This is what was said in the Enterprise Systems planning meeting:
We have to expand the ERP system footprint, get more business processes integrated, really 'use' the system, and maybe we will start to see the return on investment that we've been waiting for.
This is what is closer to the truth:
We've sunk about $5M into this, we are in upgrade, maintenance, and crappy UI hell, so we better figure out a way to make this seem worth it to the executives or we're all in trouble.
The exact amount of the sunk cost in the installed system is not really the issue, it's more the fact that whatever the (large) investment was, many organizations are at the crossroads.
They've implemented big ERP systems for core HR, maybe payroll, tossed in a bit of self-service, perhaps dabbled in workforce management, but more or less have not really leveraged the capabilities of the massive system.
To the left, upgrade the ERP, get on the latest release (a daunting proposition for many), and try to take advantage of the new capabilities and features that are available (that will never be backported to your release from 2002), and upgrade the UI to something that looks relatively modern.
To the right, scrapping the upgrade, patching the legacy ERP together for employee tracking, payr
Flickr - AidanBrooksoll, and benefits and looking to a modern SaaS-based platform for more strategic functions like Performance Management, Succession Planning, and Learning and Development.
Now there is even a third option, tossing the ERP entirely and moving to a SaaS HR system that will over all of those processes like Workday.
Obviously there isn't a blanket one size fits all solution for organizations in this predicament, and I won't offer any sweeping recommendations, but I will say this:
When you have dug yourself into a deep hole, it's probably time to stop digging.