The Yellow Plague: Why Companies Should Switch to Mature ERP Systems

For many years, the yellow system has been the dominant platform for accounting and management in Kazakhstan. Thousands of companies—from small businesses to large holdings—use it as their sole digital tool. But in today’s rapidly changing technological, political, and economic environment, dependence on it is no longer an advantage—it’s a risk. Below are the reasons why Kazakhstani companies should seriously consider transitioning to more modern and independent solutions.

This applies especially to owners and shareholders. ERP is not just about accounting—it is a strategic asset that either accelerates business or holds it back. A modern ERP is like a nuclear reactor: once properly launched, it ensures the continuous forward momentum of the business. It’s a “digital perpetual motion machine” that keeps working even when the owners are focused elsewhere.

Companies grow when they make the right decisions. And good decisions are impossible without accurate information. The entire history of a successful business is a story of management choices—first intuitive, then based on experience, and eventually grounded in data. When a company grows beyond its startup phase, its leadership critically needs more than accounting reports—it needs a real picture of the business: where it earns, where it loses, where to invest, and what’s the cost of a mistake.

This is where a mature ERP becomes a key asset. It transforms data into information, information into understanding, and understanding into action. Without such a system, a manager either gets lost in micromanagement—or loses control.

1. Primitive Financial Subsystem and Lack of Deep Business Logic

The financial accounting in the system is based on outdated Soviet-style logic—just a single line per transaction: debit, credit, amount. There is no clear event model, no ability to build multidimensional analysis on transaction-level data. Western-class systems (Oracle, SAP, Microsoft) record transactions as a series of events with full breakdowns, links to business processes, partner details, contracts, and analytics.

This is accounting with layered logic—not a full-fledged enterprise management system.

One of our clients said it best: “Where this system is used, there is no real accounting. And where it is—someone is always exploiting the gaps.”

2. No ERP Strategy, Poor Interconnectivity, Customization Instead of Processes

This is not an ERP system in the Western sense. There are no end-to-end business processes. Modules are integrated manually—often through “scripts” or custom solutions. As a result:

• Every project is a unique “zoo” of configurations,
• Updates break existing logic,
• It’s hard to implement control, BI, or workflows,
• Scaling requires constant rework.

Instead of developing processes, companies patch holes through endless customization.

3. Political and Sanctions-Related Risks

The product is linked to a jurisdiction under increasing sanctions pressure. Amid rising global isolation and geopolitical instability:

• A ban on using technologies from sanctioned countries could be introduced,
• In a scenario of mass rejection and panic demand for alternatives, switching will become expensive, complex, and slow,
• The most forward-thinking companies are preparing for the transition now—before the rush begins.

Waiting could mean losing time, money, and control over the business.

4. Limited Integration and Closed Logic

Technically, the system supports basic APIs and integrations, but in reality:

• There are no ready connectors to international CRM or BI systems,
• Every integration requires manual scripting and support,
• The architecture is designed for isolated use, not for participation in a digital ecosystem.

Such closed logic contradicts modern digital transformation principles, which prioritize:

• Open protocols,
• Scalability,
• Seamless integration with external services.

As a result, any expansion beyond the “yellow logic” becomes costly and unstable.

5. People Make the Difference: Skill Deficits, Narrow Thinking, and Misaligned Goals

Every system is only as strong as the people who use it. You can buy any ERP—but it’s the people who make it work. With the “yellow system,” we face a paradox: it’s so primitive that it doesn’t require real specialists. As a result:

• Specialists grow inside a closed logic of “entries balance—report filed.”
• Accounting dominates thinking, not management.
• Management becomes fact logging, control becomes reconciliation, planning becomes copy-pasting the past.

This is critical. Because real business management isn’t about tax reporting. It’s about:

• Scenario planning
• Risk assessment
• Financial modeling
• Cash flow and P&L by segment
• Managing by KPIs—not by gut feeling

But the current system and its ecosystem do not require such tasks. So professionals don’t develop those competencies.

Owners must ask themselves: if your finance team “doesn’t like Excel,” can’t build models, and has no idea what driver-based budgeting is—your system isn’t growing people. And without people who can manage, no digitalization will move your business forward.

A strong ERP isn’t just about the software—it’s about the people it shapes.

If your system only shapes journal entries—it holds you back.

Conclusion:

This system works—as long as you don’t want to grow. If you plan to scale, enter new markets, integrate with international systems, and manage your business through analytics—not manual checking—this system will become a limitation, not a support.

Kazakhstani companies must make a strategic choice in favor of open, flexible, globally recognized ERP systems.

Oracle, SAP, Microsoft, Odoo, IBM, Infor—these are not just trendy names. They’re the path toward maturity, transparency, and growth.