Adoption of Cloud ERP Is Surging (Insights from SelectHub’s report)
SelectHub recently released their report on Compare Best Cloud ERP: Which Systems Win in 2019, which explores everything from cloud-based ERP’s current and projected growth to the factors driving ERP success to much more. And, according to the authors, cloud ERP software adoption may have finally reached a tipping point.
Here’s some key stats shared:
Gartner: By 2020, at least 35 percent of new product-centric ERP deployments in large enterprises will be software as a service (SaaS) loosely integrated with on-premise manufacturing execution systems (MES)
The global cloud ERP market is expected to be worth $28B by 2022, attaining an eight percent compound annual growth rate (CAGR) between 2016 and 2022, according to market research firm Statista
The cloud ERP market size is estimated to grow from $18.52B in 2016 to $29.84B by 2021, attaining a CAGR of 10 percent in the forecast period
The North American cloud ERP market share is predicted to grow from $8.4B in 2018 to $11.1B in 2022, attaining a CAGR of 5.7 percent, according to Statista
Ok, let’s break this down a bit. Buying and implementing an ERP system is one of the most complex projects a business will take on—no matter the size of the company. In fact, nearly 75% of ERP implementations fail the first time around. Many organizations have invested a good amount of time and money selecting and implementing an ERP system more than once.
So, what’s a company to do? We like SelectHub’s suggestions (though we would, of course, shamelessly recommended highlighting ThinkTank as a key catalyst for Cloud ERP deployments) on the key factors driving cloud ERP success. They outline 10 factors in total, but here are some standouts:
Improving Product Quality
Many of today’s organizations are relying on a single, scalable cloud ERP system across all manufacturing locations to improve their product quality. Quality and compliance systems are often siloed from other manufacturing and accounting systems, making it very difficult to get a company-wide view of quality. Cloud ERP software is seeing rapid growth in this area by providing a scalable system of record based on a single database. Quality becomes strategic, compliance becomes more manageable and customer satisfaction improves.
Real-Time Production and Process Monitoring
The era of real-time production and process monitoring is here. From small and medium-sized manufacturing companies to global leaders, all are adopting real-time production and process monitoring at a quickening pace. Improving manufacturing execution, production efficiency and increasing the percentage of orders delivered on time to customers are just a few of the many factors driving cloud ERP adoption.
Mobility is a Must
Mobility is a must-have for manufacturers who want to manage their operations without sitting at their desks all day. Cloud ERP systems and the platforms they’re built on support mobile access to apps from any device that has an Internet connection anywhere in the world.
SelectHub also takes a stab at highlighting a handful of the best cloud ERP providers – those that continuously add to their analytics, BI, mobility and quality management systems. (Did your ERP provider make the cut? See here!)
Of course, we think that any company that’s ready to take the ERP plunge shouldn’t do it alone. Partner with a consultant that offers innovative ideas and new digital ways of working to help minimize risk and maximize results. Smart consultants include ThinkTank’s Intelligent Process Automation for Cloud ERP Deployment to help accelerate and de-risk enterprise software deployments, reduce costs and drive new business as a differentiated system of engagement for cloud software success.