ERP software is unmistakably one of the most useful platforms that a company can invest in. However, it is important to note that there are many factors that can make your ERP implementation succeed or fail. One of these is having a clear picture of the industry and trends that are shaping and influencing ERP software as a technology, business, and product, all of which impact how you maximize ERP for greater efficiency.
Don’t worry; you need not read scores of studies or articles. To help you out, we have gathered 63 key ERP statistics that are important for you in 2019. From general ERP charts to research on emerging ERP tech, this compilation should give you a better idea of what’s new in enterprise resource planning and how other companies are utilizing these tools for their operations.
General ERP Market Trends
The global ERP market has grown significantly over the years, and it does not appear to be stopping any time soon. This can be attributed to the growing number of businesses that are discovering the versatility of this platform. In recent years, ERP systems have expanded to cover a wide range of business processes that go beyond manufacturing. With this said, companies from various industries will be able to make use of these tools.
- The Aerospace and defense industries will have the highest ERP software adoption growth rate at 8.86% from 2014 to 2020. (alliedmarketresearch.com)t
- The market for ERP software in the Asia Pacific is forecast to grow to $9.77 billion by 2020. (alliedmarketresearch.com)
- Mid-size businesses’ adoption of ERP software will grow at a CAGR of 7.9% from 2014 to 2020. (alliedmarketresearch.com)
- The global ERP software market is expected to reap $47 billion in revenue from 2017 to 2022 at a CAGR of 7% (ERP Software Market 2018 Global Trends)
- ERP software accumulates over $25 billion each year and continues to grow by around 10% to 20% yearly. (Software Testing Help)
- While on-premise ERP is still anticipated to gain a 57% grip on the industry by 2020, according to Allied Market research, cloud-based ERP is beginning to see greater investments. (Allied Market Research)
- ERP and CRM remain as the strongest types of business applications, with 53% of businesses naming these as priority investments. (2018 ComputerWeekly/TechTarget IT Priorities Survey)
- Some of the largest barriers to cloud ERP adoption are perceived risk of security breach (29%), insufficient information about cloud offerings (16%), and perceived risk of data loss (9%). (Panorama Consulting 2017)
ERP Implementation Trends
Proper software implementation can spell the difference between the success and failure of an ERP system implementation. This is why it is crucial for you to not only know how to roll out your ERP platform but also be prepared for any challenges that you might encounter along the way. Here, we have compiled a few statistics covering the benefits of implementing these tools, what other users are looking for in these systems, as well as how they are using them for their company.
- 95% of companies improve their processes following ERP implementation. (panorama-consulting.com)
- 31% of businesses that exceed their ERP budgets are very satisfied with their implementation results. (panorama-consulting.com)
- 66% of businesses have experienced operational disruption during ERP implementation. (panorama-consulting.com)
- Customer satisfaction with their chosen and implemented ERP software increased to 68% this year. (Panorama Consulting 2018 ERP report)
- 95% of businesses experienced an improvement in their processes after implementing an ERP system. (Panorama Consulting 2018 ERP report)
- 61% of UK CIOs store over half of their ERP data on the cloud. However, only 6% of these intend to go exclusively cloud-based in the next three to five years. (Accenture 2019 ERP Trends)
- In terms of ERP deployment, 51% of UK CIOs prefer private cloud, 35% prefer on-premise, and 10% prefer hybrid solutions. (Accenture 2019 ERP Trends)
- Among the popular reasons for implementing ERP are to improve business performance (64%), to position a company for growth (57%), and to reduce working capital (57%). (Panorama Consulting 2018 ERP report)
- The top three benefits gained from ERP are reduced process times, increased collaboration, and centralized enterprise-wide data. (TEC ERP Software Facts & Stats 2018)
- Lack of ERP software can lead to redundant data (35%), unaligned business systems (33%), and the inability to track business processes in real-time (28%) (The Aberdeen Group)
- CFOs want ERP tools that give them control over payments, as 75% of companies experienced attempted payment fraud in 2017. (CIO ERP Trends 2018)
- Some of the things that manufacturers look for in an ERP system are ease of use (50%), functionality (46%), and total cost of ownership (43%). (The Aberdeen Group)
Why Businesses Implement ERP? (2018)
To improve business performance: 64
To improve business performance%
Why Businesses Implement ERP? (2018)
To reinforce company growth: 57
To reinforce company growth%
Why Businesses Implement ERP? (2018)
To reduce working capital: 57
To reduce working capital%
Why Businesses Implement ERP? (2018)
To improve customer service: 54
To improve customer service%
Why Businesses Implement ERP? (2018)
To simplify workload: 49
To simplify workload%
Source: 2018 Panorama Consulting Solutions Designed by
Small Business ERP Statistics
With the rise of SaaS, ERP programs have become more affordable, easier to implement, and simpler to maintain. This makes it faster for small businesses to get their share of the benefits that these tools have to offer. There is now a whole bunch of solutions catering to this segment, as reflected by these 12 best ERP software for small business.
