Unlocking Value from Unused ERP Modules

It’s not uncommon to walk into a client organization and find that nearly a third of their ERP system is sitting dormant. Modules for procurement, advanced reporting, asset management, and HR functionality often sit quietly in the background, overlooked after the core financials went live.  

This scenario plays out across industries—from manufacturing to healthcare to the public sector. 

Activating unused ERP modules can be key to realizing the full value of an ERP investment. In particular, if you’re pressured to increase efficiency without adding new systems or cost, activating dormant capabilities presents a strategic opportunity.

The Business Risk of Unused ERP Modules

When an organization faces  time constraints or organizational fatigue, it’s understandable that they deploy only a fraction of what they’ve licensed.

In addition, many organizations have a history of painful and expensive ERP implementations, so they’re satisfied with “good enough.” 

However, over time, this conservative approach turns into stagnation. When unused ERP modules are ignored, organizations take on silent risks:

1. Siloed Workarounds Multiply

Departments often find other tools to get the job done: spreadsheets for reporting, third-party platforms for procurement, and standalone CRMs. This leads to data fragmentation, duplicated effort, and poor visibility.

2. IT Costs Quietly Increase

Instead of leveraging ERP capabilities already paid for, organizations layer on new solutions. Licensing fees, integration costs, and additional training all contribute to rising technical debt, without adding strategic value.

3. ERP Value Realization Stalls

The benefits outlined in the original business case (e.g., streamlined operations, improved decision-making, better compliance) rarely materialize when only 60% of the system is used. Over time, leadership begins to question the system’s long-term ROI and the need for ERP project recovery becomes a topic of discussion.

Why Modules Go Unused

In our work advising CIOs and CFOs across sectors, our ERP selection consultants consistently find the following root causes of partial deployment:

1. Implementation Timelines Were Too Aggressive

Most ERP implementations are scoped tightly around core functionality—general ledger, accounts payable, and basic inventory or order management. Advanced modules like procurement automation or embedded analytics are deferred to “Phase 2,” which often never comes.

2. Teams Don’t Know What They Already Own

Surprisingly, many organizations don’t realize what’s included in their ERP license. Reporting tools, project management features, and vendor portals may already be available, but they are unused simply because no one asked what was included.

3. Change Management Was Underfunded

Even when modules are available, they can’t drive value if teams aren’t trained to use them. Without effective organizational change management, employees default to what they know, even if it means clinging to inefficient legacy tools.

ERP Optimization Examples

Activating unused ERP modules is about aligning system capabilities with strategic priorities. Here are a few examples of ERP optimization that can deliver measurable value across industries:

Procurement Automation

Manual procurement processes are time-consuming and prone to error. Activating ERP-based procurement functionality allows for:

• Centralized vendor management and purchase requisition workflows.
  
• Automated approval chains and budget enforcement.
• Reduced maverick spending and stronger contract compliance.

Embedded Reporting and Analytics

Many ERP platforms now include built-in dashboards and self-service BI tools. Yet, in many companies, reporting is still handled offline in Excel. Activating unused reporting modules allows for:

• Real-time operational visibility.
  
• Improved forecasting and executive decision-making.
  
• Reduced burden on IT for custom reports.

ERP optimization examples like this are often low-hanging fruit that take less time than teams expect.

For example, a global manufacturer might activate embedded analytics to monitor scrap rates, production costs, and customer order backlogs in real time. This would allow executives to see the financial impact of operational issues the same day they occur—rather than waiting weeks for compiled reports.

Time and Expense Management

For project-based organizations, ERP modules for time tracking and expense capture often go unused. When activated:

• Project profitability becomes clearer and easier to manage.
  
• Resource allocation improves.
  
• Client billing and revenue recognition become more accurate.

This is especially beneficial in industries like engineering, consulting, or construction.

For instance, a construction firm managing large-scale infrastructure projects might activate time and expense management to capture labor hours and equipment usage directly in the system. This would allow project leaders to see in real time which jobsites are running over budget and how resource allocation decisions affect overall project profitability.

Strategic Recommendations for Executive Teams

1. Conduct an ERP Value Realization Assessment

Through the following exercises, executives often find that they already own the tools to solve many of their current challenges:

• Begin with an inventory of licensed ERP modules, including those in use and those that remain dormant.
  
• Map each module to the business capabilities it was intended to support, such as demand planning, compliance tracking, or workforce management.
• Compare those intended capabilities to today’s pain points, process gaps, or areas where manual workarounds still dominate.

2. Establish a Post-Implementation Governance Cadence

Without strong governance, ERP systems drift into a “set it and forget it” posture, where optimization never moves past intention. Here’s how to establish a recurring rhythm:

• Form an ERP value realization committee with representation from IT, finance, operations, and functional business leads.
  
• Set a quarterly or biannual review process to assess usage metrics, revisit module activation decisions, and align future rollouts with strategic priorities.
• Include both tactical items (e.g., module configurations) and strategic questions (e.g., what capabilities are needed to support next year’s growth plan?).

3. Tie Unused Modules to Measurable KPIs

Our ERP advisory team always tells clients that activating dormant functionality should be directly linked to business outcomes. For each unused module under consideration, define clear value hypotheses, such as:

• “Activating the budgeting module will reduce our planning cycle from six weeks to three.”
  
• “Enabling quality management will cut inspection rework time by 30%.”
• “Rolling out workforce analytics will give HR visibility into turnover trends at the department level.”

4. Assign Joint Business and IT Ownership

ERP optimization efforts often stall when they are owned solely by IT or pushed onto overextended operational teams. Here’s how to ensure joint accountability:

• Assign executive sponsors for each module activation project, pairing a business lead with an IT counterpart.
  
• Require co-ownership of rollout plans, user training, and post-launch adoption metrics.
• Give these sponsors the authority to reallocate resources or escalate issues that impact success.

5. Budget for Optimization—Not Just Maintenance

Many ERP budgets cover support, licensing, and basic enhancements. But few reserve funds specifically for functional expansion or module rollout. Here’s how to budget for optimization: 

• Set aside an annual ERP optimization fund to enable phased activation of unused modules.
  
• Use pilot programs to test module effectiveness before full deployment.
• Bundle optimization with other strategic initiatives, such as digital supply chain upgrades, ESG reporting, or financial consolidation projects.

Your ERP System Has More to Offer

ERP systems rarely reach their full potential. Modules go unused, capabilities sit dormant, and the full return on investment remains just out of reach. 

If your organization is sitting on underutilized procurement, reporting, or project management functionality, the time to act is now. By taking a thoughtful, targeted approach to ERP optimization, executives can reclaim lost value and position the business for scalable growth.

Contact our independent ERP consultants below to get started.