Why Benelux organisations are sleepwalking through ERP modernisation

On the surface, enterprise resource planning (ERP) modernisation in Belgium, the Netherlands and Luxembourg (Benelux) is well underway. Cloud adoption is rising, systems are being upgraded and technology investment continues to grow. Yet beneath this progress lies a different reality.

ERP Modernisation: The Sleepwalker Paradox, produced by Radar Group in collaboration with Infor™, highlights a critical disconnect in the Benelux market. Based on a survey of 150 organisations, the report reveals that many organisations struggle to translate ERP investment into measurable impact. It describes this as a “sleepwalking” phenomenon, where organisations appear technologically modern but lack the governance and strategic intent to realise full business value.

Why ERP modernisation is not translating into advantage

ERP systems are stuck in the mid-life comfort zone

Across the region, ERP systems remain in a mid-life phase, averaging 6.3 years with another five years of expected use. This creates a false sense of stability, where systems appear to function well enough, reducing the urgency for transformation. Instead of pursuing strategic platform renewal, many organisations continue to extend existing systems through upgrades and patches. This accumulates technical debt, as short-term cost control comes at the expense of long-term performance and scalability.

Cloud adoption is progressing, but not transforming

Cloud ERP adoption in Benelux is advancing but still trails global benchmarks. More importantly, the shift to the cloud does not always deliver tangible transformation. In many cases, organisations are moving existing complexity into new environments without simplifying processes or architectures. This often comes down to treating the cloud as a deployment choice rather than a strategic shift. Without a clear vision for how cloud should improve operations, organisations risk redistributing complexity instead of eliminating it, leading to higher costs and limited business impact.

Governance gaps are undermining outcomes

A defining theme in the report is the lack of consistent governance. While some organisations have structured strategies in place, many rely on fragmented, project-driven decisions. This inconsistency leads to environments that are difficult to scale, secure and optimise.

In practice, weak governance shows up in several ways:

• Inconsistent standards across systems and teams
• Limited visibility into costs and performance
• Integration challenges that slow down change

Without clear decision frameworks and accountability, modernisation efforts become reactive, limiting their impact. This matters even more as organisations prioritise capabilities such as artificial intelligence (AI) and automation, which depend on strong foundations in governance, architecture and integration.

ERP is “good enough” but it’s not delivering strategic value

Nearly half of organisations report feeling neutral about their ERP systems, while only a minority express strong satisfaction. This suggests that ERP is often viewed as functional but not transformative. This “good enough” mindset is risky. When systems appear to meet basic needs, organisations are less likely to question whether those systems truly enable growth, innovation or efficiency. As a result, ERP becomes something to manage, not a platform for competitive advantage.

Technology spending is rising but misaligned

The report also points to a deeper misallocation of investment. Sleepwalkers tend to increase overall technology spending while constraining investment in ERP itself. This imbalance shifts focus to peripheral tools and capabilities, leaving the systems that underpin end-to-end processes underfunded. The result is greater complexity, fragmented workflows and rising operational costs, without delivering corresponding gains in performance.

Why the sleepwalker pattern is risky

The report defines “sleepwalkers” as organisations that have moved ERP to the cloud without a clear cloud strategy. While they may appear modernised, they often preserve complexity rather than reduce it. They also rely heavily on internal evaluation. According to the report, 94% depend solely on internal perspectives when assessing ERP decisions.

This creates a subtle but critical dynamic: Technology environments evolve and spending increases, yet underlying complexity and inefficiencies remain largely unchallenged. Competitiveness is gradually undermined through incremental decline, making the risk harder to detect and address.

How to turn ERP modernisation into real business value

The report establishes that ERP modernisation must be treated as a strategic business initiative, not simply a technical upgrade. Moving to the cloud or extending existing systems without clear direction can add complexity and cost. To realise tangible value, organisations should focus on a set of practical priorities, including:

Strengthening governance

Establish clear standards, decision rights and accountability for ERP and cloud decisions.

Anchoring decisions in measurable value

Link ERP investments to defined business outcomes, such as improved productivity, faster decision-making and lower operating costs.

Building a foundation for continuous ERP improvement

Standardise data and integration to reduce complexity and enable scalable change. Manage ERP as an ongoing capability, with cross-functional ownership and clear performance measures to sustain value.

Bringing in external perspectives

Use benchmarking and external perspectives to challenge assumptions, minimise blind spots and strengthen decision-making.

The path forward

The report’s closing message is blunt: Modernisation without strategy is theatre. Cloud adoption and system extensions without clear direction only add cost and risk. The real opportunity lies in turning ERP modernisation into measurable business outcomes through intentional choices, disciplined governance and clear value ownership. For organisations in Benelux, the choice is clear. Either continue modernising without impact, or take a deliberate approach that positions ERP as a platform for growth.

Explore the full findings in ERP Modernisation: The Sleepwalker Paradox.