ERP Implementation, Budgeting & Savings Related Statistics For 2013

A survey report released by Gartner earlier this year noted that the ERP market had a sluggish growth last year clocking a rate of just 2.2%. Despite this, the growth of SaaS based ERP solutions are expected to grow at a healthy pace to reach 17% of the market by 2017 (12% in 2012). These projections are further strengthened by a report released by Panaroma Consulting. In their annual ERP report for 2013, the firm has come up with some pretty interesting statistics and projections. Here is a rundown of the various results from the survey.

Type Of ERP Solution Used

A whopping 61% of the firms still use on-premise ERP systems. While this could be disheartening to the proponents of cloud based enterprise systems, what this also reflects is the tremendous potential that cloud ERP solutions have for the future. Here is the market share of the various ERP systems as noted by Panaroma in their report.

ERP System Market Share
On-premise 61%
SaaS 14%
Cloud ERP (hosted and managed off-site) 12%
Others 13%

Reasons Why Companies Are Still Skeptical About Cloud ERP

Most discussions on why cloud ERP are still not dominant veer towards risks like data loss. However, the research reports points out that one of the biggest reasons is lack of knowledge about service offerings. This is a very interesting tidbit since cloud ERP providers only need to enhance their marketing efforts to start seeing much improved adoption rates from businesses.

Reason Percentage of respondents
Risk of security breach 32%
Low awareness 32%
Risk of data loss 17%

Cost Savings From Cloud ERP Migration

One of the biggest advantages to migrating to cloud ERP systems is definitely the cost factor. A survey of various businesses who have made this migration show that the cost savings are pretty decent.

Cost savings in % Percentage respondents
0-20% 60%
21-40% 24%
41-60% 8%
61-80% 0%
>80% 8%

Use Of ERP Consultants

A lot of businesses make use of third party ERP consultants to help them with implementing the system. For example, ERPGuru is a NetSuite partner in Canada that helps in implementing and supporting the NetSuite cloud based business management software. The Panaroma Consulting report notes the use of consultants during the various phases of the project:

Project Phase Consultants employed
Planning 35%
Selection & Purchasing 35%
Implementation 28%
Post Implementation 2%

ERP Implementation Budgeting

One of the concern areas for businesses during implementation of such projects is the overall cost and how it impacts the budgeting. According to the Panaroma report, the implementation of ERP was on budget only around 35% of the time.

Budgeting Occurrence
On budget 35%
25% over budget 31%
26-50% over budget 16%
51-75% over budget 4%
>76% over budget 2%
Under budget 12%

Project Schedule

After budgeting, the next big concern for businesses is whether or not the implementation happens on time. The report reveals the following data.

Duration Occurrence
On Schedule 34%
<25% over schedule 27%
26-50% over schedule 10%
51-75% over schedule 12%
>76% over schedule 12%
Earlier than scheduled 5%

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