Enterprise resource planning (ERP) consolidates various systems from across entire organizations to maximize efficiency. As technology has advanced, modern-day ERP solutions have adapted as well, going on to include some of the latest innovations, such as cloud computing. Not only has cloud ERP technology been a disruptive force within the ERP market, but it has also facilitated the market’s tremendous growth in recent years. In fact, the global market size for these services will reach an estimated $29.84 billion by the year 2021.
This progress is thanks, in no small part, to the trends that shape ERP each year. This year brought numerous advancements in ERP solutions, from a move to mobile cloud services to a focus on hybrid models. As 2019 approaches, let’s take a look at some of the biggest trends to influence the cloud ERP market in 2018:
General cloud ERP surges in popularity
As the business world goes digital, cloud-based ERP services are growing exponentially in popularity. The 2018 ERP Report from Panorama Consulting Solutions highlighted this shift, demonstrating the dramatic growth of cloud ERP software among businesses in a variety of sectors. Between 2017 and 2018, cloud ERP nearly tripled among respondents, from 6 percent to 21 percent.
This shift toward cloud ERP systems stems primarily from the lack of innovation available within legacy solutions. ERP vendors are beginning to invest more into cloud offerings and focus less on their legacy setups. Cloud-based ERP is, thus, becoming the go-to choice for organizations looking to capitalize on the latest innovations.
Hybrid ERP systems are replacing more traditional setups
Falling under the umbrella of cloud-based ERP solutions is hybrid ERP, a system that has gained in popularity with businesses in the past few years. With hybrid ERP, a business no longer needs to choose between cloud software and more traditional on-premises solutions—it can combine these two models to create a system that can meet all of its needs.
Several factors have fueled the rise of hybrid ERP. First, the cloud has enabled organizations to streamline their operations and given them better access to their data. Second, more organizations have been searching for platforms that improve the experience of their end users. Lastly, a growing number of business leaders have wanted to adopt solutions that afford better control of their internal operations. Cloud-based hybrid ERP has proven its ability to meet each of these requirements.
Software as a Service-based ERP is becoming the norm
Typically, organizations that deploy ERP systems do so on in-house servers, which require costs such as the necessary hardware, software maintenance, and other ongoing expenses. These businesses have recently begun to move away from this more traditional setup in favor of Software as a Service (SaaS) ERP solutions.
Since SaaS platforms reside in the cloud, they are much cheaper to use and far easier to maintain. SaaS has already become the favorite model among those looking to run other key business processes such as human resources and customer relationship management. Between 2017 and 2018 alone, SaaS rose 37 percent to become the most preferred method of ERP deployment. In the same time frame, on-premises solutions fell in popularity from 64 percent to a mere 15 percent.
More cloud ERP users turn to social media
By 2021, an estimated 3.02 billion individuals from across the world will use social media. As these platforms become more commonplace, companies must understand how to leverage social media to mine critical business data. In just the past year, cloud ERP has emerged as a new method for accessing key social media functions. To this end, organizations have been integrating their ERP solutions with their social media platforms.
This trend first appeared in 2016, but it lost its steam when vendors misread the needs of their users. ERP social media integration began to make a comeback in 2018 as more providers added social media functionalities and tools to their cloud offerings.
ERP is going mobile
Social media isn’t the only functionality that the cloud-based ERP solutions of 2018 have integrated into their systems. Recent technological innovations have caused a mobile revolution in nearly all walks of life. For businesses, mobile platforms enable workers to connect with business information from anywhere in the world, at any time.
ERP solutions have struggled to keep up with this wave of mobile innovation until 2018, when mobile technology began finding its way into ERP software. Some vendors have simply integrated new extensions into their software to support mobile functionality. However, the cloud is another primary driver of this mobile shift. Cloud services are, inherently, accessible on the go because they are based in the Internet. As such, companies that incorporate ERP into the cloud are better able to support the mobility of their teams.