Why M&A practitioners need to pay attention to what Microsoft, Oracle and SAP have planned with ERP

M&A practitioners need to pay attention to recent evolutions in ERP product strategy by Microsoft, SAP and Oracle that are set out in the Computer Weekly article we reference below.

Increased Value and Risk

• Value: AI capabilities from an inherited ERP can offer significant benefits like process automation, data-driven decision making, and improved operational efficiency - without the need for proprietary investment. This can translate to higher profitability and growth than what's in the business plan.
• Risk: Integration challenges with existing systems and workforce adoption challenges.

Due diligence should include an evaluation of the target's ERP strategy and roadmap. How mature is the AI adoption within the ERP? We would further recommend an analysis of how other players in the target's industry are utilizing AI-powered ERPs.

For bolt-on and corporate acquisitions consider how the target's ERP contributes to long-term technology vision as well as commercial and operational strategy. What is the upside potential?

Management teams need to plan for the change. Reskilling and upskilling initiatives can be crucial for adoption.