- SMBs have been investing $889,000 in ERP systems. (idg.com)
- 65% of small businesses are enlisting the services of ERP consultants. (panorama-consulting.com)
- SMBs that have completed implementation used an average of 7 fulltime internal resources. (panorama-consulting.com)
- SMBs report that it took them 11 months to realize the benefits of ERP implementation. (panorama-consulting.com)
- Small businesses saved an average of 21% from negotiating with ERP vendors. (panorama-consulting.com)
- ERP platforms are the most in-demand software for small businesses, next to business management and marketing technology (The State of SMB Software, 2018)
- From 2014 to 2020, SMEs are projected to contribute a CAGR of 7.9% to the ERP market share due to the incentives that these solutions have to offer, including reduced inventory waste and lower operating costs. (Allied Market Research)
- 96% of growing businesses who excel in their respective industries rely on an ERP system (The Aberdeen Group)
- Small businesses experienced a 36% reduction in the time it takes to make decisions because of ERP software. (The Aberdeen Group)
- Owners of SMBs prefer using ERP systems instead of standalone solutions because it can reduce operation costs by 11%, standardize back-office processes by 77%, and give them real-time visibility into their data by 48%. (The Aberdeen Group)
Cloud ERP Statistics
Cloud-based software has gained traction over the years because of the operational efficiencies that they offer. Whether you are looking to centralize your business process information or simply want to simplify your IT infrastructure, cloud ERP systems are certainly game-changers in the industry.
- 73% of companies have at least one application already in the cloud. Another 17% plan to do the same in 2019. (idg.com)
- $2.2 million – The average cloud budget in 2018. (idg.com)
- 38% of executives say their IT departments feel the pressure to move to the cloud. (idg.com)
- 42% of businesses are using multi-cloud. (idg.com)
- 59% of companies say a multi-cloud strategy increases their cloud options. (idg.com)
- 40% of businesses say a multi-cloud strategy makes disaster recovery easier and faster. (idg.com)
- 47% of companies use on-premise ERP but use APIs to extend to the cloud. (accenture.com)
- 22% of organizations use on-premise ERP but are looking for managed hosting/IaaS. (accenture.com)
- Research suggests that the cloud-based ERP market size will jump to $29 billion in 2019, which would make it an $11 billion increase from 2016’s $18 billion. (Cloud ERP Market)
- Enterprises predict they’ll invest, on average, $3.5M on cloud apps, platforms, and services this year. (2018 Cloud Computing Survey)
- In 2017, less than half of companies and organizations implemented cloud-based or SaaS solutions, while the remaining ones utilize on-premise platforms. This number shifted in 2018, with cloud and SaaS deployments reaching 85%. (Panorama 2018 ERP report)
- 76% of businesses either plan on transferring or have already moved to the cloud. (The End of Technology Obsolescence, ERP Trends in 2018)
- 30% of all IT budgets are allocated to cloud computing this year, with the majority being SaaS (48%), IaaS (30%), and PaaS (21%). (2018 Cloud Computing Survey)
- Cloud-hosted ERP is cheaper than on-premise solutions by 30%. (The Case for Cloud-Based ERP)
Source: 2018 Panorama Consulting Solutions
Most Popular ERP Software
- NetSuite ERP. Fully scalable ERP solution that automates front- and back-office processes focusing on financial management and business intelligence that is built right in the application. Our NetSuite ERP review details its full features.
