Important ERP Market Trends of 2021 Explained
The ERP market is vast and predicted to grow at 8% through the years 2021–26. And many trends have come up as a result of the pandemic as well.
There is no denying the unpredictability of last year as our expectations from the New Year were high because the technological innovations were at a peak. With the market continuously growing through 2018–2019, the ERP software market statistics augured well.
A forecast by Gartner before the COVID-19 pandemic projected the ERP market will be worth $44 billion by 2022. By the end of 2020, the ERP market had reached a value of $37.8 billion.
Despite, the unpredictability and numerous technological breakthroughs during COVID-19, one thing is for certain. Some important insights have been revealed for the year 2021. To know more about business and technology trends that could shape 2021, read further.
Reevaluating the Purpose of Leaders
Every company is producing value from every corner of its enterprise. In 2019, 73% of SAP users were planning to make a move to SAP S/4HANA in UK and Ireland alone.
Large corporations are investing in SAP S/4HANA, including Toyota Motor Corporation. Therefore, market leaders are encouraging a purpose-driven approach to automation. And they are all moving away from legacy practices.
By the third quarter of 2020, there were 15,100 subscribers of SAP S/4HANA. Despite, the wide range of concerns regarding SAP S/4HANA implementation and migration, the route is pretty clear-cut. You need to shift to SAP S/4HANA before 2025 because everyone else is doing that too. And the purpose of market leaders is pretty apparent i.e. to redefine market trends.
Market leaders are encouraging a purpose-driven approach to automation. And they are all moving away from legacy practices.
Introducing Flexibility With Digital Transformation
A business must be able to run efficiently as well as offer work flexibility to its employees. If companies want to attract the best talent, they need to focus on incorporating beneficial changes.
However, the real challenge comes when businesses wish to do this while reducing costs. It is a real barrier to technology-led innovation. And companies investing in modern technologies still get stuck with carrying out legacy practices.
SAP S/4HANA implementation can be a great ERP solution to improve productivity as it boosts decision-making capabilities and generates reliable insights. SAP S/4HANA has 100 times faster reporting than other ERP solutions on different databases. This insight allows for resilient, agile decision-making that enables decision-makers to visualize business scenarios.
If companies want to attract the best talent, they need to focus on incorporating beneficial changes.
Refining Our Approach to Decision-making
During this pandemic, we gleaned an understanding of the applications of AI ranging from healthcare to public policy drafting. Manufacturers had to rapidly shift gears to address work-from-home policies, manage changes in demand and uncertain supply chains. But, despite these challenges, ERP systems managed to maintain sustainable business continuity.
Managing large volumes of data is an essential part of making mission-critical decisions. And SAP S/4HANA has robust data modeling capabilities and is powered by AI, machine learning, and analytics. Furthermore, SAP S/4HANA ML models can easily manage large volumes of data and GPU.
For instance, SAP S/4HANA enables capabilities through SAP Conversational AI. It is a machine-learning-based chat-bot that gains knowledge based on historic data. This application along with SAP Fiori makes the benefits of an SAP S/4HANA implementation in 2021 much clearer to us.
Manufacturers had to rapidly shift gears to address work-from-home policies, manage changes in demand and uncertain supply chains. But, despite these challenges, ERP systems managed to maintain sustainable business continuity.
The pandemic enabled corporate experts to assess the potential vulnerabilities in their operations. They came up with solutions to tackle those issues. We understand that businesses can no longer continue to run on legacy practices, skills, and costs without making a tremendous loss.
Your company is entering a brighter age of commerce. The year 2021 is characterized by disruptive technology and growth. So, contact Amity Software, a leading SAP implementation partner, to join the digital transformation age. If your business plan matches with our vision, schedule a consultancy with us.