The recently released 2025 Transformation Study, conducted by NTT DATA Business Solutions and Natuvion, offers critical insights for ERP professionals, drawing on a survey of managers who have recently completed a major IT project. The report highlights a strategic shift in the motivations and methods behind enterprise transformations.
The key findings of this report highlight the rise of AI as a primary driver, the persistent challenge of data quality, the increasing adoption of cloud platforms, and the crucial role of people and effective communication in achieving success.
AI: A Primary Driver
A significant finding is the change in motivation for transformations. For the first time, the introduction of new, modern technologies, such as AI, is the top driver, cited by more than half of the leaders surveyed. This marks a departure from previous years, which were characterized by reactive goals such as organizational optimization or cost reduction. The cloud enables this forward-looking strategy. The study reveals a nearly 10% year-over-year increase in companies utilizing transformations to expand cloud services, with the top reason being faster and easier access to technical innovations, such as AI.
The Critical Role of People and Agility
While technology sets the agenda, the study confirms that human factors determine the outcome. Reflecting a need for flexibility, the report indicates that at least 86% of transformation projects now utilize agile or hybrid project management methods. Moreover, the most critical success factor identified by managers was not technical, but organizational continuity in the project team. Additionally, a lack of employee acceptance was the second-biggest unexpected challenge that leaders faced.
When asked what they would do differently, the top response was to optimize communication between departments and divisions. This data underscores that successful transformations depend on stable, collaborative, and communicative teams.
A Foundational Challenge
For the fourth consecutive year, managers reported that problems with data quality was one of the biggest surprises during their transformation. This challenge ranked as the top surprise overall, with over 25% of respondents.
This issue is more critical than ever, as it directly impacts the effectiveness of the AI initiatives driving these projects, the report stated. The study also found that 47% of respondents considered reviewing and improving data quality a crucial technical measure in the transformation process. This persistent challenge underscores that data cleansing and governance, often referred to as housekeeping projects, are not preliminary tasks but rather foundational to the success of any modern transformation.
Read the full Transformation Study 2025 by NTT DATA Business Solutions and Natuvion here.
What This Means for ERP Insiders
Shift the conversation from cost savings to innovation enablement. The primary motivation for transformation is no longer cost or organizational pressure; it’s the drive to adopt new technologies, such as AI. ERP professionals must pivot their value proposition accordingly. The dialogue with stakeholders should focus on how a modern ERP core is the essential platform for future innovation. Frame the project not as an upgrade, but as a strategic business decision to enable AI, improve market responsiveness, and increase the company’s ability to innovate.
Address the specialist shortage proactively. The study reveals a unique challenge, especially in the DACH region, where the supply of the necessary human resources was the second-biggest planning hurdle for transformation projects. For professionals working on projects in this market, this skills gap is a critical risk. It’s essential to advise clients to conduct early skills assessments and build a resourcing strategy that includes strategic partnerships and targeted training programs from the outset, rather than waiting until the project is underway.
Frame the cloud as an innovation engine, not just a data center. Companies are moving to the cloud primarily to get faster and easier access to technical innovations. ERP professionals should steer clients away from a lift-and-shift mentality that views the cloud only as a hosting alternative. The actual business case for moving ERP systems to the cloud lies in its potential as a platform for agility and continuous innovation. Emphasize that the cloud model accelerates business processes, enables easier scaling, and provides the foundation needed to deploy AI and other modern technologies that drive competitive advantage.
