Migration to the latest version of SAP ERP has become an unavoidable priority for most large companies. However, a recent study by SEIDOR reveals a worrying gap between strategic ambitions and actual execution of these projects. According to the report, which surveyed 360 CIOs from nine countries, 94% of companies plan to modernize their ERP in the coming years, but only 15% will do so with a transformative vision that integrates data, artificial intelligence, and process redesign.

The Trap of Technical Migration Without Transformation

The report, presented at the Fórum AUSAPE in Santiago de Compostela, classifies modernization projects into three cumulative stages: technical migration, simplification, and reinvention. Most companies (94%) remain at the first level, focused on updating the platform, ensuring operational continuity, and migrating to the cloud. Only 23% achieve simplification, reducing customizations and moving toward a 'clean core'. And barely 15% reach reinvention, where the ERP becomes an intelligent platform capable of anticipating scenarios and supporting business decisions.

Javier Navarro, global leader of SAP practice at SEIDOR, sums it up: “The risk is not just not migrating; the risk is migrating and continuing to operate the same way”. This warning is especially relevant in a context where technical debt and custom developments are the main obstacle: 71% of respondents acknowledge that these factors hinder SAP evolution.

Two Time Windows for Modernization

The study identifies two key periods. From 2026 to 2028, projects will be dominated by technical migration, driven by the end of SAP ECC support. From 2028 to 2032, a wave of advanced simplification and deep AI adoption is expected. To take advantage of this second window, companies must prepare their core now: simplify processes, organize data, and reduce technical debt. As the report notes, “the key decision is not just which platform to choose, but what level of transformation to achieve”.

AI: The Great Driver (But Misguided)

46% of companies cite analytics, data, and AI as drivers for evolving the ERP. However, 72% of them conceive AI only as an automation layer on top of current processes, without redesigning them. This limits its impact. SEIDOR experts warn that “investing in AI without having resolved technical debt, excessive customizations, and poor data quality is building on sand”. For real transformation, AI must be accompanied by simplification and data quality.

This approach echoes other recent technological challenges, such as the risk of implementing AI without a clear strategy, where the promise of autonomy can clash with operational reality.

From ERP as a System to ERP as an Ecosystem

The study also reveals a shift in decision-making: the ERP is no longer evaluated as a monolithic block, but as a layered architecture (core, cloud, data, AI, integration). SAP maintains its central position, but the strategic question now is how to maximize the value of the core and combine it with other capabilities. This requires the participation not only of IT, but also of business, finance, operations, and general management.

In this scenario, the role of the technology partner also evolves. SEIDOR, which has just achieved SAP Global Platinum Reseller Partner status, emphasizes that “SAP modernization does not start with migration; it starts with deciding how far you want to go”. This comprehensive vision is key to preventing migration from becoming a mere platform change without real return.

The Path to Reinvention

For companies aspiring to reinvention, the path involves difficult decisions: which processes to keep, which to standardize, and what capabilities to build around the core. 90% of respondents would accept more standard processes in exchange for a more evolvable system. This confirms that simplification will be one of the big conversations in the coming years.

In an environment where artificial intelligence and automation are redefining business management, organizations that do not seize this wave to transform themselves risk falling behind. As the report points out, the difference between a technical migration and a strategic transformation will mark future competitiveness.

To delve deeper into how other companies are addressing these challenges, you can check the analysis on the leadership change at TD SYNNEX Iberia and its bet on cloud and AI, or learn how autonomous agents like Microsoft 365's Scout are redefining productivity.

Original source: ComputerWorld. Analysis and adaptation by ForgeNEX.