Enterprise resource planning (ERP) is the integrated management of core business processes, which are often in real-time and are mediated by software and technology. ERP is usually referred to as a category of business-management software, typically a suite of integrated applications that an organization can use to collect, store, manage, and interpret data from various business activities

- Interpreting the data is crucial for decision making; however, Oracle survey data suggests that current ERP systems are not delivering meaningful insights needed. According to Oracle, although 60% of people used their ERP system to generate reports directly, nearly half (49%) used spreadsheets with data pulled from the system of record (survey on 400 finance and technology leaders). The fact that businesses feel compelled to take their data further with an ad-hoc spreadsheet reports shows ERP systems do not provide the insights businesses require. The problems with managing reports via spreadsheets are well-known, so it should be no surprise that companies have begun or are planning to move ERP to the cloud.

- Cloud is the future of most of the business applications, including ERP. Accenture’s CIO (Chief Information Officer) survey concludes that 78% of the UK CIOs believe that cloud is critical to their IT strategy and corporate strategy, and 50% say they are already running a hybrid cloud ERP and reaping its rewards of the total cost of ownership (TCO) reduction and increased agility.

- Furthermore, ERP software has been heavily adopted in developed countries in the past decade. However, similar levels of adoption have not happened in Asia. To date, most mainstream ERP solutions have been developed by the US or European-based vendors. They have emerged as saturated market segments in the large-scale enterprises, with the demand now appearing for a cloud-based solution.

- In advanced technology, Blockchain has found takers in various enterprise software. There is the issue of interoperability as every individual party, along with a supply chain, has its own ERP system. The manufacturer, wholesaler, and retailer usually operate on different software. This creates a situation where no one has more visibility, and it provides no exposure to the entire supply chain. Blockchain has the potential to unite the vast supply chain network using a decentralized system.

- Among the leading ERP vendors, SAP seems to be getting ahead with exploring different ways of implementing the Blockchain. SAP has been experimenting with using Blockchain in 3D printing and digital manufacturing. Many of the SAP trials are fully focused on the supply chain management and provenance check.

- Furthermore, the COVID-19 pandemic pushed manufacturers to rapidly shift gears, from addressing work-from-home policies to managing the extreme swings in demand and uncertain supply chains. In the process, it has highlighted the aspect of manufacturing ERP that is not as visible in more normal times business continuity. During the COVID-19 pandemic, ERP keeps the entire industry in operation with its ability to sustain business operations through remote access, automated reporting, electronic data exchange, and real-time factory controls.

- For instance, the Australian enterprise software-as-a-service company TechnologyOne remained profitable on the back of strong global demand for its ERP solution in the pandemic. Its SaaS ERP ARR (annual recurring revenue) is up by 33%, and it increased the number of large-scale enterprise SaaS customers by 22% to 475.

Free Sample report for this report is available :- https://www.statzyreports.com/report/sr498045/enterprise-resource-planning-market

Key Market Trends

Retail Industry Hold Significant Market Share

- ERP for retail allows retailers to undertake planning activities according to the need of the situation. It focuses on the various strategies to be employed to help a retail store increase sales turnover. The business implications of the retail ERP system are highly needed for productivity. A retail organization may consist of a small chain of retail stores confining to a small town or an enormous organization that can have its presence globally in the form of thousands of stores scattering. Retail ERP packages help retailers in the better management of enterprise-wide operations spanning the entire world.

- At one point in the past, retailers avoided cloud-based ERP systems, but currently, more retailers than ever have been making the switch to a cloud-based ERP system, a trend that will continue over the next year. Cloud-based systems offer the benefits retailers are looking for, including enhanced security, better scalability, and increased support.

- In the retail sector, some new players are emerging amid the longstanding established players in the retail market to leverage the growing purchasing power across economies. With the advent of e-commerce, all small businesses adopt the e-commerce business model as an additional revenue stream to benefit from increasing smartphone usage.

- This is creating the need for better operational management to sustain in the current competitive retail market. The majority of the retailers depend on the legacy ERP systems, like Microsoft’s Great Plains, Oracle’s EBS, and Epicor’s Prelude. However, these vendors are increasingly opting for cloud-based ERP offerings, owing to the cost benefits they offer.

- Further, the retail trajectory is growing at a paced rate, supported by the rise of the middle-class segment. Internet penetration and expanding mobile users are the key drivers for this market. Digital payments (or cashless payments), according to a study by Capgemini and BNP Paribas, are expected to reach USD 726 billion by 2020. This rise influences the merchants across industries to catch up with the trend and adopt technologies supporting the digital payments and link those to the operational data to forecast demand and supply.

- Furthermore, with increased mobility across retailers and the emergence of mobile POS, mobile ERP systems are expected to gain traction over the forecast period, as retailer employees would be able to access reports, shipping/ billing details, etc. on the go.

North America to Hold Major Share in the Market

- The growing need for internal process efficiency, primarily through digital methods, is one of the major driving forces for ERP adoption in the region. According to the IFS AB report, more than 41% of the companies in the United States invest in ERP solutions to mainly upgrade their internal process efficiency.

- Many major ERP vendors are collaborating with banks in the region for the development of faster payment methods. Citizens Bank was planning to phase in real-time payments for its commercial banking business, starting in 2019. The move is likely to necessitate corporations in upgrading their ERP systems. FIS global provided its FIS Core banking solutions to Citizen Bank in 2019. Additionally, NetSuite provided its NetSuite OneWorld ERP solution to Bankrate Inc. and generated a revenue of USD 434 million in 2019.

- Moreover, according to HIMSS Analytics, ERP adoption among the US hospitals increased from 18.8% of the hospitals in 2008 to 38.4% of the hospitals in 2018. Approximately 60% of the total number of US hospitals currently do not have an ERP solution installed. Almost 200 hospitals are presently contracting, investing, or planning to purchase an ERP solution, catering to a trend of integration of ERP in US hospitals.

- Further, In the United States, ERP vendors are encouraging manufacturing and logistics vendors to adopt augmented reality and apply AI-type technologies to sensor data collected from machines and robots. This is motivating ERP vendors to develop industry-oriented ERP software.

Competitive Landscape

The enterprise resource planning market is highly fragmented, with a large number of competitors. Players in the market adopt strategic activities such as partnerships, product development, mergers, and acquisitions to capture the market share. Some of the key developments in the market are:

- In July 2020 - SAP and Siemens signed a partnership deal to accelerate the digitization of manufacturing processes. A new agreement between SAP and Siemens combines SAP ERP systems with Siemens Teamcenter PLM platform, enabling companies to develop an end-to-end digital thread for manufacturing.

- In July 2020 - Microsoft announced that it would supply the backbone cloud technologies for Woolworths’ SAP solutions, as the retailer migrates its current SAP footprint to Azure, paving the way for the upgrade path to SAP S/4HANA. Woolworths (Australian chain of supermarkets) has one of the largest SAP environments globally, which supports business-critical processes, including retail operations. Migrating SAP applications and platforms to Azure, including SAP ERP and SAP Cloud Platform, will enable this great business to innovate faster than ever.

Reasons to Purchase this report:

- The market estimate (ME) sheet in Excel format
- 3 months of analyst support

For sample report please visit : https://www.statzyreports.com/report/sr498045/enterprise-resource-planning-market
Contact Us:
Poojan Dogra
Public Relations Manager
Email : [email protected]
Email : [email protected]
(IN) - +918484035727
(US) - +1415-871-0483
Website : www.statzyreports.com