Using its proprietary analytics platform, HG Insights, the global leader in technology intelligence, calculates total spend on Enterprise Resource Planning (ERP) applications across all industries to be $105.2bn.
ERP is the integrated management of main business processes such as accounting, inventory and order management, human capital management (HCM), customer relationship management (CRM), and more. ERP solutions integrate these key functions into a single system to streamline processes across the whole business .
ERP’s Crucial Role During Pandemic
The COVID-19 world looks very uncertain but what is becoming increasingly clear is ERP software applications are playing a crucial role in the move from the office to remote working. Indeed, the pandemic has pushed business continuity to the fore, an aspect of ERP that largely went unheralded before the new norm.
Of course, ERP software’s ability to react to sudden business disruptions has been acknowledged in the past. For example, it plays a crucial role during a disaster such as a flood or a fire. All critical applications and data will be safe if the ERP solution is in the cloud with business critical assets held in multiple data centers across different regions .
However, the major dependence on ERP applications to maintain business continuity, on a scale we are witnessing today, is unprecedented and this reliance is here to stay. As reopening continues, businesses worldwide are making adjustments in observance of social distancing guidelines. ERP applications can help mitigate minimum workforce issues with logistics, manufacturing and supply chain management, ensuring tasks are completed in a timely and efficient manner .
Investment by Region
Investment in ERP solutions by region: AMER ($40.3bn); APAC ($39.2bn); EMEA ($25.7bn), combining to give an overall $105.2bn.
Top 5 Spending Industries
The top 5 spenders on ERP applications by industry are led by Banking and Financial Services ($19.1bn), followed by Professional, Scientific and Technical Services ($13.1bn), Manufacturing ($11.7bn), Public Administration ($11.3bn), and Insurance ($9.1bn).
ERP Spend: Banking and Financial Services
The total $19.1bn investment in ERP applications across Banking and Financial Services breaks down into a number of distinct spend classes: Financial Management ($6bn); CRM ($4.3bn); HCM ($4.4bn); Project Management ($2.3bn); Purchasing Management ($1.7bn); Supply Chain Management ($113m); Product Lifecycle Management ($79.6m); Distribution Management ($49.6m).
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