Panorama Consulting Group
The 2025 ERP Report
The 2025
ERP Report
Copyright©
Copyright ©2025
2025Panorama
PanoramaConsulting
ConsultingGroup.
Group.AllAll
rights reserved.
rights reserved. 1
Panorama Consulting Group
The 2025 ERP Report
Introduction
Every year, our ERP Report analyzes the latest trends, challenges, and
outcomes associated with enterprise software projects.
This year’s report highlights how businesses are evolving their technology
strategies by prioritizing cloud-based solutions and emerging technologies, like
artificial intelligence (AI).
At the same time, organizations are facing ongoing challenges in the realm of
managing data and addressing organizational silos.
Whether you’re embarking on an ERP implementation or a digital
transformation, The 2025 ERP Report offers valuable lessons for enabling data-
driven decision-making.
Copyright © 2025 Panorama Consulting Group. All rights reserved. 2 2
Panorama Consulting Group
The 2025 ERP Report
Table of Contents
01. Respondent Overview 04
02. Software Selection & Implementation Decisions
Understanding the Enterprise Software Vendor Landscape 08
Deployment & Hosting Decisions 09
Type of Project 11
Project Approach 14
Third-Party Guidance 15
03. People & Process Decisions
Business Process Management 18
Organizational Change Management 19
04. Project Results
Business Benefits 21
Project Cost 23
Project Duration 25
05. Conclusion 27
06. About Panorama Consulting Group 28
Copyright © 2025 Panorama Consulting Group. All rights reserved. 3 3
Panorama Consulting Group
The 2025 ERP Report
Respondent Overview
Jan 2024 – Jan 2025 150.5
Data Collection Timeframe Median Number of Software Licenses
Purchased
172 55.2%
Number of Respondents Percentage of Multinational
Organizations
$400.5 million 750.5
Median Annual Revenue Median Number of Employees
Copyright © 2025 Panorama Consulting Group. All rights reserved. 4
Panorama Consulting Group
The 2025 ERP Report
Industry Breakdown
Copyright © 2025 Panorama Consulting Group. All rights reserved. 5
Panorama Consulting Group
The 2025 ERP Report
Geographies Where Companies Have at Least One Location
Percent of Respondents
Copyright © 2025 Panorama Consulting Group. All rights reserved. 6
Panorama Consulting Group
The 2024
2025 ERP Report
SOFTWARE SELECTION
& IMPLEMENTATION
DECISIONS
Copyright © 2025 Panorama Consulting Group. All rights reserved. 7 7
Panorama Consulting Group
The 2025 ERP Report
Understanding the Enterprise Software Vendor Landscape
Panorama Consulting categorizes ERP systems into Tiers based on factors such as
target organization size, vendor revenue, target number of users, and other factors,
such as functional complexity:
Tier I
These systems are designed for enterprises with more than $750 million in annual revenue. Most
enterprises of this size are complex, either due to complex operational processes or complexity in their
entity structure and consolidation needs. Tier I applications address multiple industries and scalability.
EXAMPLES
SAP S/4HANA, Oracle Fusion Cloud ERP, Infor CloudSuite
Upper Tier II
These systems typically serve small to midsized organizations with $250 million to $750 million in annual
revenue. Organizations of this size may encompass multiple industries and multiple business units.
EXAMPLES
Microsoft Dynamics 365 Finance, IFS Cloud, Sage X3, Epicor Kinetic, DELMIAworks, Microsoft Dynamics
365 Supply Chain Management
Lower Tier II
These systems typically serve small to midsized organizations with $10 million to $250 million in annual
revenue. These organizations usually represent only one industry and have a single entity to manage.
EXAMPLES
NetSuite ERP, SYSPRO, Acumatica, Rootstock
Tier III
There are hundreds of software providers in this tier serving mostly smaller organizations. However,
there are also some very robust point solutions with niche functionality that are often used to supplement
a larger ERP system.
