Business growth or global expansion 81.08%
To optimize production and reduce operational costs 72.97%
To support an increasing demand for custom or complex products 32.43%
To maintain regulatory and safety compliance 40.54%
Current system(s) is not helping but hurting 59.46%
Unsurprisingly, a little over 80% of respondents said business growth or global expansion is one of the top three catalysts for investing in an ERP solution. This is our experience at TEC—many companies reach a point of growth or hatch plans for ambitious expansion that simply demand streamlined processes, better integration between departments, and faster access to reliable data. A properly implemented ERP system can enable all of the above.
Over 70% of respondents chose production optimization and reduction in operational costs as a top motivation for adopting ERP software. An ERP system is still seen as the most effective support system for businesses looking to run like a well-oiled, profitable machine. As Julie Fraser, Founder and Principal of Iyno Advisors, pointed out, “This [sentiment] does not seem to have changed too much over the years—except that more companies have systems that are no longer serving them well.”
Which brings us to the third top catalyst our respondents chose—a company’s current system is no longer helping but hurting. Companies who invested in an ERP 10 or 20 years ago are likely now struggling with systems that the vendors are shelving. Legacy ERP systems are being replaced with newer models that integrate advanced technologies like IoT and AI, propelling many companies to seriously consider making the re-investment.