{"id":63509,"date":"2025-12-12T13:27:15","date_gmt":"2025-12-12T13:27:15","guid":{"rendered":"https:\/\/www.elixirr.com\/en-gb\/?p=63509"},"modified":"2025-12-12T13:27:18","modified_gmt":"2025-12-12T13:27:18","slug":"erp-in-the-age-of-ai-is-the-multi-year-programme-dying","status":"publish","type":"post","link":"https:\/\/www.elixirr.com\/en-gb\/erp-in-the-age-of-ai-is-the-multi-year-programme-dying\/","title":{"rendered":"ERP in the\u00a0age of AI:\u00a0Is the multi-year programme dying?\u00a0"},"content":{"rendered":"\n
\n
\n

Chapter 1:\u00a0We\u2019ve\u00a0always\u00a0done\u00a0it\u00a0this\u00a0way<\/span><\/b>\u00a0<\/span><\/h2>\n

ERP has always been one of the most daunting undertakings in the corporate world. The playbook was familiar: select a vendor, mobilise a consulting partner, assemble a programme office and prepare for years of disruption. Everyone knew the rules of engagement.<\/span>\u00a0<\/span><\/p>\n

Large teams of consultants would descend on the business. Workstreams were defined across finance, supply chain and HR. Leadership spent hours in steering committees debating scope and budget. The end goal was clear: get the system live,\u00a0breathe a sigh of relief\u00a0and hope the business would\u00a0cope.<\/span>\u00a0<\/span><\/p>\n

For decades, this way of working persisted\u00a0not because it was perfect but because it was the only way that seemed\u00a0feasible. ERP was too big, too critical, too complex to be delivered any other way.<\/span>\u00a0<\/span><\/p>\n

Business leaders know what this model really meant: spiraling costs, creeping fatigue and a transformation that often promised more than it delivered. Gartner has found that most ERP programmes ran<\/span>\u00a030%\u00a0over time and 50%\u00a0over budget,\u00a0and\u00a0ultimately\u00a065%\u00a0failed to\u00a0meet their quality goals. This became the\u00a0\u2018cost of doing ERP.\u2019<\/span>\u00a0<\/span><\/p>\n

 <\/p>\n

Chapter 2: When ERP\u00a0was a\u00a0monolithic\u00a0giant<\/span><\/b>\u00a0<\/span><\/h2>\n

The persistence of this model made sense when ERP was a monolith. In the 1990s and 2000s, ERP was designed to be a single, all-encompassing backbone. Companies standardised their core processes around one giant system, often customising it heavily to mirror the way the business worked.<\/span>\u00a0<\/span><\/p>\n

The upside was control. Executives could say,\u00a0\u2018finance, HR and supply chain are all running on one system.\u2019\u00a0The trade-off was rigidity. Every tweak required expensive development. Every upgrade felt like open-heart surgery.<\/span>\u00a0<\/span><\/p>\n

Projects routinely spanned five to ten years. A global manufacturer might spend \u00a3100 million over multiple phases, with thousands of people involved. The success metric was binary: either the system switched\u00a0on\u00a0or it\u00a0didn\u2019t. Adoption, business\u00a0value\u00a0and agility were secondary.<\/span>\u00a0<\/span><\/p>\n

Executives accepted this because ERP was seen as infrastructure. Like a factory or a power grid, it was a massive investment meant to last. The pain was tolerated because the system was expected to endure for a decade or more.<\/span>\u00a0<\/span><\/p>\n

 <\/p>\n

Chapter 3: The SaaS\u00a0challenge<\/span><\/b>\u00a0<\/span><\/h2>\n

The 2010s introduced cracks in this model. Vendors like SAP and Oracle pivoted to SaaS, shifting ERP from a one-off purchase to a subscription service. Twice-yearly releases became standard. New features arrived continuously, whether customers were ready or not.<\/span>\u00a0<\/span><\/p>\n

This forced leaders into uncomfortable territory. For years, they had customised ERP to fit their businesses. Suddenly, they had to adapt their businesses to fit ERP. The model was flipping.<\/span>\u00a0<\/span><\/p>\n

Executives felt the tension. The CIO of a global retailer described the challenge of managing quarterly release cycles with a team still wired for decade-long projects;\u00a0he said,\u00a0\u2018we\u2019re trained to run marathons,\u00a0now the vendor is asking us to sprint\u00a0every three months.\u2019<\/span>\u00a0<\/span><\/p>\n

