Building an ERP consolidation playbook: unlocking outsized value in buy-and-build strategies

Thought Leadership

10 Apr

Optimising core business systems (CRM, ERP, HCM, and FP&A) and aligning operational processes has the potential to deliver transformative impact. While it can be tempting to focus on CRM, as a tangible means of enhancing the sales process and pipeline management, scalable growth is underpinned by ERP capability.

ERP consolidation plays a fundamental role in creating value throughout the investment lifecycle, allowing firms to reduce costs and enhance commercial offerings with future-proofed and scalable capability. However, post-merger, companies often inherit multiple systems performing similar functions, creating friction to maximising value through the buy-and-build approach. Addressing these challenges through ERP consolidation enables organisations to achieve key advantages, including enhanced operational agility, optimised cost structures and improved customer value through the seamless delivery of commercial offerings.

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Authors

Author Profiles Database

Gabriel Hight

Senior Consultant

Sajjan Sahota

Analyst

Andrew Ng

Partner

Building an ERP consolidation playbook: unlocking outsized value in buy-and-build strategies

Technology is a key lever to drive value creation through buy-and-build strategies; an enabler to accelerate growth through maximising customer value and unlocking operational and cost synergies – ultimately maximising exit value.

Considerations for successful ERP consolidation:

ERP consolidation has clear benefits, but it’s not without risks, A staggering 65-75% of ERP consolidation projects fail as many organisations underestimate the complexity involved [4]. Success depends on careful planning, stakeholder alignment and a focus on business processes the ERP system is meant to support.

Enterprise view of processes and systems
Future forward vendor selection
Data integration and migration
Change management and user adoption

ERP consolidation presents a critical opportunity to drive immediate operational efficiency, unlock cost savings and enhance data-driven decision making. By streamlining operations, ERP consolidation enables organisations to execute their buy and build strategy with greater agility and increases confidence in fully realising the value of future acquisitions.

[4] 12 ERP disasters, dustups and disappointments

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