An ERP system is a must-have for businesses today.
Serving as the central nervous system, an ERP system connects all parts of your business – sales, finance, customer service, operations – and orchestrates a coordinated interaction between them.
Simply put, ERP centralizes all business functions into a single platform – making it a powerful revenue-generating machine.
That’s why it’s no surprise that the ERP market is predicted to rise up to $96 billion by 2032, and the global ERP market growth is expected to increase at a CAGR of 7.1% from 2024 to 2034.
However, nothing stays the same, and so doesn’t your ERP system. As technology evolves and your business needs change, keeping your ERP system up to date becomes the only way to maintain competitive advantage and secure operational efficiency.
In other words, if you want your business to stay competitive, you must make it technologically future-proof.
Aware of this need, 50% of companies today are acquiring, upgrading or planning to update ERP systems. Are you one of them? If you’re still considering – this article is for you!
To help you on your ERP upgrade journey, we will analyze:
- The importance of an ERP system upgrade
- Warning signs that you need an ERP upgrade
- Upgrade vs. replace: What to choose?
- Top 6 reasons for upgrading a legacy ERP
- Key steps in the ERP upgrade strategy
- Must-have features of an ERP upgrade
- Best practice tips for a successful ERP upgrade
- How to move from old to new ERP with RAPIDI
- Conclusion
- FAQ
THE IMPORTANCE OF ERP SYSTEM UPGRADE FOR YOUR BUSINESS
First of all – you need to outline your priorities when it comes to an ERP system. Because upgrading your ERP software isn't just about having the latest version. It's about ensuring your business remains competitive, secure, and efficient.
If you want to ride the wave of digitalization, then having a modern ERP system is paramount.
Research shows that businesses highlight the top 3 benefits of having an ERP system: reduced process time, increased collaboration and a centralized data system.
However, there are other advantages of using a modern ERP system:
To start with, modern ERP systems offer enhanced capabilities that can significantly impact your bottom line through improved productivity, better decision-making, and reduced operational costs.
Next, a modern ERP system can help you improve real-time analytics, mobile accessibility, and integration capabilities that legacy systems simply cannot provide.
Moreover, new ERP systems use the latest technologies such as AI and automation to streamline workflows. AI-powered ERPs can also help you predict market trends and customer behaviors with more accuracy.
Also, as your business grows, a modern ERP system can scale to meet new demands, ensuring long-term viability.
Finally, modern ERP software includes critical security patches and compliance updates that protect your sensitive data and ensure compliance with regulations.
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WARNING SIGNS YOUR ERP SYSTEM NEEDS AN UPGRADE
From performance lags to security risks, there are several telltale signs that your existing ERP system is holding your business back and no longer serving you effectively.
⚠️ Decreased performance. The most common culprit is lower processing times and increased system crashes. They can negatively impact daily operations and employee productivity.
⚠️ Limited functionality. Older ERP systems may lack modern features like mobile access, real-time analytics, or integration capabilities with newer technologies, which leads to silos and inefficiencies.
⚠️ Lack of flexibility Legacy systems often lack the customization options needed to adapt to changing business requirements.
⚠️ Rising maintenance costs. As systems age, the cost of maintaining them often increases. Finding technical support for obsolete versions becomes increasingly challenging and expensive. The losses thus outweigh the benefits of sticking with the old technology.
⚠️ Compliance and data security risks. Unsupported or outdated systems may not meet current regulatory requirements and, even worse, become targets for cyberattacks, putting sensitive business data at risk.
UPGRADE VS. REPLACE: HOW TO MAKE THE RIGHT CHOICE
Often, companies face the dilemma: Is it best to upgrade the existing ERP system or replace it entirely with a new solution?
To help you make this decision, let’s consider a few factors and scenarios.
⤴️ When to upgrade your current system
The most obvious reason – your ERP vendor is strong and doing well.
If your ERP vendor continues to invest in product development and maintains a strong market position, upgrading within their ecosystem looks like a great idea. After all, you already have a strong relationship with the vendor and know the system pretty well.
Another reason is that you’re happy with the core functionality. When your current system's fundamental features align well with your business processes, and you mainly need technical updates or access to newer features, an upgrade can be more cost-effective.