SaaS made ERP more flexible in theory.\u00a0In practice,\u00a0many organisations clung to the old delivery approach. They still mobilised armies of consultants, still ran multi-year programmes, still measured success by go-live.\u00a0The new pace of ERP collided with old delivery\u00a0mindsets\u00a0and the old playbook began to\u00a0lose.<\/span>\u00a0<\/span><\/p>\n

 <\/p>\n

Chapter 4: Enter the AI\u00a0era<\/span><\/b>\u00a0<\/span><\/h2>\n

That collision has now reached a breaking point. We are firmly in the AI era, and ERP will never be the same again.<\/span>\u00a0<\/span><\/p>\n

AI has already transformed how ERP gets delivered. Testing cycles can now be cut by\u00a0<\/span>40%, deployment effort reduced by\u00a020-30%\u00a0and solution build effort halved. Programmes that once spanned three years can now be delivered in 18 months. Costs are reduced by a quarter, quality improves and adoption accelerates.<\/span>\u00a0<\/span><\/p>\n

The deeper shift is how ERP evolves after go-live. SAP estimates that\u00a0<\/span>70%\u00a0of S\/4HANA\u2019s business value will come from AI-driven optimisation,\u00a0automation\u00a0and data insight.<\/span>\u00a0That means ERP stops being a static system and becomes a living, learning platform.<\/span>\u00a0<\/span><\/p>\n

Consider\u00a0a logistics\u00a0company struggling with volatile demand. In the old world, ERP would provide reports weeks after the fact. In the AI-native world, the ERP continuously ingests real-time data, forecasts bottlenecks and auto-adjusts inventory allocations. What used to take a special project becomes part of the day-to-day system.\u00a0This is more than efficiency. It repositions ERP as a continuous reinvention engine,\u00a0constantly aligning the business with its strategy and the realities of its market.<\/span>\u00a0<\/span><\/p>\n

But here is where nuance is needed. These promises are compelling, but they are not guaranteed. AI maturity varies widely across organisations. Legacy systems, patchy data\u00a0quality\u00a0and regulatory constraints\u00a0remain\u00a0stubborn barriers. What is transformative in one company may feel like chaos in another. Leaders must separate vendor hype from achievable outcomes.<\/span>\u00a0<\/span><\/p>\n

 <\/p>\n

Chapter 5: Rethinking ERP\u00a0investments<\/span><\/b>\u00a0<\/span><\/h2>\n

For business leaders, this demands a radical rethink.<\/span>\u00a0<\/span><\/p>\n

ERP can no longer be justified as a compliance-driven upgrade. Nor can it be treated as a back-office refresh.\u00a0In the AI era, ERP is a strategic lever,\u00a0which\u00a0comes with\u00a0trade-offs.\u00a0This demands a different approach to leadership:<\/span>\u00a0<\/span><\/p>\n

    \n
  • From\u00a0full\u00a0scope to\u00a0MVP\u00a0\u2013\u00a0<\/span><\/b>ERP used to be about the big\u00a0\u2018all in one\u2019\u00a0solution. The SaaS shift tried to make the industry pivot to\u00a0a slimmer MVP approach (remember the famous SAP\u00a0\u2018lean core?\u2019), but old habits prevailed and the MVP became larger over the life of the programme.\u00a0AI\u00a0will make the shift to smaller, lighter, faster programmes with a continuous improvement cycle post-programme permanent.<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
      \n
    • From\u00a0go-live to\u00a0outcomes\u00a0\u2013\u00a0<\/span><\/b>Success is not measured by switching the system on, but by business results\u00a0meaning\u00a0faster financial closes, better inventory\u00a0turnover\u00a0and\u00a0improved resilience.\u00a0However,\u00a0boards must recognise that these gains may not arrive evenly or\u00a0immediately.<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
        \n
      • From\u00a0compliance to\u00a0resilience\u00a0\u2013\u00a0<\/span><\/b>ERP used to be about\u00a0static design and\u00a0rigid structures. Now it must flex with volatility:\u00a0supply shocks, inflation\u00a0spikes\u00a0and\u00a0regulatory shifts.\u00a0Resilience requires ongoing investment and vigilance. It is not a one-off achievement.<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
          \n
        • From\u00a0capital\u00a0project to\u00a0continuous\u00a0product\u00a0\u2013\u00a0<\/span><\/b>ERP is less like a factory and more like a product line, requiring continual enhancement and governance.\u00a0Perpetual change can be exhausting. Leaders must balance agility with stability, ensuring that constant iteration does not lead to governance fatigue.<\/span>\u00a0<\/span><\/li>\n<\/ul>\n

