Enterprise Resource Planning (ERP) is no longer the exclusive domain of multinational corporations. Almost all modern enterprises today need a reliable system for managing various assets. It is difficult to control products and production processes without effective tools. As the business grows and the organization expands, the best method of control and working leverage over business processes is required. Today’s ERP platforms, for the most part, meet all of these needs.
But even with the cheaper cost of moving many of today’s systems to the cloud, ERP software can still be quite expensive. Still, implementing such systems should be seen as a long-term investment. And of course it is necessary to make sure that there is a significant payback factor before making a decision to implement an ERP system. In this article we will try to answer the questions. What are the real benefits of ERP? What are the current market statistics? Are there any potential problems?
Current statistics in the ERP system market
Although ERP systems were originally conceived as a solution for use in large manufacturing plants, things have changed dramatically over time. Today’s systems have grown tremendously, expanded to serve the needs of a broader range of industries and businesses. The ERP market, in a global sense, has been growing steadily over the past few years. Already, more and more businesses are beginning to think about the benefits of digitalization and automation of enterprise processes. Even small and medium-sized businesses are beginning to appreciate the versatility of modern ERP systems.
Statistics of ERP-systems implementation and application
Like any business solution, ERP system implementation requires significant technical skills, preparation, immersion and training. This state of affairs affects the statistics and it should be expected that as you adapt to such a workflow, there is a greater likelihood of encountering some difficulties. Consequently, it is necessary to balance the possible risks and potential benefits of implementing ERP software in a particular business area.
Previously, ERP implementation was available mostly to large companies and giant corporations because of its high cost. Today, the situation is changing fundamentally and the systems have become available to small and medium-sized enterprises. Let’s list some major trends in the market of systems for small businesses.
65% of small businesses use ERP consulting services.
7.9% increase in the number of small businesses using ERP systems from 2014 to 2020
96% of new small businesses prefer some form of ERP solution
36% faster decisions are made by companies with ERP systems in place
Small businesses prefer ERP systems over standalone platforms. Because they help standardize operations 77% better; reduce operating costs 11%; improve real-time visibility of various data by 48%
Saved an average of 21% for companies that turned to ERP service providers
according to companies that use ERP it takes about 11 months to fully implement the system
on average 21% saved by companies which turned to ERP service providers
developing companies prefer ERP systems to individual products mainly because of better quality of collaboration (37%), better scalability (29%), improvement of technology (24%)
New technologies in ERP systems
With the development of cloud technologies are greatly changing processes and trends in various business sectors. ERP systems are no exception. More and more companies prefer cloud solutions to local products. In addition to the availability of such products, they are easier to install and configure, reduce IT infrastructure costs, and centralize all business data. In addition to moving to the cloud, the systems themselves are changing dramatically. While originally designed for large manufacturing companies, they are now increasingly being used for many different business processes.