Especially in the course of SME digitalization, without a clear architecture plan, you run the risk of simply adding a new ERP system on top as an isolated solution and missing out on opportunities for IT system harmonization, data integration and efficiency gains. A well thought-out enterprise architecture creates common structures and guard rails from the outset - and significantly increases the chances of success of ERP consulting and implementation.
For larger medium-sized companies with complex IT structures, Enterprise Architecture (EA) is essential before selecting an ERP system. EA ensures optimal coordination between business processes and IT systems and thus significantly improves the results of ERP projects.
When EA is crucial:
Complex, fragmented IT landscapes.
Multiple locations with isolated software solutions.
Upcoming ERP implementations or migrations.
Digital transformation and rapid company growth.
Risks without EA:
Technological chaos and fragmented systems.
Persistent redundancies and data silos.
Lack of strategic alignment leading to costly project delays and misaligned ERP solutions.
Example from practice:
A wholesale company reduced system complexity by 30% with the help of EA, significantly improving efficiency and data management. Early implementation of EA creates a solid foundation for ERP success and transforms IT from a cost center to a strategic advantage.
Enterprise architecture refers to the holistic planning and documentation of a company's business processes and IT landscape. The aim is to optimally coordinate business and IT and to make complex IT landscapes manageable. Particularly in larger SMEs, EA is not an end in itself, but a strategic tool for dealing with the challenges of modern IT environments. But when is the right time for EA in the ERP context - and what happens if you don't use it?
EA is particularly useful or necessary when certain triggers or framework conditions are present. Typical situations in which enterprise architecture should be high on the agenda before or during an ERP selection include
Heterogeneous, evolved IT landscape: if your company has accumulated various systems over the years (keyword "evolved uncontrolled growth"), there is often a lack of overview. EA creates transparency and an overall view to bring all applications to a common denominator before a central ERP is introduced.
Multiple locations and isolated solutions: If business units are spread across different locations with different software islands, EA is practically mandatory. This is the only way to bundle requirements across locations and map them in a common ERP solution.
Upcoming ERP introduction or migration: If a change to a new ERP system is imminent, this is the ideal time to define an EA. Experts say: "A new ERP is already half an EAM " - in other words, the introduction of an ERP system almost inevitably requires accompanying enterprise architecture planning in order to be successful. In our experience of advising medium-sized and larger customers, this is always a point that needs to be discussed.
It is not uncommon for infrastructure issues to arise after companies have initially decided on ERP software. However, they then realize that the entire IT architecture needs to be questioned and redesigned. We can solve this by addressing the issue in good time, without any expensive "surprises".
Digitization and growth initiatives: When your company launches a digitalization offensive or grows significantly, the demands on IT increase. EA helps to embed new digital solutions in an overall strategy instead of just creating individual solutions. This allows you to maintain a common thread in your IT strategy despite expansion.
To summarize: The greater the organizational and technical complexity, the more necessary an enterprise architecture becomes in order to place the ERP project on a stable foundation.
What happens if you do not define an enterprise architecture and start directly with ERP selection and implementation? Without a holistic view of the architecture, there are a number of problems:
Technological chaos: without EA, there is no overall view. This can easily lead to parallel structures, media disruptions and a jumble of unconnected applications - a "technological chaos" with poor information exchange between the systems. In such an environment, the new ERP would only represent another island instead of harmonizing processes.
Redundancies and data islands: If an ERP system is introduced without an architecture concept, existing legacy systems and data islands often remain untouched. Redundant applications (e.g. duplicate customer master data in different systems) and inconsistencies drag on and undermine efficiency. Instead of IT system harmonization, there is a risk of silos being continued under a new name.
Lack of strategic orientation: Without a clear target image, there is a risk that an ERP project will get bogged down. Functions and workarounds are implemented without an overall plan - "fruitless individual measures" remain without sustainable benefits. The ERP selection can then be based on the loudest demand instead of a long-term strategy that supports and implements the corporate strategy. The consequence can be expensive adjustments, project delays or an ERP that does not fit the company. We often find this constellation in ongoing projects in which we are involved. Thanks to our experience in various industries and our knowledge of different ERP programs, we can usually save our customers from expensive implementation projects with our expertise.
In short: without an upstream enterprise architecture, the ERP project lacks a compass. This results in inefficiencies, higher project risks and missed opportunities for optimization. Medium-sized companies with complex requirements in particular run the risk that the new ERP system will not have the desired effect without an EA.
The good news: with a clearly defined enterprise architecture, precisely these problems can be averted. Modern EA methods and best practices help medium-sized companies to prepare their IT landscape for the future before introducing ERP. This closes system gaps, improves data availability and enables increased efficiency in day-to-day work. In the following, we highlight current EA consulting approaches and a practical example.
Modern enterprise architecture consulting has moved away from cumbersome theories and focuses on pragmatic, tried-and-tested approaches. Important best practices are, for example
Holistic overview & alignment: A central principle is the big picture. EAM enables a holistic view of the entire enterprise architecture - all processes, functions and IT systems. This overall picture is the basis for understanding the impact of a new ERP solution on all areas of the company and planning ahead. The overview also ensures that IT strategy and business objectives are constantly aligned and that the ERP fits into this strategy.
