How ERP affects businesses? An investing approach.

It is difficult to accurately quantify the use of Enterprise Resource Planning (ERP) systems and their effects on competition because these effects might differ greatly depending on the sector, organization size, method of implementation, and other variables. However, the following general data and observations can help to illustrate how an ERP affects businesses:
+ Utilization of ERP: A Statista report estimates that the global market for ERP software was worth $94.2 billion in 2020 and will increase to $114.1 billion by 2025. This shows that ERP systems have been widely adopted across industries and regions.
+ Cost savings are one of the main advantages of ERP. According to a survey by Panorama Consulting Solutions, firms that used ERP systems reduced their IT spending by an average of 22%.
+ Greater efficiency: By streamlining business procedures and getting rid of pointless tasks, ERP can also result in greater efficiency. Companies that deployed ERP systems witnessed a 19% increase in operational efficiency, according to a survey by Aberdeen Group.
+ Competitive advantages: By enabling real-time data analysis, expanding customer service, and improving supply chain management, ERP can give businesses a competitive edge. According to a Nucleus Research study, businesses that adopted ERP systems experienced a 23% boost in customer retention.
+ Even though ERP can provide numerous advantages, putting the system into place can be difficult and people-time-consuming. A Panorama Consulting Solutions survey found that 28% of ERP implementations took longer than anticipated and that 25% of businesses say their ERP system fell short of their expectations.
Even though ERP can result in significant cost savings, increased productivity, and competitive advantages, it is crucial for businesses to carefully assess their needs and implementation strategies to ensure a successful outcome.
Just as an athlete prepares for the Olympics, so a company must prepare for an ERP implementation. Let’s raise the bar.
MSc. Jorge Hernández Sosa
Activar para ver una imagen más grande.