Around the world, changing technologies and advancing business needs have prompted companies in numerous industries – including manufacturing – to examine their options for improving their bottom lines and streamlining their operations. As a consequence, ERP systems have started to catch on as a wise way to deal with these emerging issues, and industry reports suggest this trend will only pick up steam in the years ahead.
From 2016 to 2025, it's projected that the global market for ERP software will grow at an average compound growth rate of 6.9 percent annually, reaching a sales apex of $56.8 billion by the end of that nine-year period, according to new research from Progressive Markets. The study indicated that ERP would likely be used to compile, manage and organize underlying data for operations for businesses across many different industries because of how customizable these systems can be.
How will it go?
Interestingly, trends suggest that more than half of all ERP software in use by 2025 will likely be on-premises, rather than in the cloud, though the latter will probably be picking up steam more appreciably during the examined period, the report said. Indeed, cloud-based ERP systems are likely to enjoy average compound annual growth rates of about 9.5 percent annually, meaning that it will be making up ground, but not enough to overtake more traditional ERP platforms within the next several years.
However, it's worth noting that ERP adoption is often most successful with the aid of vendors when getting employees on board with organizational changes, and educating them about how ERP programs and systems can facilitate them in day-to-day operations for overall business success, according to Enterprise Irregulars. When everyone is engaged in making an ERP system work at peak efficiency, it provides a significant benefit to all involved in the production process, because even one or two people who don't have full buy-in could end up having more detrimental effects than one might otherwise expect. Meanwhile, it is also incumbent upon the company to make sure these systems are as easy to understand and use as possible to ensure that level of commitment to the ERP transition.
What are the benefits?
When an ERP system is successfully put in place, the benefits companies and employees alike can enjoy are significant, according to Newswire. These include more coordination between workers and even entire departments, less frustration for customers and clients whose orders may otherwise be harder to track, a smoother supply chain, and operable workflows with customization capabilities to evolving company needs.
Of course, when considering the switch to an ERP system, whether it's brand new or a transition from a legacy platform, it's important for companies to carefully assess their current requirements, as well as what they think they will need in the future. The more homework businesses in any industry can do to ensure they know what they're getting into, the better off they will be throughout – and after – that first switch.