As the Chancellor’s Budget approaches in late November, business leaders naturally focus on investment headwinds and broader economic concerns. Another equally pressing issue is emerging for private enterprises, legacy enterprise resource planning systems (ERPs) that quietly limit organisational growth and agility.

Recent conversations with multiple clients reveal a clear pattern. Leading ERP vendors are gradually shifting investments away from traditional on-premise platforms toward new cloud-based, AI-enabled systems. This leaves many mid-market businesses relying on ageing systems that may continue to function but no longer provide a competitive advantage.

Familiar Systems, Growing Weaknesses

Current ERP systems can feel like familiar office furniture. They have been part of the workplace for a decade or more, and their routines are well known to employees. Familiarity, however, should not be mistaken for capability. A system that feels comfortable can also become a liability.

Older ERPs often struggle to support increasingly complex business models. Their architecture rarely allows seamless integration with digitised workflows or emerging AI technologies. While these systems continue to operate, they cannot keep pace with change. This becomes a strategic problem. A system that slows responsiveness or limits innovation is no longer an asset but a barrier. Agility, speed, and data-driven decision-making require platforms that evolve alongside business needs.

The Consequence of Inaction

Businesses that continue relying on ageing ERP systems face multiple risks. Without vendor investment, unsupported systems become harder to maintain, integrate, and secure. Cybersecurity is a significant concern. Systems no longer receiving updates are vulnerable to breaches. Additionally, companies risk falling behind competitors who leverage modern, adaptable technologies.

Major vendors are clear on timelines. Microsoft Dynamics GP will end product support in 2029, with security patches concluding in 2031. SAP ECC’s extended maintenance ends in 2030, directing businesses toward cloud-based solutions. Companies operating on these older systems face a ticking clock, where delays in action could result in costly disruption.

Time to Act

Businesses should consider practical steps immediately. First, assess the lifecycle of their ERP system. Understanding where the platform stands in the vendor roadmap is crucial. Questions to ask include whether the system remains fully supported, whether innovation has slowed, and whether employees are relying on workarounds to maintain functionality.

Second, identify gaps. Older ERPs often lack real-time data access, mobile integration, smooth inter-system connectivity, and the ability to incorporate AI. Recognising what is missing allows leaders to prioritise features essential for growth and efficiency.

Third, create a transition plan. Whether moving to a cloud version of the same vendor or selecting a new platform, organisations need a structured roadmap. Timing, cost, business impact, and staff training should all factor into planning.

Fourth, protect current operations. If immediate migration is not feasible, steps must be taken to mitigate security and compliance risks. Regular patching, monitoring integrations, and preparing for sudden migration needs can reduce exposure and maintain operational continuity.

The Bottom Line

Businesses relying on an ERP system that has not been critically evaluated in years face risks that extend beyond technology. A legacy ERP can constrain growth, limit agility, and expose organisations to cybersecurity threats. The Budget may dominate headlines, but ERP systems quietly influence whether a business is positioned for the future or struggling to keep pace. Modernising ERP platforms is no longer optional; it is a strategic imperative that requires attention now.