Many CIOs have a problem in understanding themselves or making the board understand the need for more investment in their existing ERP infrastructure. They argue that we already have a stable ERP system and our core processes have not changed much then why should we invest more in upgrading the existing ERP infrastructure?

Frankly, it is difficult to calculate direct benefit realization just by upgrading it but having said that we must not lose the sight of indirect benefits that we may accrue by doing so. Hence, it may make a compelling case to invest more in the existing ERP infra.

Other than the obvious benefits of having an upgraded ERP infra like continued support from OEM without any premium fees and getting some new feature and functions etc. we must look at the indirect advantages that can be achieved by making the ERP infrastructure e.g. ability to achieve the next level of innovation.

In the current world, ERP is no longer considered an innovation in itself but it does provide a solid foundation to create more opportunities for innovations that can not only enhance your business model but may radically transform your business.

So, the organizations need to review if their current ERP infra can support new innovations that add value to the business e.g. are you able to leverage cloud solutions/mobile solutions/analytics/social solutions/Big Data etc.

My recommendation would be to do an assessment of complete ERP infrastructure including the Hardware and Software components. It might be a good idea to upgrade the Hardware infra first and then do the upgrade of applications. No one size fits all and hence we need to consider the context and then move from there.