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.

ERP Study 2020 in brief

The study assesses the current ERP landscape via comprehensive interviews with Finnish enterprises. It provides insights into the current situation and the drivers for the renewal process.​ The study indicates that the ERP landscape is currently undergoing a major upgrade wave and is moving towards more efficient solutions​. 

Drivers for the study 

A changing digital environment

  • General migration towards SaaS software​
  • Changes in digital consumption

Major shifts in the ERP landscape

  • Major software upgrades from technology providers​
  • New era of business demand

BearingPoint's curiosity to understand

  • How are the companies affected by the trends?​
  • How can we better serve our customers?

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.


Results of the study

The result section is divided into two sections, followed by an executive summary. More results can be found in the study itself.

Results: Current situation

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.

Results: Way forward

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.

  • The overall the sizes of investments are significant​
  • Largest business drivers relate to the required support for new business​
  • Largest technical drivers relate to a demand for new technical architecture​
  • Companies seek benefits that have to do with harmonization and agility​
  • Companies face challenges in terms of insufficient business resources​
  • The technology selection is driven by several factors, largest being a need for minimized customization​
  • Support will be used in project management and solution concepting amongst others

Results: Summary

Current situation

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 ERP renewal 

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 future

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.

 

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