How unsupported systems create business risks

SMEs and mid-market businesses often become deeply entrenched with their back-office and ERP systems, and major change may not be a priority.

This is especially true when a vendor’s strategy changes and an existing system becomes unsupported. The replacement project feels unnecessary, and the company’s leaders lack motivation to take action.

However, the consequences of this decision can be very significant, as I was reminded in two recent conversations.

Firstly, a conversation with cyber security experts reminded me that certifications like Cyber Essentials Plus are probably no longer be valid if key software for your business is no longer supported. If you are ISO27001 accredited, that probably sets out a commitment to maintaining programmes of upgrades. Also we have seen contracts where customers require their suppliers to use supported software.

It’s not just the accreditation you have to worry about. Cyber security is a constantly evolving threat, and out-of-date software becomes vulnerable to new threats. Even if your software was secure a year ago, if the vendor stops patching it then it may not be secure now. Unsupported software inevitably becomes insecure.

Secondly, Marc Rocker, Head of Cyber Ardonagh Advisory, an insurance broker, reminded me that your company insurance may be affected. As he says:

‘The declarations required for cyber insurance can include reference to back-office software support, and major changes like this needs to be reported to your broker’.

But, most importantly, lapse of your cyber security and insurance is not just an inconvenience; leaders should take it as a sign that your business is running a very substantial level of risk!

This doesn’t make system replacement any more convenient, but we strongly counsel companies running key unsupported software to embark on replacement for good commercial reasons.

Modern automation software and AI may help you remove manual tasks and reduce staff overheads. System replacements give you an opportunity to ensure your systems are aligned to your business strategy and the needs of your customers, rather than just continuing to do things the way you have always done them. And new cloud software can be surprisingly inexpensive!

We encourage businesses to see this as an opportunity to replace previous systems and processes with new, better, more efficient and effective ways of working.

Are you facing a forced ERP or back-office system replacement? It may feel like a grudge purchase, but it’s actually an opportunity for transformation. The right approach can unlock efficiency, reduce risk, and even win new business.