Cloud based systems that offer greater flexibility and better service to the user are in high demand today. We have seen the top players including Amazon, IBM, Microsoft etc. reporting increasing revenue in every quarter. With this backdrop, let us look at the future of the an interconnected, worldwide enterprise resource planning (ERP) approach.
The broad forecast of ERP in the cloud is that it will grow at a CAGR of about 7-10%. According to reports from independent and diverse sources, the cloud ERP industry is expected to grow to about USD 30 billion to USD 35 billion by 2020-2022.
It is worthwhile to note that in the recent past, from 2011 till 2015, the global ERP scene has registered a growth of about 6.5%. It is predicted that with the drive towards efficiency and transparency in companies today, this growth rate will increase. Some estimates even suggest that if some of the gaps in the cloud technology are bridged, then the market might grow to even USD 60 billion by 2020-2021.
Industry experts believe that the cloud ERP has huge scope all over the world, especially in the USA, Asia-Pacific region and Australia in the near future. So, on the outlay, the forecast for global cloud enterprise resource planning remains significantly positive.
How do you pinpoint when ERP implementation in your company is failing? Why does it fail in the first place? One of the major reasons ERP fails is because it’s failing before it’s even started. Companies don’t ask themselves if a large ERP is a good plan before putting it in place.
Due to a lack of proper foresight and no sense of direction, failure could be imminent. Even sometimes with a plan in place, it may not be well thought out enough, or prepared for any eventuality. Under-estimating resources, unrealistic expectations, poor user interface, or lack of testing are some contributing factors, as well. Not having a contingency plan or refusing to customize is often an early sign that it will fail. So is lack of frequently reviewing the ERP and plan associated with running it.
Or maybe the person managing the ERP is not qualified or experienced enough to be doing so. If your company cannot afford to train an employee to take on such an important task, it’s best not to implement the ERP in the first place. Unqualified and untrained ERP management is a major sign of imminent failure.
And most companies don’t even stop to ask themselves if they actually need ERP before they put time, money, and resources into starting and running it. This could by far be one of the easiest ways to prevent ERP failure, is not not begin it in the first place.