Agnė Balkevičiūtė Lajienė, Commercial Operations Manager, 1ClickFactory
As a Microsoft partner, communicating the value of a Dynamics ERP upgrade can feel like a harder sell than the sale of the original of the system. There are many events and conditions that can drive the need for an upgrade by a Dynamics ERP customer. As a partner, it is in your best interest to be in tune with the signs that your clients are candidates for an upgrade.
Key Demand Drivers for An Upgrade
For a Dynamics ERP partner, understanding the motives that drive customer demand for Dynamics NAV upgrades is very important for your long term business success. To be frank, nobody goes “window-shopping” for an ERP upgrade. However, being able to identify the drivers that lead to a serious upgrade discussion ought to be a crucial component of your business plan.
Interestingly, many ERP upgrade decisions can be reverse engineered to identify a negative and emotional “trigger” event that is usually related to strategic, economic, or risk factors that have a very measurable impact on the organization if left unchanged. An example would be losing a large and profitable client, writing off a significant volume of inventory, paying a large penalty, or watching an internal metric cross a threshold.
Every organization has a different story and reason for reaching the conclusion that now is the time to invest in an ERP upgrade. Other well-known demand drivers for upgrades are:
- React to discontinuation and end of solution support (Dynamics NAV 2009 and earlier versions are out of Microsoft support already)
- Increase productivity
- Take advantage of new technology/functionality
- Meet growth and profitability goals
- Increase ROI from BREP and ERP investment
- Response to new requirements and regulations
- Increase software integration
- Solve resourcing challenges
- Make customer’s dream of Cloud ERP come true.
- Enable access to the system through various devices (smartphone, tablet, desktop, etc.)
But there is good news: Dynamics NAV 2016 contains many powerful enhancements, and implementing (upgrading) it can address most of these drivers and fulfill your customers’ needs.
Why You Can’t Afford to Miss the Signs
While fostering meaningful relationship over time, you as a software partner have to help your clients to understand how they can benefit from an upgrade. By staying on an old release for many years, customers’ TCO (total cost of ownership) of software increases while their ROI (return of investment) decreases. It also evokes distrust for a vendor from a customer.
To show the value of upgrading, educate your clients on the latest version, especially around capabilities that could help ease the pain in their daily operations. Help them translate functional improvements into economical gains for their companies. Let them experience the powerful Dynamics NAV 2016 – take a guided tour through the core processes and support your customers in building a strategy for the ERP system maintenance. Successful upgrades, done for the right reason and at the right time, strengthen your client relationship and your own business.