60+ Must Know ERP Statistics (2024 Trends and Facts)
ERP, or Enterprise Resource Planning, is gaining traction, particularly among tech companies, because of its importance in managing sensitive aspects of their businesses. This tool, or software as many users call it, is pivotal in companies' resource planning, evidenced by how it puts all the processes required to keep the firm active in one system. Today, 24% of companies use ERP software to manage sales operations.
Users can purchase inventory, human resources, finance, sales, marketing, integrate planning, and do more with the ERP software system. Another interesting part of this system is its growth over the years, including its worth in the market, funds acquired, and edge over similar platforms. The detailed facts and statistics about ERP might be interesting as this piece unfolds them. Let's get started.
- The Enterprise Resource Planning revenue reached a significant milestone of $39 billion in 2019.
- Microsoft Dynamics 365 also resounded among tech users after surpassing its competitors by an impressive 49% in market share.
- Just over 50% of CIOs in the United Kingdom desire improved ERP platforms that feature intelligence such as AI, automation, and machine learning capabilities.
- About 38% of organizations commend ERP solutions for better responsiveness to the steady-changing customer demands.
- Testing and related processes contribute to a potential 50% surge in ERP project budgets.
ERP is an application, software, or tool vitalin managing everyday business dealings such as project management, procurement, etc. Other functions include risk management and compliance, and for the full package, enterprise performance management is an essential piece of software for prediction, budgeting, and reports on organizations' financial records.
Several businesses cling to the ERP system for proper data flow and simplifying multiple business processes. ERP also comes in handy when tackling double data and ensuring information integrity using one source. This operation occurs by collecting shared transaction information about the company from different sources. Fast forward, ERP systems can now control thousands of different business sizes across multiple industries. Its importance to these companies can be likened to the need for electricity to keep lightbulbs on.
ERP Market Share Statistics
1. ERP software experienced substantial global growth in 2019, marking a noteworthy increase of 9% just before the onset of the global pandemic. This growth set a positive trajectory for the ERP market, positioning it favorably in the tech industry.
2. The revenue generated by ERP software in 2019 reached an impressive $39 billion, solidifying its standing as a dominant player in the software market. This revenue figure not only underscored the financial success of ERP software but also positioned it ahead of several other comparable software options available during that time.
3. North America saw clear Enterprise Resource Planning software growth, hitting approximately $10 billion. This remarkable surge supported the growth and financial success of the global market in 2019.
4. IT decision-makers, recognizing the strategic value of ERP investments, have increasingly advocated for prioritizing ERP adoption within companies in the tech sector. The conviction among IT decision-makers reflects the belief that ERP software is not just a technological tool but a strategic asset that can enhance operational efficiency and competitiveness in the tech industry.
5. Based on their commendations, there is a likelihood for the ERP systems to reach more heights. Predictions hold that its market worth could hit $78.4 billion over the next three years.
6. Microsoft Dynamics 365 is also making waves in the tech system, with a notable edge over its rivals. This is seen in its market share, with a 49% advantage over similar platforms in the tech space.
7. ERP also sees a green light from small businesses that leverage its beneficial consultant services. Notably, about 65% of these businesses carry out their activities using these services.
Interesting Statistics on the ERP Industry
8. Management software has been attracting the interest of tech firms over the years, as seen in its revenue growth of 7% in 2019.
9. Human capital management has also recorded upticks of about 10% in the same period.
10. Although several aspects of the ERP platform have grown notably since it became accessible to users, some appear to stand out. Some include the defense, retail, government, and aerospace utility sectors.
11. Despite the flood of online management platforms, ERP has maintained its position as the top choice for most financial companies. Approximately 64% agreed to leverage their services over the next three years.
12. IT decision-makers have already considered the ERP system a good investment choice for business resource management tasks.
Statistics on ERP's Applications
13. The bright side of ERP is rapidly rising, particularly among distributors and manufacturers who think of it as a successful or very successful tool.
14. Successful implementation hinges on internal organizational factors, such as robust management support, thorough due diligence, and the execution of effective change management programs.
15. A mere 12% of survey participants attributed integration failures to subpar software quality.
16. Following ERP implementation, nearly half (49%) of companies reported witnessing enhancements across all their business processes.
17. Midsize organizations within the $100-$250 million revenue range encountered the swiftest implementation periods.
18. Negotiating with ERP service providers can yield significant cost savings for small businesses, with potential reductions of at least 21% in expenses.
19. An overwhelming 87% of companies express the need for guidance during the ERP implementation process.
20. On average, companies invest approximately 17 weeks in meticulously selecting an ERP system.
Information on Cloud Technology
21. Cloud-based ERP systems experienced a robust growth rate of 21% in the public cloud, signifying a notable expansion in enterprise application adoption.
22. Projections indicate that the global expenditure on cloud applications is poised to hit $226.9 billion by the conclusion of 2022, underlining the escalating trend in investment in cloud-based solutions.
23. The expenditure on cloud platform services is anticipated to surge, reaching a substantial $70 billion, reflecting the increasing reliance on cloud infrastructure for diverse business needs.
24. Over half of organizations leveraging ERP software have embraced cloud-based solutions, highlighting a predominant shift towards adopting cloud technologies in enterprise resource planning.
25. A considerable portion of minority-owned businesses opt against utilizing cloud-based ERP systems due to concerns regarding potential data loss, security breaches, and perceived inadequacies in information handling.
26. Merely 1% of businesses operate without cloud infrastructure, underscoring the near-universal integration of cloud technologies into modern business frameworks.
Statistics on ERP's Usage
27. Manufacturing companies stand out as the primary adopters of ERP software, holding the top position in the ERP user base.
28. Beyond manufacturing, other industries showing notable ERP software adoption include distributors (18%), services (12%), and construction (4%).
