ERP ReplacementDecide whether to switch, and how
Before you commit, we put a number on every option on the same basis, including staying. Replacing an ERP often ties up a small, midsize or mid-market company for 12 to 24 months and costs several hundred thousand euros.
Signs your ERP is holding the business back
- Maintenance and custom development cost a little more every year.
- Every business change waits on a release, a vendor or a budget.
- Teams re-key data into spreadsheets alongside the ERP.
- Management KPIs arrive late, or don’t match from one department to the next.
- The vendor announces an end of maintenance or a new licensing model.
For companies whose ERP is holding back margin or decisions, or nearing its end of maintenance.
Four scenarios costed over the same period, including staying.
Assessment of your current system, scenario comparison, recommendation; if you switch, requirements specification and vendor selection.
The engagement can end once a scenario is chosen.
Four scenarios, costed over the same period
Stay and renegotiate
Contract, scope, support level, including support from a third-party provider.
Modernize without switching
Simplify custom development, and move out of the ERP whatever doesn’t belong there.
Upgrade
Move to your vendor’s next version.
Switch solutions
Another vendor, an open solution, or a lighter core complemented by specialized tools.
For each scenario: total cost of ownership, expected gain, risks, timeline, and what you gain or lose in independence.
Stay or switch, a five-year example in numbers
Illustrative example for a hypothetical company. The figures are working assumptions, not a client result.
| Scenario | Assumptions | Five-year cost |
|---|---|---|
| Baseline: stay and change nothing | Maintenance and custom development €150K a year, rising 5% a year | €829K |
| Stay and renegotiate | Same costs, reduced by 30% through renegotiation or third-party support | €580K |
| Modernize without switching | €150K simplification project, then €110K a year, rising 3% a year | €734K |
| Switch solutions | €600K project, six months of parallel running (€75K), then a €120K annual subscription, rising 3% a year | €1,312K |
Switching only pays off if it returns more than roughly €97K a year in productivity, inventory or lead times. In this example, replacing the ERP costs €483K more than staying over five years. That break-even point is what we calculate with you before any decision.
The upgrade to your vendor’s next version is costed case by case. It is not included in this example.
How it works
- Assessment of your current system. Processes covered, custom development, data, contracts and exit clauses.
- Costed scenarios and comparison.
- The CEO decides. The engagement can end here.
- If you switch. Requirements specification, selection of two or three finalists on the same demo script, negotiation of the contract and exit provisions.
- If you want. Oversight of the migration, with gains measured stage by stage.
What you get
- The assessment of your current system: processes covered, custom development, data, contracts and exit clauses.
- The scenarios costed over the same period, with their break-even point.
- A reasoned recommendation, and the decision, which stays with you.
- If you switch: the requirements specification, the selection scorecard and the comparison of finalists on the same demo script.
Frequently asked questions
Do we have to leave SAP ECC before the end of 2027?
Not necessarily. SAP provides mainstream maintenance through the end of 2027, then paid extended maintenance through 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.
How much does an ERP replacement cost?
According to KPMG, often several hundred thousand euros for a small, midsize or mid-market company, over 12 to 24 months. The cost that matters is the total cost of ownership over several years, compared with the cost of staying.
Are you tied to a software vendor?
No. We are independent of software vendors. We help you choose the solution and the firm that will implement it.
Will a new ERP make us more productive?
Not automatically. The gain comes from processes redesigned along with the tool. That is why every scenario quantifies the expected gain, not just the cost.
Is your ERP costing you more than it returns?
Peter Guillon will call you back within 8 business hours.
