In the dynamic landscape of modern business, keeping your core business systems such as enterprise resource planning (ERP) up to date is crucial for staying competitive and efficient. However, embarking on an ERP upgrade project is no small undertaking. To ensure the success of such an endeavour, several critical factors must be taken into account. In this article, we’ll dive into these essential components that can make or break an ERP upgrade.
What makes an ERP upgrade project a success? Scope definition, effective decision making, good governance, excellent testing, and a transparent relationship.
One of the foundational pillars of any ERP upgrade project is the clear definition of its objectives and scope. Without a well-defined end state in mind, the project lacks direction, making it difficult to make informed decisions and set priorities. Questions like, “Will adding or removing this function or feature align with our desired end state?” become impossible to answer. Moreover, without an initially defined scope, there’s a risk that the project might gradually expand beyond its original parameters. This creeping expansion can jeopardise the project’s deliverables and timelines. Therefore, before diving into an ERP upgrade, it’s imperative to establish a crystal-clear understanding of what the project aims to achieve and the boundaries within which it will operate.
Ultimately, the success of an ERP upgrade hinges on the decisions made regarding business processes and data. To improve business efficiency, compliance, auditability, and cost reduction, critical choices must be made. It’s vital that those participating in scoping, workshops, and decision-making processes are not only empowered to take on this responsibility but also fully comprehend the gravity of their decisions. Informed and confident decision-makers are the driving force behind a successful ERP upgrade project.
Effective governance is essential on both sides of the project team, comprising the supplier and the customer. Without sufficient governance, success remains elusive. Each business must designate an executive stakeholder, creating a strong control framework. This framework serves to de-risk the project and provides a mechanism for escalating contentious issues. Moreover, operational project management teams must be in place on both sides. It’s unreasonable to expect the supplier to unilaterally enforce activities on the customer’s side, and a truly impartial stance is hard to maintain. Therefore, a balanced approach with an equal number of project managers from both sides is necessary. This doesn’t imply an adversarial relationship but rather ensures clear and consistent communication and commitments throughout the project.
The responsibility for testing and validating the system lies squarely with the client. Addressing challenges in a pre-live environment is significantly simpler than dealing with issues in a production setting. This is especially true for a “validated system” as required by certain compliance guidelines. The customer must actively engage in testing and report any idiosyncrasies during the project and testing phases. This proactive approach is key to ensuring a smooth transition to a secure and functional system.
In any ERP upgrade project, fostering transparency and a sense of mutuality among project teams is crucial. Treat the collaboration as a genuine business partnership where both the client and supplier work towards common goals. Open and honest communication, shared objectives, and a spirit of cooperation can significantly contribute to the project’s overall success – working together to a common goal, rather than taking an adversarial stance.
In conclusion, embarking on an ERP upgrade project is a complex undertaking that demands careful consideration of various critical success factors. Clear objectives and well-defined scope, informed decision-making, robust governance, thorough testing, and a commitment to transparency and mutuality are all essential elements that can make your ERP upgrade project a resounding success. By addressing these factors with diligence and dedication, your organisation can navigate the challenges of ERP upgrades and reap the benefits of enhanced efficiency and competitiveness in today’s fast-paced business environment.
If you’re interested in discussing how Mysoft can help your organisation make a seamless transition to a new ERP system like Sage X3, feel free to get in touch with our team. We’re here to support you on your journey towards a brighter, more efficient future for your business.
Sage 1000, is now reaching its end-of-life (EOL), with no support signaling a crucial juncture for businesses relying on this platform. In this article, we explore the risks associated with continuing to use Sage 1000 after it has gone EOL, the myriad benefits of transitioning to a product with active support from the author, and the compelling reasons why Sage X3 stands out as the superior choice for those businesses who use Sage 1000. We’ll also delve into the cost and time considerations of upgrading your ERP system VS carrying on using the Sage 1000, and comparing the long term investment and financial impact of each decision in the long term for businesses.
Risks and limitations of Using Sage 1000 (EOL in 2024):
Using any EOL hardware and software comes with its own set of risks for businesses as the manufacturer or author starts phasing out, limiting or cutting new upgrades, patches and support for the product or service. These risks, are more highlighted and amplified in the world of ERP due to their nature and integration with businesses core operations. Below, we have highlighted a number of the risks businesses will be facing after Sage 1000 has gone EOL.
Sage 1000's EOL means it will no longer receive security updates, exposing businesses to heightened cyber threats. As technology advances, relying on an outdated ERP system becomes a risky proposition for data security. Storing data in a legacy software will leave it vulnerable to hackers and viruses.
