The risks of running your business in legacy ERP software

Updated: Aug 15

Microsoft is ending its mainstream support for Dynamics NAV 2016 on April 14, 2021. Nine months later (January 2022), Dynamics NAV 2017 will go out of support. If you are a user of any of these Dynamics NAV versions or any legacy ERP software for that matter, then this blog is for you.


Most companies have the mindset “not to fix something if it’s not broken”, because of fear related to project failure; IT expenses associated with modernization; further training needed for the staff; and lengthy data migration. While these are legitimate concerns, do these outweigh the benefits of a modern ERP software?


In this blog, we outlined the risks of running your business in an outdated financial management system and why an upgrade is needed to minimize them.



#1 Increased security risks.


Perhaps the most important risk to consider in running a legacy ERP software is in line with data security. Because of the lack of support from providers, your outdated software is left without regular patches or hotfixes that leaves your business vulnerable to cybersecurity incidents.


In a study done by Kaspersky Lab in 2018, it stated that the average cost of a data breach in an SME is $120,000. Not only do data breaches cost companies considerable financial loss, but you also risk reputational damage which may lead to loss of customer trust and revenue.


Minimize your cybersecurity risks.

Modern ERP solutions like Dynamics Business Central run in the world’s most trusted, secure and compliant cloud platforms – Microsoft Azure. The application in itself has layers of security features that span across various levels, from database, company, object, record, database logins to permissions on database objects—more about Business Central data security in this blog.


#2 Increased operational costs.


Another risk to consider is the increased support and maintenance costs of using outdated systems. Most companies do not realize that legacy systems also need legacy hardware to keep it running. As the years go by, it will be more challenging and more expensive for you to find servers or desktops with outmoded specifications to run your ERP.


The same goes with finding specialized, albeit out-of-date talent to support or train your people on an obsolete ERP. You will end up paying more for consultants who have these skill sets because of the lack of competition in the market.


Save on your IT spend.

New, cloud-based ERP solutions like Business Central do not require you to spend on expensive hardware. Moreover, it is supported by many Microsoft Dynamics partners like Systema Solutions that can deliver your ERP migration project with affordable rates. Here are more reasons why organizations choose Business Central as their next ERP.

#3 Lack of information.


Old systems will not be able to keep up in this day and age of ‘on-demand’, where people want data at the speed of a click of a mouse. It will not be able to provide you with real-time and deep insights that are imperative for business owners in making agile, informed decisions. The data silos that old systems cause will hinder your people’s productivity and limit your business’ agility to respond to changing market demands.


Streamline reporting.

In a study by the Aberdeen Group, they found that SMEs realize a 36% decrease in the time it takes to make decisions with a connected and modern ERP system. With robust data analysis and visualization capabilities available in cloud-based, newer ERP systems, you can gain better insight into your organization’s overall performance.

#4 Application incompatibility.


Application integration is an essential requirement for most enterprise systems in the modern business world. Such is the case of many companies we encounter where their ERP, CRM and reporting solutions are integrated to create a connected enterprise. However, your legacy ERP software was not developed with a connected business in mind. Hence, they do not integrate easily with other newer systems that your company uses.


Reinvent business productivity

Modern ERP solutions like Business Central work well with Microsoft 365 business productivity apps that you already know and trust. It also integrates natively with hundreds of third-party solutions for manufacturing, warehousing, e-commerce, reporting and more. These ready-made solutions allow you to get faster time to market, without the complicated and time-consuming development effort.

Minimize your risks.


Upgrading to a new ERP is the best way to minimize your risks. Growing businesses in fact, benefit from adopting new business management solutions, according to this Nucleus Research: Microsoft Dynamics Enterprise Applications for SMBs:

  • 54% process integration.

  • 50% resolve order processing issues.

  • 38% resolve data duplication and errors.

  • 34% reduce excess inventory.

We understand that a software upgrade is not an easy decision to make and it does not come with its own challenges. However, we can help make it a painless journey for you and your people.


We can assist you with determining the best way to modernize your ERP software – be it from Microsoft Dynamics NAV 2016, its lower versions or other platforms. Discover how we can help you to future-proof your business with Microsoft Dynamics 365 Business Central with any of these offers or you may consult us by calling 403 744 5358.