ERP Upgrades: 8 Tips | TMG
Upgrading an enterprise resource planning (ERP) system represents a significant undertaking that every growing business eventually encounters. ERP software often has a long shelf life, but maintaining an aging system increasingly strains resources.
ERP system modernization can unlock efficiency gains and new capabilities. However, inadequate preparation can disrupt operations or cause the upgrade to fail.
A structured approach helps avoid common pitfalls. The following eight tips outline how to improve the likelihood of a successful ERP upgrade.
Upgrading Your ERP System: 8 Tips
The following tips outline key planning and execution considerations that help organizations manage ERP system upgrades with lower risk and greater predictability.
1. Define the upgrade scope
Before starting, clearly define the scope of the ERP system upgrade. Document detailed requirements and, to prevent scope creep, secure stakeholder sign-off early. Where the upgrade supports broader ERP modernization, define that intent explicitly in the project scope.
A well-defined scope aligned with business objectives provides clear direction and helps maintain project focus. But note, the scope should clearly state exclusions, with all changes subject to formal change control. With our clients, upgrading their ERP system often involves implementing new system functionality and removing customizations, workflows and reporting that are no longer needed.
2. Assess organizational readiness
Evaluate whether your organization is prepared for the changes the new system will introduce. Even a well-planned project can stall if the organization does not actively support it. Many of the same factors that drive a successful initial ERP implementation apply to upgrades:
| Strong executive sponsorship. | Clear goals aligned with business strategy. |
| Adequate resources. | Effective change management to drive user adoption. |
Investing time in building organizational readiness significantly improves the likelihood of a successful upgrade.
3. Cleanse and standardize data before migration
An ERP system upgrade provides an opportunity to improve data quality. Before migrating data, you should first audit and clean it if needed. This involves:
| Enforcing consistent data standards. | Validating referential integrity. |
| Resolving data inaccuracies. | Eliminating redundant records. |
Cleansing and normalizing customer, vendor, item and other data in advance prevents ‘garbage in, garbage out’ issues in the upgraded system. Moreover, thorough data preparation streamlines go-live imports and reduces (often costly) downstream data accuracy issues.
4. Review vendor support model
Review your ERP vendor’s support policies and product roadmap as you plan the upgrade. If the provider has announced an end-of-life date for the current version, you should start planning a migration to a new ERP solution before official support ends.
Understanding the vendor’s support timeline helps you plan the project strategically. Operating an unsupported ERP increases security risk and drives costly maintenance workarounds, so it is best to migrate while full vendor support remains in place if you can.
Support timelines vary by platform. In the Microsoft Dynamics 365 ecosystem, release and support cycles influence upgrade timing and testing requirements. Working closely with an experienced ERP partner helps organizations plan, execute, and complete upgrades in line with vendor support policies.
5. Validate integration compatibility
If your organization relies on integrated systems, confirm that the ERP upgrade will not disrupt existing integrations. Early in the project, inventory all systems and interfaces that integrate with your ERP.
Confirm compatibility between the new ERP version and each integration, and identify required updates or replacements for third-party add-ons. Additionally, coordinate with internal IT teams and external vendors to test critical data flows well before go-live.
6. Establish clear executive ownership
Every successful ERP initiative has strong leadership behind it. Designate an executive sponsor for the upgrade project from the outset, a senior leader who is accountable for its success and has the authority to make key decisions.
Projects without active executive sponsorship often lose momentum. The sponsor should:
| Champion the upgrade’s business value. |
| Allocate resources. |
| Help resolve high-level issues. |
Sponsorship must remain active throughout the project lifecycle. A lack of sustained sponsor involvement can affect decision-making efficiency, user adoption and strategic alignment.
7. Plan user training
A new system delivers value only when employees know how to use it. For that reason, a comprehensive user training plan is central to the project’s success. Begin end-user training right before the new system goes live.
Effective user training involves:
| Defining role-based training requirements. | Providing hands-on practice environments. |
| Developing standardized training materials. | Assessing user readiness prior to go-live. |
TMG supports user training as part of its end-to-end ERP services. Training includes expert instructor-led online classes, with on-site training available. Our expert team also offers additional training after go-live, ensuring users remain supported as they adapt to the system.
