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The Future of ERP

By Rohan Roy and


Susobhan Mandal

Present ERP software market scenario

The worldwide ERP software market


grew 3.8% from $24.4B in 2012 to
$25.4B in 2013.
SAP
retained
their
market
leadership position in 2013, selling
$6.1B in ERP software up from $6B
in 2012. Oracle is second with
$3.117B in sales in 2013, down
0.2%
from
2012s
sales
of
$3.124B. Sage is third with $1.5B
in sales in 2013, Infor is fourth with
$1.5B in sales, and MicrosoftMSFT
-1.35%is fifth with $1.169B in sales
in 2013.
Gartner reports that Workday,
Workforce Software, Cornerstone
OnDemand and NetSuite are the
five
fastest-growing
vendors
worldwide from 2012 to 2013.
Workdays revenue grew 86.1%,
WorkForce
Software,
57.6%;
Cornerstone OnDemand, 57%; and

data from :
http://www.forbes.com/sites/louisc
olumbus/2014/05/12/gartners-erpmarket-share-update-shows-thefuture-of-cloud-erp-is-

Future Market trends of ERP


ERP
market
is
anticipated to garner
approximately 41.69
billion in sales by
2020.
Besides this, the
market
would
register a CAGR of
7.2 percent during
the forecast period
2014 -2020.
data from : https://www.alliedmarketresearch.com/ERPmarket#tc

Detailed market forecast


By Deployment:
Premise deployment and cloud deployment.
The on premise software deployment is anticipated to occupy a major ERP
market share of about 57 percent by 2020.
Hybrid systems CAGR of about 10 percent during the forecast period of 2014
-2020.
By Functions
System include supply chain, finance, human resource and others.
Among the different functional area finance is expected to drive the ERP
systems market significantly by the year 2020. This area would contribute
close to 30 percent of the total revenue.
By Verticals
consists of manufacturing and services, BFSI, healthcare, retail, government
utilities, aerospace and defence, telecom and others.
both aerospace and defense collectively is expected to register a CAGR of 8.9
percent during the forecast period 2014 to 2020, as compared to other
business verticals.

By End User
classified as large, medium
as
well
as
small
enterprises.
mid size firms are likely
to register a CAGR of 7.9
percent during the period
2014 2020.
By Geography
Adoption rate of enterprise
resource planning software
observed great in North
America and Europe.
Cloud
application
is
accelerating faster in these
regions. Crucial factors
including
tighter project
deadlines
fueled
by
Manufacturing
companies
in North America and Europe are showing
reduced budget
are the
greater
interest
in Android
and smartphone analytics.
major
drivers
of cloud
Asia
Pacific offer
theregion.
most lucrative market, when it comes to growth and
application
in the
is expected to garner nearly $9.77 billion in sales by 2020.
Setting their sight on Asia- Pacific are leading vendors that have joined
hands to provide startups and SME (or Small and Medium Enterprises) cloud

RFID integration
Radio Frequency Identification device,
the hot cake of Automatic Identification
and Data Collection ( AIDC) market.
Chip used in multiple forms.
Integration with the ERP would mean
automatic seamless data entry without
human intervention.
Advantages:
providing real-time tracking of goods
and materials
the ability to dynamically update or
change information fields on a package
or label
hands-free, rapid scanning of product
information
without
operator
intervention
or
line-of-sight
requirements, like in a garment line.

Datapass, an RFID integration


success story...
Acsis, a Marlton, NJ-based systems integrator, provides a total
solution to bring RFID and ERP technologies together.
It links RFID and other data collection hardwares with ERP
software, primarily with SAP.
Provides provide planning, implementation, and ongoing support.
Started off with IBM in 1999, but now has DuPont, Hershey, Sony,
Proctor & Gamble, Starter, and Westinghouse.
Company assets grew from 4 million USD in 1997 to 18 million
USD presently.

Data from : http://www.bsminfo.com/doc/rfid-and-erp-the-wave-ofthe-future-0001

Increasing trend of
SAAS
SAAS or Software as a
service is a term used for
ERP software that are not
installed on campus, but
are managed on the online
cloud.

Gartners

analysis

released in 2013 in the forbes


magazine indicated that 34% of
enterprises will have 60% or more of
their applications on a cloud
platform in two years time. 47% of
marketing departments will have
60% or more will have the same
situation.
data taken from :
http://www.forbes.com/sites/louisc
olumbus/2015/04/05/predictingthe-future-of-cloud-serviceproviders/#3f67ba6c639f

The already trending stages of Cloud


implementation...

