Many enterprises have been using old ERP systems for more than ten years. Why are they reluctant to

2024-06-25

Summary:In the wave of digital transformation and information upgrading, some enterprises remain attached to their ERP systems that have been used for over a decade and are reluctant to replace them. The reasons behind this phenomenon are multifaceted. This article will explore the enterprise's dependency on old ERP systems from multiple angles.


Body:

  1. Concept hype and low value:In recent years, numerous new concepts and models emerged in the B-side IT sector, such as low-code/zero-code platforms. Although they can provide a certain degree of customization capabilities, their value is limited for highly complex and coupled systems like ERP.

  2. Evolution of technical architecture:From the C/S architecture to the Web architecture, and then to the microservice architecture, the technology foundation of the ERP system is constantly upgrading. However, despite technological advances, the core functions of the ERP system appear to have little change.

  3. Economic and competitive pressures:In the face of a downturn in the economy and industry competition, enterprises become more cautious. Facing the impact of intense market competition and trade wars, many enterprises choose stability over system replacement and its potential risks.

  4. Business focus and price wars:To survive, enterprises continue to slim down and focus on the most proficient and fastest profit-making business, leaving no room for digital transformation or information substitution.

  5. Management thinking and historical data:Long-term use of the same ERP system has formed a fixed way of thinking in management, and replacing the system means giving up historical data and conducting complex data migration work.

Conclusion:The enterprise's reluctance to replace the ERP system is not entirely emotional but rather due to economic, technical, and management considerations. In the current market environment, enterprises tend to maintain the status quo and avoid the uncertainty and risk brought about by system replacement.



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