Strategic Planning Assumptions: Enterprise Resource Planning (ERP)
Product-centric ERP:
By 2026, 35% of product-centric enterprises will achieve high composability in their ERP applications, enabling greater flexibility and customization. (Probability 0.8)
The adoption of AI and machine learning capabilities in product-centric ERP systems will increase by 60% by 2025, enhancing predictive analytics and automation. (Probability 0.75)
Integration of IoT and real-time data from connected products will be a standard feature in 70% of product-centric ERP solutions by 2027. (Probability 0.7)
By 2028, 80% of product-centric ERP systems will incorporate advanced supply chain visibility and risk management capabilities. (Probability 0.75)
The use of digital twins for product lifecycle management will be adopted by 50% of product-centric enterprises using ERP by 2026. (Probability 0.65)
Service-centric ERP:
By 2025, 60% of service-centric ERP solutions will include embedded analytics and AI-powered insights to improve service delivery and customer experience. (Probability 0.8)
Integration of customer relationship management (CRM) capabilities within service-centric ERP will increase by 70% by 2026. (Probability 0.75)
By 2027, 65% of service-centric ERP systems will incorporate advanced project management and resource allocation features. (Probability 0.7)
The adoption of mobile-first interfaces for field service management within service-centric ERP will reach 80% by 2025. (Probability 0.75)
By 2028, 55% of service-centric ERP solutions will include capabilities for managing subscription-based business models. (Probability 0.7)
General ERP trends:
Cloud Adoption and Flexibility
a) Given the benefits of cloud computing, such as scalability, flexibility, and cost-efficiency, cloud adoption for both product-centric and service-centric ERP will exceed 75% by 2026. (Probability 0.87)
b) The adoption of cloud-based ERP solutions with built-in remote work capabilities will surpass 80% by 2025, driven by the growing need for flexible and distributed work environments. (Probability 0.86)
By 2027, 70% of ERP implementations will incorporate some form of low-code/no-code development capabilities. (Probability 0.75)
Integration of blockchain technology for enhanced security and traceability will be present in 40% of ERP systems by 2027. (Probability 0.6)
The use of natural language processing and conversational AI interfaces in ERP systems will increase by 80% by 2026. (Probability 0.7)
By 2028, 65% of ERP systems will offer comprehensive sustainability management and reporting features. (Probability 0.75)
The Future of the Enterprise Resource Planning (ERP)
The future of the Enterprise Resource Planning (ERP) industry is poised for significant transformation, driven by rapid advancements in technology and evolving business needs. As organizations increasingly prioritize agility, flexibility, and data-driven decision-making, ERP systems are becoming more critical than ever in enabling businesses to navigate the challenges and opportunities of the digital age.
One of the most prominent trends shaping the future of ERP is the widespread adoption of cloud computing. By 2026, it is expected that cloud adoption for both product-centric and service-centric ERP will exceed 75% (Probability: 0.87). This shift towards cloud-based ERP solutions is driven by the benefits of scalability, cost-efficiency, and the growing need for flexible and distributed work environments. As a result, the adoption of cloud-based ERP solutions with built-in remote work capabilities is projected to surpass 80% by 2025 (Probability: 0.86).
Another key driver of change in the ERP landscape is the integration of Artificial Intelligence (AI) and advanced analytics. As businesses strive to enhance service quality and customer satisfaction, 60% of service-centric ERP solutions are expected to include embedded analytics and AI-powered insights by 2025 (Probability: 0.82). Similarly, 55% of product-centric ERP systems will leverage AI and machine learning for predictive maintenance and optimized resource allocation by 2026 (Probability: 0.77). These AI-driven capabilities will enable organizations to make data-driven decisions, improve operational efficiency, and deliver superior customer experiences.
The COVID-19 pandemic has highlighted the importance of supply chain resilience and risk management, particularly for product-centric enterprises. In response to this, 80% of product-centric ERP systems are expected to incorporate advanced supply chain visibility and risk management capabilities by 2028 (Probability: 0.79). This will enable businesses to better navigate supply chain disruptions, optimize inventory levels, and ensure business continuity in the face of unexpected challenges.
To keep pace with the growing demand for agility and faster application development, the adoption of low-code and no-code development platforms will become increasingly prevalent. By 2025, 70% of ERP implementations are expected to incorporate some form of low-code/no-code development capabilities (Probability: 0.76). This will empower business users to quickly customize and extend ERP functionality, reducing reliance on IT resources and accelerating time-to-value.
The future of ERP also revolves around mobile and remote access, enabling seamless access to critical business data and processes from anywhere. By 2024, 85% of ERP systems are expected to offer mobile-first user interfaces (Probability: 0.89). This will support the growing trend of remote work and enable employees to stay connected and productive, regardless of their location.
Integration and interoperability will remain critical aspects of ERP systems, as businesses increasingly rely on a diverse range of applications and data sources. By 2026, 75% of ERP systems are projected to offer pre-built connectors and APIs for seamless integration with other business applications (Probability: 0.81). This will enable organizations to create a cohesive and connected enterprise ecosystem, driving efficiency and enabling real-time data sharing.
User experience (UX) and collaboration will also play a crucial role in the future of ERP. By 2025, 90% of ERP systems are expected to incorporate UX design principles, focusing on intuitive interfaces and personalized workflows (Probability: 0.84). This will help to maximize user adoption, productivity, and satisfaction, ensuring that ERP systems deliver maximum value to the organization.
As businesses increasingly prioritize sustainability and environmental, social, and governance (ESG) considerations, ERP systems will evolve to support these goals. By 2027, 60% of ERP systems are projected to include built-in sustainability and ESG reporting capabilities (Probability: 0.79). This will enable organizations to track and report on their sustainability performance, meet regulatory requirements, and demonstrate their commitment to responsible business practices.
Bottom Line
The ERP industry will be shaped by a convergence of critical trends, including widespread cloud adoption, the integration of AI and advanced analytics, a heightened focus on supply chain resilience and risk management, the rise of low-code/no-code development, mobile-first user experiences, seamless integration and interoperability, and a growing emphasis on sustainability and ESG reporting. CEOs who prioritize these key areas and align their ERP strategies accordingly will be well-positioned to drive digital transformation, optimize operations, and unlock new opportunities for growth and innovation in an increasingly dynamic and competitive business landscape.