Reasons to select a new ERP platform

Organisations choose to adopt a new ERP system for several strategic reasons:

As companies grow or expand into new business areas, their current ERP platform may no longer be able to handle the increased complexity, scalability or functionality required. Upgrading or replacing the ERP system will be necessary to support these evolving needs.

In the case of a corporate merger or acquisition, multiple systems and applications may be in use across different business units. Standardising on a single ERP platform streamlines operations, increases efficiency and reduces duplication of effort. Typically, the acquiring company will choose the ERP system that becomes the corporate standard and all acquired businesses will need to migrate to this platform.

When an ERP platform is no longer supported by the vendor, organisations face a choice: continue operating on an unsupported version with increased risk, upgrade to a vendor-supported release, or evaluate alternative ERP products that may better meet current business needs.

Cloud ERP adoption has become an attractive choice due to its flexibility, scalability and lower maintenance costs compared with on-premise solutions. Many organisations are moving to the cloud not just because vendors are phasing out support for legacy systems, but also because cloud platforms offer real-time data access, easier integration with other systems and a more streamlined path to future digital transformation.

Given the current market environment, characterised by cautious business confidence, most transformation initiatives tend to focus on upgrading existing ERP platforms to supported releases, often cloud-based, rather than pursuing costly and riskier greenfield ERP implementations. The high costs and uncertain market conditions have made businesses more risk-averse, opting for incremental improvements over complete system overhauls.

Is this how you see ERP market activity or are things different in your market sector?