The third reason is you’ve invested heavily in system customization. Keeping significant customizations, that are still relevant and valuable, is more practical than starting fresh.
🆕 When to consider full replacement
But sometimes it’s best to opt for a complete system replacement.
If your current system's underlying architecture is obsolete or cannot support modern business requirements, then replacement is the best strategic move. You cannot afford to lag behind in today’s competitive market.
Next scenario – you changed your business model. If your business has undergone significant changes in its operational processes, market focus, or even size, a new system might better align with your current needs.
Finally, it all comes down to maintenance costs. If maintaining your current system requires excessive resources or highly specialized knowledge, it would be wiser to replace the old ERP system with a modern solution.
The rule of thumb is when it comes to technology, always focus on the long-term gains!
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TOP 6 REASONS FOR UPGRADING YOUR LEGACY ERP SYSTEM
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Future-proofing
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Investing in modern ERP technology ensures your business is ready for future challenges and opportunities.
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Improved UX
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Updated interfaces and workflows can significantly boost user adoption, employee productivity and satisfaction, as well as reduce training time for new employees.
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Better integration capabilities
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New ERP systems offer improved integration with other business systems and emerging technologies, such as AI, IoT, and cloud services (SaaS).
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Enhanced security
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Modern ERPs offer stronger security features and regular updates to protect against evolving cyber threats.
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Easier compliance
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Staying compliant with evolving regulations is critical, and modern ERPs often include tools to help businesses stay ahead.
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Reduced total cost of ownership
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While the initial investment may be significant, modern ERPs often result in lower long-term costs through improved efficiency, reduced maintenance needs, and better resource utilization.
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ERP UPGRADE STRATEGY: KEY STEPS TO SUCCESS
According to statistics, among the companies that implemented ERP projects, 83% said the project met their ROI expectations.
To achieve the same success rate, you need to carefully plan and execute an ERP upgrade. Here is the list of steps you’d need to take.
STEP 1. Begin with a thorough evaluation of your current ERP system and gaps in its performance. Then outline your business needs and upgrade objectives; for example, improved performance, better data analytics, enhanced security.
STEP 2. Identify key stakeholders, such as IT, finance, sales, operations, and form a dedicated project team. Ensure clear communication and collaboration throughout the process.
STEP 3. If you decide to move to a new vendor, carefully evaluate potential solutions against your requirements. After that, request demonstrations and evaluate features, scalability, and cost.
STEP 4. Develop a comprehensive data migration strategy, including cleaning existing data, mapping fields between old and new systems, and validating data integrity.
BONUS STEP. To save time and secure your data’s accuracy, contact a data migration solution provider and ask them to help you move data from the old ERP version to the newest one.
STEP 5. Conduct rigorous testing to ensure the new system works as expected.
Roll out the implementation in phases, if possible, to minimize disruption. Create test scenarios that cover all critical business processes.
STEP 6. Develop a comprehensive training program for all users and implement a change management strategy to ensure smooth adoption of the new system.
STEP 7. Continuously monitor the new system’s performance. Collect feedback and make adjustments to optimize its use.
💡 Pro tip: Ensure that everyone is on board – from the top management to the average user. The system will only work, if key users are employing it every day. Users are more likely to adopt the new system if they know why they are doing it, how they can benefit, and what tasks are going to be easier to perform.
MUST-HAVE FEATURES FOR YOUR ERP UPGRADE
So, you’ve decided it’s a great idea to upgrade your legacy ERP system. And you even shortlisted potential vendors. Now, you need to define what features and functionality your business needs.
To help you focus, consider including these essential ERP features. ⬇️
First of all, evaluate whether a cloud-based solution would better serve your company’s needs. Do you want automatic updates, easy accessibility, and reduced infrastructure costs?
Then, your option is a cloud-based ERP. After all it’s not without a reason that more than half (53%) of businesses use cloud-based ERP solutions rather than on-premises.
Next, chances are you’ll need mobile access. Make sure the new system offers mobile access for remote work or on-the-go field operations.
Another very important feature of an ERP system is analytics and reporting. If you’re a data-driven company, look for advanced analytics capabilities, like customizable dashboards and real-time reporting features.
Also, you are likely to want to integrate your ERP with other systems. For that, you need to verify that the new system can easily integrate with your existing and planned future technology stack.
