ERP ReplacementDeciding whether to move, and how
Before any commitment, we cost every option on the same basis, including that of staying. Changing ERP system often occupies an owner-managed or mid-sized business for 12 to 24 months, at a cost of several hundred thousand euros.
Signs that an ERP is holding the business back
- Maintenance and bespoke developments cost a little more each year.
- Every change in the business waits for a new release, a supplier or a budget.
- Staff re-enter data in spreadsheets alongside the ERP.
- Management information arrives late, or does not agree from one department to another.
- The vendor announces an end of maintenance or a new licensing model.
For businesses whose ERP is a drag on margin or decisions, or is approaching its end of maintenance.
Four scenarios costed over the same period, including that of staying.
Review of the existing system, comparison of scenarios, recommendation; if you change, a requirements specification and selection.
The engagement can end once a scenario has been chosen.
Four scenarios, costed over the same period
Stay and renegotiate
Contract, scope, level of support, including support from a third-party provider.
Modernise without changing
Simplify bespoke developments and take out of the ERP whatever does not belong there.
Upgrade
Move to your vendor’s next version.
Change solution
Another vendor, an open solution, or a lighter core supplemented by specialised tools.
For each scenario: full cost, expected gain, risks, duration, and what you gain or lose in independence.
Stay or move, a costed five-year example
Illustrative example for a fictitious company. The figures are working assumptions, not a client result.
| Scenario | Assumptions | Cost over five years |
|---|---|---|
| Starting point: stay and change nothing | Maintenance and bespoke development €150k a year, rising by 5% a year | €829k |
| Stay and renegotiate | Same costs, reduced by 30% through renegotiation or third-party support | €580k |
| Modernise without changing | Simplification project of €150k, then €110k a year, rising by 3% a year | €734k |
| Change solution | Project of €600k, six months of parallel running (€75k), then a subscription of €120k a year, rising by 3% a year | €1,312k |
In this example, changing ERP costs €483k more than staying over five years. The change is therefore justified only if it returns more than about €97k a year in productivity, stock or lead times. It is this break-even point that we calculate with you before any decision is taken.
The upgrade to your vendor’s next version is costed case by case and is not included in this example.
How the engagement runs
- Review of the existing system. Processes covered, bespoke developments, data, contracts and exit clauses.
- Costed scenarios and comparison.
- The chief executive’s decision. The engagement can end there.
- If you change. Requirements specification, shortlisting of two or three finalists against the same demonstration script, negotiation of the contract and exit provisions.
- If you wish. Oversight of the migration, with gains measured at each stage.
What you receive
- The review of the existing system: processes covered, bespoke developments, data, contracts and exit clauses.
- The scenarios costed over the same period, with their break-even point.
- A reasoned recommendation, and the decision, which remains yours.
- If you change: the requirements specification, the selection grid and the comparison of finalists against the same demonstration script.
Frequently asked questions
Must we leave SAP ECC before the end of 2027?
Not necessarily. SAP provides mainstream maintenance until the end of 2027, then paid extended maintenance until the end of 2030, and third-party providers offer support beyond that. The right date depends on the cost of staying compared with the cost of leaving.
What does changing ERP cost?
According to KPMG, often several hundred thousand euros for an owner-managed or mid-sized business, over 12 to 24 months. The cost that matters is the full cost over several years, compared with that of staying.
Are you tied to a software vendor?
No. We are independent of software vendors: we help you choose the solution and those who will implement it.
Does a new ERP improve productivity?
Not automatically. The gain comes from processes reviewed at the same time as the system. That is why each scenario costs the expected gain, not only the cost.
Is your ERP costing you more than it returns?
We reply in writing within 48 working hours.
