Enterprise resource planning (ERP) systems are becoming more and more popular among businesses of all sizes. But just how many companies use ERP systems?
There are about 1.2 million companies that use an ERP system according to analysis from data reported by Infoclutch and Salisbury University.
Let’s get deeper into ERP statistics, including what the benefits of utilizing ERP software are, how much it costs to implement the software and the rationale behind why businesses should utilize ERP.
ERP Statistics: Key Findings
- In 2021, the global ERP market was $50.57 billion and is expected to reach $123.41 billion by 2030.
- 53% of organizations have seen a positive ROI from their ERP implementation.
- ERP cuts operational costs 23% and administrative costs 22%.
- ERP implementation costs, on average, range between $150,000 and $750,000.
- 67% of organizations consider ERP implementation “very successful” or “successful.”
- 50% of ERP implementations fail the first time around.
- Failure rates for ERP implementations can exceed 75%.
Sources: (Grand View Research, LinkedIn, G2, UltraConsultant, Gartner)
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How Many Companies Use ERP Systems?
There are about 1.2 million companies that use an ERP system.
ERP Market Share
| Company Name | ERP Software Market Share |
| SAP | 24% |
| Oracle | 12% |
| Sage | 6% |
| Infor | 6% |
| Microsoft | 5% |
| Kronos | 3% |
| Concur | 2% |
| IBM | 2% |
| Totus | 2% |
| Yongyou | 1% |
| Others | 37% |
What is an ERP system and what does it do
An enterprise resource planning (ERP) system is a software solution that integrates and automates key business processes across an entire organization.
An ERP system typically includes modules for accounting, human resources, inventory management, customer relationship management (CRM), and supply chain management (SCM).
By consolidating data from all of these different departments into a single system, an ERP system provides organizations with a real-time view of their business operations.
In addition, an ERP system can automate many of the manual processes that are currently being performed by employees, freeing up time for more value-added activities.
As businesses become more global and complex, an ERP system can provide them with the visibility and agility they need to stay competitive.
The different types of ERP systems
Enterprise resource planning (ERP) systems are designed to help businesses manage their resources more effectively. There are a variety of different types of ERP systems available on the market, each with its own strengths and weaknesses.
One of the most popular types of ERP systems is called manufacturing resource planning (MRP II). This type of system is designed specifically for manufacturing businesses. It helps businesses to plan production schedules, track inventory levels, and manage customer orders.
Another type of ERP system is known as supply chain management (SCM). This type of system helps businesses to manage their supply chains more effectively. SCM systems help businesses to track supplier performance, optimize production schedules, and reduce inventory levels.
Finally, there is enterprise asset management (EAM). This type of system helps businesses to manage their assets more effectively. EAM systems help businesses to track asset utilization, maintain asset inventories, and improve asset maintenance schedules.
The cost of implementing and using an ERP system
Any business looking to streamline its operations and improve efficiency will likely consider investing in an ERP system. However, it’s important to be aware of the costs associated with implementing and using an ERP system before making a decision.
Generally, ERP implementation for smaller businesses with less complex systems starts at around USD 75,000 and can go up to 750,000. For more moderate ERP system usage, yearly licensing fees begin at $2,600 per user. As an example- if you have 10 users that need access to the software application permanently (i.e., a perpetual license), it would cost $45,000 annually.
The upfront costs can be significant, including purchasing the software, hiring consultants to assist with installation and training, and investing in new hardware to run the system.
In addition, there are ongoing costs such as license fees, support and maintenance contracts, and the need to hire staff with specific ERP skills.
However, many businesses find that the benefits of an ERP system outweigh the costs. An effective ERP system can help to improve communication and collaboration, reduce errors and duplication of effort, and provide valuable insights into business operations.
As a result, businesses that carefully consider the costs and benefits of an ERP system are often able to make a sound investment that pays off in the long run.
Why Your Business Needs an ERP System
From accounting and finance to supply chain management and manufacturing, an ERP system can help businesses automate and optimize many of their key operations. Here are five reasons why your business needs an ERP system.
1. Improved Efficiency and Productivity
One of the main benefits of using an ERP system is that it can help businesses improve their overall efficiency and productivity.
By automating many of the repetitive and time-consuming tasks associated with managing a business, an ERP system frees up employees to focus on more value-added activities.
In addition, by providing employees with real-time data and insights, an ERP system can help them make better decisions that lead to improved performance.
2. Enhanced Customer Service
Another benefit of using an ERP system is enhanced customer service. With an ERP system in place, businesses have a single source of truth for all their customer data.
This means that employees across all departments can access the same information about a customer, leading to a more coordinated and seamless experience.
In addition, by automating key customer service tasks, such as order processing and invoicing, businesses can provide a faster and more efficient service that leads to happier customers.
3. Reduced Costs
In addition to improved efficiency and productivity, another benefit of using an ERP system is reduced costs.
By consolidating multiple software solutions into one integrated platform, businesses can avoid the high costs associated with managing multiple disparate systems.
In addition, by automating many of the manual tasks associated with running a business, an ERP system can help businesses save on labor costs.
4. Increased Visibility and Control
Another benefit of using an ERP system is increased visibility and control over all aspects of the business. With an integrated view of the entire organization, managers can easily identify bottlenecks and inefficiencies that need to be addressed.
In addition, by providing real-time data and insights into all areas of the business, an ERP system can help managers make better decisions that lead to improved performance.
5. Improved Decision Making
Finally, one of the main benefits of using an ERP system is improved decision-making. With real-time data and insights into all areas of the business, managers can easily identify trends and patterns that would otherwise be hidden in siloed data sets.
Furthermore, by giving employees self-service access to data and analytics tools, an ERP system enables them to make better decisions, which leads to higher performance.
How to choose the right ERP system for your business
As your business grows, an ERP system can help you streamline your operations, improve communication and collaboration between departments, and make better decisions with data-driven insights. But with so many ERP systems on the market, how do you choose the right one for your business?
To find the right ERP system for your business, start by evaluating your current needs and pain points. What processes are you looking to streamline? What features would make the biggest impact on your productivity?
You can begin exploring different ERP systems once you have a strong idea of your needs. To get a sense for each system, read online reviews, compare price plans, and take advantage of free samples or demos.
Finally, be sure to involve key stakeholders in the decision-making process, as they will be the ones using the system daily. By taking these steps, you can be confident that you’re choosing the right ERP system for your business.
Final Word
An ERP system is a powerful software solution that offers many benefits for businesses across industries. An ERP system can help organizations streamline their operations and improve their bottom line by improving efficiency and productivity, as well as improving customer service and lowering expenses. If you’re looking for a way to improve your business’s performance, consider investing in an ERP system today!
