As organisations across Asia accelerate digital transformation, many are discovering that their legacy enterprise resource planning (ERP) systems may be a bottleneck rather than a backbone.
In a conversation on ERP modernisation, Chong Teck, Senior Manager at Fujitsu Asia, explained why upgrading ERP systems should not be just an IT concern, but a strategic business imperative for the organisation.
“Over the past few years, I have seen companies struggle with legacy ERP mainly due to business model shifts, data volume growth, and increased expectations on speed and innovation,” Chong Teck said. “This is why ERP modernisation has become such a critical topic.”
Going beyond a technology upgrade
According to Chong Teck, one of the biggest misconceptions is that ERP modernisation is merely a technical exercise. Many organisations view initiatives such as SAP S/4HANA adoption or Microsoft 365 integration from an IT - only perspective and that’s where they falter.
“ERP modernisation is fundamentally a business transformation, not a software or tech upgrade,” he explained. “It’s about redesigning processes, unlocking real-time data, automating workflows, and enabling new business models.”
At Fujitsu, ERP modernisation is framed as a way to align data, processes, and people around business outcomes such as cost efficiency, scalability, and better decision-making. “This is about future-proofing the business, not just upgrading software,” Chong Teck added.
Many companies only consider upgrading ERP systems when performance issues become impossible to ignore. Chong Teck warned that this reactive approach can be dangerous.
“Waiting until the system breaks is risky,” he said. “ERP modernisation should be part of a broader roadmap aligned with business growth. Proactive planning helps companies avoid costly disruptions.”
A phased approach, he noted, allows organisations to modernise step-by-step, starting with finance, for example, before moving to supply chain or cloud infrastructure.
Plan your cloud migration strategically
While cloud migration is often seen as a quick win, Chong Teck cautioned against moving legacy ERP systems to the cloud without rethinking underlying processes.
“Migrating legacy ERP to the cloud without modernisation is like moving an old house to a new plot of land, the foundation issues remain,” he said. “Process bottlenecks are relocated, not solved.”
However, cloud adoption still plays a vital role. “Moving legacy systems to the cloud gives customers infrastructure flexibility, lower total cost of ownership, better scalability, and improved security compared to on-premise systems,” Chong Teck explained.
Set a roadmap for modernisation
To help organisations move forward, Chong Teck advised organisation to take a practical four-stage approach that involves:
● Assess - Understand current gaps, inefficiencies, risks, and costs.
● Architect - Build a modern, secure cloud foundation using platforms such as SAP RISE, Microsoft Azure, or private cloud.
● Transform - Redesign core ERP processes, unify data, and automate workflows.
● Innovate and Extend - Integrate ERP with analytics, AI, robotics, and digital supply chains.
“Modernisation doesn’t have to be a big-bang approach. It can be phased and controlled, reducing business disruption,” he added.
While concerns about cost often delay ERP initiatives, Chong Teck urged companies to look more strategically into its long-term value and benefits, and understand that investing in a modern ERP system can help them overcome existing limitations and be a competitive advantage for the business.
“The real question isn’t ‘How much will this cost?’ but ‘What is the cost of not modernising?’” he said. “Legacy ERP leads to slower decision-making, inefficient operations, higher compliance risk, and lost market opportunities.”
A modern ERP, he added, should improve speed, efficiency, innovation readiness, and customer experience while lowering long-term operational costs. “It’s an investment in future competitiveness, not an expense.”
Importance of a human-centric transformation
To fully realise its value, Chong Teck emphasised the need to plan well by aligning ERP roadmaps with business strategy, re-engineering outdated processes, investing in change management, and to continuously innovate.
“The end goal is not just to upgrade. It’s to create a connected, intelligent, and scalable enterprise,” he added.
An up-to-date, efficient, modern ERP system is more than just a tool - it’s a strategic asset. Summing up Fujitsu’s philosophy, Chong Teck said, “ERP modernisation isn’t about technology for technology’s sake – it’s about equipping organisations with the resilience and intelligence to thrive in uncertainty. Digital success starts with empowering people, not just upgrading systems.”
