Digital Business

ERP allows for immense savings

A recent survey of participants at the IT exhibition IT&Business revealed that owners of large medium-sized companies and IT executives in Germany trust ERP systems to achieve considerable savings.


Over 100 million euros?

Over one third of those who took part in the study expected cost reductions of over 100 million euros per annum following the introduction of an ERP system. A further 29 percent stated that the company expenditure would reach almost 100 million euros. Company processes also become more efficient – 37 percent of those surveyed believed a 50 percent increase to be realistic; one third of participants expected 20 percent more efficiency.


Small- and medium-sized businesses remain cautious

The study confirms the results of similar surveys from the past year. Surveys have repeatedly pointed to the potential of an ERP – however, small- and medium-sized businesses remain more cautious than large corporations.

Perhaps it is because the amount of investment required scares smaller companies so that they do not want to go near functioning processes and IT architectures. In actual fact, industry experts presume that around half of all ERP projects introduced are interrupted prematurely – a scenario that must cause fear amongst small- and medium-sized companies.


The Cloud could spark a turnaround

What is required to realise the massive savings potentials in practice? On the one hand, a capable IT partner with project expertise and the right references. After all, an ERP system that is not designed based on the needs of the client and not rolled out smoothly is a waste of money.

Secondly, the right product is key: As such, the Cloud could make the use of ERPs more attractive to small- to medium-sized businesses. This is because ERP from the Cloud reduces the total cost of ownership and the IT spend. At the same time, such a system guarantees secure operation and an attractive service level, without the need to delegate your own personnel for this purpose.


Increasing acceptance

At present, one can assume that only twelve percent of German companies use ERP solutions from the Cloud. However, a recent study showed that small- to medium-sized companies are having a rethink. Sixty percent of all participants stated that they want to introduce an ERP from the Cloud. As such, the Cloud is becoming more and more important for ERP providers – as those who cannot offer a convincing proposal will find it difficult to convince the market.

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