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 technology, business and product, all of which impact on 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 39 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.
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 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% on a yearly basis. (Software Testing Help)
While on-premise ERP is still anticipated to amass a 57% grip on the industry by 2020, according to Allied Market research, cloud-based ERP is beginning to see greater investments in its solutions. (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)
Proper software implementation can spell the difference between the success and failure of an ERP system. 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 these solutions for their company.
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 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)
With the rise of SaaS, ERP programs have become more affordable, easier to implement, and simpler to maintain. This makes it simpler for small businesses to get their share of the benefits that these tools have to offer. In fact, there is now a whole bunch of solutions catering to this segment, as reflected by these 12 best ERP software for small business.
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 industry 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-based software has gained traction over the years because of the operational efficiencies that it has to 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.
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)
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.
The emerging technologies that are disrupting the ERP industry are artificial intelligence, machine learning, and Internet of Things (IoT) (The End of Technology Obsolescence, ERP Trends in 2018)
58% of developers plan to integrate or have already integrated AI into their ERP programs. (Evans Data Corporation)
The ERP software industry is the number one target of artificial intelligence (AI) and machine learning (ML) developers. (Evans Data Corporation)
72% of executives believe that AI in the enterprise is a business advantage for the future. (2018 PWC AI Predictions)
80% of developers believe that the management of ERP processes can be totally replaced by AI or machine learning. (Evans Data Corporation)
4 out of 10 industry leaders are exploring the use of new technologies for ERP systems. Of those interested, 43% are looking into AI, 40% into machine learning, and 40% into IoT. (The End of Technology Obsolescence, ERP Trends in 2018)
One of the biggest barriers to AI adoption in enterprises is that 49% of employees lack trust in technology. (SAS The Enterprise AI Promise 2018)
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.
ERP implementations are taking longer than expected, with the number of delays increasing from 59% to 79%. (Panorama ERP Software Report 2018)
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)
In recent years, these 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 about 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.
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, like with 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 lead 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.
Enterprise Resource Planning (ERP) solutions have certainly come a long way. Starting out as simple inventory management systems for the manufacturing sector, they have now evolved into fully-integrated networks that consolidate multiple business processes.
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