Enterprise Resource Planning or ERP is one of the most talked-about processes management tools today. Research and statistics suggest that ERP market trends are booming and will continue to do so in the near future. But, why? What is it about ERP that’s making almost all business owners pay close attention? Why is ERP so important? By the end of this article, you will have answers to all these questions. Let’s start!
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What is ERP?
ERP is a process management tool or a software program that lets an organization use a set of applications by integrating them into one system. This means that all the core processes come under one roof called ERP, which makes management a piece of cake. It may sound quite simple but it is a force to reckon with. It uses the latest and most advanced technological innovations including AI and machine learning to ensure that the integration of various process is seamless and intelligent.
What are the benefits of ERP?
Are seamless management and better communication between teams the only benefits enterprises can enjoy with ERP market trends? While these are the most obvious benefits, there are many more that enterprises can enjoy after implementation. Let’s take a look at a few:
- Operations will become crystal clear, enabling business leaders to scan through results in real-time and see what’s happening at the exact moment.
- Tedious tasks are not just streamlined but also automated.
- It is easily accessible remotely (off-site), making its use very convenient no matter where one may be.
- Identifying challenges become easier.
- There’s a noted increase in the efficiency in finding solutions and implementing them.
- The productivity of the team goes up.
- It improves the efficiency of the entire team.
- Success is accelerated with ERP because the team now has instant access to useful tools and data.
- The data is secure.
- It can be completely customized. This means that you can choose an ERP solution and tailor it to suit your needs – nothing more, nothing less.
Are there any disadvantages?
Yes, just like the overused phrase goes, every coin has two sides. There are a handful of disadvantages that an ERP solution comes with. We have mentioned them here:
- It is very expensive. When you calculate the costs of the software, its implementation, and its maintenance, you will see just how big a dent it can create in your bank account.
- It is complicated. When you explore an ERP software solution, you will see just how many features and capabilities it comes with. It is quite easy to lose sight and get lost in the spiral. This leads to improper implementation and usage.
Do you need ERP?
Sure, ERP comes with a wide range of benefits, and it looks like a sweet deal but do you even need ERP? What type of businesses will actually benefit from it? Must you choose it for your business? Let’s see:
- Is there a lot of manual work in the organization? Can this work be automated?
- Is access to data a tricky process? Is that affecting your decision-making abilities?
- Do you work with vendors across the globe?
- Do you and your team members spend hours gathering information?
- Do you have little or no clue about the inventory and day-to-day progress?
- Are you unable to access important data when you are away or through mobile?
- Are you worried about data security?
If most of your answers are YES, you need ERP immediately. It will make your life easy and your work highly efficient. We understand that the costs scare you but remember, proper implementation will help your business improve productivity, which will, in turn, lead to an increase in revenue.
Latest ERP Market Trends
If you still aren’t convinced about the power of ERP, you should understand that North America is all set to be the highest revenue generating continent from ERP by 2020.
In this section, we shall explore more of the latest trends and what the future looks like for the ERP software tool.
Reuters reports that by 2026, the ERP software market is expected to grow to $74.20 billion. That’s a ridiculous rise seeing as to how just in 2017, it was $34.10 billion. This single statistic shows just how big it is even though it cost stymies the market growth considerably. It is evident that transparency and efficiency in the organization trump costs. Businesses are truly benefiting from this software model.
Where will organizations use ERP the most? On-premises! That’s the segment that takes first place, according to Allied Market Research. Various studies also reveal that Manufacturing and Services being the biggest revenue generating segment in the next couple of years.
Now, keeping at par with the changes in technology, did you know that there’s cloud ERP? This is a current trend that’s taking everyone by storm especially because it is more affordable. Cloud ERP is also easier to manage and maintain, which is encouraging more and more enterprises to use ERP because it solves their biggest concern.
So, is Cloud ERP in the future?
Cloud ERP brings all the benefits of on-premise ERP and eliminates (or at least minimizes) its disadvantages. It is the complete solution that enterprises have been waiting for and it is finally here.
Cloud ERP also uses AI and machine learning to deliver future-proof results and value at prices that large enterprises can afford. The data is secure, the processes are faster, and the efficiency is right up there.
Thanks to cloud ERP and its many benefits, even small and medium businesses are expected to choose two-tier models by the end of 2019. Statistics say that this will mean that 30% of the ERP market trends adoptions will at least be two-tier and a few of them will be three-tier. Soon enough, one in four SMEs will either start using cloud ERP or will start considering it seriously.
The ERP market trends today heavily revolves around cloud ERP. It’s market value is growing by the day and by the year 2022, we will see a massive increase. It is only upwards and beyond from there.
What are you waiting for then? The answer is pretty clear: Hop on the ERP software bandwagon for business success!
Have you been tentative about ERP? What was holding you back until now? After reading this, are you planning to go for it? We would love to hear your thoughts. Please feel free to comment.