The ERP landscape is changing. The current landscape is identified by a heterogenic structure caused by various eroding factors. Companies set out to create company-wide ERP systems in the late 1990’s, but are now in need of a new wave of renewal.
BearingPoint Finland conducted the ERP Study with the aim of addressing the current shifts in the Finnish ERP landscape. It was conducted through comprehensive interviews with large Finnish enterprises, both publicly listed and private. The interviews were held during summer-autumn 2020 and consider both the current situation and their ERP strategy.
Recently, there has been a major trend where digital solutions are moving towards SaaS models. BearingPoint Finland set out to conduct the study in order to find whether this trend is affecting the ERP landscape as well. Major ERP software providers have also recently announced changes in the version upgrades, and one major goal of this study was also to find whether companies’ renewal processes are affected by this.
The result section is divided into two sections, followed by an executive summary. More results can be found in the study itself.
In the present, many companies are using software that is over 15 years old. Many companies operate multiple hosting solutions simultaneously, with some still using own data centers. There is a clear distinction in the software preference between larger and smaller companies, where SAP is leading the larger ones and Microsoft in the smaller ones. 71% of our sample companies operate a hybrid of two or more solutions as their core ERP solution.
The way forward is identified by both business and technical drivers. The ERP renewal has already started in many companies and will mostly take place during the coming 2-3 years for our sample companies. Out of the 24 companies interviewed, 92% already have a plan for renewal. Out of them, half have the business case approved.
Current systems have eroded and no longer support the targeted situation. A demand for companies to pursue SaaS solutions exist. The solutions are however not mature enough.
The wave of renewal extends to a wide range, with over 92% of respondents already having a plan. The biggest drivers relate to business and technical factors.
The technologies surrounding the ERP solutions are rapidly changing. These factors, such as AI and ML, can not be neglected when evaluating the ERP renewal. Proper evaluation will have a positive impact on the success of the renewal.