Operating with an ERP system that has reached the end of its lifecycle poses potential compliance risks. Regulations evolve, and using outdated software may lead to non-compliance issues that could impact the entire business ecosystem.
As one can imagine, with the EOL announcement in 2022, a natural decline in expert knowledge development has accrued. Experts and professionals in the field naturally have naturally shifted to other current platforms such as Sage X3 making it even more difficult for businesses to carry on using the Sage 1000 system.
It is important to note that in 2024, Sage will cease all support for Sage 1000. Whilst some Sage 1000 partners will still offer support for the system, businesses should be conscience that the product will be unsupported from the vendor to end-user businesses and partner alike, rending the product “unsupported”. This will impact partners’ support ability. In short, By the end of 2024, Sage will not offer any input on general, business critical or cosmetic issues on Sage 1000 ERP. Some of these support limitation have already been implemented, however Sage still offers business critical support which will be one of the last services to stop on the platform.
In this article we will discuss the operational costs and upgrade costs to a business in detail in a separate section, however, it is important to consider the high operational cost of a legacy ERP system in mind. Many businesses fail to realise the HIDDEN COST of a legacy ERP through lost/stolen data, support/maintenance/update with third parties, potential legal liabilities, lost revenue due to downtimes and/or operational inefficacies and lack of competitive advantage due to system limitations.
The operational limitations of Sage 1000 are becoming more pronounced as businesses evolve, and with no support, or new development from Sage, this ERP system will start lacking compatibility with modern technologies and difficulty integrating with new applications hinder efficiency and growth. This includes limitation on environment and platform which can and will affect businesses ability to upgrade other parts of their system that is not related to Sage 1000 due to their ERP not working with new environments. In a way, operating Sage 1000, or any legacy system will hold the organisation hostage in using legacy and outdated platform and operating systems and therefore exposing the business to viruses, malwares and cyber-attacks.
Sage X3 boasts an array of enhanced features and functionalities, addressing the diverse needs of modern businesses. From streamlined workflows to advanced project management tools, Sage X3 is designed to optimise various business processes.
Unlike Sage 1000, Sage X3 is highly scalable, adapting effortlessly to the evolving needs of growing businesses. Its flexible architecture ensures that the system can accommodate changes in operations without causing disruptions.
Sage X3 provides robust reporting and analytics tools, empowering businesses with data-driven decision-making capabilities. Access to real-time insights allows for better strategic planning and resource allocation.
A key advantage of upgrading to Sage X3 is its interoperability, extending its functionality further than what Sage 1000 could ever do, and still give you the ability to give you a single management point or “single version of the truth”.
Sage X3 is highly configurable and can be uniquely tailored and adapted to your organisation. The system also benefits from a wide variety of add-ons and plugins available from Sage Marketplace, making it much easier and efficient to enhance.
With Sage X3 businesses have access to real-time data wherever they may be on any mobile device. (this includes smart phones, tablets etc), giving you more control and a better view of your operation.
Sage X3 not only meets current needs but also elevates overall productivity and operational efficiency.
Sage X3 leverages the latest technologies, ensuring businesses stay at the forefront of innovation. Upgrading to Sage X3 not only meets current needs but also future-proofs operations against upcoming technological advancements.
The user-friendly interface of Sage X3 reduces training time for employees, leading to increased productivity. Intuitive navigation enhances user experience, making day-to-day operations more efficient.
For businesses with international operations, Sage X3's support for multiple languages and currencies is a game-changer. It provides the global capabilities needed to navigate the complexities of the international business landscape.
One of the key considerations for any business in making a decision is the cost factor. Whilst we appreciate that upgrading the ERP system is not “cheap”, the cost of not upgrading the system and continuing with a legacy, unsupported system will be higher.
While the upfront investment in upgrading to Sage X3 might seem substantial, it's crucial to consider the long-term costs associated with using an outdated system. The costs to a business from lack of efficiency, downtime, and lack of capabilities will often outweigh the initial costs of a new ERP system.
When operating in a competitive sector, not having certain abilities as a business can make or break a deal for your business. Using an up-to-date and comprehensive ERP system can pay for itself by giving you this competitive edge. When looking at the upgrade cost, a business should think whether they can afford losing deals because of an outdated, function lacking ERP system?
Often an overlooked aspect of business, running a legacy system will cost business valuable time, often stopping staff from performing revenue generating and productive tasks to attend to manual, repetitive tasks that can be avoided or automated using a current up-to-date system.
A challenge to many businesses is staff turnover and the subsequent loss of knowledge and costly process of hiring and onboarding new members only to go through the same process again. A great way to retain talent is by offering set of tools to your team to offload and automate manual, repetitive work, and thus creating a better work environment. Furthermore, such tools allow your team to add value to your organisation.