          Leaders also need to change\u00a0how\u00a0these\u00a0investments are framed and funded. Instead of evaluating ERP as a capital project with a defined end point, leaders should evaluate it like they would a product line: what ongoing returns does it generate? How does it improve cash flow,\u00a0resilience\u00a0and competitiveness?\u00a0<\/span>\u00a0<\/span><\/p>\n

          For CFOs, this means holding ERP to the same standard as any other major investment. For example, embedding AI into ERP processes can<\/span>\u00a0yield\u00a03-5%\u00a0productivity gains\u00a0in finance and supply chain. Even a modest\u00a01%\u00a0margin uplift on a \u00a31 billion business equals \u00a310 million in annual benefit. That is the language of shareholder value, not IT compliance.<\/span>\u00a0<\/span><\/p>\n

          For CIOs, it means redefining credibility. The measure of success is not whether the system went live;\u00a0it\u2019s\u00a0whether ERP is improving P&L, enabling\u00a0agility\u00a0and reducing risk. Boards expect ERP to deliver measurable business outcomes, not technical milestones.<\/span>\u00a0<\/span><\/p>\n

          The leaders who get this right treat ERP\u00a0as an asset,\u00a0not as an overhead.\u00a0<\/span>\u00a0<\/span><\/p>\n

           <\/p>\n

          Chapter 6: Continuous\u00a0change\u00a0demands\u00a0new\u00a0leadership<\/span><\/b>\u00a0<\/span><\/h2>\n

          This shift\u00a0doesn\u2019t\u00a0just alter the business case. It alters leadership itself.<\/span>\u00a0<\/span><\/p>\n

          In the monolithic era, ERP governance was episodic: form a steering committee, deliver the\u00a0system\u00a0and\u00a0disband. In the AI era, governance must be\u00a0<\/span>continuous<\/span>. Boards need to treat ERP the way they treat strategy:\u00a0constantly\u00a0monitored,\u00a0adjusted\u00a0and refreshed.\u00a0This requires new leadership behaviours:<\/span>\u00a0<\/span><\/p>\n

            \n
          • Agility over rigidity\u00a0\u2013\u00a0<\/span><\/b>Leaders must be willing to make quarterly adjustments rather than set a ten-year course.<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
              \n
            • Collaboration across functions\u00a0\u2013\u00a0<\/span><\/b>CFOs and CIOs must co-own ERP, aligning technology choices with financial outcomes.<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
                \n
              • Resilience-first thinking\u00a0\u2013\u00a0<\/span><\/b>ERP must be positioned not just as efficiency software but as a resilience platform, capable of flexing under shocks\u00a0\u2013\u00a0whether supply chain disruption, inflation spikes, or regulatory shifts.<\/span>\u00a0<\/span><\/li>\n<\/ul>\n

                Equally, leaders must confront the ethical and operational risks of AI. Automated decision-making in finance and supply chain can accelerate insights. It also raises accountability questions when AI gets it wrong. Cybersecurity threats grow as ERP becomes more connected and\u00a0data-hungry. These risks cannot be ignored.<\/span>\u00a0<\/span><\/p>\n

                A CIO at a consumer goods company put it bluntly:\u00a0\u2018ERP used to be the problem we solved once a decade. Now\u00a0it\u2019s\u00a0the muscle we flex every quarter.\u2019<\/span>\u00a0<\/span><\/p>\n

                 <\/p>\n

                Chapter 7: Curiosity as the\u00a0core\u00a0skill<\/span><\/b>\u00a0<\/span><\/h2>\n

                Finally, this transformation reshapes what is expected from people.\u00a0In the AI-ERP era, the most important skill is no longer deep system\u00a0expertise. It is\u00a0<\/span>curiosity. The ability to explore new features, test new capabilities and continually adapt.<\/span>\u00a0<\/span><\/p>\n

                Twice-yearly releases used to feel disruptive. In the AI era, change will arrive monthly, even weekly. AI copilots will alter how processes are executed. Automation will reshape how teams collaborate. Organisations that thrive will be those where employees see change not as a threat but as a chance to learn.<\/span>\u00a0<\/span><\/p>\n

                This requires new cultural norms. Leaders must reward experimentation, not just compliance. They must encourage continuous learning, not just once-off training. They must create space for employees to ask better questions, not just execute tasks.\u00a0In short, curiosity has become the defining capability. A workforce that learns fast will outpace a workforce that resists change,\u00a0even if the latter has deeper experience.<\/span>\u00a0<\/span><\/p>\n

