According to IDC FutureScape: Worldwide Intelligent ERP 2025 Predictions, these shifts aren’t just for the Fortune 500, either. They matter for high-growth companies navigating tight margins, fragmented IT systems, and growing regulatory pressures. Let’s unpack how your business can act now to stay competitive.

3 key ERP predictions to watch in 2025

Here’s a quick look at just a few of the predictions you’ll find in the IDC report:

1. Prioritizing AI-driven workflows: By mid-2026, over 60% of large organizations will have redesigned their workflows around AI. This will lead to faster decision-making, fewer errors, and up to 45% higher productivity. AI won’t just crunch data—it will suggest actions, improve forecasts, and adapt to evolving needs in real time.
2. Getting more disciplined about sustainability: Environmental, social, and governance (ESG) goals will increasingly shift from siloed efforts to business-wide priorities. By mid-2027, more than half of companies will use ERPs as hubs for tracking carbon emissions, monitoring sustainable suppliers, and maintaining compliance.
3. Breaking up legacy systems: By 2027, 75% of global businesses will have begun replacing monolithic systems piece by piece with modular, API-driven solutions.

Where companies are struggling to keep up

Despite these opportunities, many businesses are hesitant to embrace cloud ERP solutions. Our conversations with IT and business leaders reveal a common set of challenges and preconceptions:

• Legacy mindsets: Replacing entrenched, on-premises ERP systems feels like a high-stakes gamble. IT teams worry about disruptions, while end users fear losing familiar workflows.
• Perceived complexity: Midsize companies often see ERP providers as tools for the enterprise giants, assuming they’re too costly or difficult to implement.
• Value misalignment: SaaS solutions like cloud ERP are often dismissed as “just another subscription,” with decision-makers undervaluing long-term benefits—for example, lower maintenance costs, faster upgrades, and built-in AI capabilities.

4 ways to rethink ERP investments for 2025 and beyond

If your business is running up against the limitations of a legacy ERP system, consider these steps to prepare for 2025:

1. Focus on incremental change: Full-scale ERP replacements aren’t always necessary—or practical. Instead, adopt a modular approach. Modernize core workflows first, and tackle less critical processes later. For example, you can start by automating supply chain forecasting or integrating ESG data tracking, while keeping legacy systems for non-critical functions.
2. Make AI practical: AI isn’t just a buzzword; it’s a productivity booster when applied thoughtfully and strategically. Focus on features like predictive analytics, conversational AI, and automated compliance reporting—tools that directly solve your most pressing problems.
3. Shift the narrative on cloud ERP: SaaS solutions are often dismissed as expensive, but that perception ignores the hidden costs of technical debt. (“Technical debt” refers to the money you’re paying for outdated systems that require manual workarounds and costly maintenance.) Cloud ERP is a great way to gain flexibility and scalability without all those ongoing IT headaches.
4. Embrace sustainability as a strategy: ESG is quickly becoming a must-have when it comes to customer trust and operational efficiency. Using cloud ERP systems for sustainability reporting helps ensure you’re not only compliant, but also building resilience into your supply chain.

Why SAP is worth a closer look

For high-growth and midsize companies, solutions like SAP S/4HANA Cloud Public Edition offer an ERP solution tailored to modern business needs. Here’s how SAP stands out:

• Designed for flexibility: Our modular architecture supports incremental upgrades—letting you modernize without overhauling your entire system.
• Embedded with AI: Our Joule copilot can help you every step of the way by simplifying workflows, suggesting next steps, and delivering real-time insights.
• Built for ESG: SAP S/4HANA Cloud Public Edition simplifies the complex work of ESG reporting, helping you stay compliant so your business can make real progress on sustainability.

Final thoughts: Act today for an advantage tomorrow

IDC’s FutureScape’s predictions highlight a clear reality: the future of business will be shaped by intelligent ERP. Organizations that embrace AI-driven automation, prioritize ESG goals, and modernize their IT architectures will be ahead of the curve in 2025 and beyond.