EXAMPLES
Aptean, ECI, ASC
Copyright © 2025 Panorama Consulting Group. All rights reserved. 8
Panorama Consulting Group
The 2025 ERP Report
Deployment & Hosting Decisions
Cloud adoption remains high, reflecting the continued pivot away from traditional IT
architectures toward cloud-first models.
In a rapidly changing business environment, organizations are prioritizing solutions
that enable quick adjustments to market demands, evolving customer expectations,
and supply chain disruptions.
Organizations are also responding to the pressure of staying technologically current.
Cloud environments often make it easier to adopt emerging technologies such as
artificial intelligence, machine learning, and advanced analytics.
Copyright © 2025 Panorama Consulting Group. All rights reserved. 9
Panorama Consulting Group
The 2025 ERP Report
Organizations had a Strong Preference for SaaS Deployment
The strong SaaS preference within cloud deployments signals a continued demand for
rapid scalability, simplified maintenance, and lower upfront costs.
SaaS solutions enable organizations to move away from high CapEx models, allowing
more nimble financial management—especially critical for mid-market firms with
constrained IT budgets.
Furthermore, the SaaS advantage of faster deployment aligns with the drastically
reduced project timeline (9 months vs. 15.5 months in last year’s report), possibly
indicating that organizations are achieving value realization faster than before.
Additionally, the preference for SaaS may reflect a more profound cultural shift:
businesses increasingly value tools that align with a distributed workforce and
dynamic operational environments. This evolution suggests that the future of ERP is
not just about cloud computing; it’s about leveraging SaaS ecosystems to drive
continuous innovation.
Copyright © 2025 Panorama Consulting Group. All rights reserved. 10
Panorama Consulting Group
The 2025 ERP Report
Type of Project
Our study focused on three different With 50.4% of organizations opting for
types of IT projects: ERP implementations in last year’s
report, and 61% pursuing ERP
1. Digital business transformation is implementations most recently, it
a business-focused project that typically appears that companies are
involves the creation of new digital increasingly focused on stabilizing core
business models. business processes rather than chasing
transformative ambitions.
2. Technology-enabled business
improvement is a business-focused This trend could reflect economic
project where the organization details uncertainty, where pragmatic
specific business goals and then investments in proven solutions take
determines how technology fits into the precedence over riskier, future-focused
picture. projects.
3. In an ERP implementation, A deeper factor here could be talent
organizations typically improve their shortages, especially for professionals
processes to fit the industry pre- skilled in managing end-to-end
configurations of their new enterprise business transformations.
solutions.
While a more defined approach might
Among these three types of projects, feel safer from a resource perspective,
there was a strong preference for ERP such a templated approach may not
implementations. provide the competitive advantages
offered by a more ambitious
transformation.
Copyright © 2025 Panorama Consulting Group. All rights reserved. 11
Panorama Consulting Group
The 2025 ERP Report
Web-Commerce was a Popular Digital Initiative
We asked respondents which initiatives they had deployed, or were planning to deploy,
as part of their project.
As seen below, organizations were most likely to deploy web-commerce, with 59.9%
stating that they deployed it significantly.
The prominence of web-commerce among digital initiatives highlights the enduring
importance of customer-centric strategies. With Amazon setting the standard for hyper-
personalization and omnichannel growth, more organizations are recognizing that
traditional ERP systems are not enough to enable that same customer experience.
Instead, organizations are implementing modern ERP systems and ensuring seamless
integration with CRM, e-commerce platforms, and digital marketing tools.
Copyright © 2025 Panorama Consulting Group. All rights reserved. 12
Panorama Consulting Group
The 2025 ERP Report
Artificial Intelligence Adoption Outpaced Predictive Analytics
Compared to last year’s report, there has been an increase in organizations deploying AI
either significant or moderately (from 53.4% to 72.6%). This reflects a growing maturity in
both the technology itself and organizations’ readiness to embrace it.
However, the relatively slow adoption of predictive analytics (falling behind all others in
significant deployment by more than 10%) illustrates the typical trajectory of AI adoption.
