ERP systems are the most important piece of any company’s tech stack. Having an outdated system can lead to missed opportunities, internal confusion, and less-than-efficient workflows. How do you make sure your system is working with you, and not against you?
In this article, we will compare legacy (on-premise) ERP systems and modern (cloud) systems. By exploring legacy vs modern ERP systems, you can determine what features are best for your company, so you can better prepare for your organization’s future.
What is an ERP System?
An Enterprise Resource Planning (ERP) system is the software that allows a company to manage its primary business processes. This can include the monitoring of:
- Human Resource Management
- Sales
- Supply Chain Management
- Customer Relations
- Finance
- And more.
Because a company’s ERP system touches so many facets of how a business operates, it’s imperative that the software used is updated regularly to ensure efficient workflows.
Features of an ERP System
When evaluating ERP systems, it’s important to keep in mind which features your company needs. Some basic features of ERP systems include:
- Integration Capabilities—connect all your systems into one dashboard.
- Analytics and Reporting—make data-led decisions about your company’s future.
- Security and Compliance Checks—ensure data security with built-in safety features.
- Automation Capabilities—streamline your workflow.
- Process Management Capabilities—monitor your processes across departments.
Comparing legacy vs modern ERP systems can give you a better idea of how far technology has evolved and how the changes have affected business priorities.
Legacy vs Modern ERP Systems
Your team may be comfortable using your legacy ERP system, but if it’s taking a long time to pull reports and not integrating with necessary tools, it may be time to transition. If you’re still not sure about what the best decision is, that’s ok! Migrating to a new system can be a headache, and you want to be sure you’re making the best decision for your company’s future.
Explore the difference between legacy vs modern ERP systems and determine whether modernizing is the right move for you. Some of the biggest factors to consider when comparing legacy and modern ERP systems are deployment options, scalability, costs, and security features.
Deployment
Legacy ERP systems are deployed on-premise, meaning the software is hosted on servers owned and maintained by that company. While this allows the business to have control over its system, it can also be difficult when needing to go through important maintenance that uses a lot of resources.
Modern ERP systems are usually cloud-based, giving you and your team more flexibility to access the system from anywhere you have internet access. Cloud deployment is also quicker to implement than on-premise solutions.
Scalability
Legacy ERP systems are built on older technology, so it can be difficult to adapt to fit your current or future business needs. As your business grows and evolves, shoe-horning a connection with a legacy ERP system can lead to data silos and unintentional disconnection between software applications.
Modern ERP systems change as your company evolves. These systems adapt to advancements in technology, regulatory changes, and a variety of integrations, meaning they’re well-equipped to handle anything the future holds for your business.
Cost
Legacy ERP systems can be costly to set up and house, especially once you consider all the infrastructure, hardware, and resources you need to do it correctly. Maintenance costs can also be more expensive for legacy systems, as they were usually built on older or outdated technology.
Modern ERP systems are cloud-based and don’t require the infrastructure and hardware updates that on-premise systems need, bringing down the upfront cost significantly. The automation features of modern ERP systems also reduce the cost of human error, and maintenance costs are often more predictable and manageable, freeing up more room in your budget all around.
Security Features
Legacy ERP systems have very minimal security features in place. With weak access controls and compatibility issues, legacy ERP systems are susceptible to cyberattacks. This is why it’s important to monitor your ERP system’s security, build firewalls, and only grant access to those who absolutely need it.
Modern ERP systems have built-in security measures to keep your data safe. From encrypted information, role-based access, and documented plans in case of suspicious activity, you can be sure modern ERP systems will keep your data secure.
| Legacy ERP Systems | Modern ERP Systems |
| On-premise deployment | Cloud and hybrid deployment |
| Basic data reporting abilities | Real-time analytics reports |
| Not mobile-friendly and hard-to-use interface | Mobile-friendly and easy-to-use interface |
| Minimal & outdated security measures | Role-based access control for added security |
| Expensive upfront costs for infrastructure & hardware updates | Less expensive & predictable maintenance costs |
| Utilizes third-party integrations | Adapts to integration needs with custom modules |
| Standard automation capabilities | AI-driven automation capabilities |
| Difficult to scale with business needs | Very scalable |
ERP Modernization with the eOne iPaaS
One of the biggest challenges of implementing a modern ERP system is the daunting task of ERP data migration. With the eOne iPaaS, your team can get access to the right data at the right time. No more sifting through incomplete or outdated data. eOne Solutions is here to fill in data gaps and make sure your ERP system is as efficient as possible.
Data Integration with SmartConnect
SmartConnect is your one-stop shop for all your integration needs, whether you’re living in the cloud or keeping your ERP system on-premise.
Don’t waste time messing with old data. Whether you’re looking to automate manual processes, improve data accuracy, or reduce errors, SmartConnect is the only tool you’ll need to stay ahead of the curve and adapt to change.
Virtual Integration with Popdock
See all your historical data in your preferred dashboard with Popdock. With the power of virtual integration, you can view your legacy data without migrating it into your new ERP.
If you decide to leave your current ERP system behind, you can take Popdock with you. Popdock is designed to be adaptable and flexible, so you can use it no matter where your data resides.
Closing Thoughts
Choosing between legacy vs modern ERP systems means more than just making sure your processes flow together. It means setting your business up to succeed with streamlined communication, easy-to-read dashboards, and extra security protection.
Modern ERP systems can help you stay competitive while allowing you to easily adapt to market changes. Let eOne Solutions help with the challenges of ERP data migration and give your team the tools they need to succeed.
Have questions on how the eOne iPaaS can help you with your ERP data migration? Contact our team today to learn more.