Top spending trends in


cloud ERP
Backup
and
Recovery
(68%),
Disaster
Recovery/Site
Recovery
(54%),
Application
development
tools
&
platforms (47%) and Mobile
Services (47%) are the four
Managed
Services
enterprises anticipate to
invest in in the near future.

While talking of the


system
integrator
companies would prefer,
IBM and Microsoft were
the most taken names.

Mobile ERP: Making the ERP


available at all ends.
Andreas Schmitz writes in the SAP
news centre that companies will
demand more mobile solutions in
the next three years as end users
seek to carry out ERP processes on
the move via their smartphones or
tablets.
Currently common in the areas of
field sales and servicing.
But Soon to be used in most
modules, especially in logistics and
in
the
area
of
warehouse
management for stock put away and
removal and picking.
Enables decision maker to work on
the move, more updates on KPIs.

Some Statistics...
Sage summit report 2014 found that three quarters of IT managers
believe that mobile apps for business intelligence will play an important
or very important role in three years.
56% of Best-in-Class organizations enable access to ERP on mobile
devices for employees, in comparison to 24% of All Others.
37% of all organizations plan to implement mobile ERP in the near future.
Sage has successful mobile ERP modules.

Data from : http://www.aberdeenessentials.com/cfo-essentials/sage-summit2014-making-mobile-erp-functional-and-usable/

CRM: The growing fad.


CRM, a part of ERP, is one of the modules that is
expected to evolve the most in the future.
The driving force? Ever increasing customer base.
Microsoft, SAP and oracle remain the largest CRM
providers.

CRM: The Latest Trends...

Traditional service call model outdated.


Social CRM as new trend.
Capturing data from the web on the basis of keywords used.
Social media communities : Let customers be the best judge.
Mobile CRM: The Ola success story.

UTS on mobile app: A Case study

A concept taken from the Digital India Campaign.


Originally we had to stand in a queue and buy tickets.
The app aims to provide a hassle free ticketing experience to the customers.
Seamless integration with the railway integration system.

data from : http://www.bgr.in/news/railway-launches-uts-a-mobile-app-for-paperlessticketing-in-unreserved-segment/

Bugra Derre, technical consultant for mobile applications and the IoT at
abas ERP, noted that despite the promise of the IoT, the technology
really is still in its infancy, it is a young concept.
The term refers to the embedding of sensors and computing devices into
physical devices.
They are then connected to wired or wireless networks, giving them the
ability to communicate with one another, without human intervention.

A relevant example of

IoT
would
be
a
production
manager
informed
by
his
computer
that
particular
malfunctioning
components need to
be repaired or replaced
in two hours in order to
complete a certain
project on time. data from : http://abas-erp.com/en/news/internetthings-and-future-erp

The ERP connection


IoT can be connected with the
ERP system to make systems
automatic.
Efficient supply chain: maintaining
constant EOQ levels.
Condition
monitoring
for
machines automized.
abas ERP have taken a forwardlooking approach to the IoT by
adding
a
layer
of
flexible
middleware that can provide an
interface for Internet-connected
devices, equipment and products
to interact directly with the
company's ERP systems.

Wearable technology

Devices worn by the workers.


Real time information feed for both management and the worker.
Can improve the productivity of the workforce by 8.5% and
employee job satisfaction by 3.5%.
data from : https://www.sagesoftware.co.in/blogs/wearable-technology-andcloud-erp/

Bibliography
Sl No:

Link

Description

http://www.bsminfo.com/doc/rfid-and-erp-the-wave-of-the-future-0001

Datapass: The RFID


future

http://www.forbes.com/sites/louiscolumbus/2015/04/05/predicting-the-future-ofcloud-service-providers/#3f67ba6c639f

SAAS, the future

http://news.sap.com/erp-trends-mobile-apps-and-integrated-processes/

Mobile ERP

http://www.aberdeenessentials.com/cfo-essentials/sage-summit-2014-makingmobile-erp-functional-and-usable/

Mobile ERP statistics

data from : http://www.bgr.in/news/railway-launches-uts-a-mobile-app-forpaperless-ticketing-in-unreserved-segment/

UTS on mobile app

http://abas-erp.com/en/news/internet-things-and-future-erp

IoT

https://www.sagesoftware.co.in/blogs/wearable-technology-and-cloud-erp/

Wearable technology

https://www.alliedmarketresearch.com/ERP-market#tc

Future of ERP market

http://www.forbes.com/sites/louiscolumbus/2014/05/12/gartners-erp-marketshare-update-shows-the-future-of-cloud-erp-is-now/#57c357f274a1

Present market
scenario