Adoption often begins with automation and chatbots (lower barriers to entry), and over
time, some organizations develop the data maturity and integration capabilities required
for predictive analytics.
Many organizations are still grappling with the foundational work of centralizing data,
building trust in AI insights, and developing the cultural and technical competencies
needed to make data-driven decisions.
Copyright © 2025 Panorama Consulting Group. All rights reserved. 13
Panorama Consulting Group
The 2025 ERP Report
Project Approach
Less than a quarter of organizations used a big bang implementation approach.
In a big bang implementation, the organization goes live with all modules and offices
at the same time.
A big bang rollout is a common approach for projects involving only one or two
business units. However, more than half of respondent organizations were
multinational, so that could explain why most respondents opted for a phased or
hybrid approach.
For global organizations, a big bang implementation entails risks, such as widespread
operational disruptions and increased chances of system outages affecting global
operations.
On the other hand, a hybrid or phased approach would allow these organizations to
iterate their implementations while tailoring their deployment to the complexities of
individual business units or geographies.
Copyright © 2025 Panorama Consulting Group. All rights reserved. 14
Panorama Consulting Group
The 2025 ERP Report
Third-Party Guidance
Of those who sought third-party guidance, the most common type of guidance sought
was technology assessment guidance, which is consistent with last year’s report.
Percent of Respondents
The strong preference for technology assessment guidance may reflect the increasing
importance of aligning IT strategy with long-term objectives as the complexity of ERP
solutions grows.
ERP systems are no longer standalone solutions but integral components of a broader
digital ecosystem. As a result, the role of technology assessments has expanded
beyond evaluating ERP software to include integration requirements, data strategy,
and the overall technology stack.
Copyright © 2025 Panorama Consulting Group. All rights reserved. 15
Panorama Consulting Group
The 2025 ERP Report
Overlooked Cost Considerations
Only 25.3% of organizations sought guidance for contract negotiations. Organizations’
hesitation to engage in these services may reflect a lack of awareness about the long-
term implications of poorly structured agreements.
Software contracts are often complex and riddled with hidden costs related to licensing,
ongoing maintenance, upgrades, and more.
Working with an independent ERP consultant can deliver significant cost savings when it
comes to understanding and negotiating the total cost of ownership. Truly independent
advisors have no financial ties, partnerships, or incentives linked to specific ERP vendors,
which allows them to approach vendors from a position of strength, securing favorable
terms that enable increased ROI.
Copyright © 2025 Panorama Consulting Group. All rights reserved. 16
Panorama Consulting Group
The 2024
2025 ERP Report
PEOPLE & PROCESS
DECISIONS
Copyright
Copyright ©©2023
2025
2025Panorama
PanoramaConsulting
Consulting Group.AllAllrights
Group. rightsreserved.
reserved. 1717
17
Panorama Consulting Group
The 2025 ERP Report
Business Process Management
More than half of organizations improved key business processes, as opposed to
most processes or no processes.
This reflects a strategic, incremental approach to ERP-driven change. Organizations seem
to be cherry-picking high-impact processes that yield quicker ROI while building
organizational momentum for broader improvements down the road.
This preference may also be influenced by broader industry trends, such as vendors
increasingly using pre-configured industry templates and nudging businesses toward
selective process optimization rather than comprehensive redesign.
Copyright © 2025 Panorama Consulting Group. All rights reserved. 18
Panorama Consulting Group
The 2025 ERP Report
Organizational Change
Management
Any time an organization experiences In our experience, anything less than
a major shift, some employees will be an intense focus on OCM is often
eager to embrace the change, while insufficient to counter the inevitable
others will be hesitant to let go of the resistance from employees when
familiar. asked to abandon their familiar
workflows.
How can a company get everyone on
the same page? The answer is This is even true in smaller
organizational change management organizations. A moderate focus on
(OCM). This is the recommended change management may still be no
approach for preparing employees match for the complexities of user
and other stakeholders for new adoption.
processes and technology.
