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According to the 2024 Trend Report by Aptean, our trusted partner for food businesses using Business Central, companies in the food industry that use a specialized Food ERP achieve, on average, 1.9 percentage points higher revenue growth than those using a generic ERP. But does that automatically mean that any ERP designed for the food industry is a future-proof choice?
The same research shows that companies that have migrated their ERP to the cloud achieve, on average, an additional 1.6 percentage points of annual revenue growth compared to companies that stick with on-premise systems. And revenue growth is just one of the benefits, outdated ERP systems pose risks that can hold companies back, while modern cloud solutions provide scalability, flexibility, and innovation.
6 major risks of an outdated on-premise ERP
- Cybersecurity risks: Older systems, such as Dynamics AX, no longer receive security updates. This makes them a target for cybercriminals who exploit vulnerabilities to steal data or hold systems hostage.
- Difficult regulatory compliance: The food industry is increasingly regulated. Whether it’s food safety or GDPR, outdated software doesn’t guarantee compliance with the latest legislation.
- Data loss and downtime: On-premise systems lack the advanced backup and recovery capabilities of cloud solutions. This increases the risk of data loss and operational downtime.
- Limited or no support: Many older ERPs, like Dynamics NAV 2013, are no longer actively supported. After 2028, even minimal support will disappear, leaving companies stuck with a system without updates or help with issues.
- Outdated functionality: Old software stands still. Innovations and new features are mainly developed for modern, cloud-based ERP systems. Clinging to the past means less efficiency and competitiveness.
- High operational costs: On-premise ERPs require physical servers, energy, maintenance, and an IT team to keep everything running. These are expenses you can easily avoid by moving to the cloud.
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