This blog was authored by: David Small, Business Applications CTO | 15 January 2025

 

As businesses across the UK and Ireland prepare for tighter budgets in 2025, Gartner’s highlights a critical trend: planned investment spending on Enterprise Resource Planning (ERP) implementations is expected to decrease by 15%. At the same time, low-code development platforms are on the rise. In fact, Gartner reports that 56% of organisations are expected to deploy low-code platforms by 2025, climbing to 74% by 2027.

 

This convergence of constrained ERP budgets and the adoption of low-code solutions presents a golden opportunity for organisations to rethink their approach to ERP implementation. By leveraging Microsoft Dynamics 365 Finance and Supply Chain and the wider Microsoft ecosystem like Microsoft Power Platform—including Canvas Apps, Power Automate, and Copilot Studio—companies can achieve cost efficiencies while unlocking greater business value.

 

The Cost Challenges of Traditional ERP Implementations

 

ERP systems such as Microsoft Dynamics 365 Finance and Supply Chain are the backbone of modern enterprises, integrating core business processes across finance, supply chain, human resources, and more. However, traditional ERP implementations come with significant costs:

 

  • Lengthy Development Timelines: Customising and configuring ERP systems to align with business needs can take months, even years.
  • High Technical Debt: Extensive custom coding often leads to increased maintenance and future upgrade costs.
  • Resource-Intensive Processes: Deploying an ERP typically requires large teams of IT specialists, consultants, and business analysts.

 

Alternatively, and bearing in mind Gartner’s finding that 15% budget reductions are looming, Telefónica Tech helps businesses find ways to streamline ERP implementation without compromising on functionality.

 

How Low-Code Platforms Revolutionise ERP Deployments

 

Low-code development platforms like Microsoft Power Platform are transforming how businesses approach ERP implementation. These platforms empower both professional developers and citizen developers (non-technical users) to create and customise applications with minimal coding.

 

Here’s how low-code platforms help reduce costs and deliver value:

 

Accelerated Development and Deployment

  • Tools like Canvas Apps allow users to design intuitive, role-specific interfaces with simple drag-and-drop functionality. This dramatically reduces the time needed to create and deploy ERP components.
  • Pre-built connectors and templates streamline the integration of Power Platform tools with ERP systems like Dynamics 365, SAP, and Oracle.

 

Automation of Repetitive Processes

  • Power Automate enables businesses to automate workflows across systems, eliminating manual, time-consuming tasks. For example, purchase order approvals, invoice processing, and inventory management can be automated to reduce errors and save resources.

 

Enhanced Collaboration with AI-Powered Tools

  • Copilot Studio brings AI-driven insights and automation capabilities to the forefront, helping users identify inefficiencies, optimise processes, and adapt to changing business needs quickly.
  • By providing natural language interfaces, Copilot empowers teams to make real-time adjustments without requiring specialised technical expertise.

 

Cost-Efficient Customisation

  • Unlike traditional ERP systems that rely heavily on custom code, low-code platforms enable customisation through visual tools. This not only reduces development costs but also ensures that updates and upgrades are easier to manage.

 

Empowering Citizen Developers

  • Low-code platforms democratise application development, enabling business users to create solutions tailored to their unique needs. This reduces the reliance on pro-code specialists and frees up IT teams to focus on strategic initiatives.

 

So, what business outcomes does this deliver?

 

Real-World Impact: Unlocking Business Value

 

In 2025, we’ll continue to see how low-code platforms are accelerating the rise of citizen developers and facilitating real-world impact.

 

By adopting low-code platforms, organisations can do more than cut costs; they can drive significant business value:

 

  • Increased Agility: Low-code solutions enable businesses to respond faster to market changes and emerging opportunities.
  • Improved User Experience: Customised applications built with tools like Canvas Apps provide seamless, user-friendly interfaces that improve productivity.
  • Scalability and Flexibility: As businesses grow, low-code platforms make it easier to scale ERP functionalities without incurring prohibitive costs.

 

For example, Telefónica Tech implemented a Power Platform solution for customer onboarding at Virgin Money, which boosted acquisition from 5% to 34%. Virgin Money particularly like Microsoft Power Platform for its ability to be quickly changed and updated.

 

Embracing the Future of ERP with Low-Code

 

The rise of low-code development platforms represents a paradigm shift in how organisations implement and manage ERP systems. As budgets tighten, the ability to deliver robust, scalable, and cost-effective ERP solutions will be a critical differentiator.

 

Microsoft Power Platform stands out as a leader in this space, offering a suite of tools that enable businesses to achieve their ERP goals faster and more affordably.

 

With Gartner’s projections highlighting the rapid adoption of low-code platforms, now is the time for organisations to embrace this innovative approach and reap the benefits of streamlined, agile, and value-driven ERP implementations.

 

What Businesses Can Do Now

 

By combining the power of low-code platforms with strategic planning, businesses can not only weather the challenges of reduced budgets but also position themselves for long-term success in an increasingly dynamic and competitive landscape.

 

To this end, investing in low-code technologies can form part of a three-pronged strategic approach that delivers maximum value:

 

  1. Invest in Microsoft Copilot Studio: Surround your existing systems with Generative AI and AI agents to maximize the value of a Business Copilot for your workforce.
  2. Invest in Microsoft Dynamics 365 Finance and Supply Chain: Reduce the total cost of ownership of your legacy systems while modernising your operations.
  3. Invest in Low-Code Technologies: Leverage Microsoft Power Platform to excel in customer experience and increase workforce effectiveness.

 

Telefonica Tech utilises Microsoft Power Platform within its Microsoft Dynamics 365 Finance and Supply Chain implementations to deliver customers a flexible and fit-for-purpose ERP solution.

 

If you’re looking for a user-friendly, AI-enabled platform that can grow with your business, get in touch with us for a consultation today.