When enterprise resource planning, or ERP, came to be a concept in the industry, it ushered in a new way of looking at business processes. Finally, enterprises could transfer all that spaghetti into one simple, easy-to-hold bowl. They could tie in data, decisions, and decision-makers into one cohesive fabric. ERP heralded a fresh and cogent way of gathering, storing, leveraging, and augmenting business information. That explains why worldwide IT spending is projected to total $4.5 trillion in 2023, and here the software and IT services segments will grow 9.3 percent and 5.5 percent, respectively, in 2023- as per Gartner. IDC has also indicated that enterprise application sales will have a five-year compound annual growth rate of eight percent through 2026. This is mainly being embraced to support businesses with their objectives.
As per a Software Path 2022 ERP Project Report, over 30% of businesses were implementing an enterprise resource planning (ERP) solution to support their company’s growth. In the case of businesses with more than 500 workers, the main reason was to replace outdated legacy systems. But gaining functionality and increasing efficiency came up as the top reasons for 33 percent of companies. That means that the ultimate goal of using an enterprise resource planning (ERP) solution is business-driven.
So, if the world around a business is changing with the advent of AI, cloud, analytics, and IoT, how can ERP stay untouched?
New tools, new ERP wardrobes
According to Precedence Research, the ERP segment could easily expand at the highest CAGR of 10.91 percent between 2023 and 2032. Here, the primary factor driving the growth of the enterprise software market happens to be the expansion of technology-driven projects and the improvement of I.T. budgets in organizations worldwide. In addition, there is clearly a worldwide direction toward improving business standards, norms, and data accessibility. That is something that’s driving this space towards data-centric solutions in the enterprise software market during the assessment period. With many changes happening in business needs and technological innovations, enterprise resource planning (ERP), as we know it today, is undergoing massive change. There is a marked emergence of:
All these are shifts that are already in progress. Gartner has indicated that by 2025, 70 percent of new business application developments will be built on a low-code platform. As per MarketsandMarkets, the cloud-based ERP market will reach about $130 billion by 2027, up from $64 billion in 2022. There is also considerable interest in the composability of ERP- where pieces of the software suite are configured flexibly and dynamically- as per new needs, opportunities, challenges, and threats. To add to that, a lot is being disrupted in the ERP space with the influx of new technologies as well as unique customer needs- especially after the experiences seen during the pandemic. Companies want to use more data, more robustly, and closer to customers to elevate customer experiences in unprecedented ways in the new digital world. They want to make ‘information’ their unique competitive advantage, and that’s possible with AI, analytics, and IoT now.
What do you need to do with your ERP?
All these are big waves of change. You cannot navigate them through the same old formula. You need to be well equipped with the right strategy and execution tools to make the most of these new technology tailwinds. ERP can quickly become the white elephant you hate- if you cannot stay ahead of these huge curves.
A good partner and guide can significantly help during lengthy implementation paths, project planning, organization, installation, training, and system configuration. Data for Decisions is one such expert with a footprint across four countries, over 7,000 supply chain stakeholders, and many domains, as well as MNC manufacturers. With its expertise, you get to:
It’s an organization that can also hand-hold your team in many critical areas like new hardware, updated network equipment, security software installations, employee training, skilled employee recruitment, and maintenance. These areas can really add to the initial deployment cost of enterprise software.
Once you choose an apt specialist, one with a profound experience of seven years and packed with 200 experts, you will also get to leverage the power of ‘what really works on the ground.’ And ‘what’s possible”—in a pragmatic but bold way.
Ensure you are up-to-date with all the new stuff that will be added to the ERP basket. These are not just suffixes or prefixes- AI, analytics, IoT, modules, verticals—these are going to be keystones in the success of your business ERP strategy.
It’s new. It’s scary. But that’s precisely why it’s worth paying attention to. Now! Not when the water is already above your head. Surf this new storm with confidence. Make ERP work to your advantage- like always.