For example, if an organization
Unfortunately, less than a third of overlooks the importance of OCM
organizations reported an intense activities like change reinforcement, it
focus on OCM. might struggle to drive lasting
behavior change beyond initial
training sessions.
Success Story
A Texas-based government agency
evaluating ERP software recognized
that employee resistance would pose a
major risk to implementation success.
Panorama Consulting developed a
tailored OCM plan that included
strategies to ensure effective
communication, training, and
reinforcement. With Panorama’s
support, the organization reduced
resistance and promoted a smooth
transition to Microsoft Dynamics 365.
Copyright © 2025 Panorama Consulting Group. All rights reserved. 19
Panorama Consulting Group
The 2024
2025 ERP Report
PROJECT RESULTS
Copyright © 2025 Panorama Consulting Group. All rights reserved. 2020
Panorama Consulting Group
The 2025 ERP Report
Benefits Realization
So far, we’ve found . . .
Organizations should quantify how they expect new technology to improve their
• business.
A strongThis givesinthem
interest performance
digital metrics business
initiatives involving to track throughout
intelligencethe project.
• A tendency to seek third-party ________ guidance over other types of third-party
Every benefit category in our survey was attainable to over half of the respondents
guidance
who anticipated these benefits. This was true of everything from compliance-related
benefits to benefits related to operating and labor costs.
Percent of Respondents
Achievable Efficiency
Of the respondents that have had at least one phase live for at least a year, the
expected benefits that were most commonly realized to the extent expected were
those related to productivity and efficiency.
This could be a result of several factors shaping modern ERP implementations:
• The widespread adoption of SaaS (Software as a Service) models
• Faster implementations enabled by cloud-based solutions
• Modern systems designed around industry best practices
Copyright © 2025 Panorama Consulting Group. All rights reserved. 21
Panorama Consulting Group
The 2025 ERP Report
The widespread adoption of SaaS (Software as a Service) models: These models
offer more frequent updates, standardized processes, and improved usability. They
also require less customization, allowing organizations to benefit from built-in best
practices that enhance operational efficiency right out of the box.
Faster implementations enabled by cloud-based solutions: Cloud solutions and
more agile implementation methodologies allow organizations to see productivity
gains sooner. Rather than waiting for lengthy, multi-year rollouts, companies can
implement core functionality in phases, driving early wins and momentum.
Modern systems designed around industry best practices: These systems can
quickly streamline processes and reducing inefficiencies. By leveraging pre-configured
workflows, organizations can more easily improve day-to-day operations.
Organizational Silos Remain
The expected benefits that were least commonly realized to the extent expected were
those related to removing silos.
While ERP systems can improve efficiency within specific teams, achieving enterprise-
wide synergy requires a more strategic approach.
In our ERP Project Recovery practice, we have seen a persistent challenge in fostering
enterprise-wide collaboration and data integration. In other words, many ERP
implementations are still failing to address the root causes of siloed operations. These
include causes such as:
• Misaligned KPIs
• Inconsistent data governance
• Lack of cross-functional communication strategies
The minimal focus on organizational change management mentioned earlier may
explain why so many respondent organizations haven’t addressed these issues from a
people-centric perspective.
To successfully remove silos, organizations need to go beyond technical integration
and focus on creating a unified vision for data and workflows that aligns cross-
functional teams.
Copyright © 2025 Panorama Consulting Group. All rights reserved. 22
Panorama Consulting Group
The 2025 ERP Report
Project Cost
The cost of an enterprise software project can be difficult to estimate. There are many
activities organizations overlook, which can lead to unexpected costs and budget
overruns.
More than half of organizations in our study stayed within their expected budget. The
median project cost was $450,000.
Copyright © 2025 Panorama Consulting Group. All rights reserved. 23
Panorama Consulting Group
The 2025 ERP Report
Additional Technology Needs Contributed to Budget Overruns
Of those who were over budget, the most common reason was the unexpected need
for additional technology.
