39 ERP Facts and Statistics Every SMB Executive Should Know in 2024

Are you ready to elevate your business with the latest ERP insights? Our comprehensive guide on 39 key ERP statistics for SMBs in 2024 will provide you with the data and trends you need to make informed decisions.

As we step into the year 2024, the pivotal role played by Enterprise Resource Planning (ERP) in streamlining and integrating diverse business functions cannot be overstated. This collection of recent vital statistics, curated from a variety of studies, aims to provide SMB leaders with a comprehensive overview of the latest data, trends, and critical insights related to ERP.

From market and digital transformation statistics to considerations in finance, budget, infrastructure, and models, we delve into the multifaceted aspects of ERP, offering valuable guidance on objectives and selection, adoption and use, implementation and change management, digital initiatives, and the ultimate determinants of success or failure in ERP projects. In essence, this compilation serves as a strategic compass for SMB executives beginning or looking to improve upon the journey of ERP selection, implementation, and optimized utilization in their pursuit of digital excellence.

The ERP market:

• Approximately 47% of all companies worldwide use an ERP application. Strategic Market Research's 2022 report
• The global Enterprise Resource Planning (ERP) software market size was valued at USD 51612.18 million in 2022 and is expected to expand at a CAGR of 8.85% during the forecast period, reaching USD 85842.11 million by 2028. LinkedIn 2023 recap of 360 Market Updates Report
• The ERP market size was valued at $43.72 billion in 2020 and is projected to reach $117.09 billion by 2030, growing at a CAGR of 10.0% from 2021 to 2030. AlliedMarketResearch 2023
• The cloud has made a permanent mark on the ERP and technology industry. The global market is expected to grow from USD 626 billion in 2023 to 1,266 billion by 2028 at a CAGR of 15%. MarketsandMarkets 2023
• In North America, the finance ERP market is the largest at $4.5 billion, followed by supply chain ERP ($2.45 billion) and HR ERP ($2.3 billion). (Statista, 2022)
• It’s expected that the small and medium-sized enterprises will drive the market growth of ERP software in the future. According to the Office of the United States Trade Representative, there are approximately 30 million small and medium enterprises that are responsible for approximately 67% of jobs in the private sector. Hence, with increasing revenues and the overall growth rate of enterprises, we would see the demand for ERP software escalate. Strategic Market Research 2022
• The global digital transformation market is expected to grow to $1,009.8 billion by 2025 from $469.8 billion in 2020, at a CAGR of 16.5% during this period. Gartner 2021
• According to Statista’s projections, the worldwide expenditure on digital transformation is expected to reach $3.4 trillion by 2026. Statista 2023

Learn about the Benefits of Digital Transformation and discover The Role of Enterprise Resource Planning Solutions in Digital Transformation.

Objectives and selection:

• 30% of organizations choose ERP software for better financial management. Zipdo 2023
• The top reason for implementing an ERP, according to more than 30% of businesses, is to support growth. Followed by greater functionality (20%), increasing efficiency (13%), replacing outdated legacy systems (13%), and consolidating systems (12%) Softwarepath 2022
• Finance leaders evaluate systems according to capability fit (25%), extensibility (15%), user experience (15%), and total cost of ownership (15%). Deloitte recommends adjusting weightage so that technical architecture is at 20% and capability, user experience, vendor ecosystem, and total cost of ownership each get 15%. Deloitte 2021

Finance and budget:

• The average budget per user for an ERP implementation project is $9,000. Softwarepath 2022
• 46.4% of organizations say their ERP implementation project was completed on budget, and 37.7% say it was completed with slightly more cost than anticipated. Of those over budget, the most common reason was underestimating project staffing at 38.4%, followed by initial project scope was expanded at 34.9%, and technical issues and data issues, each at 33.7%. Panorama ERP Report 2023

Infrastructure and models:

• Cloud adoption among SMBs for all applications, including ERP, will only continue to rise. SMB Group research shows that 70% of small and medium businesses (SMBs) say they are likely to buy a cloud solution the next time they need a new application. SelectHub 2023
• 64.5% of organizations selected cloud-based ERP software, and 35.5% selected on-premise software. Panorama ERP Report 2023
• Of those organizations that selected cloud-based ERP software, 51.7% opted for SaaS, and 48.3% opted for hosted or managed services. Panorama ERP Report 2023
• Almost 97% of companies looking at ERP systems were considering a cloud-based solution. Softwarepath 2022

Adoption, components, features, and use:

• 64% of small businesses currently use some form of ERP software. Zipdo 2023
• 32% of organizations cite improved efficiency as a reason for implementing an ERP system. Zipdo 2023
• AI technology will be inserted into the processes and products of at least 90% of new enterprise apps by 2025. IDC 2022

Implementation and change management:

• There was almost an even distribution of organizations describing their project as an ERP implementation (36.1%), vs digital business transformation (33.9%), vs technology-enabled business improvement (30.1%). In manufacturing, ERP accounts for the way 43.5% of projects are described. Panorama ERP Report 2023
• 44.8% implemented their ERP software without any customization, followed by 20.8% with heavy customization, 15.8% with no customization but with system configuration and personalization with process modifications. Panorama ERP Report 2023
• 27.9% of organizations used a phased implementation approach by module, followed by big bang and hybrid approaches (20.8% each), phased by location (18%) and phased by business unit (12.6%). Panorama ERP Report 2023
• 60.7% of implementations were done with a moderate focus on change management. 25.1% had intense focus, and 14.2% had very little or no focus on cm. Panorama ERP Report 2023
• 46.4% of ERP implementation projects were completed on budget, and 6.6% were completed with less costs than anticipated. Panorama ERP Report 2023
• 49.7% of ERP implementation projects were completed on time, and 8.2% were completed earlier than anticipated. Panorama ERP Report 2023
• On average, 26% of employees use a company’s ERP system. Softwarepath 2022
• On average, companies spend 17 weeks selecting ERP systems. Softwarepath 2022

Learn more about this topic in ERP Data Migration Best Practices in 6 Steps.

Digital and data initiatives:

• Among the initiatives driving ERP module spending, business intelligence was the most popular, followed by mobility, web commerce, and predictive analytics. Panorama ERP Report 2023
• By 2026, 7 PB of data will be generated per second globally. At the same time, only 10% of the data generated each year is original, while the remaining 90% is replicated. This is because the organizational culture isn’t changing together with the new capabilities — this is holding back the outcomes and results that organizations expect. Users don’t have access to useful data experiences that match their maturity level. Building a data culture or economy is the suggested digital initiative to improve upon maximizing data capabilities. IDC 2022
• Four potential ways to drive value using data are applications, analytics, visualizations, and predictions driven by data and AI. Google 2023
• To maximize data capabilities, organizations should follow these three pillars: Google 2023
  • Data experiences: Productive user experiences enabling all users to access and create value from relevant data.
  • Data economy: Principles and practices to ensure that data can be published, discovered, built on, and relied on.
  • Data ecosystem: A unified, open, and intelligent platform with end-to-end data capabilities for all users and needs.

Success or failure:

• 47% of organizations improved most business processes with their ERP investments. 44.3% improved key business processes and 8.7% did not improve business processes. Panorama ERP Report 2023
• 83% of organizations that performed an ROI analysis said their ERP implementation met ROI expectations. Panorama ERP Report 2023
• 90.9% of organizations realized expected benefits with inventory levels, 77.7% realized expected benefits with productivity & efficiency, 77.3% with removing silos, 76.2% with interactions with suppliers, 75.4% with compliance, 70.1% with customer experience, 68% with IT maintenance costs, 65.9% with real-time data, 63.9% with operating and/or labor costs, 60.5% with new operating models, and 58.4% with standardization. Panorama ERP Report 2023
• The most common benefits organizations quantified were related to productivity and efficiency (74.3%), followed by operating and/or labor costs (56.8%), real-time data (49.2%), IT maintenance costs (45.9%), standardization (45.9%), compliance (43.2%) and customer experience (41.5%). Panorama ERP Report 2023
• ERP systems save manufacturers 22% in operational costs. Zipdo 2023
• ERP systems can reduce the time to make business decisions by 36%. Zipdo 2023
• More than 50% of businesses confirm that ERP systems contribute to improved inventory management. Zipdo 2023

By leveraging the latest statistics, market trends, and a comprehensive understanding of ERP components, features, and implementation strategies, SMB leaders can empower their organizations to thrive in the ever-changing business landscape. In embracing the challenges and opportunities presented by ERP, executives can not only navigate the complexities of selection and deployment, but also position their enterprises at the forefront of innovation.

Conclusion

In conclusion, these 39 ERP statistics offer a strategic roadmap for SMBs aiming to leverage ERP solutions in 2024. By understanding the latest trends and data, you can optimize your ERP strategy and drive your business toward greater efficiency and success.

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Editor’s Note: This post was originally published on Nov 29, 2021, and has been revamped and updated for accuracy and comprehensiveness.

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