But maybe something has started to feel off recently. Maybe you’ve started to hear more expressions of frustration than appreciation towards the system. Maybe you’re in the midst of a so-called “upgrade” that’s already gone way over budget in both time and money. Maybe your ERP seems to be making your work harder, not easier. All these are signals that it may be time for an upgrade.

In this blog, we’ll go over what we mean when we call an ERP a “legacy” system, the warning signs that your ERP is holding you back, and how to go about looking for a new or upgraded system. Let’s get started!

What Does “Legacy ERP” Really Mean?

To begin, it’s important to understand what “legacy ERP” really means. Legacy ERP systems are old software solutions that emerged during a time when enterprise software was designed to operate as a self-contained solution. Legacy systems often run on proprietary databases and are written in programming languages or frameworks that are no longer widely supported. Because they have rigid structures, even minor changes—like adding a new module or adapting to a regulatory update—can require costly and time-consuming upgrades. This makes business agility almost impossible.

Legacy systems are also frequently hosted on-premises, meaning businesses are responsible for managing servers, backups, security, and hardware upgrades. Legacy ERP systems often cannot integrate with modern tools, especially cloud-native services like CRM platforms,  advanced analytics solutions, or AI tools. Many legacy ERPs lack standardized APIs or integration frameworks, so integrating external systems is a major technical hurdle.

All in all, while legacy ERP systems represented a giant step forward technologically at the time they were created, today’s pace of innovation and change has left them behind.

The Consequences of Relying on a Legacy ERP

In today’s business environment—where speed, data accessibility, and adaptability are paramount—these outdated systems become bottlenecks. They constrain innovation, prevent real-time decision-making, and hinder digital transformation. Companies stuck with legacy ERP often find themselves building awkward workarounds or investing heavily in middleware just to extract usable insights. Relying on a legacy ERP often results in employee frustration, information silos between departments, and security risks. As the world of technology develops at a breakneck pace all around us, your company’s software needs to develop with it.

4 Signs You May Have a Legacy ERP

How do you know if your ERP has become a legacy system? Here are four warning signs to watch out for:

• Your employees are frustrated instead of pleased with the system. This frustration may be spoken aloud, but it will likely also appear in their actions: employees may begin to resort to manual workarounds or personal spreadsheets to keep track of data. Remember, almost everyone will use the tools that make their job easier. If your employees don’t use your ERP because they don’t see your ERP as making their jobs easier, something needs to change.
• Rapid growth causes system malfunction or lag. Business growth is usually a good thing—but unfortunately, it can come with growing pains. If your ERP begins to struggle, lag, or malfunction when orders or data quantity increase, you may need to upgrade or replace your system. You need a solution that grows with your company and can scale easily.
• Your software can’t handle new things. If your company expands its operations to a new location, market, country, or industry, your ERP needs to keep up. In addition, you may want to invest in new software like AI or a CRM, and these must be integrated with your ERP in order to have the best outcomes. If your ERP cannot handle new operational functions or compliance needs—or if the upgrades required to do so are costly and time-consuming—the system will rapidly become a hindrance rather than a help.
• You see data silos emerging. Eliminating data silos is the whole point of an ERP! If various departments stop putting data into the ERP because it’s too confusing or bug-ridden to use, you’ve got a problem on your hands.

Do any of these warning signs sound familiar? If so, read on: there’s a solution!

Replacing a Legacy ERP: Where To Start

Once you’ve decided that your legacy ERP has outlived its usefulness, it’s time to decide on a new system. In some cases, you may just need to upgrade to the newest offering from your ERP of choice. For instance, many of our customers have upgraded from Epicor Enterprise to Epicor Kinetic to take advantage of Kinetic’s many new features, including extensive AI capabilities. However, in other cases, a complete replacement may be necessary.

Whether you end up replacing or upgrading your system, there are several important guiding principles to keep in mind:

• Solve problems: Your goal throughout the ERP implementation process should be to solve specific problems your employees and company face. The goal isn’t to have the newest, fanciest, or most elaborate system. The goal is to find the solution to your business problems.
• Make it measurable: Decide how you’ll measure whether these problems have been solved. Putting numbers to the problem and the solution allows you to not only justify the implementation to other company executives but also discover whether the solution you implement is actually working.
• Work with users: Above all, it’s important to keep the future users of the ERP system involved in all stages of this process. Instead of assuming that you understand the issues they face, ask them! Solicit feedback regularly and invest heavily in user training. You won’t see a good ROI on your ERP unless your employees actually use the system.

That said, we do recommend a few features that can usually solve problems across many different companies: embedded AI features, real-time data capture and exchange, and integration capabilities with your other software systems. Without access to these tools, you may not get the most out of your new ERP. In addition to their inherent utility, the presence of these features indicates that the ERP is being actively updated and supported in response to new technology developments.

For more on how to successfully implement business software, check out our blog on DMS implementation. While the software system is different, the advice translates to many different types of implementations.

Experience ERP Excellence with Epicor 

If you’re looking for a modern, AI-enabled ERP system, Epicor may be right for you. Epicor has embraced AI in its products, coining the term “cognitive ERP” to describe how their software uses AI to create actionable insights.

Here at Laminin, we’re passionate about your software success. If your company already has Epicor Enterprise, we can help you upgrade to Kinetic. We can also help integrate your Epicor system with other software solutions, create custom reporting capabilities through INTERJECT, and design custom applications that meet your unique business needs.

We’d love to talk to you about how your company can break away from the limitations of a legacy ERP. Contact us today to get started!