I worked on home grown internal apps a long while ago and saw the same happen. Upper management gets sold on some ERP system (SAP, Oracle doesn't matter) and believe it will save money, streamline things, etc. whatever the marketing/sales people of the ERP say it will do. The yearly expense for licenses on the ERP was enough to fund a team of 5-10 developers and QA.
Here are things upper management doesn't consider:
* Picking the same ERP solution everyone else in your industry uses means you have zero competitive advantage now. Homegrown solutions with teams staffed to run them could give you an advantage.
* You need to pay expensive consultants to do things with ERP. If you want any customizations they will be a bottleneck for all future updates, possibly having to bring in expensive consultants every time you need to upgrade.
* The culture shift for employees is usually negative across the board. The IT people supporting it, the end users inside the company, basically the choice implies that management doesn't value its people or their thoughts on how to do their work.
* Vendor lock in. Switching from one ERP to another isn't likely to happen. They can raise their licensing/cloud costs when contracts are up and your company is likely stuck.