that can last BEYOND 5 years (that’s the bare minimum) with minimal spending. As we know, spending HALF A MILLION per year just on just a single aspect in your business is definitely going to spell trouble. That being the case, look for a business OS that grows with you and grows your business.
Last, but not least, migration. You might be worried that your data is compromised during the migration process. However, depending on what you’re trying to achieve, this shouldn’t be a problem. With a dependable provider, data portability, data integrity, data security, business continuity, efficiency, etc. can be properly assured. If that assurance is provided in the cloud, it should be properly outlined in a proposal before you sign anything
One day, vendors will no longer support on-premise and business will have no choice but to migrate. Based on recent events, that day is coming fast. In the coming year, new and evolving ways of how we interpret data will take center stage in how we do business.
With a Biz OS, innovation in artificial intelligence, edge computing and IOT will increasingly be leveraged for competitive advantage as organizations look to quickly and efficiently use data to make better business decisions. Organizations that fail to anticipate these and other emerging trends risk a rapidly accelerating existential crisis.
Change is inevitable. The next step is yours to decide.
FINTECH RAKYAT helps businesses migrate to the next generation of the Digital Age. Our Business Operating System: HIVE BizOS is a comprehensive package of custom back-end and front-end solutions, designed to allow you to modernize your business quickly and effectively.
Click here or chat with us to know more!