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

At Engleman Associates, Inc. (EAI), we draw on over 25 years and 1,000 ERP projects to deliver precise, buyer-focused insights for IT professionals and executives. In our latest educational video, “Buyer’s Commercial Control Near Zero - With Cloud ERP,” Mark Engleman addresses a critical issue with seller-managed cloud ERP systems: the near-total lack of commercial and physical application control for buyers.

Seller-managed cloud ERP, where vendors handle all aspects of delivery, leaves buyers vulnerable due to four key realities:

One-sided contracts: Modern cloud ERP agreements heavily favor vendors, often including provisions for unilateral changes post-subscription term.

No physical control: Unlike traditional on-premises ERP, where buyers owned licenses and hosted systems, cloud ERP buyers have little to no control over the physical infrastructure that delivers the ERP.

High switching costs: Replacing an ERP system, cloud or otherwise, is a complex process that can take a year or more, discouraging changes.

Rising costs: With limited buyer leverage, vendors face little resistance to increasing subscription fees.

This combination of poor commercial terms and lack of physical control places buyers of mission-critical ERP systems in a precarious position. In the video, Mark outlines these challenges and offers guidance on how buyers can push back.

Watch the video for a detailed discussion.

For strategies to address these issues, explore the resources linked in the video description. Visit our YouTube channel for more ERP insights, and share your feedback in the comments below. Subscribe to stay informed.