Increased satisfaction, more pragmatic decisions, and a cloud-first mentality, businesses are increasingly happy with ERP decisions—at least according to a recent ERP survey of companies who made the move to replace or upgrade ERP in the past year.
This, according to the Panorama Consulting ERP Report, an annual survey of customers on ERP implementation trends and software selection. Recently discussed in a TechTarget Article, we would like to highlight three main trends in the ERP world and discuss some of the reasons why this is happening.
Trend 1: Satisfaction on the Rise
Among the most exciting new trends from the Panorama 2020 ERP Report is the increased satisfaction that respondents are getting from their solution. According to the report, roughly 53% are satisfied and another 38% are neutral, putting dissatisfaction in the vast minority.
Reasons: Better Information, Less Hype, More Pragmaticism
Whether due to improved implementation abilities in the cloud, more realism in their expectations, or better education on the risks and rewards, this is an important distinction from reports even a half decade ago.
No longer are decision makers willing to believe the hype or trust in vendors or implementation partners who make big promises they can’t keep. Mismanaged expectations are risky, and those partners who fail to communicate the risk of an implementation project are doing a disservice for their clients.
As one of those companies who has made a few dollars throughout the years saving “failed” implementation projects, we are well aware of this. Learn more about why it’s so important to find a partner who can manage expectations here.
Trend 2: All In on Modernization
Getting away from legacy ERP has been a top priority among businesses, and according to the report, the number one driver behind an ERP software decision. This, paired with a steep decline in upgrades from last year’s report, points to a major modernization effort among decision makers.
According to the ERP report, 34% of respondents are planning to shift from their current legacy system, compared with just 14% from the 2019 report. Upgrading an existing system was chosen by 23%, a drop of 14% from the 2019 report.
Reasons: Legacy Software Doesn’t Cut It
Something we’ve discussed in great detail last month, continued use of legacy software is risky. From increased costs to decreased staff morale, continued use of a legacy ERP product is holding back businesses. Learn about six reasons to make the move from legacy software here and download our whitepaper on freeing your food and beverage company from legacy ERP.
Trend 3: Confidence in the Cloud on the Rise
Though many companies continue to deploy ERP on-premises, many are learning that decision makers are increasingly confident in a cloud deployment. Notably, decision makers are slowly overcoming their security fears—27 percent of respondents cited risk of a breach as their top cloud fear, down from 31 percent in 2019.
Now, according to the report, nearly two thirds of companies have chosen the cloud as their primary deployment option, a number expected to increase as vendors make the shift to cloud-first deployments.
Reason: The Cloud Stands Up to the Hype
Cloud is built for growth, innovation, and security. Though many businesses still are worried about the hype, cloud ERP solutions like Acumatica and NetSuite stand up to the demands placed by thousands of customers.
Learn more about cloud ERP in our recent blogs on the rise of the cloud, our answers to common cloud questions, and how the cloud makes growth easier.
Meet MIBAR: Your Partner for Honest Cloud ERP Advice
Though many companies may worry about the challenges in moving to the cloud, with the right partner, it can be a peaceful experience. Though it’s not ‘flipping a switch,’ with the right planning and help, implementations don’t have to be traumatic, time-consuming, or tedious. If you’re looking for more advice on working in the cloud, get to know MIBAR.