Modernising Enterprise Systems: From Cloud to Next-Generation ERP

Cet article fait partie de notre dossier tendances "Transformation digitale en Belgique & Luxembourg : ce que 2026 nous réserve". 

Why is this critical in 2026?

Because time is running out to avoid a bottleneck. Migrating an ERP is a major undertaking, which can take 1 to 4 years in the most complex environments. Waiting until the last minute could put CIOs under pressure and send costs soaring (experts cite migration projects costing anywhere from $500,000 up to $100 million, depending on company size). Conversely, planning ahead now allows for a smooth, in-depth transformation: migrating to S/4HANA is not just about software – it’s an opportunity to rethink business processes, eliminate obsolete customisations and adopt the “best practices” embedded in new ERPs. Support programmes such as Cloud Private ERP (for mid-sized and large enterprises) or Cloud ERP (for SMEs) are available to ease this transition by offering guided cloud solutions. [cio.com]

Example: In Belgium, pharmaceutical group UCB began converting its legacy SAP to S/4HANA in Private Cloud mode as early as 2023, to standardise financial processes and improve agility. In Luxembourg, subsidiaries of industrial groups such as ArcelorMittal have started migrating certain entities to S/4HANA, leveraging lessons learned from their parent companies abroad. These local pioneers show the way: complex projects can be successfully delivered by combining internal expertise with experienced partners.

Beyond ERP itself, modernisation involves cloud adoption and system openness. Belgium has made significant progress here: 47.7% of Belgian companies use cloud computing services, well above the EU average of 38.9%. Similarly, 44.5% leverage data analytics (Big Data), compared to 33.2% EU-wide. Luxembourg presents an interesting contrast: basic digital adoption is strong (57.8% of Luxembourg SMEs have at least basic digital intensity, comparable to the EU average), but uptake of advanced technologies (cloud, AI, data analytics) lags slightly at 52% of businesses (vs ~54.6% in the EU), particularly among smaller firms. In short, Luxembourg boasts ultra-high-performance infrastructure (near-universal fibre and 5G coverage, see below) and skilled experts, but must encourage its SMEs to embrace cloud and data/AI solutions to reap full benefits. [digital-st….europa.eu] [gouvernement.lu]

Fortunately, tools for IT modernisation have never been more advanced. For example, SAP has offered its Business Technology Platform (BTP) for several years – a PaaS layer enabling app extensions, automations (SAP Build) and integrations, including with Joule AI, without altering the ERP core. Combined with the new SAP Business Data Cloud (including SAP Datasphere for unified data management), this gives companies the chance to adopt a “composable” ERP model, blending the best of both worlds: a robust, maintained core and peripheral innovations (cloud apps, real-time analytics) connected via APIs. Migrating your ERP does not mean losing flexibility – quite the opposite: you can then tap into SAP’s rich cloud ecosystem (CX for commerce and marketing, SuccessFactors for HR, etc.) and automation and AI capabilities to optimise processes (e.g., using SAP’s Joule AI to analyse sales data).[cio.com]

At the same time, data sovereignty is increasingly a concern during these modernisations. Belgian and Luxembourgish companies are aware of the importance of data localisation and control, especially with new EU rules on the horizon (see later). Sovereign cloud initiatives are emerging: Luxembourg, for instance, has launched its national cloud “Clarence” to securely host certain state data and strategic projects. At European level, the Gaia-X project aims to federate cloud offerings that comply with EU standards for transparency, reversibility and security. For IT decision-makers, this means that by 2026 they will be able to deploy critical systems either on international public clouds or on certified private/national clouds, depending on data sensitivity and regulatory requirements. The key is to integrate these considerations at the architecture design stage (e.g., keeping highly confidential data local while using public cloud for compute power or less critical workloads). [meco.gouvernement.lu]

Advice for Decision-Makers: 

Do not postpone upgrading your IT foundations.

• Define your “core IT” roadmap now: audit legacy applications, identify upcoming EOL (End of Life) such as 2027 (+2030) for SAP ECC, prioritise domains for migration (finance, supply chain…) and allocate a multi-year budget.

• Anticipate ERP migration by launching, if not already done, an S/4HANA study (which path: brownfield, bluefield or greenfield? What opportunity to clean/simplify processes?).

• Leverage existing programmes (RISE/GROW) and build on your peers’ success stories.

• Invest strategically in cloud: identify workloads that would immediately benefit (e.g., capacity extension, new AI/ML services) and develop a phased migration plan.

• With data sovereignty crucial, define a hybrid cloud policy specifying which data types go on which cloud (EU public, local private, etc.), and stay informed on certified offerings (Gaia-X and local clouds).

• Finally, use these technical projects to accelerate business innovation: embed business and data experts in migration teams to exploit automation and advanced analytics from day one.

• In short, make IT backbone modernisation a lever for global transformation rather than a mere technical update.