Enterprise resource planning (ERP) is a business management software system that many enterprises have adapted to better manage the business by automating and connecting different business functions across departments within a company. An ERP system helps employees to do their jobs more efficiently and effectively by breaking down the walls between different departments. It allows employees to access real time and accurate information to make better business decisions. Ultimately, an ERP system could help a business to improve its business insight, reduce operation cost, and enhance information sharing within the company.
ERP system is widely used across different industries such as manufacturing, healthcare, retail, government, and others. There isn’t specific information on the number of companies that are currently using ERP system in the US, however, research conducted by SAP had shown that 75% of the worldwide financial transactions touch an SAP ERP system in 2015. There are various ERP industry research reports showing that the ERP market is expected to reach $41.69 billion by 2020. The worldwide ERP software market has been growing $1 billion every year since 2014.
Some of the popular ERP vendors include SAP, Oracle, Microsoft, Epicor, and Infor. Among all the ERP vendors, SAP has the largest market share of $6.1 Billion in 2013, Oracle is second with $3.1 Billion 2013. Over 50% of companies that are currently implementing new ERP systems to replace out dated ERP software. 30% of the companies are implementing ERP systems to replace legacy systems, and the rest of 20% are new to ERP system. All the companies that are interested in purchasing a ERP system hope to improve integration.
Over the years, large ERP vendors such as Oracle and ERP have been targeting large enterprises with high rates. In the recent five years, with the rising demand of ERP systems from medium and small companies, more and more ERP vendors start to offer web-based ERP system at lower rates. The web-based ERP system is a more affordable option for small businesses. Customization is the new trend in the ERP market. Research has shown that 93% of the organization demanded customization for their ERP system in the last 5 years.
Sources:
https://www.quora.com/What-are-some-examples-of-famous-companies-using-ERP-software
http://www.softwareadvice.com/resources/erp-buyer-report-2015/
http://go.panorama-consulting.com/rs/panoramaconsulting/images/2016-ERP-Report.pdf
http://panorama-consulting.com/key-findings-from-the-2015-erp-report/
https://www.oracle.com/applications/erp/what-is-erp.html
https://www.alliedmarketresearch.com/ERP-market
http://www.netsuite.com/portal/resource/articles/erp/what-is-erp.shtml