Unlocking ERP Agility: How Power Platform & Copilot Transform Legacy Systems

Empowering established ERP (Enterprise Resource Planning) systems with the Microsoft Power Platform and Copilot is rapidly transforming how organizations approach business process automation, analytics, and adaptability. In an era where digital agility and resilience have become business imperatives, low code platforms and generative AI are not only augmenting but redefining what’s possible within legacy ERP landscapes. This synergy, as articulated by EY’s leadership in collaboration with Microsoft, provides actionable insights on achieving cost efficiency, compliance, faster prototyping, and enhanced business value without the daunting cost and disruption of a full ERP replacement.

Unlocking Agility in Legacy ERP: The Power Platform Advantage​

Modern ERP systems are the digital backbone for many organizations, managing financials, supply chain, operations, reporting, and more. However, these systems, while robust, are traditionally cumbersome and costly to customize. As organizations evolve—through market shifts, regulatory changes, or new business models—the limitations of static, monolithic ERP systems become apparent. Replacing or heavily modifying them is both risky and expensive.
Microsoft Power Platform—comprising Power Apps, Power Automate, Power BI, and Power Virtual Agents—offers a dynamic, low code layer that can extend and automate ERP functionality without the pain of full-blown customization. Through this platform, organizations can rapidly develop applications, automate workflows, and create dashboards leveraging data resident within (and outside) their ERP systems. The Power Platform's integration with Copilot, Microsoft’s AI assistant, further accelerates insight generation and decision-making, making complex processes more accessible and efficient.

A Universal Challenge: Adapting to Change​

ERP systems demand significant investment in time, resources, and change management. Yet, as Kristie Reid, Microsoft Business Applications Lead for EY, notes, the challenge is not only deploying ERP but continually adapting it as processes, technologies, and strategies evolve. The inflexibility of traditional ERP systems can impede rapid adaptation—particularly in times of abrupt market or societal change, as seen during the COVID-19 pandemic.
Jonathan Kazemaini, an EY business application expert, underscores how Power Apps function as a business process automation tool capable of bridging this gap. By introducing a low code layer atop the ERP, organizations can adapt at market speed—modifying, automating, and extending processes in days or weeks rather than months.

Where to Start: Finding ERP Enhancement Opportunities​

The sheer scope of ERP ecosystems often leaves organizations unsure where to begin their enhancement journey. Nick Costanzo, a director at EY’s Microsoft Business Applications group, distills the Power Platform’s value into key categories:

• Easier Data Access: Surfacing and interacting with ERP data in user-friendly interfaces, outside the bounds of complex administrative screens or rigid workflows.
• Streamlining Manual Processes: Automating time-consuming approvals or data entry tasks, minimizing error, handoffs, and delays.
• Seamless External Data Integration: Enabling business users to work with data in familiar tools like Excel, while maintaining the integrity and traceability required by ERP systems.

For many organizations, initial wins are found in automating repetitive processes, digitizing paper-based workflows, or integrating external data sources for unified reporting—a manageable entry point that delivers visible returns.

Cost, Compliance, and Speed: The Strategic Edge of Low Code​

According to EY, the main reasons to augment rather than replace ERP with the Power Platform revolve around cost savings, increased efficiency, and strengthened compliance. Customizations in classic ERP environments are infamously expensive and complex, frequently requiring months of effort for relatively minor changes.
With low code, processes can be developed and adapted rapidly and economically. EY’s Amanda Easton cites a compelling example: when a client needed a new capital expenditure system, the team proposed a Power Platform solution that both integrated with the client’s legacy ERP and came in "40% cheaper than any other proposal." The system was not only cost-efficient but live within eight months—a fraction of the timeline typical for ERP modules.
These outcomes are particularly attractive in highly regulated industries, where compliance and auditability are non-negotiable. The Power Platform enables the creation of consistent processes and compliance “guardrails” enforced across multiple business units or geographies without incurring bespoke ERP modification costs.

Real-World Transformation: From Spreadsheets to Automated Ledgers​

EY’s own deployment of “Power Post”—an integrated solution for general ledger (GL) and financial postings—demonstrates the transformative effect of low code/AI augmentation. Previously, more than 400 financial professionals managed postings across global entities, moving data through a chain of Excel, Outlook, and third-party vendors—a process taking several days.
Power Post, built on Power Platform and integrated with EY’s ERP, streamlined this workflow: what once took two to three days is now accomplished in under an hour. The benefits extend beyond speed: the user experience is enhanced, validations are automated, and the process is substantially less prone to error.
Such case studies validate that it is possible to liberate significant value from existing ERP investments using low code and AI, without the disruption of overhauling core systems.

Driving Sustainability Reporting Through Unified Data​

Organizations today are under intense pressure to understand and communicate their environmental and social impact—areas where data is typically fragmented across countless systems. Nick Costanzo introduces EY’s “Sustainability Ledger,” powered by the Power Platform, which collates, calculates, and reports key sustainability metrics based on a client’s existing ERP data.
Whether tracking recycled materials, EV battery provenance, or clean energy outputs, the Sustainability Ledger ties disparate value chain data into a single source of truth. This not only satisfies regulatory requirements but also supports increasing stakeholder and consumer demands for transparency. The real strength here is the system’s ability to extract actionable insight from what is already housed in the ERP, amplifying its value for both compliance and strategic planning.

Mobile Inventory Management: Bridging the Last Mile​

Inventory management is another classic ERP stronghold, but many legacy systems lack the flexibility or roaming capability required by today’s decentralized workforces. EY’s inventory counting app accelerator, built on the Power Platform, is a case in point.
Designed to integrate with leading ERP backends, this solution empowers teams to conduct cycle counts and inventory audits—even in remote, offline environments. Data captured in the field synchronizes with the ERP when connectivity is restored, ensuring a real-time, compliant inventory snapshot across sites. Power Platform’s versatility here means organizations can avoid costly ERP enhancements while delivering user-friendly, analytics-enabled solutions directly to end users.

