If you already have an accounting or ERP system installed, your company has already paid for the software license as well as the cost of implementing it. For that reason, your company may not want to invest in a new ERP system.
However, in addition to not getting the benefits afforded by the new technology in a modern ERP, there can also be a substantial “Cost of Doing Nothing”, including:
- Annual maintenance fees as much as 20% of the list price per year. This results in repurchasing the license for the outdated software every 5-6 years.
- Ongoing operating expenses to maintain, upgrade, or replace servers, system software, networking equipment, and user devices.
- Ongoing people costs, which can be the biggest surprise. Significant staff or consultant time is required in taking care of the infrastructure and software, as well as any customer development for mobile devices or simple reporting.
- Moreover, as your system ages, the software may no longer be supported by the manufacturer. You may even discover that the software no longer runs on the latest hardware and operating systems.
- Development resources familiar with your software version become harder to find.
- You find yourself trying to implement a custom solution at significant expense when the new version of the software has that feature built-in.
- More data and network security features are often included in new releases of software that leave you vulnerable if you choose not to upgrade.