30 ERP Facts and Statistics Every SMB Executive Should Know in 2022

We’ve gathered and analyzed many studies and surveys over the past year to bring you this collection of facts and statistics you should know about the state of enterprise resource planning today. In some cases, we have included data from different sources in the same category. Taken together, we provide a comprehensive overview with these facts:

The ERP market:

Globally, the market for ERP was valued at $33.6 billion in 2017, with an expected worth of $47.9 billion in 2023.

The global ERP market should reach a value of $86.30 Billion by 2027.

ERP objectives and selection:

Business objectives for implementing ERP varied depending on the size of the company. Businesses with fewer than 50 employees valued supporting growth as the most important aspect of adoption (26%). Companies with 50–249 employees saw increasing efficiency as critical (27%), while for businesses with more than 250 employees, better functionality was the most important thing (22%).

The main reasons among businesses for implementing ERP were to increase efficiency (25% ), support growth (20%), allow for greater functionality (20%), consolidate disparate systems (10%), and replace legacy software (9%).

On average, companies spend 17 weeks selecting ERP software for manufacturing.

About 25% of organizations implement ERP to increase efficiency, 20% to support growth, 20% to increase functionality, and 10% to consolidate disparate software.

The most common software that companies were replacing was QuickBooks.

ERP finance and budget:

The average budget per user for ERP software is $8,265.

45% of ERP projects go over budget.

System modifications needed to improve usability can cause overspending 65% of the time.

Infrastructure and models:

The majority of ERP solutions are cloud-based, whether through the private cloud (46%) or the public cloud (12%), with a smaller amount on on-site servers (25%) and a minority on a hybrid cloud system (17%).

77% of organizations deployed their ERP system through the software-as-a-service model, compared to 23% using a hosted system.

86% of ERP software deploy as Software-as-a-Service (monthly/yearly installment payments for licensing the use of software).

14% of ERP software deploy on-premises through a one-time payment.

77% of ERP software are internally hosted systems, while 23% are external.

ERP components and features:

Accounting was the most sought-after feature of an ERP system, with 57% of businesses requiring it in their system.

ERP adoption and use:

Businesses are increasingly replacing older systems, with 32% of respondents in a 2021 survey indicating their recent technology initiatives were to replace legacy solutions.

Employees at distributions companies are most likely to actively use an ERP system (45% of employees), followed by e-commerce (44%) and professional services (43%).

Despite this, the manufacturing industry leads the way in ERP adoption (34% share), followed by IT organizations (15%) and professional and financial services (14%).

ERP implementation and change management:

The biggest barrier to ERP adoption is employee resistance to change (82%), underlining the need for effective change management. Other barriers include inadequate backing (72%) and unrealistic expectations (65%).

The survey found that technical aspects of ERP implementation were generally the easiest to overcome, with just 8% of businesses finding the technical change of adoption difficult. By comparison, process changes (67% found difficult) and organizational change (75%) were more significant issues to overcome during projects.

For a group of companies that underwent ERP implementation, nearly half (49%) went live in the allocated time; 13% went live sooner than expected, 27% were a little late, and 11% failed to go live in the time allotted.

ERP project success or failure:

Satisfaction among employees in organizations that have implemented ERP is mainly positive, with a notable minority (10%) either being “dissatisfied” or “very dissatisfied” with their new systems.

Operational efficiency is the most evident benefit of ERP implementation, with 97% reporting benefits to their operations thanks to their new system. Closely following, 86% stated better reporting and visibility, and 68% noted increased growth and competitiveness.

88% of organizations believe the ERP implementation helped them to succeed.

93% of businesses that implement ERP projects consider them a success. That success rate dropped just 2% after COVID-19 hit.

The top three places ERP systems fall short for users are data accuracy, user experience, and analytics.

ERP implementation led to business process improvement for 95% of businesses.

93% of organizations consider their ERP project a success.

53% of customers are satisfied with their ERP system, 7% are dissatisfied, 3% are very dissatisfied, and 38% have neutral feelings.

Are there any important facts and statistics that you feel we should expand this report to include? Tell us on Facebook!