Next, if you want your employees to enjoy working with the new ERP, then opt for a user-friendly interface and intuitive design. This will help with adoption rates.
And if you have complex business processes, choose a solution that allows customization to fit your unique needs and operations.
Finally, make sure that the new system can grow with your business and adapt to changing needs.
BEST PRACTICE TIPS FOR A SUCCESSFUL ERP UPGRADE
As any other tech project, an ERP upgrade can be a tricky one. And as the notorious Murphy’s Law states: “Anything that can go wrong will go wrong.” 😆
But it shouldn’t be that way! If you know exactly what to do at each phase of the process – you can successfully avoid pitfalls and problems.
To help you overcome possible obstacles, here is a comprehensive checklist of what to do and what not to do during the ERP upgrade project. These tips will help you maximize your project’s success.
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BEST PRACTICE
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DO
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DON’T
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Set clear objectives
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▪ Define specific, measurable, and time-bound objectives
▪ Align upgrade goals with overall business strategy
▪ Document objectives in writing and get leadership approval
▪ Prioritize objectives based on business impact
▪ Validate objectives with key stakeholders
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▪ Set vague or unmeasurable goals
▪ Omit objective-setting to start the project faster
▪ Ignore business constraints when setting objectives
▪ Change objectives frequently during the project
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Engage stakeholders early on
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▪ Identify all stakeholder groups early in the process
▪ Create a stakeholder engagement plan
▪ Hold regular stakeholder meetings and workshops
▪ Document and address stakeholder concerns
▪ Include stakeholders in key decision-making processes
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▪ Limit stakeholder engagement to senior management only
▪ Ignore resistance or negative feedback
▪ Assume stakeholders understand the technical aspects
▪ Wait until problems arise to engage stakeholders
▪ Exclude end-users from the planning process
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Maintain clear communication
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▪ Establish a formal communication plan
▪ Use multiple communication channels
▪ Provide regular status updates
▪ Create a feedback loop for questions and concerns
▪ Keep communication consistent and transparent
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▪ Rely on a single communication method
▪ Use excessive technical jargon
▪ Wait too long between updates
▪ Ignore communication preferences of different groups
▪ Hide problems or challenges from stakeholders
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Document everything
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▪ Create standardized documentation templates
▪ Document decisions and their rationale
▪ Keep configuration and customization records
▪ Maintain version control for all documentation
▪ Include screenshots and process flows
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▪ Rely on verbal agreements or informal notes
▪ Skip documenting minor changes
▪ Wait until project completion to document
▪ Store documentation in scattered locations
▪ Forget to update documentation as changes occur
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Phase your implementation
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▪ Create a detailed phasing plan
▪ Start with core modules and essential functions
▪ Set realistic timelines for each phase
▪ Include buffer time between phases
▪ Learn from earlier phases to improve later ones
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▪ Try to implement everything at once
▪ Rush through phases to meet deadlines
▪ Skip testing between phases
▪ Ignore dependencies between modules
▪ Underestimate the complexity of each phase
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Use vendor’s support
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▪ Establish clear communication channels with the vendor
▪ Define support expectations in writing
▪ Schedule regular vendor check-ins
▪ Use vendor recommendations and training resources
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▪ Assume vendor understands all your business needs
▪ Wait until crisis to contact vendor support
▪ Ignore vendor best practice recommendations and training sessions
▪ Fail to review vendor documentation
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Establish success metrics
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▪ Define quantifiable success metrics
▪ Create baseline measurements
▪ Monitor metrics throughout the project
▪ Adjust strategies based on metric results
▪ Share metrics with stakeholders regularly
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▪ Use vague or unmeasurable metrics
▪ Focus only on technical metrics
▪ Ignore user satisfaction metrics
▪ Wait until project end to measure success
▪ Keep metrics hidden from the team
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Plan for contingencies
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▪ Create detailed backup procedures
▪ Test rollback plans before needed
▪ Document emergency procedures
▪ Maintain data backups
▪ Train team on contingency procedures
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▪ Assume nothing will go wrong
▪ Skip testing backup procedures
▪ Wait until problems occur to plan
▪ Ignore small warning signs/red flags
▪ Keep contingency plans secret
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Provide ongoing support
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▪ Establish a clear support structure
▪ Create user documentation and guides
▪ Set up multiple support channels
▪ Monitor system performance
▪ Provide regular user training
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▪ End support immediately after go-live
▪ Ignore user feedback
▪ Rely on a single support person
▪ Assume users remember all training
▪ Neglect system monitoring
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HOW TO MOVE FROM OLD TO NEW ERP WITH RAPIDI
Let’s take a look at how Rapidi Data Integration Solutions can help you move data from the old Microsoft Dynamics NAV version to the latest Microsoft Dynamics Business Central.
