{"id":865534,"date":"2026-07-06T11:34:10","date_gmt":"2026-07-06T09:34:10","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=865534"},"modified":"2026-07-06T11:34:12","modified_gmt":"2026-07-06T09:34:12","slug":"94-of-companies-plan-to-modernize-their-sap-erp-but-only-15-have-a-strategic-vision","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/industry-news\/865534\/94-of-companies-plan-to-modernize-their-sap-erp-but-only-15-have-a-strategic-vision\/","title":{"rendered":"94% of companies plan to modernize their SAP ERP &#8211; but only 15% have a strategic vision"},"content":{"rendered":"\n<p>SEIDOR has launched the Report: SAP ERP Modernization 2026, a study revealing that 94% of companies using SAP plan to modernize their ERP in the coming years.<\/p>\n\n\n\n<p>However, only 15% aspire to a strategic transformation capable of redesigning processes around data and artificial intelligence.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/za.seidor.com\/2026-download-sap-report?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_term=July-2026\" target=\"_blank\" rel=\"noreferrer noopener\">Click here to download the report<\/a>.<\/strong><\/li>\n<\/ul>\n\n\n\n<p>The report is based on interviews with 360 CIOs from companies with more than 100 million euros in revenue across nine countries in Europe and the Americas.<\/p>\n\n\n\n<p>It points to a significant gap between ambition and execution: many companies are modernizing SAP in search of innovation, analytics, data and AI, but most projects are still focused on technology migration, operational continuity and platform change.<\/p>\n\n\n\n<p>Javier Navarro, Global SAP Leader at SEIDOR, explained that most companies using SAP already understand that they need to modernize their ERP.<\/p>\n\n\n\n<p>\u201cThe difference will lie in whether that modernization remains a technology evolution or is used to simplify the system, organize information and redesign processes with AI,\u201d said Navarro.<\/p>\n\n\n\n<p>\u201cThe risk is not failing to migrate; the risk is migrating and continuing to operate in the same way.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Three levels of modernization<\/h2>\n\n\n\n<p>The study structures SAP modernization around three cumulative levels.<\/p>\n\n\n\n<p><strong>The first is migration or technical evolution<\/strong>, aimed at updating the platform, ensuring continuity, moving toward cloud models and responding to the maintenance timetable of the SAP ecosystem.<\/p>\n\n\n\n<p>It is the most widespread level and explains why ERP modernization is set to become virtually universal.<\/p>\n\n\n\n<p><strong>The second level is simplification.<\/strong><\/p>\n\n\n\n<p>It consists of reducing accumulated custom developments, returning processes to the standard and moving toward a clean core model, in which extensions are managed outside the ERP core.<\/p>\n\n\n\n<p>This level is key to recovering evolutionary capacity and preventing each update from becoming a complex project.<\/p>\n\n\n\n<p><strong>The third level is reinvention.<\/strong><\/p>\n\n\n\n<p>It involves redesigning processes around clean data and artificial intelligence so that ERP stops acting solely as a system of record.<\/p>\n\n\n\n<p>It must become a platform capable of supporting decisions, anticipating scenarios and enabling new business capabilities.<\/p>\n\n\n\n<p>According to the report, 94% of companies are at the first level, linked to migration or technical evolution.<\/p>\n\n\n\n<p>However, only 23% incorporate effective simplification and just 15% reach the reinvention level.<\/p>\n\n\n\n<p>For SEIDOR, this difference shows that many companies are starting modernization but have not yet decided how far they really want to go.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">AI increases ambition, but requires the core to be prepared first<\/h2>\n\n\n\n<p>Artificial intelligence is emerging as one of the main drivers of SAP modernization.<\/p>\n\n\n\n<p>46% of companies cite analytics, data and AI among their motivations for evolving the ERP.<\/p>\n\n\n\n<p>However, the study shows that 72% still view AI as a layer of automation or productivity over current processes.<\/p>\n\n\n\n<p>This approach can generate efficiency, but it is unlikely to transform the operating model unless it is accompanied by simplification, data quality and process redesign.<\/p>\n\n\n\n<p>SEIDOR warns that many organizations could invest in AI capabilities without first resolving the factors that limit their real impact.<\/p>\n\n\n\n<p>These factors include technical debt, excessive customization, insufficiently standardized processes and inadequately prepared data.<\/p>\n\n\n\n<p>\u201cThe executive committee may approve a modernization program with innovation, data and artificial intelligence in mind and, two years later, receive a technically updated system with the same processes as before,\u201d said Navarro.<\/p>\n\n\n\n<p>\u201cTo avoid that gap, the key decision is not just which platform to choose, but what level of transformation they want to achieve.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Technical debt, the major hidden opportunity<\/h2>\n\n\n\n<p>The report identifies accumulated complexity as one of the main barriers to moving toward higher-value modernization. <\/p>\n\n\n\n<p>71% of companies acknowledge that custom developments and technical debt make SAP evolution moderately or highly difficult, and nine out of ten would accept more standardized processes in exchange for a more evolving system.