17, March 2022
The advent of digitalization and the global business landscape have compelled companies to simultaneously manage inventory, manufacturing, scheduling, raw materials, customer, and other units. In this regard, enterprise resource planning systems ensure the seamless integration of critical functional areas into a unified system.
Earlier, the ERP software was employed exclusively by large-scale manufacturers. But, the emergence of automation and digitization have enhanced their adoption across small and medium-scale organizations. Moreover, the rising trend of social networking platforms like Facebook, Twitter, and LinkedIn have made customer interaction personal, improving the quality of information. Vendors such as SAP, NetSuite Inc, and Microsoft are actively developing ERP application stores. SAP, for instance, has launched an ERP store that authorizes customers and partners to buy and resell its Business One ERP software.
As per the estimates set forth by Triton Market Research, the global enterprise resource planning market will progress with a CAGR of 7.28% during the forecast period 2022-2028 and is projected to reach revenue worth $63.13 billion by 2028.
The virtualization trend across industries in the wake of COVID-19 transformed business structures to a large extent. The pandemic thus became a key catalyst for innovation and digital transformation, accelerating the shift from traditional EPR systems to next-generation ERP software. With hybrid communication gaining momentum across sectors, the adoption of cloud-based and integrated ERP systems has become imperative for efficient resource and organizational management.
Powered by AI, machine learning, and pattern recognition, cloud ERP solutions are becoming standard across various sectors owing to benefits like lower costs, easier management, and high-level security. The demand for cloud-based deployments has outperformed on-premise solutions, accounting for major IT spending. With the rise in the interconnectedness of the smart manufacturing business, the adoption of cloud-based ERPs is expected to extend to the entire supply chain. As per Microsoft, around 70% of new Microsoft Dynamics ERP and CRM clients opt for the cloud.
Additionally, companies are inclined towards the cloud mainly because they can provide accurate data aggregation, financial reports, disaster recovery, and more. Western Digital is one such company that opted for Oracle Cloud to transform its processes and resolve the issue of streamlining three on-premise ERP systems. As a result, the company has amalgamated numerous applications, decreased the approval period by around 70%, and enhanced acquisition agility.
Another trend supporting the enterprise resource planning market is the increasing demand for seamless integration across platforms. For instance, ERP integration with consumer relationship management offers a range of benefits like real-time tracking and data management, diminishing hardware and software costs. Integration with big data will enable customers and managers to gain precise results, leading to the formulation of customer-centric business strategies.
The enterprise resource planning market is highly consolidated, with most shares captured by large companies like SAP, Oracle, Microsoft, and Infor. These companies either opt for mergers or acquisitions of small and medium-scale companies to gain a competitive edge in the market. Hence, acquisitions have transpired to become a fundamental growth strategy for vendors.
To Summarize
ERP applications help users integrate multiple business operations into a single program, permitting managers to access the comprehensive database efficiently. While large organizations have leveraged the benefits of ERP on a large scale, small and medium-scale businesses are expected to elevate the adoption of cloud-based ERP software in the upcoming years.
Furthermore, as per estimates, approximately 91% of people stated that they depend heavily on mobile devices to carry out tasks. Tablets are among the major devices designed to support high-level applications, including ERP applications. Such trends, in addition to rising BYOD policies in workplaces, will increase the adoption of mobile ERP to easily identify issues and make informed decisions.
Enterprise resource planning (ERP) software system ensures seamless integration of critical functional areas into a unified system.
ERP applications help users integrate multiple business operations into a single program, permitting managers to access the comprehensive database efficiently. These modules concentrate on crucial business areas, including human resources, CRM, supply chain, etc.
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