Unique Approaches to ERP (and Tax Engine) Cloud Migrations

End-of-support dates loom on the near-term horizon for some larger enterprise resource planning (ERP) platforms. SAP announced that it will no longer provide mainstream maintenance for its Business Suite 7 after December 2027. Microsoft will end support for its Dynamics GP product on Dec. 31, 2029. Faced with these timeframes, more companies are migrating their ERP systems and tax engines to the cloud. 

Tax automation can and should be included in ERP/cloud initiatives. Tax departments are major users of the data that ERP systems generate, and they need a seat at the project table. 

Tax leaders will want to keep up to speed with the latest approaches to ERP transformation. With that in mind, I’d recommend a Grant Thornton article that offers a unique take on some common (yet unjustified) assumptions regarding ERP projects – along with some highly practice guidance to consider:.

• Think ERP implementation is too complicated and too slow? Think again. In the past, integration of the ERP platform with other systems was a complex task that project leaders tried to minimize. But the technologies have improved, and integration is not the headache that it used to be. With today’s technologies and the right platform tools and capabilities, it’s possible to have a new enterprise solution up and running in six months. That said, don’t assume that an ERP project is simply a matter of replicating and enhancing your current system. By doing so, you could end up retaining inefficiencies that were designed into it decades ago.
• Select and configure a system that aligns with your current business model while supporting future growth: Start by understanding where you are today. Your organization may have evolved in many directions since your current ERP solution was implemented. Also, think about how the new platform will enable your growth strategy. What results do you want to see in improved customer experience? How about identification of new revenue models? Enhanced agility and change-readiness?
• Invest in preparation carefully: The way to avoid lengthy, cost-prohibitive rollouts is by devoting ample attention to the preparation phase. This prep should address data management, business and IT governance, reporting strategy and implementation ROI.
• Build for innovation and rapid value creation. Businesses need environments that encourage innovation and creative solutions to accelerate the “idea-to-revenue” journey.” Today’s ERP solutions feature sandbox environments that enable organizations to launch new capabilities quickly, in a matter of weeks or months. 

The watchword for ERP initiatives in the past was “design to last,” but that’s quickly giving way to “design for change.” By helping ERP implementation teams apply that principle, tax leaders can steer a transformation to success and pave a path to growth. 

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