- An overly long and costly project that drains innovation and renewal capacity, exhausting even the most talented experts.
- It ends up ensuring only business-as-usual and ticking the boxes of financial governance.
- All too often, despite well-intentioned objectives, ERP renewal escalates into an oversized IT project.
erp renewal
Renew your ERP systems the first time right
What if your ERP renewal didn’t have to be a long and expensive project that drains your organisation’s ability to innovate and adapt? Gofore Future Business Core offers a new way to lead the renewal of core business processes and systems: the majority of the investment is directed towards solutions that enable future competitive advantage and support the creation of customer value.
Companies spend as much as 3–10% of their annual revenue on ERP renewals. Around 70% of projects never achieve their intended business objectives, and 25% fail catastrophically.
Gartner 2024: What IT leaders must do to avoid disappointing ERP initiatives
The current standard practice in ERP renewals
Next-generation ERP renewal
- It secures business continuity while addressing future objectives.
- Finance ERP is fixed fast — with as little customisation as possible.
- The majority of the investment is directed towards capabilities that deliver competitive advantage and drive customer value.
ERP renewal in practice
Gofore Future Business CoreTM provides a structured approach to renewing core business processes and systems, with investment allocated in a balanced way across three areas: finance, competitive advantage, and value creation. In this model, the management of business data flows, core processes and systems, together with data quality and utilisation, play a central role. A key element is ensuring the organisation’s capacity to continually adopt new ways of working and new tools, so that the benefits of the investment are genuinely realised.
Crucially, the company’s board and executive team must not delegate overall leadership and governance responsibility to IT – or, worse still, to a technology vendor.
ERP renewal, Gofore’s way
A workshop facilitated by our experienced management consultants enables the board and executive team to embrace a new way of securing balance between finance, competitive advantage and customer value in ERP renewal. At the same time, management takes true ownership of the transformation and keeps the project on course from start to finish.
During planning and delivery, success is ensured through the expertise and tools of our specialists in strategy, architecture, procurement, project and change management, quality assurance, and AI.
The three core areas of ERP renewal
Finance
Processes, practices, and systems that support the organisation’s operational and healthy cash flow, financial management, and reporting, implemented using as standardised, industry-appropriate solutions as possible. We ensure that this area does not consume the majority of the investment.
Competitive advantage
Processes and systems that can deliver an edge over competitors, for example by optimising inventory management, supply chains, or raw material usage. These are implemented using industry-standard solutions tailored to the specific needs of the company.
Value creation
Processes and systems that support continuous creation of customer value, such as systems directing service personnel in manufacturing, or solutions in retail that anticipate or influence customer purchasing behaviour. Implementation can be achieved with available off-the-shelf software or customised solutions.
How to succeed in an ERP transformation?
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Lead boldly: ensure that the business retains control of the ERP transformation.
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Streamline the prosesses: put your core business processes in order either beforehand or alongside the systems.
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Invest in architecture: understand the systemic entirety of your operations and select the best solutions.
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Focus on data: ensure the integrity and usability of data for people, processes, and AI.
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Support adoption: help people continuously embrace new ways of working and new tools.
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Ensure quality from the start: allocate sufficient time and resources for testing and quality assurance.
“When we are talking about investments of tens of millions, people simply do not dare to consider whether there might be an alternative approach. This is entirely human.”
Laura Sipiläinen, Head of Business, Gofore
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