Standardization and IT system harmonization: Enterprise architects establish company-wide standards, guidelines and architecture principles, for example which core functionalities will be covered in the ERP in future and which will remain in separate systems. This clear division ("building blocks") makes it much easier to integrate the ERP system into the existing IT landscape. At Dreher Consulting, we use this process model to efficiently achieve a result for our customers. At the same time, redundant applications are identified and consistently consolidated, which simplifies and harmonizes the IT landscape and thus demonstrably reduces costs.
Transparency in data and processes: Another best practice is to ensure transparency at an early stage. All relevant business processes, data flows and system dependencies are documented and visualized. This means that critical business questions can be answered in a targeted manner and everyone involved understands where which data will be located in the future. Improved data transparency is the basis for creating a genuine single source of truth with the new ERP. In practice, this means that employees can find information more quickly and decisions can be made on a more informed basis.
Agile approach with quick wins: Instead of spending months drawing theoretical models, modern EA approaches rely on iterative procedures. For example, we create a rough target architecture model at a very early stage to give everyone involved a clear picture of the future. At Dreher Consulting, we have developed a model that is based on the supply chain and is used as documentation throughout the entire consulting process up to the acceptance of ERP software implementations. We achieve a cost reduction of up to 25% in the processing of requirements.
This model does not have to be perfect, but it does provide orientation. It is then refined step by step - always with a focus on quick wins. Small, quick improvements (e.g. an initial data integration or the shutdown of an obsolete legacy system) demonstrate tangible success and motivate the team. This agile approach prevents the "big bang" shock and can continuously demonstrate benefits. From our experience, however, it may be that the agile, quick win procedure does not work because the IT architecture does not allow it, in which case we use other successful methods such as waterfall procedures.
Continuous architecture management: Modern EA consulting does not end with a one-off architecture paper. Successful companies establish enterprise architecture management as an ongoing process. This means that the enterprise architecture is regularly reviewed and adapted, for example in response to new business requirements or technology trends. It is important to integrate EA into everyday working life - this is the only way to keep the architecture concept alive and prevent it from becoming a theoretical flash in the pan. This also means that the EA team and specialist departments work closely together (EAM is not just a task for IT, but also a collaboration with business and specialist departments). This permanent anchoring ensures that the ERP system and all other IT components remain in line with the corporate strategy in the long term.
Modern frameworks such as TOGAF can serve as a guide, but the emphasis is on pragmatic adaptation to the company's reality - no company has to stubbornly repeat a complete framework. Instead, the focus is on communication, flexible planning and a step-by-step approach. In many successful projects, we have not imposed a fixed theoretical structure on our customers, but our strength clearly lies in the fact that we adapt the use of standards and process models individually to the customer. Our success proves us right.
In summary, these best practices help to master complexity and establish business-IT alignment. The enterprise architecture thus becomes the enabler of a successful ERP implementation: tomorrow's problems are anticipated today and opportunities - such as new digital processes - are actively exploited.
A practical example from the wholesale sector shows just how effective EA-supported ERP consulting can be. A wholesale company with several locations was faced with the task of modernizing its fragmented IT landscape. Over the years, each location had developed its own isolated solutions for merchandise management, warehousing and sales tasks (these were the famous Excel lists that were used when the actual ERP system no longer met the requirements).
The result: multiple data storage, time-consuming coordination processes and hardly any transparency about stocks and customer data overall. Efficient digitalization in the SME sector hardly seemed possible - the company felt that its IT was slowing it down rather than supporting it.
Approach: Before selecting a new ERP system, the decision was made to create an enterprise architecture roadmap. First, all existing applications and processes were recorded and checked for redundant functions. It quickly became apparent that many solutions performed similar tasks.
In the course of our EA consulting, the company defined a target picture: a central ERP system was to cover core processes such as order processing, warehouse management and financial accounting in a standardized way in the future. Special solutions were only planned where really necessary (e.g. a special route planning tool in the logistics area, connected via an interface). This target architecture was communicated to all locations so that everyone knew at an early stage what changes were coming and what the future IT system harmonization would look like.
Result: This EA-supported approach enabled the company to reduce its IT system diversity by 30%. Several legacy systems became obsolete and were shut down, which not only saved license and maintenance costs, but also improved data availability - there were now significantly fewer disparate data sources and analysis results for management.
Employees notice the change in their day-to-day work: searching for current information (e.g. stock levels or customer orders) is now much faster, as much of it can be viewed via the central ERP. Overall, work per workstation has become around 10% more efficient because there is less need to switch between systems or manually consolidate data from Excel lists. In addition to these quantitative effects, the company also reports qualitative improvements: The IT department now acts more as a partner to the specialist departments, and future enhancements can be integrated much more easily based on the clear architecture.
So how can you go about integrating Enterprise Architecture into your ERP project? Below you will find a step-by-step guide that has proven its worth. From the analysis of your current IT landscape to the final ERP selection, think about architecture and system implementation together.
When it comes to ERP consulting and implementation in SMEs, a well thought-out enterprise architecture is not a luxury, but increasingly a necessity. Anyone who invests time in EA planning before selecting an ERP system lays the foundation for a harmonized, efficient and future-proof IT system. This pays off: System harmonization creates clarity instead of chaos, data availability enables better decisions, and increased efficiency relieves your employees in their day-to-day business.
Companies that consistently integrate EA achieve their digitalization goals faster and turn their IT from a cost factor into a real value-adding factor. Enterprise architecture is therefore no longer a nice-to-have in the course of digital transformation, but a must - especially for larger SMEs.
Use this URL for your checklist to check and use whether an Enterprise Architecture Initiative will benefit you.
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