Sage X3's comprehensive support reduces ongoing maintenance costs compared to the potentially escalating support expenses of Sage 1000. The cost savings over time make Sage X3 a financially sound choice.
Sage X3's flexibility and advanced features may eliminate the need for extensive customizations that were previously required in Sage 1000. With a more robust and modern system, businesses may find that they can achieve their desired functionalities out of the box, leading to a reduction in customization costs associated with maintaining or adapting the older, less flexible system.
As Sage 1000 faces its end-of-life, businesses are at a crossroads — continue with a system fraught with risks or embark on a transformative journey with Sage X3. The advantages of Sage X3, from enhanced features to global capabilities, position it as the right choice for businesses seeking a modern, secure, and efficient ERP solution. The upfront investment in upgrading is not just a necessity; it’s a strategic move that pays dividends in terms of security, compliance, growth, efficiency and long-term financial savings, which will pay for the upfront investment and more. The time to upgrade is not just a choice; it’s a pivotal step towards a more secure, efficient, and financially sound future. At Mysoft we feel that for many Sage 1000 users this opportunity is a blessing in disguise, and allow them to truly immerse themselves into a modern and integrated business process.
Whilst it is true that many Sage partners who deal with Sage 1000 will carry on supporting the platform for a period of time, it is important to consider that there will be no updates from Sage nor any support to partners, in essence the partner is left on their own. This can affect partners’ ability to deliver support as they have had during Sage 1000’s lifetime.
Moreover, even their support will end after a period of time, which will mean users will not be able to get any further help with their system.
With these in mind, at Mysoft, we believe upgrading to a current system like Sage X3 will need to happen at some point, and it would be beneficial for users and businesses to start their journey now rather than later when they are “forced” due to lack of support.
Not all Sage partners provide Sage X3.
When looking to upgrade to Sage X3, even from other Sage products such as Sage 50/100/200/1000 you would need a new implementation and therefore classed as a new ERP system and thus it would be beneficial for you to consider other options for your X3 implementation.
At Mysoft we specialise in Sage X3 and we have delivered dozens of X3 systems to businesses coming from other Sage products. We live and breathe Sage X3, which gives us a competitive edge when it comes to knowledge, efficiency and flexibility compared to “broadline partners”.
Sage 1000 is a different product to Sage X3. This means that there is no direct migration or upgrade path.
It is also noteworthy that typically migrating modifications is not needed, as most modifications are work-arounds for shortfalls in Sage 1000 functionality. Most of these things are tackled via configuration (not customisation) in Sage X3. However, if need Mysoft can develop bespoke modifications for X3 to meet your needs.
Download the Mysoft guide to ‘Upgrading to Sage X3 Version 12’ to explore some of the primary reasons that businesses upgrade their Sage X3 environments.
As a consequence, the ERP systems that are implemented into organisations must be adaptable and scalable to the changing needs of the users and operations.
With the continual changes to legislation and compliance requirements imposed it all comes with different pressures. Ensuring that the systems handling tax and compliance are of the utmost importance as well as maintaining levels which will enable businesses to utilise key functionality and configurations to assist with meeting the standards of an ever-changing global economy.
Companies implement ERP solutions for the efficiency gained from single systems covering multiple operational areas, minimising data entry errors or losses. Adopting one area of the system would also mean updating the whole system to have a central streamlined system.
ERP systems which haven’t been kept up to date or have been heavily modified can be challenging to update. An outdated ERP system will lead to a diminishment of efficiency within your business and consequently an increase in costs.
Sage has, over the years, continued to improve processes and methodologies for Sage X3. They have now moved to a bi-annual rolling release for V12 which simplifies the upgrade process and allows customers to stay current while minimising the effects on a business. . For customers on older software versions, a ‘classic’ approach would be required to bring the system up to date then regularly maintained with patching. For customers on later versions of Sage X3 an ‘easy upgrade’ approach can be adopted.
Mysoft are working with a number of customers to configure their Sage X3 systems to accommodate a raft of business changes in light of the European tax framework changes around Brexit, in addition to their global expansions (some predicated by the changes to the UK’s status within Europe).
As a result of customer demand, Mysoft has also commenced offering a variety of management services to assist with staying updated with administrative and maintenance for Sage X3. Through these services Mysoft are able to ensure that our customers get the most value from their Sage X3 system, by making use of new functionality, closing security gaps, and reviewing processes consistently and often.
The ROI for upgrading takes into account micro-improvements to intangibles such as cyber-security risk, improved UI/UX, etc. as well as macro-benefits of tangible process improvements and compliance. Below is a list of key reasons to upgrade and stay updated:
Businesses who don’t keep up to date with their ERP systems not only lose out on efficiency but succumb to the diminishment of static processes in a dynamic world.
