ERP Innovations Are Rebooting the Back Office as Organizations Modernize

Organizations are grappling with the dual challenges of their legacy infrastructure and rapidly evolving technological demands to operate.

A business case and contract request shared by London’s Metropolitan Police Service (MPS), for example, revealed that when it comes to core back-office platforms such as enterprise resource planning (ERP) systems, upgrading legacy infrastructure is not merely an IT project; it is a fundamental shift aimed at enabling greater agility, better resource allocation and enhanced decision-making capabilities.

The police force — which employs over 46,000 officers and staff — earmarked up to 1 billion pounds (about $1.3) for the contract, if other organizations join in, The Register reported. The sheer scale and complexity of the Met Police’s requirements provide a window into the broader challenges of digital transformation in legacy-heavy organizations.

P-SOP, the Met Police’s current ERP system, underpins human resources, payroll and financial management. Over time, the system has grown increasingly outdated, burdened by inefficiencies and technical limitations. According to the Met’s business case, the system relies on 55 separate interfaces, many of which connect to other legacy systems.

These interdependencies not only complicate operations but also impede the Met Police’s ability to adapt to modern technological demands.

“Widespread developments in the market since 2015 … would allow the MPS to access a more flexible and modern software-as-a-service (SaaS) ERP solution,” the police force noted in the business case.

The situation is no different for many enterprise businesses and financial institutions relying on decades-old solutions today.

Read also: Making Sense of the Great ERP System Cloud Migration

Why Back-Office Modernization Is Crucial

For an organization of the Met Police’s size and importance, two qualities shared by many other critical financial institutions and enterprises, ensuring the reliability and scalability of back-office systems is critical for sustaining day-to-day operations and meeting future demands.

“It’s ironic that one of the areas for most companies that is the most outdated are their financial tools, when just a small investment from that same team can go a long way in improving efficiency and also cost savings,” Priority Head of Commercial Court Toomey told PYMNTS in September.

Replacing a critical ERP system without disrupting daily operations can require meticulous planning and execution. Staff training, user adoption and cultural shifts will be essential for success.

The Met Police’s ERP modernization initiative reflects a broader trend within public and private sectors, where outdated IT infrastructure is increasingly seen as a barrier to effective governance and service delivery.

“The middle to back office, they’re no longer just a cost center,” Meghan Oakes, vice president of customer success at FIS, told PYMNTS this week. “They’re a value-added partner for everybody within the business. There are many different aspects of that middle to back office that are now at the forefront of how companies operate.”

“Clients cannot boil the ocean,” she added. “They fully understand that it’s a transformation journey.”

Overcoming Challenges by Balancing Innovation With Practicality

Legacy systems, often siloed and inflexible, present challenges in an era demanding agility, real-time insights and seamless user experiences. When compared to updated solutions, traditional systems can create barriers to agility by limiting access to real-time data, complicating integrations with modern tools and hindering the ability to pivot in response to changes.

“We expect that core banking systems are going to need to undergo a very significant evolution in order to remain relevant and competitive,” Trustly Vice President of Enterprise Growth Ross McFerrin told PYMNTS in May.

Ultimately, successful modernization initiatives are less about technology and more about strategic alignment, change management and delivering tangible value to stakeholders.

Organizations can ensure that they define clear metrics for success, such as reduced operational costs, improved customer satisfaction or enhanced decision-making capabilities.

Change management doesn’t end once a new system is in place. Continuous improvement is a key component of successful technology adoption. This involves regularly reviewing the performance of the new system, gathering feedback from users and making necessary adjustments to optimize performance.

Stakeholders should see modernization not as an expense but as an investment in the company’s future.

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