FOCUS ON CONTROL TECHNOLOGIES
Into the cloud
According to analyst Grand View Research , the global cloud ERP market size was valued at US $ 34.83 billion in 2023 and is projected to grow at a compound annual growth rate ( CAGR ) of 18.0 % from 2024 to 2030 .
The analyst attributes global market growth to factors such as the rising adoption of SaaS ( software-as-a-service ) solutions owing to the functional ability of cloud computing to improve the business performance of enterprises and the increasing migration of enterprises to the cloud ecosystem for reducing operational costs and improving security .
“ Additionally , a growing need to deploy advanced ERP solutions that contain advanced analytics features and identify probable issues such as delays and disruptions , and rapid inclusion of artificial intelligence ( AI ) & machine learning ( ML ) technologies in the development of cloud enterprise resource planning ( ERP ) solutions , are observed as key trends contributing to the market growth ,” it explained .
“ Moreover , cloud ERP providers prioritise data security , often implementing stringent measures such as encryption , multi-factor authentication and frequent security assessments . This robust safety structure offers companies additional protection that may be complicated to provide internally , reducing risks related to data breaches and cyber threats . This factor is expected to drive market growth over the forecast period , thereby providing numerous growth opportunities for the stakeholders ,” it added .
Cloud ERP has emerged as a transformative solution for several end-use industries , such as construction , addressing various complexities inherent in project-based environments . Construction companies may effectively control project costs with the help of cloud ERP applications as they link financial data with project operations . With the help of this integration , it is possible to keep a tab on how resources are being used and budget allocations and expenses in real-time , which is another factor that is positively impacting market growth .
“ Cloud ERP eliminates the need for small businesses to invest in costly hardware and IT infrastructure . This means that small businesses can save money on hardware and maintenance costs , which is expected to drive the market growth . Moreover , it provides a robust platform for SMEs to digitally transform their business operations , modernise their procedures and remain competitive in a rapidly evolving business environment . Cloud ERP systems offer real-time visibility into the utilisation of resources , helping SMEs allocate assets effectively and reduce costs ,” concluded the analyst .
Challenges and restrictions
However , certain restrictions and challenges may restrict the Cloud ERP market ’ s overall growth globally . Factors such as limited customisation options for SaaS-based ERP and high CAPEX for PAAS-based ERP can impede market growth .
Image : Shutterstock . com .
“ Integration issues with legacy and onpremises systems , as well as a scarcity of technical professionals and expertise , are suffocating the overall Cloud ERP Market during the forecast period . Organisations have gradually begun to integrate Cloud ERP market solutions and services . However , system complexities and implementation costs continue to be the most significant challenges that organisations face when integrating these solutions with their existing systems . Existing legacy systems must be tightly coupled with new ones for the successful implementation of Cloud ERP systems ,” explained Vantage Market Research .
There may be many legacy applications that are incompatible with new systems or require additional integration effort . Because existing legacy systems are mostly on-premises , integrating these systems may be difficult .
“ A manufacturer ’ s existing data may not just drop smoothly into a new system , and many companies see this as one of the most daunting areas of migrating systems . However , it ’ s often not the problem that people perceive it to be and there can be additional side-benefits and opportunities . Before manufacturers look at how they ’ re going to import it , they should consider a little housekeeping ,” advised ERP specialist , 123insight .
In conclusion
As manufacturing embraces digitalisation and Industry 4.0 , ERP software is a valuable tool for streamlining and automating the activities needed by manufacturers . Having full control over manufacturing operations is instrumental in conforming with today ’ s agile supply chains .
ERP systems have become extremely popular and are no longer the exclusive domain of multinational operations . Adopting an enterprise resource planning ( ERP ) system enables a more competitive and profitable manufacturing business . n
Image : Shutterstock . com .
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