Rizing Evolution – The Future Proofed Enterprise Podcast

Episode 8 Summary: Modernizing Your ERP – the Cost of Doing Nothing

Enterprise Resource Planning (ERP) systems are critical to businesses’ smooth operation. However, as technology evolves, companies delaying ERP system updates are putting themselves at significant risk.

In this episode of the Rizing podcast, experts shared their views on why the cost of doing nothing is greater than many realize.

The Risks of Delaying System Upgrades

Len Harms, Chief Experience Officer at Rizing, warned of the dangers of delaying ERP maintenance:

“As soon as you stop maintaining your system, you’ll get to a point where you can’t do anything with it, and now you get instability, and all of a sudden your systems are dropping, or you’re getting unreliable results, or you’re getting inconsistent results because the system starts becoming unstable.”

Harms highlighted how old systems eventually “atrophy” if they are not updated, leading to increased costs and operational difficulties as it becomes harder to find people who are skilled in maintaining outdated technology.

The Financial and Operational Impact of Doing Nothing

Justin Ladenburger, ERP consultant, emphasized how companies often hesitate to make strategic decisions around ERP updates.

“It’s easy to find reasons not to make an important or strategic decision,” he explained.

However, failing to act can lead to unreliable data and reduced visibility into operations, making it harder to make informed decisions

The Competitive Advantage of Cloud ERP

Angel Cruz Parrilla, Vice President of Product Marketing at SAP, spoke about the value of cloud ERP systems. He pointed out:

“The cloud ERP enables companies to be more agile, more efficient, more scalable, and more resilient.”

However, he stressed that businesses must first understand their challenges—such as rising costs or supply chain issues—before deciding on the best technology to solve them.

IT’s Role in Continuous Improvement

Ashwini Dayal, General Manager of the SAP Partnership at Wipro, emphasized the importance of IT’s leadership in driving business success.

“Businesses today need the guidance and lead from IT to tell them how they can make things better. If we’re not doing that, we’re not doing our jobs well enough, and we will become redundant.”

Conclusion

The cost of doing nothing when it comes to ERP modernization is real, leading to system instability, higher costs, and competitive disadvantages. As the panelists made clear, organizations must act now to ensure they are equipped with the tools to navigate the future.

Read the full episode transcript, view the full episode, or view all the podcast episodes.