About this blog series
The renewal of ERP (Enterprise Resource Planning) systems is a critical for many companies aiming to optimize their business processes and meet modern technological demands. BearingPoint regularly conducts systematic market research on ERP systems, identifying and analysing the current situation, changes, and trends. This study was conducted through interviews with employees in managerial positions at industrial companies in Finland.
In this blog series, we present the findings from interviews, which are divided into four key categories: Technology, Key considerations, Implementation Projects, and Change Management. This blog post examines the research results from the point of view of change management. The results of the interviews examine the functions that are to be renewed and developed, as well as the system update and the choice of technology.
Part 1: ERP Study 2025: ERP Systems in a Rapidly Evolving Technology Environment
Picture 1: The industries of the participating companies and the job titles of the interviewees.
Functions to be Renewed & Developed
The participating companies have identified the need to update several key business functions in connection with their ERP projects. All companies are planning to renew their procurement, supply chain, and financial processes. These processes are central to operational activities and have a direct impact on cost management and supply chain. By renewing these processes, businesses can improve resource management, reduce costs, and increase transparency. Additionally, 80% of companies plan to renew their service management functions, and 60% aim to enhance their sales and marketing, manufacturing, and asset management processes. Only 20% is planning to renew their engineering and project management or human resources.
According to the interviewees, the weakest features of current ERP systems include mobile ERP, artificial intelligence (AI), enhanced ERP analytics, and the ability to use collaboration platforms (e.g., Teams, Slack) and IoT integration with ERP systems. The best features are considered to be the fulfilment of sustainability requirements (ESG, CSDR), hyper automation, and ERP personalization. The areas with the most room for improvement are mobile ERP, enhanced ERP analytics, artificial intelligence, and hyper automation. Companies have clearly identified the areas for development in their existing ERP systems and set goals for the new systems which underscores the need to invest in technologies that enhance the performance and flexibility of systems.
System Update & Technology Selection
There is no specific ERP system on the market that is preferred by all participating companies. Most companies aim to upgrade their current systems to better meet their needs.
The choice of technology is a significant aspect of the ERP renewal project. According to the interviewees, the most influential factors in technology selection are the Total Cost of Ownership (TCO), the transition path from the current system to the new one, and compatibility with industry-specific business requirements. Less influential factors include previous experiences with the system, minimizing the need for customization, availability of implementation and support resources, and end-user availability.
Accurately estimating the Total Cost of Ownership (TCO) is crucial for ensuring a project’s long-term viability. To facilitate a smooth transition, it’s essential to plan a clear path from the current system to the new one. The chosen technology must align with industry-specific business requirements, supporting both strategic goals and operational efficiency. While past experiences with the system are not the primary focus, they can offer valuable insights to avoid previous mistakes. Reducing the need for customization can simplify maintenance and updates, thereby lowering costs. Additionally, having adequate implementation and support resources is vital for seamless deployment and ongoing maintenance. Finally, considering end-user availability is important to ensure the system is efficiently used and accepted within the organization.
Conclusion
In the rapidly evolving business landscape, ERP systems have emerged as important tools for driving business development as well as supporting digital transformation initiatives. On top of that, ERP systems are in the core of ensuring compliance with regulatory requirements and industry standards. With built-in compliance features, ERP systems can automate the tracking and reporting of regulatory data, reducing the risk of non-compliance and associated penalties. The strategic importance of ERP systems also extends to their ability to support business scalability and growth. As companies expand, ERP systems should easily adapt to increased transaction volumes and new business units, ensuring that the organization can scale without compromising on performance. This scalability is vital in modern business environment when businesses are looking to enter new markets or launching new products. In conclusion, the renewal and strategic implementation of ERP systems are not just about upgrading technology; they are about transforming the very fabric of how businesses operate.