Integrating Generative AI and Copilots: The Next Frontier​

The arrival of generative AI and Microsoft Copilot within the Power Platform ecosystem represents a paradigm shift for ERP augmentation. Copilot acts as an intelligent agent—automating not just rote workflows, but also facilitating data discovery, decision support, and scenario modeling directly with ERP data.
Key use cases include:

• AI Agents for Standard Processes: Once business processes are defined, Copilot agents can run them automatically, minimizing manual intervention and standardizing outcomes.
• ERP Data Insights via Natural Language: Business users can engage with ERP data conversationally—asking for reports, analytics, or “what-if” forecasts without needing to understand underlying system syntax.
• Image-Based Analytics: In field operations, image object detection enabled by AI allows users to perform inventory counts or equipment audits by simply snapping a photo, with Copilot interpreting and updating backend financials in real time.

This confluence of low code platforms and conversational AI removes historic barriers, making complex ERP data and processes accessible to a broad range of business users.

Key Strategies for Driving ERP Empowerment​

EY and Microsoft experts converge on a set of practical strategies organizations should adopt to maximize the benefits of Power Platform and Copilot:

1. Embrace a Build-First Culture​

Empower your people—especially business domain experts—to prototype and build solutions atop the Power Platform. With prebuilt ERP connectors forged from strong Microsoft partnerships, integrating and extending existing systems is safer and more straightforward than ever.

2. Prioritize Automation​

Automate wherever possible to reduce cost, manual effort, and risk of error. Power Automate can streamline anything from routine approvals to complex multi-stage processes, freeing bandwidth for higher-value activities.

3. Foster Collaboration and Iteration​

Bring together IT, business users, and process owners in workshops or digital CoEs (“Centers of Excellence”) such as EY’s Wave Spaces. Collaborative prototyping accelerates innovation and helps surface operational pain points that may not be visible to IT alone. Iterative development means solutions can be refined based on real-world feedback and evolving business requirements.

4. Safeguard with Governance​

Adopt robust governance and data protection policies. Power Platform leverages Azure’s enterprise-grade security, but organizations must ensure apps adhere to organizational standards, access controls, and compliance mandates.

5. Leverage Adaptability and Fast Prototyping​

The Power Platform stands out in its capacity to support fast prototyping and ongoing refinement. This adaptability is crucial for keeping pace with changing regulatory, market, and customer expectations, allowing organizations to quickly test, iterate, and scale solutions with minimal risk.

Critical Analysis: Strengths, Risks, and What to Watch​

The allure of empowering legacy ERP with Power Platform and Copilot is undeniable, but a thorough perspective requires acknowledging both the strengths and potential pitfalls:

Notable Strengths​

• Cost and Time Efficiency: Low code drastically reduces the time and budget needed for process digitization compared to classic ERP customizations. As illustrated by the 40% savings in EY’s capital expenditure solution, ROI can be significant.
• User Empowerment: Business users—rather than solely IT—can build, adapt, and iterate on processes, fostering a culture of innovation and rapid problem-solving.
• Integration and Flexibility: Standard connectors and APIs make integration with most leading ERPs (SAP, Dynamics, Oracle, etc.) both quick and robust, insulating organizations from vendor lock-in.
• AI-Enhanced Decision-Making: Copilot and generative AI unlock rapid analytics, forecasting, and automation without requiring deep technical skills.

Potential Risks and Challenges​

• Shadow IT and Governance: Unchecked proliferation of low code applications can result in “shadow IT,” where unsanctioned or poorly maintained solutions may introduce errors, compliance risks, or integration challenges. Strong governance is essential.
• Integration Complexity: While connectors accelerate integration, complex ERP environments may still require significant data mapping, validation, or custom middleware. Promised out-of-the-box integration should be vetted for each unique context.
• Security and Data Privacy: AI and automation adopt increasingly broad access to sensitive operational data. Proper controls, access rights, and auditing are critical to prevent data leakage or unauthorized actions.
• Change Management: Empowering users to innovate does not negate the need for robust change management. Training, support, and clear policies must be in place to avoid confusion or process fragmentation.
• Long-Term Maintainability: As custom apps multiply, organizations risk creating new “technical debt” if governance and documentation lag behind development.

Critically, all organizations should verify vendor claims of integration simplicity, speed, and cost savings against independent benchmarks and at least two trusted case studies.

The Future: Agile ERP is Augmented, Not Replaced​

The insights from EY and Microsoft showcase a clear trajectory for ERP evolution: successful organizations will not continuously rip and replace their ERP core. Instead, they will build adaptive, AI-augmented process layers that extract greater value from their existing digital backbone.
Low code, AI-powered automation, and cloud-native platforms like Microsoft Power Platform empower organizations to move at market speed—reducing the friction between vision and execution. With Copilot, even non-technical users gain near-instant access to analytics and smart automation, positioning them to innovate in ways previously reserved for only the most advanced IT teams.
For organizations already invested in ERP, the message is clear: the tools to transform, adapt, and thrive are here now. By strategically leveraging Power Platform and Copilot—and prioritizing governance, collaboration, and a build-first culture—they can future-proof their operations while safeguarding compliance and security.
As digital transformation continues, those that empower their ERP, rather than replacing it, will be best poised to innovate, compete, and lead in an ever-shifting business landscape. Empowering ERP with Power Platform and Copilot is no longer just an option—it is becoming a necessity for resilient, intelligent enterprises.

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Source: EY How to empower existing ERP with Microsoft Power Platform and Copilot