Modern companies use ERP software for the tools they need to automate important business processes. Here are 40+ ERP statistics you need to know to fully understand the potential benefits, costs, and drawbacks, based on both internal Software Connect data and top surveys of ERP buyers across the Internet:
Top benefits of ERP, as named by prospective buyers, are: increased collaboration, centralized data, and reduced process time [1]
Top business goals businesses site when seeking ERP: cost savings (46%), better performance metrics (46%), and more efficient transactions (40%) [2]
Top motivations buyers cite when seeking new software include the need for better features (26.5%), a desire to automate existing processes (15.9%), and a brand new system for a new business (14.6%) [3]
Features, Add-ons, and Customization
Accounting is the main feature wanted in an ERP, per 89% of buyers [4]
Respondents cited the need for modules with inventory and distribution (67%), customer relationship management (CRM) (33%), and general technology (21%) [4]
Only 3% of companies are using ERP with out-of-the-box functionality - the rest use some degree of customizations [5]
33%-48% of businesses request moderate customization and 10%-19% only request “personalized” ERP solutions [5]
Deployment Options
64% of companies seek SaaS ERP while 21% want entirely cloud-based options and 15% want on-premise solutions [6]
The perceived risk of both data loss and security breaches, or a lack of information other deployment options are the main reasons companies avoid cloud-based solutions [7]
Cloud-based ERP interest went from 4% in 2013 to 42% in 2022[3]
ERP Tech Trends
ERP trends can change drastically from year to year, but here are some of the top predictions:
AI, machine learning, IoT, and cloud-based ERP are all increasing in popularity
Artificial intelligence (AI) is advancing ERP capabilities with greater automation and faster results, with 65% of CIOs predict AI integration into ERP by 2022 [8]
iERP (Intelligent ERP) is expect to grow in coming years [9]
Some companies are utilizing two-tiered ERP systems to better balance more specific work, such as implementing a new ERP for financials while maintaining a familiar legacy system for HR purposes [3]
The implementation failure rate is between 55% and 75% for first time buyers [21]
Implementation failure is most common on the first try [22]
82% of employees resist new ERP software, increasing failure rates [23]
Only 8% of businesses had issues with technical changes of ERP implementation; however, 75% claimed organizational change was the bigger challenge [6]
ERP implementation failure happens, often due to complications with integrating legacy systems or training users. However, the risks of using ERP are often outweighed by the benefits:
Success Stories
The average return on investment after implementation of an ERP is 2.5 years [17]
88% of organizations believed their new ERP helped their business overall (SelectHub) [4]
95% of businesses saw process improvement after implementation[24]
Successful ERP implementation case studies all shared clear goals set before the process began [4]
65% of small businesses are using ERP consultation services to streamline the implementation and prevent failure [25]
Important ERP Statistics Before Buying
When a company has decided on upgrading ERP or adding a new system, there are a few key things to consider:
Best ERP Products
NetSuite, Odoo, Sage Intacct, SYSPRO, Oracle ERP are among the top performing software solutions on the market [26]
Out of these service providers, Microsoft Dynamics forms 29% of the ERP market [5]
6.7% of buyers request demos or pricing information on Sage Intacct, followed by SAP Business One at 5.5% and NetSuite ERP at 5% [3]
Along with these popular ERP solutions, there are some important starter options:
Popular starter option is QuickBooks, an accounting solution which can cover basic ERP functionality
QuickBooks is the software most often being replaced by an ERP, used by growing businesses which primarily need accounting functionality [5]
Talk to one of our expert software advisors today to find an ERP for your business!
Methodology
The ERP data presented here comes from internal studies by Software Connect and a variety of sources, see the full list below. Data was checked for accuracy at the time of publication. However, some statistics may be based on outdated information, particularly estimates related to market growth during the COVID-19 pandemic.
Data Sources
“Behind the Numbers: ERP Implementation Statistics” by Datix
“The Real Facts About Erp Implementation Busting The Myth Of Failure, But Are You Overrating Your Success?” by Mint Jutras
Original research by Software Connect
“ERP Buyer’s Profile for Growing Companies” by SelectHub
“The Ultimate List of ERP Statistics for 2024” by FounderJar
“ERP Software Market to Witness Huge Demand From Defense & Aerospace, Retail and Government Utility Sectors by 2023 | Million Insights” by Cision PR Newswire
“60 Must-Know ERP Statistics Before Making a Buying Decision” by G2
“Healthcare ERP Market Size, Share & Trends Analysis Report By Function (Finance And Billing, Inventory And Material Management), By Deployment (On-premises, Cloud), By Region, And Segment Forecasts, 2021 - 2028” by Grand View Research
ERP trends include: 1. AI features 2. Cloud model dominance 3. IoT integration 4. Expanded mobile access 5. Adoption of microservices 6. Two-tier ERP implementation
Gain insights into the 2023 ERP market with our comprehensive report covering market size, growth trends, and leading vendors like Microsoft, SAP, Oracle, and more.
The average price for an ERP system is between $1,740 and $9,330 per month. Read our pricing guide to learn more about extra and hidden costs and other factors.