While initial budgets may account for standard implementation costs, many
organizations eventually discover that achieving their desired capabilities requires
additional technology investments.
This is especially true as businesses opt for advanced features like predictive analytics
and enhanced customer-facing platforms. These capabilities frequently require third-
party solutions and expanded integration efforts.
Without a thorough assessment of technology dependencies and licensing
considerations organizations risk underestimating both the financial and resource
commitments required to meet evolving project goals.
Copyright © 2025 Panorama Consulting Group. All rights reserved. 24
Panorama Consulting Group
The 2025 ERP Report
Project Duration
A project timeline is dependent on many factors, such as the number of modules
implemented and the degree of software customization.
More than three-quarters of organizations completed their project within the
expected timeline. The median project timeline was 9 months.
Copyright © 2025 Panorama Consulting Group. All rights reserved. 25
Panorama Consulting Group
The 2025 ERP Report
Data Issues Led to Timeline Overruns
Of those who were over schedule, the most common reason was data issues. These
typically include issues related to data integrity, consistency, and accuracy.
In last year’s report, the most common reason for timeline overruns was resource
constraints. The shift in this year’s report reflects the increasing complexity of
managing and integrating business data, as more organizations implement modern
digital platforms, like AI, eCommerce, and IoT systems.
Organizations are often unprepared for the effort required to clean, migrate, and
standardize data for modern systems. This effort involves regular data audits, clear
data governance protocols, and a data migration plan with adequate validation and
testing phases.
Success Story
A manufacturer operating multiple U.S. plants and two facilities in Mexico faced significant challenges
due to a fragmented ERP landscape. This resulted in inefficient manual processes and a lack of
operational and financial visibility. The client partnered with Panorama Consulting to replace its
disparate systems with a unified ERP platform (IFS). Pre-implementation activities focused on addressing
data integration issues, including standardizing data across facilities and improving data accuracy. The
new ERP system is expected to enhance reporting capabilities and provide real-time visibility into key
metrics.
Copyright © 2025 Panorama Consulting Group. All rights reserved. 26
Panorama Consulting Group
The 2025 ERP Report
Conclusion
While the widespread adoption of cloud-based solutions continues to provide
organizations with greater flexibility and scalability, success ultimately hinges on more
than just technology selection. Effective data management, system integration, and IT
strategy alignment play critical roles in determining project outcomes.
As businesses continue to navigate emerging trends, like the use of AI and predictive
analytics, they must consider proven strategies for deriving long-term value from their
technology investments. Panorama’s ERP consultants can help your organization
embrace innovation while ensuring data integrity and aligning technology with business
goals.
Click the Button Below to Schedule Your Free Consultation
With an ERP Systems Expert Today!
FREE CONSULTATION
Copyright © 2025 Panorama Consulting Group. All rights reserved. 27
Panorama Consulting Group
The 2025 ERP Report
About Panorama
Consulting Group
Panorama Consulting Group is an independent, niche consulting firm specializing in
business transformation and ERP system implementations for mid- to large-sized private-
and public-sector organizations worldwide. One-hundred percent technology agnostic and
independent of vendor affiliation, Panorama offers a phased, top-down strategic alignment
approach and a bottom-up tactical approach, enabling each client to achieve its unique
business transformation objectives by transforming its people, processes and technology.
Panorama’s Services
(click to learn more)
ERP Selection AI Readiness and Enablement
ERP Implementation Change Management
ERP Contract Negotiation Business Process Management
Cloud Migration M&A Integration
Digital Strategy Project Auditing & Recovery
Technology Assessment Software Expert Witness
(If viewing this in Adobe Acrobat, please follow these instructions to enable external links:
https://helpx.adobe.com/acrobat/using/allow-or-block-links-internet.html)
Click the Button Below to Schedule Your Free Consultation
With an ERP Systems Expert Today!
FREE CONSULTATION
Copyright © 2025 Panorama Consulting Group. All rights reserved. 28
