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The Emerging Market of Enterprise Resource Planning (ERP) Software

The Emerging Market of Enterprise Resource Planning (ERP) Software

ERP software facilitates automation, which saves time and money. It is being adopted by all kinds of organizations at a fast pace.

ERP stands for Enterprise Resource Planning, and enables storage, management and interpretation of data. Ideal for maintaining voluminous data, ERP software facilitate businesses to manage data related to product planning, shipping & payment, human resources, financials etc.

Even when 100% of the businesses aren’t yet relying on ERP, a majority of them are aware of its existence – much because of its great advantages.

Broadly, there are two ways of ERP implementation – On-premise ERP and Cloud-based ERP. On-premise ERP is primarily about maintaining the ERP software and associated data in the client organization itself. Cloud-based ERP, on the other hand, requires clients to get their software and data hosted on another server, which is accessible online.

On-premise ERP

As per research firm Gartner, the on-premise ERP industry in India is expected to grow at a 17% CAGR – raising it to $538 million by 2017 from $178 million in 2013.

Currently a large number of health facilities, educational institutions, hotels and resorts, multinational companies and banking organizations are using ERP. Directly related to the ROI of organizations, ERP facilitates better resource and data management. And when India is sound in terms of technically-trained professionals, the ERP market is bound to witness impressive growth.

Cloud- / SaaS-based ERP Implementation

SaaS-based ERP is more feasibly being preferred by small and medium enterprises. Gartner’s studies state that reduced cost and faster deployment are the primary reasons behind this development. That’s because ‘Software as a Service’ based ERP solutions help client organizations to implement ERP applications in cloud environments. The ERP software and related data are centrally hosted and accessed through web.

While even large corporations are shifting to cloud-based ERP models, apprehensions due to data security, networking issues, and limited customization have held its acceptance-rate so far. However, continuous enhancements are sure to give SaaS-based ERP implementation the much-needed push in near future.

ERP Software Service Providers

Like every other technology, the world of ERP is filled with loads of service providers. The products offered by them differ in a variety of ways, including performance, features, capacity etc. Considering the several choices companies have, selection is not only made on the basis of features but also while keeping in mind the businesses requirements and budget constraints.

Small Businesses

For small business houses, Microsoft’s ERP solution, i.e. Microsoft Dynamics plays a pivotal role. It provides solutions for business intelligence and reporting, operations and human resources, and financial and supply chain management. Of the various independent solutions, Microsoft’s Axapta (Dynamics AX) and Navision (Dynamics NAV) products offer amazing distribution and manufacturing functionalities. These products are widely used in the European regions. Microsoft also offers the Great Plains (GP) ERP solution that features strong Financials capabilities. GP enjoys wide acceptability in the United States.

Medium Businesses

Epicor and Infor are the two organizational names that appear in terms of ERP implementation for medium-sized businesses. Serving over 20,000 customers in nearly 150 countries, Epicor has robust ERP solutions for distribution, manufacturing, lumber & building, retail and several more functions. The company’s ERP implementations have led to a 100% growth in the ROI of various setups, such as Hospitality, Finance, Apparel, Medicine etc. Epicor has also once been recognized for achieving the lowest Total Cost of Ownership (TCO) and total per user cost of software for medium-sized corporations.

Infor, the 3rd largest ERP manufacturer, has more than 70,000 clients in 200 countries. It has ERP software for Product Configuration Management, Customer Relationship Management, Enterprise Asset Management, Product Lifecycle Management and several other enterprise tasks. Over the years, Infor has largely improved its service offerings through not just innovations but critical company acquisitions too.

Enterprise-level / Large Businesses

SAP SE (Systems, Applications & Products in Data Processing), known for its SAP ERP solutions, is the largest business software company. SAP software are predominantly used in Europe, Middle East, Africa, Latin America, Canada, United States, Asia Pacific and Japan. Its software solutions include ERP systems for managing human resources, manufacturing, financials, payroll, and customer relationship management. Highly preferred by large business houses worldwide, SAP ERP systems are effectively consolidated for the latest mobile, cloud, and in-memory technologies.

Oracle Corporation, the 2nd largest software company in the world, is undoubtedly another highly preferred ERP systems provider. In cutting-edge competition with SAP SE, Oracle’s ERP solutions are known for their robustness, data integrity and security features. With acquisitions of PeopleSoft (with JD Edwards) and Siebel Systems, Oracle’s customer base includes some of the most reputed global-level companies. It offers ERP solutions for supply chain management, human capital management etc.

Due to the great profits, continuous innovations, and several other advantages that ERP implementations offer, its market is set for a bright future! It so makes complete sense for individuals to undertake this domain as a career goal. That’s because, the requirement for trained ERP technicians will certainly rise as the market will progress.

What product to choose?

Well, that completely depends on your professional vision and level of commitment!