The growth of ERP or Enterprise Resource Planning Market started due to the common problems that existed in many business enterprises. Since ERP can resolve these problems and can bring lots of benefits to enterprises which use the software, the ERP has gained more popularity and bigger market.
In fact, problems on enterprise systems have inspired the creation of ERP. Before the widespread use of ERP for businesses, each department of a certain business enterprise has its own database system. This setup makes it hard for one department to get data from the other department. These problems paved the way for the growth of the ERP market.
With the ERP integration to business enterprises, this problem is resolved. The software will make a unified system for the entire enterprise which will make it easier for every department to communicate with one another. Increased productivity was also seen and better business is the end result. These simple benefits lead to the increasing popularity of the ERP market.
The success of the ERP market can be attributed to its vendors and the real high efficiency of the product.
Due to the easiness of use and many offerings of the ERP software, the ERP market has grown to a surprising 14 percent just in 2004. Most analysts said that this success was due to the five biggest vendors of ERP software. These are the SAP, Oracle, PeopleSoft, J.D. Edwards, and Baan. These vendors were accounted for the 59 percent of the ERP market in 1999. In 2004, another group of five vendors helped the success of ERP market. These are the SAP, Sage Group, Oracle, SSA Global, and Microsoft. They were accounted for the 72 percent ERP market in that year.
The ERP market is significantly growing, according to research. There are big companies that are key players in this business. That is not to say though that smaller companies will not hold a share in this huge market. Almost all major businesses rely heavily in ERP implementation and are willing to pay an expensive fee in order to have a customized system that will synchronize smoothly with its existing functions.
Gone are the days when companies have to buy different programs or computers in order to do various functions. As an organization expands, the company’s structure also changes. The need to introduce, restructure or merge functions arises as a result of this major change.
This is where ERP vendors come in. There is a large market for ERP out there and its up to the best to share a portion of this market. ERP has so far evolved into a very huge market that compromise almost every function in many companies. Where ERP evolved as an extension of Material Resource Management, it has now merged with different functions like financial, Customer Relationship Management, Supply Chain to name a few.
And with the emergence of the e-commerce or the electronic way of doing business, it is expected to grow more significantly in the many years to come. A very good ERP is vital in enterprises that rely heavily in web-based transactions.
In conclusion, although the high end market end have been considered by experts as saturated, there is a tremendous opportunity for mid market as they are beginning to adapt this trend as well.