- Scoro. ERP solution for small to medium enterprises. Focuses on collaboration, work scheduling and tracking, customer relations and project management among others. Get to know this app better with this Scoro review.
- Sage Intacct. Sage and Intacct combine to bring you innovative financial applications for AICPA business solutions. Get to know the application better through this Sage Intacct review.
- SYSPRO. Deployable via cloud or on-premise, this powerful ERP platform is best designed for the manufacturing sector. This SYSPRO review describes the app in full detail.
- Odoo. Combines project management, sales, POS, MRP and ecommerce, functions, this ERP software has your business needs covered. See how it does this with this Odoo review.
Emerging Technologies and ERP Systems
ERP software solutions have reached a level of maturity that made developers more hard-pressed to find room for further improvement. So much so, that in the past few years, the only significant change to ERP systems is the increase in cloud adoption and the integration of early-stage technologies like AI.
ERP System Potential Problems
While ERP systems have become more sophisticated over the years, they are still not without shortcomings. From kinks in implementation to difficulties in maintenance, there are still reports of some potential problems you might encounter while using these software solutions.
- 74% of ERP projects take longer than planned. (panorama-consulting.com)
- 64% of ERP projects go over budget. (panorama-consulting.com)
- ERP implementations are taking longer than expected, with the number of delays increasing from 59% to 79%. (Panorama ERP Software Report 2018)
- Organizational issues are the leading cause of ERP implementation schedule overruns. (panorama-consulting.com)
- The average length of ERP implementation has increased from 16.9 months to 17.4. (Panorama ERP Software Report 2018)
- 30% of ERP implementations take longer than originally estimated, and about 50% fail on the very first try. (Technology Evaluation Centers)
- ERP Implementation can cost up to 50% more of your budget because of the testing process and related activities. (Software Testing Help)
- 92% of ERP systems often require manual intervention in order for users to enable data sharing, making it difficult to achieve a unified data view for organizations. (Accenture 2019 ERP Trends)
- 51% of ERP system users reported that manual extraction is needed to reuse their data, while 33% reported that custom APIs are needed to extract their data. This makes it more complicated for users who have no technical expertise. (Accenture 2019 ERP Trends)
- 53% of chief information officers in the United Kingdon want to extend their ERP system with new intelligent tech. (Accenture 2019 ERP Trends)
Source: Technology Evaluation Centers Designed by
What Do These ERP Facts Mean for Your Business?
In recent years, ERP platforms have gradually expanded to accommodate not only large enterprises but also small businesses. This paves the way for more scalable and easy-to-implement solutions that don’t require technical expertise. But of course, this is not to say that ERP systems are becoming more simplistic in the coming years.
On the contrary, with the fourth industrial revolution in full throttle, ERP platforms have increasingly incorporated new technologies as part of their system. After all, cloud computing, artificial intelligence, and the Internet of Things can open up new opportunities not just for the users but for software providers as well.
The question now is, what do these data have to do with you and your business? For starters, a PwC study reveals that remaining innovative is a major factor for business success. So, the first step you can take is to keep abreast of current trends in the industry. By doing so, you can remain one step ahead of the competition despite any changes in the industry.
If you still don’t have an ERP system, you can get a better idea of what ERP can do if you check out our guide to what is ERP software. Or, if you’re looking for one, this is a good starting point to speed up your research: 20 best ERP software tools of 2019.
Why you need an ERP
The numbers don’t lie: ERP platforms are indispensable tools in the modern business landscape. They offer a number of advantages in terms of centralizing business processes as well as lowering operational costs not just for large enterprises but for small businesses as well. Furthermore, these tools are continually evolving to keep up with cutting-edge developments such as cloud computing, AI, and IoT, so you don’t have to worry about getting left behind in the new industrial era.
However, just like any other type of technology, ERP systems come with its own setbacks. This is why you must put in extra effort to learn more about these potential problems and figure out how you can address them or prevent them from affecting your business.
If you don’t already have an ERP software at your disposal or are looking to replace the one you are currently using, a good start is to compare these 3 top ERP software systems. This should give you a detailed rundown of the key ERP features and how they are packaged and priced on the market.