Enterprise resource planning or ERP is a software that enable organizations to integrate their application systems along with the ERP, which help them to manage core business. An ERP software combines all processes that are associated with some particular operation. These processes could be product development, planning, manufacturing, sales, and marketing. The technology therefore enables a business to function smoothly and automate its core operations.
Increasing competition among the enterprise is one of major factor driving growth of the market
The ERP systems solve a number of challenges and provides invaluable benefits to the enterprises in terms of reducing costs, manage growth, streamline processes, and gain a competitive advantage. The ERP software provides the right way to manage the business growth and maximize their profit margins. As the ERP software works on real insights, which helps in delivering accurate and real-time information, which required a little customization instead of excessive customization. Therefore, ERP software guides the organizations to manage the changes, which help them to remain competitive in the market, which in turn is fuelling growth of ERP software market.
Enterprise Resource Planning: Taxonomy
Cloud-based deployment segment accounted for largest market share in 2017, owing to benefits offers by the cloud ERP such as cost savings, flexibility, scalability, and security. Increasing demand for cloud based solution by various organizations due to advantages offered by them are driving growth of the segment.
By ERP Function
- Human Resources
- Supply Chain
- Manufacturing and Services
- Aerospace and defence
By Enterprise Size
- Large Enterprise
- Small and Medium Enterprises
The large enterprises segment held the largest market share in 2017 and is projected to retain its dominance throughout the forecast period. In large enterprises, it become difficult for the companies to maintain data base for all department. The ERP tools help business by offering integrated platform for all process, providing quick access to the information within the department by maintaining uniqueness. Hence this advantage have driven the ERP market.
Enterprise Resource Planning: Regional Insights
On the basis of geography, global enterprise resource planning market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East, and Africa. The U.S. is early adopter of advanced technologies. Rapid technological advancement in ERP software coupled with presence of numerous market players is expected to enhance the growth of market over the forecast period.
However, APAC also show the potential growth opportunities in the ERP software market during the forecasted period. Due to the increase in number of SMEs turned to hosted ERP solutions to efficiently manage their business processes, particularly in developing countries such as India, China, and Singapore.
Enterprise Resource Planning: Competitive Background
Major player operating in enterprise resource planning market include Oracle Corporation, IBM Corporation, Microsoft Corporation., SAP, Infor, Sage, Netsuite Inc., SYSPRO, Epicor Software Company, and Daffodil Software Ltd.