The Road Ahead for SAP in 2020
The ERP market is poised for a quantum leap--growing at a CAGR of 10.2% from 2019 to 2026. In 2018, the global ERP software market, growing at a CAGR of 10.2%, was valued at $35.81 billion. The global ERP market is now projected to reach $78.40 billion by 2026.
Gartner’s Market Share Analysis: ERP Software, Worldwide, 2018 published in May 2019 notes that “the ERP software market grew 10% to a global market value of $35 billion in 2018.” It observes that “digital business changes the way an organization deals with customers, suppliers, partners, internal processes and employee engagement — all of which are supported by ERP, thus driving ERP upgrades and/or replacements.”
The ERP Horizons for 2020 and Beyond
Enterprise resource planning (ERP) is a business process management software that enables organizations to use a system of integrated applications, manage business processes and automate several other functions related to technology, services, and human resources.
Traditional ERP technology has been deployed for several decades. The increased adoption of advanced technologies such as IoT, AI, and big data analytics has led to a surge in ERP market growth.
Let’s take a look at some of the scenarios. The integration of ERP with IoT-based devices allows organizations to identify and eliminate unnecessary assets. IoT-powered automation keeps plant operations running on time, without any need for human intervention. ERP software integrates all the key functions of a business process with synchronized reporting and automation. These include product development, product planning, manufacturing, sales, and marketing — in a single database, application, and user interface.
Similarly, there are multiple benefits of integrating ERP software with wearable technology – such as real-time information transmission, minimized errors, real-time access to data and faster decision-making.
Into the Future with SAP
In July 2019, SAP was ranked No. 1 by revenue in Gartner’s “Market Share Analysis: ERP Software, Worldwide, 2018” report. SAP is the leader in ERP software, ranging from finance to supply-chain logistics. It is the world’s No.1 cloud company with a community of 200 million users across 180 countries worldwide.
The company has established a strong presence in the marketplace by offering end-to-end enterprise application software, database, analytics, intelligent technologies, and experience management. It helps businesses of all sizes and in all industries to operate profitably, adapt continuously, and achieve their specific business objectives.
The Journey with SAP S/4HANA
In the wake of the move to cloud technology, SAP will be offering more cloud-based services via subscription, dropping its old license-based model. Through this move, SAP is working to make its concept ‘intelligent enterprise’ a reality for customers.
SAP plans to deliver an out-of-the-box version of S/4HANA—integrated with human resources application SuccessFactors, SAP Analytics Cloud and the digital marketing tool Qualtrics. Moreover, applications covering vendor management, marketing, sales performance management, procurement, and travel management will be fully integrated next year, he adds.
SAP S/4HANA is a critical part of the digital core, which drives digital transformation and delivers instant business value. SAP offers customers a choice of deployment options including cloud, on-premise and hybrid so they can choose any scenario or combination that is right for them.
Built to take advantage of SAP’s industry-leading in-memory computing platform, SAP HANA, SAP S/4HANA is the market-leading intelligent ERP that leverages advanced in-memory SAP technology to provide unparalleled business agility, enabling companies to exceed customer expectations and navigate dynamic marketplaces.
Applexus Technologies (Applexus) is the global technology leader offering business consulting and SAP services to transform customers through digital innovation. We specialize in advisory, migration, implementation, and management of SAP S/4HANA and BW/4HANA solutions. Applexus delivers transformational business solutions for a marquee list of clients spanning retail, fashion, and consumer products industries. Applexus operates out of centers in North America, the United Kingdom, the Middle East, and India. For more information, visit us online at www.applexus.com.