Why Change?
Tags: ERP   Productivity   Tips   Team  
6/02/2013 10:32 AM

By Paul Blair

As a sales guy in the world of ERP Software it is often interesting to see companies decide not to make a change and stay with their existing systems.

Often customers come to us asking for information and pricing, and we endeavour to learn about the issues within their businesses that led to them calling us in the first place.

The drivers for people to look into an ERP change are often issues that have been around for ages which no-one has acted upon. They have put up with the hassles, and in reality have thrown resources and money at them just to get by.

When a company is using antiquated legacy software or multiple systems to run their business, and resources have been thrown at those systems for so long, the customer grows so used to the day to day that they forget to rationalise what the old system is costing them.

Common things such as staff turnover, bad accounting practices that lead to costly accountant’s bills, disgruntled customers, and more commonly system errors and lost data are things we come across most.

So what do these really cost a business? Frustrated staff who don’t enjoy their job and subsequently leave, creating a very costly exercise when it comes to rehiring.

As a guide, it can take 6.2 months to break even after hiring a new person, taking into consideration things such as recruitment costs, training costs, low productivity costs, and the general costs of setting a new person up on the network. So, in effect up to 1.5 to 3 times the salary of that person. Based upon this, someone on a salary of $50,000 would actually cost $75,000. If it was at the upper level it could cost as much as $150,000.

Adding an easy to use, modern software program such as Jim2 Business Engine would alleviate this problem because staff would enjoy the day to day more, their jobs become more efficient, the resource drain is lifted and can be channelled into money-making activities.

The other major benefit is that the resources you threw at the problems in the past were extra staff, either full-time or part-time. An investment in software such as Jim2 will mean those resources are no longer required, the fixed wage costs of the business go down and your bottom line profit margin goes up.

Throw in the fact that Jim2 will increase productivity, visibility and the ability to grow your business, then the net effect is that you can virtually pay for the new software immediately with those savings and improvements.

So, why change?

It’s a no brainer! Claw back the money you have lost and move your business forward by investing in Jim2 – a modern ERP system that makes the cost of change justifiable.

Imagine being able to reduce your fixed costs, increase your productivity and improve the day to day at your workplace. You can do this by being smart and making a decision.

“Don’t – procrastinate it’s costing you more money than you really know.”

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