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ERP cost exposure rarely appears as a single event. It accumulates over time — through licensing drift, long-standing support arrangements, and operational behaviours that are rarely revisited after go-live.
This page helps you share the report Where ERP Budgets Actually Go internally, so Finance, IT and Operations align on the same evidence before decisions are made.
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Responsibility for ERP cost exposure is rarely owned by a single function. It is usually spread across Finance, IT, Operations and executive leadership.
Finance teams remain accountable for budgets and reporting, but many of the real cost drivers sit elsewhere, including:
License provisioning and access management
System design and customisation decisions
Vendor contracts and support models
Patterns of system adoption and use
The report highlights that these areas are often reviewed in isolation. This can create a false sense of control, even when overall ERP cost exposure continues to grow.
Sharing the report internally ensures that all stakeholders are working from the same evidence and assumptions. This reduces reliance on informal assurances and enables more effective board-level discussion focused on governance and accountability, rather than reconciling different versions of the truth.
The report provides a concise, board-appropriate view of ERP cost exposure by bringing together financial, contractual and operational indicators that are usually considered separately.
It outlines how ERP budgets typically flow across:
Licensing
Implementation
Support
Operational usage
Also where cost leakage and value erosion most commonly occur.
For CFOs in particular, the report offers a margin perspective rather than a technical one. ERP costs are largely fixed or semi-fixed in the short to medium term. When cost drift is unmanaged, it erodes operating margin directly rather than flexing with revenue.
Making this exposure explicit allows boards to assess whether ERP spend remains proportionate to the value being delivered.
Boards and executive teams generally use this report as a shared reference point, not as a decision paper.
It is most effective when circulated ahead of governance forums so that stakeholders arrive with a common baseline. This ensures discussion time is spent on material implications rather than aligning data or debating assumptions.
Finance leaders often use the report to:
Clarify ownership of ERP costs
Assess whether existing governance mechanisms provide sufficient visibility and control
Determine whether further scrutiny is warranted
There is no required outcome. The value lies in enabling the organisation to make an informed judgement about whether current cost positions are intentionally accepted or simply inherited.
This report is not:
A formal audit
An assurance review
A validation of financial records
It does not confirm contractual compliance, control effectiveness or accounting accuracy.
Figures should be treated as indicative and interpreted in the context of the assumptions and data sources used.
Its role is to support proportionate, board-level discussion – not to prescribe actions or recommend specific changes.
The report can be shared internally via email or downloaded as a PDF for circulation to the board and executive team.
These formats ensure that all stakeholders reference the same analysis and context.
Any benchmarks or statistics included should be treated as directional indicators drawn from independent research and observed ERP cost patterns, rather than as fixed targets.
Following internal review, organisations usually reach one of several conclusions.
Some confirm that ERP costs are well understood, intentionally incurred and appropriately governed.
Others identify areas where assumptions require validation or where additional clarity would improve board confidence.
All of these outcomes are valid. The purpose of the report is to make this judgement explicit, rather than leaving cost exposure unexamined.
Where internal discussion highlights unanswered questions, a structured review session is available to explore specific areas of uncertainty.
This session is designed to support governance and assurance, not to mandate change or accelerate decisions.
Participation is entirely optional and should be driven by internal need, not external pressure.
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Your Digital Transformation Partner.
© Copyright 2025 Intelisense IT – All Rights Reserved.