Upgrading from older versions of MS Dynamics NAV to the latest MS Dynamics 365 Business Central can be a daunting process, especially if you need to jump several versions at once, migrate large volumes of data, or accommodate custom objects.
Fortunately, Rapidi's data integration solution makes this transition easy and efficient.
The challenge of migrating data from older Dynamics NAV versions
Many businesses still use older versions of MS Dynamics NAV to handle their operations. But with Microsoft eventually phasing out support for these systems and pushing companies to upgrade their systems by recommending to switch to Business Central to keep things running smoothly, stay secure, and take advantage of modern tools and features.
Make sure you’re aware of the possible challenges of the migration process. Let’s zoom in on the three most important.
⛔ Multiple version jumps. Moving directly from an older Dynamics NAV version (e.g., NAV 2009) to Business Central often requires upgrading through multiple intermediate versions, leading to time-consuming and costly migrations.
⛔ Large data volumes. Businesses with extensive historical data may face performance and storage challenges during migration.
⛔ Custom objects and fields. Customizations tailored to specific business processes may not be compatible with newer systems, requiring careful mapping and data transformation.
Why Rapidi is the ideal solution
Rapidi's data integration solution is specifically designed to address these challenges, offering a flexible and powerful approach to data migration.
Here's why it's the right tool for the job:
✅ Direct data migration. Rapidi allows you to bypass multiple version upgrades and transfer data directly from older Dynamics NAV versions to Business Central, saving time and effort.
✅ Seamless data mapping. With advanced data transformation capabilities, Rapidi maps custom objects and fields to the new system, ensuring compatibility without losing data integrity.
✅ Handling large volumes with ease. Rapidi’s robust architecture is built to process large datasets efficiently, minimizing downtime and disruptions.
✅ Minimal downtime. The migration process can be performed incrementally, enabling the parallel operation of old and new systems to reduce operational risks.
✅ Customizable integration. Rapidi is highly configurable to meet your specific business needs, whether you're dealing with industry-specific workflows or custom extensions.
Steps to migrate MS Dynamics NAV to the MS Dynamics 365 Business Central with Rapidi
STEP 1: Analyze your current NAV environment, including versions, customizations, and data volume. Define migration goals and timelines.
STEP 2: Configure Rapidi to connect your NAV system with Business Central. Map data fields and objects between the two systems, including custom entities.
STEP 3: Perform test migrations to validate data integrity and ensure compatibility. Address any issues discovered during testing.
STEP 4: Execute the migration process, transferring data directly into Business Central. Monitor the process to ensure smooth execution and minimal disruption.
Step 5: Conduct post-migration testing and validation. Provide user training and support to ensure a smooth transition.
Migrating from older versions of Dynamics NAV to the latest Business Central doesn’t have to be a super complex and multi-step process.
With Rapidi’s data integration solution, you can optimize the migration process, save time, and maintain data accuracy, even if you’re handling extensive data volumes and custom objects.
For more information on how to transition from an old ERP to the new ERP without much hassle, contact Rapidi today.
CONCLUSION
Upgrading your ERP system is a significant undertaking that requires careful planning and execution.
However, the benefits of modern ERP capabilities, such as improved efficiency, better decision-making tools, and enhanced security, make it a worthwhile investment for businesses looking to maintain their competitive edge and face the digital future head on.
Following a structured approach and considering all aspects of the upgrade process, from initial planning through post-implementation support, can help you minimize disruption and maximize the return on their ERP investment.
Remember that an ERP upgrade is not just a technical project but a business transformation initiative that can significantly impact your organization's future success.
Invest in your business's future by upgrading to a modern ERP solution, and let us help you move your data securely.
ERP UPGRADE FREQUENTLY ASKED QUESTIONS
