Insights

Moving your ERP to the Cloud? What to expect, plan for, and avoid

Date 05 Aug 2025
Filed under Insights

Over the past decade, cloud ERP has evolved from a promising concept into the backbone of modern, digital-first enterprises. But in 2025, the conversation has shifted again. What used to be a strategic option is now, increasingly, a practical necessity — driven by faster business cycles, rising regulatory pressure, and significant leaps in ERP innovation.

In Australia and New Zealand, where organisations often operate across dispersed geographies, complex supply chains and fast-changing regulatory environments, the case for cloud ERP has never been stronger. Yet the path to cloud is not a simple “lift and shift”. It requires clarity, planning, and a shift in mindset from “ERP as a project” to “ERP as a continuously improving platform”.

First, let’s recap on what’s changed and is driving Cloud ERP Adoption

Cloud ERP is now an expectation, not an upgrade

A combination of macro-forces has accelerated adoption:

Digital-first business models demanding real-time data, predictive insights and end-to-end visibility.
Hybrid workforces requiring secure access anywhere, on any device.
Customer expectations for seamless journeys across channels and regions.
Supply-chain volatility making agility and scenario modelling essential.

Legacy, on-premise ERP systems increasingly struggle to support these demands. Meanwhile, subscription models, cloud-native architectures and modular deployment patterns are reducing the cost and complexity previously associated with ERP modernisation.

Regulation, compliance and data-sovereignty pressures are rising

ANZ organisations face growing scrutiny around:

Cyber security
Privacy
Fraud prevention
Supply-chain auditability
ESG reporting obligations

Cloud ERP platforms now offer continuous patching, automated compliance, and stronger audit capabilities — advantages on-prem systems rarely match.

Costs are under pressure — efficiency is now a board-level priority

Cloud ERP supports cost optimisation by:

Making IT spend more predictable
Reducing technical debt
Automating low-value processes
Centralising data flows
Simplifying integrations
Streamlining upgrades

Organisations are seeking ERP as a means to free up capital, not consume it.

What Modern Cloud ERP looks like in 2025 and beyond

Cloud ERP innovation has accelerated dramatically – even over the last year. Today’s leading platforms — SAP, Oracle, Microsoft, Workday, and increasingly vertical-specific systems — look very different from their predecessors.

Embedded AI is now standard

Across the major ERP suites, AI capabilities are built in at the core:

Predictive and prescriptive forecasting
GenAI-based assistants and copilots (SAP Joule, Oracle AI, Microsoft Copilot)
Automated invoice, PO, and expense processing
Anomaly detection in finance and supply-chain data
Automated insights and reporting
“Self-healing” workflows that adjust to business conditions

This is shifting ERP from a transactional system to a decision-support and process-optimisation engine.

Modular, composable ERP is the new norm

Instead of monolithic deployments, businesses increasingly adopt:

Modular finance, supply-chain, procurement, HCM or CX capabilities
Industry-specific packaged content
Process accelerators
Low-code/no-code configuration tools

This reduces implementation time and supports incremental transformation.

Hybrid and multi-cloud architectures are growing

Organisations are blending:

Public cloud
Private cloud
Sovereign cloud
On-premise systems where necessary

This enables agility while respecting data-sovereignty, latency and regulatory constraints — particularly relevant across Australia and New Zealand.

Integration with emerging technologies

Cloud ERP is increasingly connected to:

IoT sensors for asset monitoring
Digital twins for operations planning
Supply-chain visibility networks
Blockchain-based audit trails
AI-driven demand planning systems
Modern data lakes and analytics platforms

ERP is no longer the centre — it’s the orchestrator of an integrated digital ecosystem.

How to approach your Cloud ERP journey

Don’t just migrate—modernise

Many organisations enter ERP projects with a clear goal: a smooth go-live. But that’s just the beginning. The real value lies in how well your solution positions you for future growth.

Modern cloud ERPs are built on cloud-native, AI-enabled architectures that evolve continuously. Features such as in-memory processing, embedded machine learning, predictive analytics, generative AI and modular composability are now standard across leading platforms. But it’s not just about features. It’s about the foundation these systems provide for long-term innovation.

The goal isn’t just to replicate the past, it’s to create a foundation for agility, intelligence and continuous innovation — a platform that grows with your business

Build a business case that drives buy-in

The most successful ERP migrations start with a compelling business case, rooted in business drivers—not just IT needs. If your legacy system is “doing the job,” it can be difficult to justify change. But future-ready organisations recognise that the systems and strategies of the past don’t necessarily equal growth tomorrow.

A strong business case outlines:

Where legacy systems fall short of strategic goals
How cloud ERP enables scalability, flexibility, and transformation
The tangible business outcomes—from faster insights to streamlined operations

Post go-live: The 6–9 month rule

After deployment, allow 6–9 months for the solution to stabilise. During this time, focus on user adoption, process refinement, and performance monitoring. Then, shift gears. Look at how emerging functionality can be harnessed to support evolving business needs—whether it’s automation, improved analytics, or new integration capabilities.

Make a confident commitment

Implementing a modern ERP solution is a bold investment. Half-measures won’t deliver the value you’re expecting.

ERP is not the destination—it’s the launchpad for transformation.

If your organisation isn’t ready to leverage the system as a strategic enabler, it may be time to rethink the timing or approach. But if you’re committed to growth, agility, and innovation, the opportunity is significant.

Common pitfalls (and how to avoid them)

1

Lack of program structure

Without strong program governance and a proven methodology, projects can drift into complexity. A clear framework ensures alignment, momentum, and accountability.

2

Unclear strategic objectives

If stakeholders aren’t aligned on the ‘why’ behind the project, solution adoption can stall. Organisational Change Management (OCM), ongoing training, and a shared understanding of the solution roadmap are essential for long-term success.

3

Poor data quality

“Garbage in, garbage out” still applies. Clean, complete, and well-structured data is a critical success factor. This includes removing duplicates, filling gaps, and ensuring accuracy before migration.

4

Treating go-live as the finish line

Go-live is just the beginning. The most successful organisations plan for continuous improvement, leveraging new capabilities and innovations as the system matures.