ERP – Facts, Statistics, and Trends in 2017

With a change in technology and market, there is a corresponding change in Enterprise Resource Planning (ERP). After a careful observation of ERP and software industry, this article covers all the latest trends, stats, and facts revolving around ERP in 2017, so let’s begin.

ERP Facts

  • ERP for All: ERP today is designed to help small to medium size companies to grow and expand.


  • ERP can take over most of the organization works: Present days ERP systems are so advanced that they can take care of almost all processes.


  • Cloud-based ERP solutions are more flexible: Selecting cloud-based ERP can provide small, growing companies with affordable access to world-class tools, even if they don’t have the internal infrastructure for a better ERP implementation.


  • Cloud-based ERP is more secure: Almost 94% businesses believe their security is better due to cloud services, including ERP. Moreover, for many small organizations, the cloud is the only possible way to meet compliance requirements such as Health Insurance Portability and Accountability Act (HIPAA).


  • Cloud-based ERP requires little Investment: The cloud offers unique flexibility in terms of small business investments, particularly to small IT teams. Studies have also shown that most of the 22% of the companies that go for cloud-based ERP solutions appreciate cost savings as a result.


  • ERP is not helpful to senior management only: One of the important benefits of ERP system is automation of business processes and functions across all levels throughout the company – it is helpful to senior management along with other employees while benefiting the entire company.


ERP Stats

According to Panorma’s Report on ERP Systems and Enterprise Software:

  • 81% of organizations are either in the process of implementing ERP software or have completed implementation.
  • 14% of organizations are in the process of selecting software.
  • 5% are in the process of upgrading software.
  • 16% -The most common reason for implementing ERP was to replace old ERP or legacy systems.

Reasons for Implementing ERP:

  • 49% - to replace out-of-date ERP software
  • 16% - to replace home grown systems
  • 15% - to replace accounting software
  • 20% - to replace non-ERP systems / had no true system
  • 35% reported implementation costs of 1- to 3-percent of their organization’s annual revenue
  • 20% reported implementation costs of 3- to 5-percent of their organization’s annual revenue.
  • On average, organizations spend 6.5-percent of their annual revenue on their ERP project


ERP Trends in 2017

  • Rise in Cloud ERP Solutions: As compared to traditional ERP, contemporary ERP systems are more comprehensive and cover all functions of enterprise and not just specific to back-office processes. Cloud-based ERP has a more modular setup. Several enterprises are even licensing software as they would for an on-premises use and running it in a public /private cloud.


One of the most important benefits of Cloud ERP is the lack of infrastructure required to run them, no software/hardware is required, and they are scalable for growth – you pay for what you use, so your return on investment is faster. To stay updated in such a highly competitive marketplace, traditional ERP providers are looking for ways to switch to cloud products- either by integrating cloud products with their ERP systems or developing their own cloud-based specialized solutions.


  • Internet of Things (IoT): As IoT is described as ‘The third wave of Internet’, it has plenty of potential for application in the ERP Industry too. IoT connects devices such as everyday consumer objects & industrial equipment onto the network, allowing information gathering and management of these devices through software. This results in opportunities for increased efficiency and introduction of new services along with other benefits.

As more and more devices and products become connected to the internet, more data can be funnelled into the ERP system.  As a result, manufacturers will be able to keep track of each and every product, advise the customer and provide additional services. ERP will be able to connect data, processes, and people, paving the way for new business models and glean important insights from massive amounts of data.


  • Integrating Social Media: With a tremendous increase in social media users globally, there is a need for social Media functionality within ERP systems. As most ERP systems contain sales and business functions, many staff are already using it indirectly in conjunction with applications.


Microsoft offers Social Engagement App that allows companies to track multiple social media platforms, obtain data and push further engagement. Different forms of social media, such as discussion forums and instant messaging, have long been a part of certain ERP systems. Moreover, the purchase of LinkedIn by Microsoft will also contribute in enhancing the performance via ERP systems.


It seems inevitable that ERP would move towards integrating most of the social media platforms.

  • Better ERP Security: With an increase in cyber attack, more strictness in regulations and an increasingly connected corporate ecosystem, a great emphasis on security is required by ERP vendors. Cloud ERP solutions offer top-notch data protection with sophisticated security features and committed ERP solution providers. Company access to central admin panels and 24/7 support from ERP solution providers allow any issue to be resolved quicker than with traditional ERP solutions.


Multi-layered security and predictive deterrence, based on entity behavior analytics are set to become the norm in the coming years.


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