Enshittification and Its Impact on ERP Systems

At Engleman Associates, Inc. (EAI), we provide IT professionals and executives with actionable insights drawn from over 25 years and 1,000 ERP projects. In our latest educational video, “Enshittification and ERP,” Mark Engleman explores the concept of enshittification—a term describing the gradual decline in quality of online products and services—and its significant implications for cloud ERP systems.

Enshittification follows a predictable pattern: vendors initially offer high-quality solutions to attract users, then shift focus to prioritize revenue generation, and finally degrade the offering to maximize stakeholder profits, particularly when users face high barriers to switching. For ERP systems, which are costly and time-consuming to replace, this degradation poses a serious risk to buyers who rely on these mission-critical applications.

The video outlines the enshittification process and discusses potential solutions, including technical and ethical reforms by vendors, which may require collective buyer pushback and advocacy to enforce. For individual companies now, achieving greater commercial and physical control over ERP applications and data is essential for mitigating these risks.

Watch the video for a concise analysis of this critical issue:

For further insights, explore the related ERP resources linked in the video description. Visit our YouTube channel for additional content, and share your thoughts in the comments below. Subscribe to stay updated on ERP trends and strategies.

Enshittification and Its Impact on ERP Systems