The most terrifying words in English (or any other language, for that matter) might be “ERP transformation.” Long development times, large cost outlays, unclear savings, mind-numbing complexity, and resource monopolization all come together in an IT stew that beleaguers even the most resolute CIO. Adding another layer of pressure are increasingly uncomfortable demands from CEOs and CFOs to cut IT costs.

With ERP transformations hanging over almost every business as providers roll out their next-generation systems, CIOs in 2025 have an opportunity to reverse the narrative. Rather than approaching the ERP transformation as a necessary burden, CIOs can look at it as an opportunity to slash costs by 20 to 30 percent (and sometimes much more than that, in our experience). This uplift can be as true for a greenfield implementation (bringing in completely new ERP) as for working through a brownfield approach (converting existing systems).

 
Finding those savings starts with two decisions that should be top of mind for CIOs in 2025. The first is to take a close look at system integrator (SI) spend, which often accounts for 50 to 70 percent of ERP transformation spend. Identifying and cutting back on unnecessary change requests; renegotiating contracts, even those that are well underway; and managing vendors with greater attention (for example, by regularly reviewing progress against specific KPIs and milestones) can have a significant effect on costs.

 
The second is to develop and track business KPIs to assess what changes the ERP transformation is delivering. This might sound like an obvious step, but in many cases companies have not implemented it sufficiently. Business cases for ERP transformations often boil down to “Because we have to,” and include vague estimates of percentage improvements to various departments that can neither be supported nor proven. New process mining tools, however—which have emerged in just the past two years—now allow companies to gain a greater degree of real transparency into process and KPI performance than has ever been possible before.