What can manufacturers expect in the new year?
An article on the Panorama Consulting Solutions website outlines the firm’s top 10 global ERP industry predictions for 2013.
- Consolidation of top ERP vendors: With a shaky global economy and volatile business capital spending, ERP software revenue growth may not continue at such a feverish pace. Panorama Consulting Solutions expects high-growth SaaS and cloud ERP vendors to erode the market share of Tier 1 ERP vendors like SAP and Oracle.
- Niche and best-of-breed ERP systems will dominate: More companies are moving away from big, single-system ERP deployments for their manufacturing ERP software. Look for niche and best-of-breed solutions to dominate the market, with even larger ERP vendors providing niche solutions to compete with smaller cloud providers.
- Solution architecture and integration will be important: The increase in the above ERP systems will require better system integration and the elimination of data silos. Solution architecture and integration will support ERP implementations.
- More adoption of mobile and BI solutions: With the increase in ERP software there should be a greater investment in mobile solutions and business intelligence software. Companies will realize this brings the greatest return on their existing ERP systems.
- Hype will subside around SaaS and cloud: Some say that SaaS and the cloud killed traditional ERP. Yet still, large multi-national companies aren’t comfortable with the flexibility and security of SaaS ERP solutions. ERP vendors instead will naturally integrate SaaS and cloud options.
- Leaders will be risk averse: Considering the uncertain economic environment, IT budgets will be tighter and ERP project teams will focus on high-value projects.
- Chasm between ERP implementation successes and failures: There will be a growing dichotomy between smart ERP system implementations and losing scenarios. The biggest failures will be for those companies that try a do-it-yourself approach and start ERP implementation projects without independent help, the Panorama Consulting Solutions article explains.
- Bigger ERP failures and lawsuits: With ERP’s growing popularity, there will be more ill-advised implementation strategies (see the above do-it-yourself crowd).
- More companies will say no to ERP systems: Economic uncertainty and the fear of risk means that more companies won’t start large-scale ERP projects. Instead, they’ll focus on other improvement measures.
- Focus on competitive edge, not on ERP best practices: Cost-cutting has been common in this economy and many organizations have ignored best practices because of it. Businesses will try to gain a competitive advantage by reengineering their business processes and changing their organization management.
Source: Panorama Consulting Solutions, November 2012