First available to manufacturing companies in the late 1990s, ERP (enterprise resource planning) gained traction as a solution to connect all parts of a company under a “single source of truth” in the 2000s, with innovations such as real-time data processing and cloud hosting accelerated adoption in the 2010s.
However, as technology evolves and solutions come and go, some early ERP adopters find themselves stuck in systems that no longer update or add new features.
The construction industry is dynamic and must move quickly to adapt to constant change — whether it’s a change in local or national regulations, rising material costs or changing customer plans and expectations.
10 reasons for construction companies to upgrade their construction ERP
- Limited functionality – Legacy systems may lack features crucial to modern construction management.
- Scalability Issues – Older systems may struggle to adapt to changing needs or handle a higher volume of projects, hindering a company’s ability to grow.
- Cyber Security Vulnerabilities – Outdated ERP systems without regular security updates become vulnerable to cyber-attacks, putting sensitive project data at risk.
- Integration problems – Legacy ERP systems struggle to integrate with modern construction software such as field management tools.
- High maintenance costs – Maintaining and patching outdated systems can be expensive, diverting resources from other areas.
- Manual processes and data entry – Manual data entry due to lack of automation leads to errors and inefficiencies.
- Limited support for modern construction methods- Legacy systems may not handle MMC’s hybrid manufacturing and construction workflows.
- Prevents talent acquisition – An outdated system can make a company less attractive to tech-savvy employees.
- Real-time data and business intelligence: Some legacy systems lack the ability to present data in real time, meaning leaders lose the ability to make data-driven decisions.
- No remote or mobile access: Older ERP systems may not have moved to cloud-enabled remote access in desktop and mobile applications, making remote work impossible and slowing down operations.
By sticking with legacy ERP, construction companies risk falling behind competitors who are leveraging modern systems to improve efficiency, collaboration and project management.
ERP update case study – A&G Services
Access Coins, a leading construction-specific ERP, recently spoke with A&G Services, a Fort Worth, Texas-based HVAC, mechanical, and plumbing contractor that faced this exact problem. Gretchen Riddle, controller of A&G Services, described the experience of working in a “legacy” ERP:
“A&G was on a first-generation ERP. It was simple but it wasn’t scalable, so it didn’t grow with us. There was a lot of checking to make sure (the legacy ERP system) was talking back and forth all the time .
When we wanted to add a field solution it wasn’t available so we had to add third party software that didn’t want to talk directly to the system. This software was cloud based, but legacy ERP was not, it was strictly server based.
Those were our biggest struggles, getting everything to work at the same time.”
After reviewing the ERP solutions available on the market that fit A&G’s requirements, the company decided to upgrade to a modern cloud-based ERP solution developed specifically for specialist construction contractors. Once implemented, the difference was clear:
“Visibility (of the new Access Coins ERP system) is absolutely paramount for us. Project managers can see their cost and the progress of their work in real time.
They are able to see it in real time, all the time, wherever they are. If they’re on vacation, if they’re at work, if they’re in the office, if they’re at home, they can see it.
They can pull information out of that system that they had to go to someone else to collect information from, and now that extra step is gone.”
The time for digital transformation in construction is now
Early adopters of ERP should not be penalized for their innovation, but it is an inconvenient fact that many legacy ERP systems are no longer fit for purpose, especially in an industry where change is common.
Upgrading and switching a legacy ERP system to a modern solution is a decision that will increase efficiency, productivity and cost control, while contributing to employee retention, customer satisfaction and maintaining a competitive advantage in the sector.
Learn more about Access Coins ERP.
Download the Construction Management Software Buyer’s Guide for Access Coins ERP.