8. Allocate budget for post-upgrade stabilization
Include time and budget buffers in the plan for the post-upgrade stabilization period. After go-live, teams will encounter issues to resolve and users who need additional support as they adjust. Many organizations underestimate this phase and fail to budget for the additional IT or consulting hours required immediately after an upgrade.
Allocate funding for a dedicated post go-live phase — typically several weeks of intensive support — following the upgrade. Insufficient support planning can increase the total cost of the upgrade and introduce operational risk.
ERP Upgrade vs. Replacement
In an ERP upgrade, you remain on the same software platform and move to its latest version. This approach is typically less disruptive and lower cost. In modern cloud ERP solutions (such as Microsoft Dynamics 365), upgrades are often incremental, with vendors delivering regular platform updates rather than infrequent, large-scale version changes.
An ERP replacement involves implementing a new ERP solution in place of your existing system. Replacing a legacy or ill-fitting ERP gives you the opportunity to reengineer processes, gain capabilities your current system may lack, and adopt modern technologies such as cloud and AI. However, it requires a full implementation project, including data migration, updating processes and workflows, redesigning or replacing customizations, rebuilding integrations, and retraining users. As a result, it typically involves a broader scope, greater investment, and a longer timeline.
If your current ERP remains supported and meets core needs, upgrading is usually quicker and cheaper, but also doesn’t always offer the best return on your time and investment. If the system is outdated or misaligned with your business requirements, replacing it with a modern platform can deliver greater long-term value despite higher upfront effort.
Supporting ERP Decisions Across the Lifecycle
With nearly four decades of experience and over 1,000 successful projects completed, The TM Group has guided businesses through every phase of the ERP journey.
As a leading Microsoft Dynamics partner, we provide end-to-end support, from system selection and implementation to upgrades and ongoing support. We ensure a smooth, well-managed ERP lifecycle. As one TMG client wrote, "I cannot imagine working with any other partner! Your team has been absolutely fabulous to work with and I could not have asked for more."
Whether you’re evaluating an ERP switch or need help maximizing your current Microsoft Dynamics investment, our experts are ready to assist.
Contact TMG Today
Frequently asked questions
What is the difference between an ERP upgrade and an ERP replacement?
An ERP upgrade involves moving from an older version of the current version of the same ERP software from the same vendor. In contrast, an ERP replacement involves switching to a different system or platform.
An upgrade represents a version change within the same ERP solution that users are already familiar with unless the vendor is making drastic changes, while a replacement requires a full implementation of a new solution.
How disruptive is an ERP upgrade to business operations?
With proper planning and testing, an ERP upgrade can limit operational disruption. Most organizations schedule the upgrade cutover during off-peak hours (i.e., a weekend) and complete thorough testing in advance. This typically results in brief planned downtime, followed by a short period of heightened support. In practice, business processes usually return to normal within days after the upgrade.
Does TMG work with organizations on legacy ERP systems?
Yes. The TM Group supports organizations running legacy Microsoft Dynamics GP and SL. We help plan upgrades of GP or SL as well as transitions to Microsoft Dynamics 365 Business Central as part of long-term ERP lifecycle management
How long does an ERP upgrade typically take?
Depending on the project’s scope and complexity, an ERP upgrade may take anywhere from a few weeks to months or even over a year. A small upgrade can be completed quickly, whereas a large, heavily customized upgrade could require anywhere from 6 months to a year or more.
Does TMG support ERP upgrades as well as new implementations?
Yes. The TM Group supports ERP initiatives across the full lifecycle, including new implementations, upgrades, and ongoing system support for Microsoft Dynamics ERP and CRM solutions.
Who should own the ERP upgrade internally?
A C-level executive should act as the internal sponsor of the ERP upgrade and be accountable for its success. This executive provides strategic leadership (i.e., offers oversight, secures cross-functional support, and champions the project) while a project manager handles day-to-day execution.
How long does post-upgrade support typically last?
Post-upgrade support is usually short: often around 2 to 4 weeks of support. During this time, project teams address issues immediately, and users receive additional support until the system runs smoothly in the new environment.
Can TMG provide support after an ERP upgrade go live?
Yes. TMG provides post–go-live support following ERP upgrades, including system support and additional user training as needed.