<\/p>\n\n\n\n<p>For SEIDOR, this figure confirms that simplification will be one of the major conversations in the coming years.<\/p>\n\n\n\n<p>It is not just a matter of migrating to a new version or a new deployment model, but of deciding which processes should be maintained, which should return to the standard, and which capabilities should be built around the core to gain flexibility.<\/p>\n\n\n\n<p>This decision is not purely technical. It affects processes, business areas, data governance, architecture and the operating model.<\/p>\n\n\n\n<p>For this reason, according to SEIDOR, SAP modernization projects will increasingly need to involve business, finance, operations, technology and general management profiles.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Two decision windows: 2026-2028 and 2028-2032<\/h2>\n\n\n\n<p>The study identifies two major time windows in SAP modernization.<\/p>\n\n\n\n<p>The first, between 2026 and 2028, will be dominated by migration and technical evolution projects, largely shaped by the SAP ECC maintenance timetable and the need to ensure technological continuity.<\/p>\n\n\n\n<p>The second, between 2028 and 2032, will be more closely linked to advanced simplification, process reinvention and the deeper incorporation of artificial intelligence into enterprise management.<\/p>\n\n\n\n<p>For SEIDOR, companies that use the first window to simplify their core and organize their data will reach the second with greater real transformation capacity.<\/p>\n\n\n\n<p>\u201cSome companies will use this first stage to ensure technological continuity. Others will also use it to prepare their ERP for the next decade,\u201d said Navarro.<\/p>\n\n\n\n<p>\u201cThat is the difference between a necessary migration and a strategic modernization.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">From ERP as a system to ERP as an ecosystem<\/h2>\n\n\n\n<p>The report also reflects a change in the way decisions about ERP are made.<\/p>\n\n\n\n<p>In a deep transformation, companies no longer evaluate the system as a single block, but as a layered architecture: core, cloud, data, artificial intelligence, integration and specific processes.<\/p>\n\n\n\n<p>In this context, SAP maintains a central position as a system of record and transactional platform, but the strategic decision becomes how to maximize the value of the core and how to combine it with other ecosystem capabilities.<\/p>\n\n\n\n<p>For SEIDOR, defining the target architecture will become increasingly relevant when deciding what should remain in SAP, what should be simplified and which functionalities can be complemented from other technology layers.<\/p>\n\n\n\n<p>The question, according to SEIDOR, is no longer simply \u201cwhich ERP do I continue with?\u201d<\/p>\n\n\n\n<p>It has become \u201chow do I turn my core SAP into a simpler, connected and intelligent platform?\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The role of the technology partner<\/h2>\n\n\n\n<p>In this scenario, the role of the technology partner also changes.<\/p>\n\n\n\n<p>SEIDOR believes that companies will need support not only to execute migrations, but to decide the level of ambition, prioritize processes, reduce technical debt, prepare data and build realistic roadmaps toward more automated and intelligent management models.<\/p>\n\n\n\n<p>The company approaches this context from a strengthened position.<\/p>\n\n\n\n<p>In 2026, it achieved SAP Global Platinum Reseller Partner status, the highest level of SAP&#8217;s partner program in the resale category.<\/p>\n\n\n\n<p>This category is reserved for only eleven companies worldwide, and shows that SEIDOR is recognized for its leadership in the midmarket.<\/p>\n\n\n\n<p>\u201cIt is no longer just about executing a migration, but about helping each company decide how far it wants to go and with what roadmap,\u201d said Navarro.<\/p>\n\n\n\n<p>\u201cSAP modernization does not begin with migration; it begins by deciding whether the project will remain focused on technological continuity, incorporate simplification or aspire to a real reinvention of the operating model.\u201d<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/za.seidor.com\/2026-download-sap-report?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_term=July-2026\" target=\"_blank\" rel=\"noreferrer noopener\">Click here to download the report<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>SEIDOR recently unveiled its SAP ERP Modernisation 2026 Report based on insights from interviews with 360 CIOs across nine countries.<\/p>\n","protected":false},"author":57,"featured_media":865535,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10459],"tags":[25741,1073,25740,25742,20518,16238],"class_list":["post-865534","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news","tag-javier-navarro","tag-sap","tag-sap-erp","tag-sap-global-platinum-reseller-partner","tag-seidor","tag-seidor-africa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/865534","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=865534"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/865534\/revisions"}],"predecessor-version":[{"id":865537,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/865534\/revisions\/865537"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/865535"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=865534"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=865534"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=865534"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}