29. According to a survey on ERP software acquisition, 89% of participating companies identified accounting as the most crucial function.
30. The average allocated budget for ERP software per user is approximately $9,000.
31. The predominant motivation for ERP implementation is increased efficiency, with 35% citing this as the primary driver.
32. An estimated 27% of a company's workforce uses its ERP system.
33. Post-implementation, 95% of businesses report experiencing substantial improvements in their operations.
34. The application of a modern ERP system has the potential to enhance on-time deliveries by an impressive 24%.
35. Approximately 28% of organizations achieve a return on investment (ROI) within 12 months of ERP implementation.
36. Recognized leaders among ERP vendors encompass industry giants such as SAP, Oracle, Rackspace, Infor, and Microsoft.
Statistics on Major Challenges Facing EPR Systems
37. Studies indicate that half of the initial attempts at implementing ERP result in failure.
38. The costs associated with implementation often exceed the initially budgeted amount by three to four times.
39. The implementation timeline tends to extend by approximately 30% beyond the initial plans.
40. Shortcomings in ERP systems are notable in analytics, user experience, and data accuracy.
41. Employee resistance, accounting for 82%, emerges as a significant obstacle to change.
42. Testing and related processes contribute to a potential 50% surge in ERP project budgets.
43. Nearly half, 44%, of organizations perceive their ERP systems as lacking flexibility.
Statistics on ERP Solution Types
44. AI integration into ERP systems is anticipated by 65% of CIOs in the current year.
45. Slightly over 50% of CIOs in the UK express a desire for enhanced ERP systems featuring intelligence, including AI, automation, and machine learning capabilities.
46. CIOs identify deep learning and predictive analytics as the key ERP technologies for achieving a competitive edge.
47. Among market leaders, 43% express a need for new and improved technologies in their ERP systems to facilitate faster operation and upgrades.
48. Healthcare ERP, a popular Enterprise Resource Planning system form, has become a handy tool for several medical practitioners. Its importance is vivid in its growing market value over the years. As of 2020, it already stood at $6.2 billion, expected to grow by 6.6% between 2021 and 2028.
49. There was a slight surge in the relevance of the healthcare ERP sector between 2019 and 2020 due to the breakout of the global pandemic. Notably, within this timeframe, the sector recorded growth of 3.9%.
50. Research indicates that around 58% of healthcare ERP developers integrated artificial intelligence (AI) into their products.
51. Billing and finance segments within healthcare ERP claimed the largest revenue share at 30%.
52. The global education ERP market was valued at $12.7 billion in 2021 and is expected to reach $25.2 billion by 2026.
53. Lockdowns and the shift to remote learning led to rapid growth in education ERP companies, such as BYJU'S, with a 150% increase in new users since the pandemic began.
54. In North America, the finance ERP market leads with a valuation of $4.5 billion. The supply chain ERP follows with $2.45 billion, and HR ERP with $2.3 billion.
What are the Good Sides of ERP Solutions?
55. A significant 29% of companies credit ERP systems as the primary catalyst for breaking down functional barriers and streamlining business processes.
56. The prowess of ERP solutions is evident, with 80% of companies leveraging them to craft novel applications that tap into business logic and data from diverse departments. 79% of businesses affirm that ERP fosters innovation, becoming a cornerstone in various operational facets.
57. While 44% of companies grapple with rigid ERP software, there is a proactive stance, with many actively seeking to expand their technological horizons. 32% have already embraced advanced technologies like AI and machine learning to enhance their ERP systems.
58. A substantial 38% of organizations credit ERP solutions for amplifying their responsiveness to dynamic customer demands, while 34% find it instrumental in navigating the challenges posed by digital disruptors.
59. Beyond the operational realm, ERP systems are pivotal in real-time customer engagement for 75% of enterprises. The benefits extend to seamless data integration (74%), 73% enhancement of datasets for high-quality information, and the delivery of an omnichannel, multi-device customer experience (72%).
60. Over 40% of firms grapple with the inflexibility of their current ERP implementations, prompting the adoption of an additional UI layer to enrich the customer experience.
61. Post-ERP implementation, 45% of companies experience ease in accessing customer and enterprise data, facilitating timely decision-making.
62. The customization trend continues, with 39% of enterprises opting to develop custom APIs for extracting and transforming data from their ERP systems.
Wrapping UpCompanies that wish to tap into the benefits of Enterprise Resource Planning systems have a lot they can use to up their game in the tech industry. These benefits are simple but highly vital for fast activation times and better efficiency at low costs. A notable part of these systems that will always stand out is their worth in large, middle-sized, or small businesses.
FAQs What causes failures in the ERP systems?Numerous factors contribute to the failure of ERP initiatives. These include challenges in project management, insufficient resources, excessive customization, the involvement of inexperienced consultants, and the adoption of flawed implementation strategies.
How high is the success of ERP?Among manufacturers and distributors, a substantial 67% deem their ERP implementation process as successful or highly successful, showcasing the triumphs within this domain.
How many ERP systems are in the cloud?Regarding ERP software, cloud-based solutions have gained prominence, with 53% of organizations opting for them over traditional on-premises platforms.
What is the projection for ERP in 2023?Anticipated Enterprise Resource Planning Software market growth foresees a revenue surge to $49.38 billion before the end of 2023. Also, a projected compound annual growth change of 4.78% between 2023 and 2028 is expected to propel the market volume to $62.36 billion.
What ERP system owns the biggest market share?Regarding market share, SAP ERP faces competition from Microsoft Dynamics and Workday. Microsoft Dynamics possesses 26.44%, Workday has 11.58%, while SAP S/4HANA holds 10.37% within the Enterprise Resource Planning category.
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