How to Improve Software Performance: Tips for ERP System Optimization

I decided to write a blog post on how to improve software performance simply because it’s one of those topics that’s often ignored until it’s too late. If your ERP system or business software feels slower than it used to, you’re not alone. Many companies face performance issues as their systems grow and evolve. But the good news is that there are practical steps you can take to improve software performance, reduce lag, and keep everything running smoothly.

In this post, I’ll share actionable tips I’ve used in real-life ERP projects to improve response times, reduce system load, and optimize the overall performance of complex business software.

IMPORTANT: Make sure you perform these steps at the beginning of the ERP implementation. Also, make sure you do these steps on a regular basis, and make sure your ERP partner is aware of that.

1. Start With Database Volume and Data Cleanup

A common performance killer is data overload. As time passes, ERP systems collect massive amounts of data – most of it no longer relevant for daily operations.

Here’s what you can do:

• Archive old records that are no longer in use. A lot of systems already have functionalities for archiving old data like General Ledger transactions, VAT-related transactions etc. Make sure that you check for how long you have to keep this data. You can check this with authorities and/or auditors.
• Clean up temporary tables and log entries. If you are tracking changes to master data or setup tables in some kind of database log, make sure you clean this data on a regular basis. Also, check with your auditors for how long do you have to keep this data.
• Avoid storing unnecessary custom fields and tables – they add weight to every query, so make sure you simplify the system and (if possible) delete the unnecessary tables and columns.

This is a foundational step in ERP system optimization and makes a noticeable impact. Removing unused data will already solve many issues. If you still have to keep the data somewhere, but you don’t need it in ERP, you can archive it to some external storage.

2. Control Transaction Logs and Growth

Transaction logs are critical for data integrity, but if not managed properly, they can grow endlessly and degrade performance.

Tips to improve software performance:

• Use the appropriate recovery model for your needs (simple, full, or bulk-logged).
• Schedule regular log backups.
• Monitor file size and shrink logs if necessary – especially after large imports or updates.

3. Review User Access and Session Management

Inactive users or overly complex role structures can weigh down your system.

Optimize performance by:

• Removing or disabling users who no longer need access. You can ask both your HR and IT departments to see who is still working for the company, and who is not.
• Reduce the number of user roles that you have in the system.
• Start managing session timeouts to prevent idle users from consuming system resources.

This kind of software performance tuning improves both system security and efficiency.

4. Optimize Custom Code and SQL Queries

Slow code leads to slow systems. Whether it’s custom modules, reports, or integrations – inefficient logic drags everything down.

Key actions:

• Analyze query execution plans and identify bottlenecks…or ask you ERP partner to do it.
• Replace SELECT * with specific columns.
• Use indexes wisely – too many can hurt write performance.
• Store heavy logic in stored procedures for better performance.
• Make sure that only system admins (and data engineers) have access to the database behind your ERP. I’ve seen many cases in which end users had access directly to the DB.
• If users need access to data, make sure you store it somewhere outside the ERP (data warehouse or data lake)

Custom reports and poorly written queries are common culprits in ERP environments – this is a key area for ERP system optimization.

5. Use Background Processing and Caching Wisely

Not every process has to be instant. Real-time updates are great, but not at the cost of responsiveness.

How to improve software performance here:

• Move long-running tasks (like report generation or data sync) to background jobs. Make sure you run most of these jobs outside working hours.
• Cache frequently accessed but rarely updated data, like static product info.
• Avoid synchronous calls when asynchronous alternatives exist.

This is especially important when doing software performance tuning in systems with high user traffic.

6. Streamline API and Integration Workflows

Modern ERP systems are interconnected with other tools via APIs. But overusing real-time calls or syncing every second can hurt performance.

Optimization tips:

• Use batch processing for large data transfers.
• Schedule data sync during off-peak hours.
• Monitor API usage to see how you can improve the integrations.

7. Enhance the UI/UX for Speed

The user interface plays a huge role in perceived performance. Even if your backend is optimized, poor front-end behavior can create delays.

Try these fixes:

• Use pagination for large lists.
• Implement lazy loading for non-essential sections.
• Minimize unnecessary client-side scripts or plugins.
• If you are accessing your ERP with a web browser, make sure to check if users are using too many browser add-ons. This can also impact the performance of the UI.

8. Scale and Monitor Your Infrastructure

Sometimes performance problems aren’t software-related at all – they’re caused by server overload or poor architecture.

Steps to consider:

• Monitor CPU, memory, and I/O using tools like Azure Monitor or Prometheus.
• Use load balancers to spread the workload.
• Add read replicas for reporting.
• Consider scaling out (more servers) or scaling up (better servers).

9. Establish Regular Maintenance and Monitoring

Performance tuning isn’t a one-time job. It’s a continuous process.

Make this part of your routine:

• Set up automated database maintenance plans.
• Set up batch jobs for cleaning up unused or old data.
• Use application monitoring tools like Application Insights by Microsoft .
• Apply patches and updates to your ERP software and underlying components.

Ongoing monitoring is essential if you’re serious about software performance tuning.

Final Thoughts: Keep It Simple

If there’s one thing I’ve learned, it’s this – the more complex your system is, the harder it is to keep it fast. Clean architecture, minimal customizations, and lean data go a long way.

So if you’re wondering how to improve software performance, start small:

• Archive old data.
• Tune queries and logs.
• Simplify your roles and access.
• Run regular audits.

Performance is not about having the biggest server – it’s about having the cleanest, smartest setup.