If you would like more information regarding updating your ERP system, contact us here or find out more below
With the wettest February on record, life on the streets is even more challenging. Organisations for the homeless in Reading, like Launchpad, aim to get rough sleepers of the streets during periods of below zero temperatures. They provide lifesaving shelter, hot drinks, warm clothes and hearty meals.
A very admirable team of volunteers give their time to provide the homeless with these essential supplies. Mysoft are pleased to be able to give a helping hand to a very worthy cause.
We managed to collect a very impressive mountain of Pot Noodles as well as some additional extras of biscuits, milk and sugar cubes. Everything donated will be making a difference to those who have come across some complications in life and no longer have a stable place to live. The volunteers at Launchpad run drop-in sessions where the warm food and drinks will be handed out to those who need it.
It was great see the whole team involved in contributing to the food collection that will used to support those less fortunate than us and make their lives that little bit easier.
The ‘right time’ will differ from business to business, but there are important points that every organisation should consider when looking to upgrade your ERP system.
The benefits of upgrading your ERP system hugely outweigh having an outdated ERP system. Upgrading your system will allow your business to continue to perform at full capacity, allowing you to efficiently manage daily business activities. The latest versions of ERP software are capable of keeping up with today’s business and technological demands.
The following will explain the risks you might face by not upgrading and the benefits of having an up-to-date ERP system. .
By using a legacy ERP system, you might find yourself on an unsupported version of the software. Software developers release new updates and, subsequently, stop supporting older versions.
Remaining unsupported could lead to running issues such as bugs and slow performance which may have a negative impact on your business’s efficiency. Legacy systems were not designed to keep up with today’s fast-paced developments.
Upgrading to a supported ERP system means that any issues that are encountered can be solved from the root of the problem by working together with your ERP vendor and ERP supplier. It also means that you can avoid the unnecessary costs of fixing patch issues and instead focus on the full efficiency capabilities of your upgraded ERP system.
An outdated ERP system could leave your company’s data at risk. Storing data in a legacy software will leave it vulnerable to hackers and viruses. This is particularly prominent when a business is using an old on-premise server.
The benefit of upgrading your ERP today is that the majority of ERP systems operate using a secure cloud domain. This, partnered with the management of a reliable provider such as Mysoft, will keep your business safe from any external threats.
As well as being more secure, Cloud based ERP is perfect for growing companies who want to take advantage of the latest and most advanced business management technology. All new ERP updates are automatically installed, system maintenance and user support are managed by the ERP or Cloud vendor and the system will reflect regulatory changes. A Cloud based ERP is ideal for mobile employees working on-the-go as all data is stored in a remote database, accessible anywhere but safe from anyone external to the organisation.
As mentioned previously, legacy software eventually becomes unsupported. This means if new regulations come in, for example the introduction of GDPR in 2018 or MTD in 2019, the older versions of the software risk not being compliant.
The fines incurred with failing to be GDPR compliant can be huge, for example you could be fined up to 20 million pounds. Therefore, ensuring that your ERP system is fit for purpose is not only important for the runnings of your business but could also reduce your costs.
ERP is designed to maximise efficiency within your business so that it can grow and become more profitable. It would therefore be inefficient to continue using a solution that could land you behind your competitors. By going forward with upgrading your ERP system, you will be making the most of the functionality and business benefits the ERP software offers.
Using the latest ERP technology will allow your business to continue working at a high level of productivity, using automated processes will allow time to be saved and costs to be reduced as well as allowing your business to work and trade more freely with customers and suppliers.
ERP software that can keep up with your evolving business needs, integrates seamlessly with other software, and is in line with your growth strategy will make you stand out from your competitors.
By implementing Sage X3 your company will gain an advanced business management solution, streamlined business processes and detailed insights on company wide data. Sage X3 is a solution that can handle all of your company’s requirements in one. There is no need for any additional integrated software to manage separate areas of the business.
If you are using any add-ons alongside your ERP software you’re at a higher chance of experiencing risks. If one was to fail there is a risk that it can affect the whole suite which in turn may affect the running of the business. Upgrading to Sage X3 means the pressure of ensuring seamless integration is lifted. Upgrading to Sage X3 from a lower tier Sage product, such as Sage Line 50, Sage 200 or Sage 1000, means that your business can achieve complete visibility and control across the entire organisation including multi-site and multi-territory capabilities, and multi-language and multi-currency functionality.
Sage X3 is a solution that grows with your business. Once live, you will be able to use the solution thereon after, simply scaling up your business processes as required.
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