Digital Transformation

Modern ERP Vs. Legacy Systems: Comparison Guide

See the massive difference between the capabilities of a modern ERP system and the old, legacy systems businesses are still using.

Blog Post

6 minutes

Jun 06, 2022

Many businesses without modern ERP systems don’t recognize the limitations of their current, outdated system because, for so long, it’s gotten the job done. With modern technology, ERP systems can do so much more than they used to. Read on to learn more about these newer systems and what they can do for your business that legacy systems cannot. 

Why Legacy ERP Systems Don’t Work Today 

Relying heavily on a legacy ERP system may seem harmless because it’s still (kind of) working and it’s always gotten the job done, right? Many businesses don’t actually realize the harm that such old technology is doing to your business when it comes to innovation, costs, and production. 

what is a legacy ERP system not doing for your business

Here are some ways that a legacy ERP system isn’t doing what you need it to today: 

Related Infographic: How Not Implementing an ERP is Costing Your Business 

Older Systems Contain Outdated Technology 

Legacy ERP systems have been in service for a long time, especially for businesses that adopted them into their operations early on. In that time, though, technology has improved immensely and the difference between old tech and new tech is growing larger every day.  

This doesn’t just apply to the ERP systems and tools themselves, but also to the software they were designed to integrate with. Much of this tech is now obsolete and no longer supported or receiving updates from its developers. 

Lack of Scalability, Flexibility, and Adaptability 

Many older, legacy systems lack the ability to utilize the cloud and must be physically installed on business systems, and can only be accessed by computers and devices directly connected to it. This severely limits a business’ ability to be flexible in its work style (remote work, work from home, etc.) and makes it extremely difficult to upgrade ERP systems to match growth. 

Not Compatible with New Innovations and Regulations 

Another major flaw of an older ERP system is its incompatibility with newer programs that can improve the way they operate. This includes adopting new software, updates to the older software, and new regulations required to maintain compliance. 

New Compounding Costs 

The inability to integrate with new programs, utilize the latest innovations, and perform tasks and processes that a modern ERP easily does end up costing businesses dearly. The money that businesses think they’re saving by pushing off the implementation of a modern ERP system is being burned due to their performance potential being stunted by an outdated ERP system. 

Competitors aren’t waiting around and relying on “what’s always worked.” They’re pushing the boundaries of what they’re capable of by streamlining old time-consuming processes and beefing up productivity thanks to the help of new programs, software, and technologies available to newer ERP systems. 

The Advantage of Upgrading to Modern ERP Systems 

On the other side of the coin, businesses that have a modern ERP system can reap the benefits of what the latest technology can offer, including: 

benefits of a modern ERP system

Centralized, Accessible Location for Business Information 

One of the biggest benefits of having a modern ERP system is its ability to use the cloud to make business data available to more people in more places. Employees can more easily get access to useful or essential information without having to be on-site or plugged in. This means that collected data can be used to make more informed decisions based on actual trends and reporting. 

More Accurate Data Reporting 

Speaking of reporting, a modern ERP system eliminates the manual side of reporting by collecting and structuring data and can create custom reports tailored to your business. This not only creates faster, more useful reports but also more accurate reports by eliminating human error from the process.  

Scalable and Device-Friendly 

Another benefit of cloud implementation is a system’s ability to adapt, grow, and scale depending on what you need from it. Additionally, you can onboard more devices and people more easily to a modern ERP system thanks to the streamlined implementation process. 

More Integrations with Modern Tools and Software 

We are in a golden age of digital software tools for businesses. Nearly every problem can be solved when you have access to the right tools. A modern ERP system can integrate with this modern software and gives businesses the ability to utilize all the latest software in daily operations. 

Related Blog: Competitive Advantages from Enterprise Resource Planning 

Modern ERP Systems Vs. Legacy Systems 

Comparing modern ERP systems to outdated legacy systems, after so many years of advancement in technology, is very much like comparing apples to oranges. Modern systems simply contain new features that did not exist before, have been improved upon, and have eclipsed old versions completely. 

Related Infographic: Why You Need to Replace Your Legacy ERP 

Here’s a graphic that helps depict the gap between old systems and the newest technology:

difference between modern ERP and Legacy systems

Implementing a Modern ERP System with Impact 

With Dynamics 365 managed by Impact, businesses get all the benefits of a modern system with the added support of our experts who can help create a simple and quick implementation process, scale your ERP to meet changing goals, and assist with any roadblocks that crop up at any time during the process. 

Business is always changing, and you need an ERP that can adapt, scale, and that is always running thanks to the 24/7 assistance of the team of business technology specialists at Impact. 

Businesses that choose to self-implement their own ERP systems choose to go down this complex road alone and risk hitting business-critical snags that can cause downtime, slower production, and a poor customer experience.  

The difference between a modern ERP system and an older one is as massive as the difference between having Impact by your side and going it alone. Businesses that update their systems and stay at the forefront give themselves a distinct competitive advantage by taking full advantage of what technology can offer. Along that road, skip the snags and get up and running faster and more effectively with Impact’s ERP consulting services.

Is your business ready for ERP implementation? Learn more about the things businesses need to successfully implement and take full advantage of the benefits of a modern ERP system.


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