Changing ERP systems is a big decision – and a significant investment, both in time and money. To get the entire management team and organization on board, you need a well-thought-out and clear business case that shows why the change is necessary, what value it creates, and how the investment pays off. A well-formulated business case shows that changing ERP systems is not a cost, but a strategic investment with clear business value.
“A good business case is not just about numbers – it’s about showing how technology can be a catalyst for growth, innovation, and long-term change.”
Here, Implema’s Albin Juhlin describes how to build a convincing business case step by step:
1. Involve the business early
A business case becomes stronger the more perspectives it is based on. Anchor it early in the organization by involving key people from, for example:
- Finance – to identify cost drivers
- Logistics and production – to identify bottlenecks
- Sales and customer service – to capture the customer perspective
- HR – to ensure change management and training needs
This increases legitimacy and commitment to a future decision.
2. Identify today’s challenges and costs
A strong and credible business case is based on reality. Describe the challenges and limitations that today’s systems cause, for example:
• Manual handling, duplication of work, and inefficient flows.
• Lack of data quality that leads to poor decisions and low confidence in figures.
• High costs for maintenance, integrations, or licenses on older systems.
• Difficulty scaling up or adapting to changes, e.g., new market or legal requirements.
• Potential security flaws or risk of non-compliance (e.g., GDPR, SOX).
Quantify where possible, for example, “manual order entry costs us 1.2 MSEK/year in working hours and error handling.”
3. Link the ERP system to business goals
An ERP system is not an IT project – it is a business project. Your business case must therefore clearly link the system change to overall business goals such as:
• Increased growth – through, for example, faster order flows, better inventory management, and better decision-making data.
• Improved profitability – through, for example, streamlining processes and reduced error costs.
• Better customer experience – through, for example, faster deliveries, more accurate information, and integrated channels.
• Scalability for international expansion – through, for example, support for multiple languages, currencies, and legal entities.
• More efficient internal processes – through, for example, automation and standardization.
Show how the ERP system enables growth and takes you further on your strategic journey.
4. Describe the value of the new ERP system
A business case is not just about what does not work today – but above all about what you can achieve tomorrow. Highlight the concrete improvements that a new ERP system can provide:
• Automated flows that free up time throughout the organization.
• Real-time data and dashboards for faster decisions.
• Flexibility to quickly adapt the business model – e.g., from product sales to subscription.
• Better user experience internally – modern interfaces and mobile solutions.
• Increased security, traceability, and compliance.
For each benefit – show what concrete value it creates in terms of cost savings, revenue increase, or risk minimization.
5. Calculate investment & ROI
Clarify the investment in terms of:
• System licenses and cloud services
• Implementation, configuration, project management
• Integrations with other systems
• Training and change management
• Ongoing operation and support
Then describe when and how the investment begins to pay off, for example through
• Reduced personnel and process costs
• More efficient inventory and purchasing
• Better liquidity through faster invoicing, faster cash flow
• Lower IT operating costs through cloud-based solutions
A calculation with payback period and ROI makes the business value clear and comparable. Show, for example, how the investment can be repaid within 2–3 years and create increased value thereafter.
6. Manage risks and show your plan to minimize them
An ERP system project is complex and as such associated with risks. Here, it is important to show that you have control over what they are. Highlight the biggest risks, but more importantly: show how you specifically plan to manage and reduce them.
• A clear, proven project methodology
• Phased division with MVP thinking and prioritization of business-critical parts
• Clear responsibilities and decision-making structures
• Focus on change management – not just technology
• Training and onboarding for end users
• Continuous monitoring and measurement of effects
A risk-aware but solution-focused case inspires confidence and increases the chance of a decision.
7. Paint a vision for the future
Last but not least, help the organization see beyond the implementation. Describe how the business can change and improve with a new ERP system. Show how you can, for example, with a new ERP system:
• Work more data-driven – not on gut feeling
• Act faster than the competitors
• Become a more attractive workplace with modern tools
• Grow sustainably and profitably over time
A strong business case does not end with numbers – it creates a picture of a better future that everyone wants to be involved in realizing.
A well-formulated business case shows that changing ERP systems is not a cost, but a strategic investment with clear business value. By linking the system to business goals, quantifying the current situation, describing the benefits, calculating ROI, and managing risks in a structured way, you increase the chance of getting the entire organization on board with the decision.
“The most powerful business cases are created when finance, IT, and business sit at the same table – early on.”
Over the years, we have seen both good and bad business cases. We are happy to help you with the documentation to create a clear and strong business case.
Waiting can be expensive. Acting correctly can become one of your most profitable investments.
