During a recent CIO roundtable, one message stood out clearly to me: ERP modernization is at the top of the list for virtually every company. AI has been the catalyst to this acceleration. And while it is a long‑term transformation, focusing first on concrete KPIs and innovation goals makes it more attainable. But there is no doubt  that it demands bold leadership and an unshakable focus on people, process, and technology.

They are designing standard architectures, building capabilities that endure, and forging partnerships that keep pace with relentless change. That means eliminating technical debt with clean core ERP foundations, and creating only the extensions that truly differentiate. It also means moving to a cloud operating model, so IT can focus less on maintenance and more on driving the business forward.

The challenge is real: and leaders are managing deeply customized legacy systems and pressure to keep the business running while reinventing them. Yet across industries, patterns are emerging that make ERP transformation not just possible, but repeatable - unlocking agility and accelerating the adoption of new technologies and innovations.

Why this matters right now

CIOs face two urgent imperatives:

• Drive transformation and AI readiness at speed
• Protect trust, compliance, and operational continuity at every step

ERP is evolving from a system of record into a platform for innovation, agility, and competitive advantage. But this shift collides with decades of technical debt, fragmented data, and process overextension.

The roundtable surfaced an important truth: modernization can no longer be viewed as a one-off technical upgrade. It’s a multi-year, transformation journey that must reconcile rapid delivery with long-term stability.

The winning playbooks consistently:

• Deliver rapid, visible business wins to validate investment and build momentum.
• Standardize a clean core as the foundation for agility and AI readiness.
• Embed deep business partnership so change lands, lasts, and scales.

Done right, ERP modernization becomes the engine for resilience and growth in an AI‑native era.

Three power plays for CIOs

I took away three standout lessons from the roundtable. The field‑tested plays I’ve seen give CIOs the edge to modernize ERP at scale with speed, authority, and unstoppable momentum.

1. De‑risk the journey with phased value delivery

Multi-year ERP transformations can stall when results are invisible for too long. By breaking large programs into short, outcome‑tied sprints, CIOs can reduce risk, prove value early, and unlock incremental funding.

Examples from the roundtable included:

• Standardizing a finance workflow in one region to reduce days spent on close.
• Automating a high-volume accounts playable process to free operational capacity.

To succeed:

• Establish a clear north star vision that aligns with business outcomes.
• Baseline KPIs, share early wins widely, and link each sprint to a capability that will be reused in later phases.
• Define near‑term deliverables achievable within the first 6 months.
• Adopt a continuous innovation strategy in partnership with the business owners.

2. Protect agility with a clean core

Flexibility requires discipline. The most successful CIOs set non‑negotiables on extensibility, integration standards, and data ownership from the start. They retire or simplify customizations that slow delivery, and they decouple innovation from the ERP backbone. This enables experimentation without destabilizing core systems.

A clean core is more than architecture. It’s a mindset:

• Use standard capabilities before considering custom builds.
• Keep data models consistent to ensure AI and analytics can operate seamlessly.
• Build new experiences ‘at the edge’ to preserve core stability.

3. Make it a shared mission

Technology fails most often when the people aren’t ready. Treat modernization as a human partnership, not just an IT project.

• Embed change management, training, and skills development from day one.
• Co‑create deployment plans with business units to ensure adoption.
• Align incentives so teams are rewarded for adoption and continuous improvement.

Some CIOs described co-creating deployment plans with business partners to ensure usability, trust, and adoption. Leading with co-ownership ensures modernization is framed as a shared journey, not an IT handoff.

What this looks like in practice

From the conversations, four clear steps stood out for turning strategy into tangible progress:

• Value proof before scale: Target a high-impact process (e.g., order‑to‑cash) and show measurable improvement within weeks.
• Architect for composability: Establish a common data foundation, APIs, and event streams to enable safe, scalable composability.
• Invest in skills: Build capabilities in product ownership, process design, and AI stewardship to sustain value.
• Plan for the unknowns: Anticipate challenges in custom code, data quality, and process variance; design phases to accommodate learning.

Where SAP steps in to power the journey forward

RISE with SAP offers a structured starting point for our on-premises customers based on their starting point; something I’ve recommended many times to help teams match pace with ambition.

This allows us to decouple innovation from the backbone while keeping the heart of the system strong.

I’ve seen how SAP also delivers onboarding, reference architectures, value realization frameworks, and ongoing guidance. Having support after go‑live matters as much as the migration itself.

By combining standardization with flexibility, SAP enables customers to strike the balance that many CIOs at the roundtable said they needed most.

Leading ERP modernization: A CIO’s blueprint for scalable growth

Future‑ready organizations don’t just adopt technology; they build the cultural and architectural muscle to thrive through disruption.

If you want to win:

• Deliver in phases to keep momentum and funding strong.
• Maintain a clean core to safeguard agility.
• Embed business partnership into every milestone to ensure adoption and impact.

These are not just steps; they are force multipliers that will define the reach and resilience of your transformation.

ERP modernization, done right, is the launchpad for both today’s strategic priorities and tomorrow’s breakthroughs.