At Synovia Digital, we’re constantly exploring how new technologies are reshaping the way organizations plan, connect, and grow.
ERP is evolving faster than ever: merging AI, automation, and integration into one intelligent ecosystem.
It’s an exciting space we continue to navigate and learn from every day — and we wanted to share some of that insight with you.
ERP systems have long been the backbone of enterprise operations. But by 2026, they’ll evolve into something far more dynamic — intelligent ecosystems that think, predict, and adapt in real time.
This next phase of ERP isn’t about software updates or module expansions. It’s about decision velocity, modular design, and data orchestration — where every process and insight is connected across systems.
SAP and Microsoft are leading this shift, embedding AI deep within their platforms and transforming ERP from a reporting engine into a proactive partner in business strategy.
1. The Rise of Composable ERP
The traditional, monolithic ERP is giving way to composable architectures — flexible systems built from interoperable modules.
This allows companies to adopt what they need, integrate what they already use, and scale at their own pace.
Gartner notes that the ERP landscape is rapidly fragmenting into modular, cloud-first ecosystems, urging enterprises to design for adaptability. The firm warns that by 2027, over 70% of newly implemented ERP initiatives will fail to meet their business-case objectives if they remain rigid or isolated.
(Gartner – Enterprise Resource Planning Topic Center)
SAP’s Business Technology Platform (BTP) and Microsoft’s Power Platform exemplify this evolution, serving as middleware hubs that connect finance, operations, and analytics through APIs, data fabrics, and AI connectors.
2. AI at the Core – Not an Add-On
ERP used to be about transactions. Now it’s about intelligence.
Both SAP and Microsoft have invested heavily in embedding AI directly into ERP workflows:
- SAP Joule, introduced in 2024, acts as a generative AI copilot across SAP S/4HANA Cloud and SAP SuccessFactors, summarizing reports, generating forecasts, and even recommending process optimizations.
- Microsoft Dynamics 365 Copilot integrates with Azure OpenAI Service, bringing conversational analytics and smart automation to sales, finance, and supply chain teams.
Microsoft’s 2024 Release Wave 2 introduced hundreds of Copilot use cases, allowing users to query data in natural language and trigger automated actions across business modules.
(Microsoft Dynamics 365 Release Wave 2)
(Microsoft Copilot Updates)
Meanwhile, SAP is expanding Business AI capabilities to unify predictive analytics, planning, and automation under a single layer of intelligence.
(SAP Business AI Q4 2024 Highlights)
According to SAP Insights, 72% of global executives plan to increase AI and automation investment by 2026 to improve agility and address skills shortages.
(SAP AI Adoption 2024 Survey)
3. Integration Becomes the Differentiator
The next competitive edge in ERP isn’t speed or scale — it’s integration quality.
As companies accumulate data across multiple platforms (CRM, HR, supply chain, and analytics), the ability to synchronize that data in real time determines business performance.
SAP’s BTP Integration Suite and Microsoft’s Dataverse are leading this space. Together, they allow organizations to:
- Connect ERP with AI, IoT, and BI systems seamlessly.
- Build unified data layers across SAP and Microsoft ecosystems.
- Eliminate redundancy between business functions.
4. Automation Evolves into Orchestration
The role of automation is shifting from simple task execution to process orchestration.
With tools like SAP Build Process Automation and Microsoft Power Automate, businesses can design workflows that sense, decide, and act — autonomously.
Example: a low-stock alert in SAP can automatically trigger a purchase order, update supplier records, notify finance, and even post to Teams — all via low-code connectors.
This convergence of AI, low-code, and automation is what Gartner refers to as Intelligent Process Orchestration, blending human judgment with machine precision.
The result: fewer silos, faster execution, and smarter processes that continuously learn.
5. Sustainability as a Core ERP Function
Sustainability metrics are moving into the ERP dashboard.
SAP’s Sustainability Control Tower integrates ESG data directly into financial and operational reports, while Microsoft’s Cloud for Sustainability tracks emissions and resource consumption across supply chains.
By 2026, CFOs will treat sustainability KPIs as part of daily operations, not annual compliance exercises.
IDC’s 2024 research predicts that two-thirds of enterprises will have embedded ESG metrics into ERP reporting by 2025, with a tendency of up.
(IDC 2025 FutureScapes-Login to download the full report!)
6. Cloud as the Baseline, Not the Goal
Cloud ERP is no longer the destination — it’s the foundation.
Programs like RISE with SAP and Microsoft Cloud ERP Suite are making continuous updates, scalability, and cross-platform collaboration the default.
Hybrid deployments will persist in regulated industries, but the momentum is clear: by 2026, elastic, API-driven ERP will be the new normal.
The question won’t be “when to migrate,” but “how fast can we integrate?”
The Synovia Digital Perspective
At Synovia Digital, we view ERP 2026 as the era of connected intelligence — where business processes aren’t just digitized but contextualized through AI and analytics.
Our work spans SAP, Microsoft Dynamics 365, and Power Platform ecosystems, helping businesses unify data, automate intelligently, and build clarity into every process.
We don’t sell ERP systems — we help organizations make them work smarter together.
Because the future of ERP isn’t about what platform you use — it’s about how well your decisions flow through it.
Conclusion
ERP in 2026 stands at the intersection of AI, automation, and integration.
The most successful organizations will be those that move from digital transformation to digital orchestration — turning systems into collaborators and data into direction.
This is the horizon Synovia Digital continues to explore — where technology, intelligence, and collaboration converge to build resilient, adaptive enterprises.
Sources
- Gartner – Enterprise Resource Planning Topic Center
https://www.gartner.com/en/information-technology/topics/enterprise-resource-planning - IDC – 2025 FutureScapes: Worldwide IT Industry Predictions
https://my.idc.com/getdoc.jsp?containerId=prUS52691924 - SAP – Business AI Q4 2024 Release Highlights
https://news.sap.com/2025/01/sap-business-ai-q4-2024-release-highlights/ - SAP – Business AI Capabilities Overview (PDF)
https://assets.dm.ux.sap.com/sap-btp-customer-value-network-global/pdfs/01_sap_business_ai_ix_202403.pdf - SAP – AI Adoption in 2024: Survey Insights
https://www.sap.com/uk/insights/research/ai-adoption-in-2024-sap-survey-insights.html - Microsoft – Dynamics 365 2024 Release Wave 2 Plan
https://learn.microsoft.com/en-us/dynamics365/release-plan/2024wave2/ - Microsoft – Copilot Capabilities Launch (Wave 2)
https://www.microsoft.com/en-us/dynamics-365/blog/business-leader/2024/10/29/2024-release-wave-2-launches-with-hundreds-of-copilot-capabilities/ - Microsoft – New Dynamics 365 and Copilot Innovation (Wave 1)
https://www.microsoft.com/en-us/dynamics-365/blog/business-leader/2024/04/08/new-microsoft-dynamics-365-and-microsoft-copilot-innovation-for-supply-chain-sales-and-service-join-the-2024-release-wave-1/ - SAP – RISE with SAP Overview
https://www.sap.com/products/rise.html