                 <\/p>\n

                Conclusion: The\u00a0leadership\u00a0choice<\/span><\/b>\u00a0<\/span><\/h2>\n

                ERP has travelled through three eras: the monolith, the SaaS pivot and now the AI-native revolution. Each era has demanded a new playbook.\u00a0Only this last one has the potential to shift ERP from a costly burden to a source of competitive advantage.\u00a0The question is whether leadership is prepared to evolve.\u00a0It depends on leaders approaching ERP not as a finish line but as an ongoing journey;\u00a0one that demands curiosity,\u00a0adaptability\u00a0and a willingness to grapple with both opportunities and risks.\u00a0ERP is no longer something you complete. It is something you continually recalibrate. The leaders who embrace this balance,\u00a0seeing ERP as both a source of competitive advantage and a domain requiring vigilance,\u00a0will be the ones who thrive in the age of AI.<\/span>\u00a0<\/span><\/p>\n <\/div>\n <\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":6,"featured_media":63517,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[116],"tags":[115],"related_service":[81],"related_industry":[],"class_list":["post-63509","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-ai"],"acf":[],"yoast_head":"\nERP in the\u00a0age of AI:\u00a0Is the multi-year programme dying?\u00a0 - Elixirr<\/title>\n<meta name=\"description\" content=\"It depends on leaders approaching ERP not as a finish line but as an ongoing journey; one that demands curiosity, adaptability and a willingness to 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class=\"wp-component-card edwp-component wp-component-card--resource wp-component-card--link js-card-link\n edwp-fade-in\">\n <figure class=\"wp-component-card__image-wrapper\">\n <img width=\"2400\" height=\"1440\" src=\"https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2025\/12\/ERP-in-the-age-of-AI-2-2400x1440-1.jpg\" class=\"wp-component-card__image\" alt=\"\" decoding=\"async\" srcset=\"https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2025\/12\/ERP-in-the-age-of-AI-2-2400x1440-1.jpg 2400w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2025\/12\/ERP-in-the-age-of-AI-2-2400x1440-1-300x180.jpg 300w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2025\/12\/ERP-in-the-age-of-AI-2-2400x1440-1-1024x614.jpg 1024w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2025\/12\/ERP-in-the-age-of-AI-2-2400x1440-1-768x461.jpg 768w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2025\/12\/ERP-in-the-age-of-AI-2-2400x1440-1-1536x922.jpg 1536w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2025\/12\/ERP-in-the-age-of-AI-2-2400x1440-1-2048x1229.jpg 2048w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2025\/12\/ERP-in-the-age-of-AI-2-2400x1440-1-87x52.jpg 87w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2025\/12\/ERP-in-the-age-of-AI-2-2400x1440-1-319x191.jpg 319w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2025\/12\/ERP-in-the-age-of-AI-2-2400x1440-1-479x287.jpg 479w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2025\/12\/ERP-in-the-age-of-AI-2-2400x1440-1-567x340.jpg 567w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2025\/12\/ERP-in-the-age-of-AI-2-2400x1440-1-767x460.jpg 767w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2025\/12\/ERP-in-the-age-of-AI-2-2400x1440-1-1023x614.jpg 1023w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2025\/12\/ERP-in-the-age-of-AI-2-2400x1440-1-1278x767.jpg 1278w, 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December 2025 <\/p>\n <div class=\"wp-component-card__terms\">\n <div class=\"wp-component-tags edwp-component\">\n <div class=\"wp-component-tags__tag\">\n ERP Transformation <\/div>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"wp-component-card__button-wrapper\">\n <button class=\"btn btn--link arrow wp-component-card__button\">\n Read more <span class='edwp-svg '><svg width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n<g id=\"Lg\">\n<path id=\"Vector\" d=\"M1.12509 9.50162H15.8648L9.43259 3.06941C9.374 3.0113 9.3275 2.94216 9.29576 2.86599C9.26403 2.78981 9.24769 2.70811 9.24769 2.62559C9.24769 2.54307 9.26403 2.46137 9.29576 2.38519C9.3275 2.30902 9.374 2.23988 9.43259 2.18177C9.54971 2.06535 9.70814 2 9.87328 2C10.0384 2 10.1969 2.06535 10.314 2.18177L17.8151 9.6829C17.8737 9.74101 17.9202 9.81014 17.9519 9.88632C17.9837 9.96249 18 10.0442 18 10.1267C18 10.2092 17.9837 10.2909 17.9519 10.3671C17.9202 10.4433 17.8737 10.5124 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