When do you know that it’s time to build or acquire an ERP?

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Director, Experience Design in Education2 years ago

There are four things I would look at for signals:

- Functional fit - does your current ERP do what is expected? Are needs changing?
- Technical fit - does your ERP align to technology standards? Can IT sustain it?
- Business capabilities - are business capabilities mature and efficient? Are needs changing?
- Vendor roadmap - does the vendor plan to sunset the technology?

There are no clear answers on this, and there is never a "good" time to replace a core system. However, the more of these questions result in a "no," the more likely that it's time to make a change.

If you have great functional fit, mature business capabilities, and the internal capabilities to continue to sustain your existing ERP, but the vendor is planning to sunset, then you may want to consider third party maintenance.

If needs are also changing, then it may be time to look at replacement.

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