Types of ERP Systems: A Comprehensive Overview with Market Share

The entire picture of the global supply chain experienced a paradigm shift with the COVID-19 pandemic, making organizations worldwide more competitive. The business aspects significantly impacting this transitional phase were customer support, sales, project management, procurement, HR, service, and manufacturing. Companies are relying more on the power of Enterprise Resource Planning systems or ERP to survive challenges, boost productivity, and save resources and money. 

Read ahead – ERP types, trends, key players, and considerations for the right choice. 

If you are reading this, chances are, you are on the search for ‘The One’ ERP system for your business among so many options in the market, and let us tell you, you have indeed arrived at the right place. 

In this comprehensive guide, Proquantic  will highlight the essential information on the different types, advantages, market share, overview, and many more aspects of ERP, hoping to influence your decision-making toward the right one. We have also curated a market research-backed comprehensive list of the top 4 ERP systems based on their market share. Keep reading to know more: 

ERP system – concept at the core and how they work 

At the core of business operations, Enterprise Resource Planners (ERPs) are centralized software that integrate all the core business functions, such as customer relationship management, inventory management, supply chain management, human resource management, finance management, and core business function management. Understanding this concept is crucial for leveraging the full potential of ERP systems. 

A custom ERP solution empowers the business to elevate and manage the organization's resource utilization. It also aids in decreasing and increasing the number of resources without disturbing the performance or quality of the company. ERP software covers numerous aspects of business operations by offering: 

• Unified database
• Support for all other enterprise applications
• Typical user interfaces across multiple components and apps
• Integrated system
• Real-time insights
• Simplification of SaaS deployment, cloud-hosting and on-premises operations 

Enterprise resource planners can collect and assess data generated from various departments. Then, they fetch reports based on user preferences. This gives businesses a 360-degree view of their performance. 

So, the next question that arises is about the types of ERP systems prevalent. Read ahead to learn more. 

Prevalent ERP types that you should know of 

Here’s a brief presentation on the various types of ERP systems with overview, pros and cons: 

1. On-premises ERPs 

Overview: These are deployed locally on the organization's servers and hardware and offer the best control. Such systems need to be backed by substantial IT management teams and infrastructure. They are ideal for large-scale enterprises with dedicated IT teams. 

Pros: 

• Offer unbreachable data security and complete control customization.
• It is ideal for industries that have strict compliance regulations. 

Cons: 

• Initially, it involves high investment in implementation and infrastructure.
• A dedicated IT team is needed for regular updates and maintenance. 

Examples: Oracle E-business Suite, SAP ECC 

2. Cloud-based ERP systems 

Cloud-powered ERP systems are accessed via the Internet and hosted on the vendor's servers. Such solutions offer flexibility and are highly scalable for remote working environments. They are suitable for businesses of all calibers, and small-scale companies who look for affordable options can choose such solutions for scalability. 

Pros: 

• Vendor-managed automatic updates.
• Low upfront costs and come with subscription.
• It can be accessed from anywhere. 

Cons: 

• It is entirely dependent on internet connectivity.
• Involves potential concerns across vendor lock-in and data privacy. 

Examples: Workday, NetSuite, Microsoft Dynamics 365

3. Hybrid ERP solutions 

Overview: Hybrid systems combine cloud-powered and on-premises features. Such systems allow businesses to manage specific modules in the cloud while managing other modules on-premises. 

Pros: 

• Facilitates convenient transition to modern frameworks from legacy systems.
• Flexible enough to adapt to the specific needs of business. 

Cons: 

• Its dual management claims a high amount of monetary investment.
• Companies face integrational challenges between cloud and on-premises components. 

Examples: Microsoft Dynamics 365, Infor CloudSuite 

4. Open-source ERP solutions 

Overview: Such ERP solutions are customizable, dedicated business software that comes with open-source codes for authorized users' access. These solutions are suitable for enterprises with technical expertise seeking highly customized solutions. Such solutions are ideal for businesses looking for highly tailored solutions with technical expertise. 

Pros: 

• When it comes to licensing fees, open-source ERP solutions are cost-effective.
• Immensely customizable for fitting into the niche business process. 

Cons: 

• Limited support from vendors when compared to proprietary solutions.
• Needs dedicated technical expertise for support and implementation of software. 

Example: ERPNext, Odoo 

Well, we can also segregate enterprise resource planners based on 

Industry-specific ERP systems 

These ERP solutions provide various features to businesses across different verticals. These are cost-friendly solutions and cater to the unique requisites of companies from various sectors. Have a quick look at the types: 

• Retail ERP systems: These solutions are concentrated on fetching customer insights, tracking inventory, and omnichannel sales.
• Manufacturing ERP systems are designed for inventory management, production planning, and supply chain management.
• Non-profit ERP system: These systems are used in non-profit organizations and are tailored for fundraising, coordination with volunteers, and managing donors. 

These systems are often loaded with pre-configured modules and customized workflows to reduce implementation time and industry processes. Some examples of such ERP systems are: 

• Manufacturing
• Forecasting and planning
• Supply chain management
• Inventory management
• Human resource
• Analytics
• Business intelligence
• Customer relationship manager
• Financial and accounting management 

Global trends in the demand for ERP systems, top players, and market share 

The global demand for ERP systems has increased at an unprecedented rate, facilitated by the need for real-time business intelligence insights, AI-powered automation, and digital transformation initiatives. This trend is expected to continue in the coming years, with cloud-based ERP adoption projected to surpass on-premises systems, inspiring enterprises to prioritize seamless integrations, agility, and scalability in their functional frameworks. 

Cloud-based ERP adoption is expected to touch and exceed on-premises systems in the future, inspiring enterprises to prioritize seamless integrations, agility, and scalability in their functional frameworks. 

Also, the demand for industry-specific software is gaining traction, especially in sectors like retail, healthcare, and manufacturing, where customized workflows enhance operational efficiency. 

There's also a growing demand for hybrid ERP models, reflecting on the rising adoption of systems that facilitate a balanced approach between cloud-powered innovation and data security. This ensures that businesses can modernize without disturbing the legacy infrastructure. 

Let's examine the market's leading ERP vendors, giving a quick glimpse into their share, technologies, and notable solutions. 

1. SAP 

SAP has the most significant global presence in the vast ERP industry and holds over 34% of the market share. 

Its best solution is SAP S/4HANA, which features industry-specific modules, IoT integration, and AI-powered analytics. 

2. Oracle 

It's a notable player in the field of ERP cloud adoption, with a 25% share of the global ERP market. 

Its notable solution is Oracle Fusion Cloud ERP, which is conceptualized for high-performance scalability, AI automation, and predictive insights. 

3. Microsoft Dynamic 365 

This solution is the go-to ERP for large and mid-sized enterprises, and it holds nearly 15% of the total ERP market share. 

Its most significant solution is Dynamic 365 offers seamless Microsoft integration and real-time operational and financial management. 

4. Infor 

Infor is a steady player in the global ERP market and is gradually gaining popularity among the manufacturing and logistics sectors for its industry-specific solutions. 

Its popular solution is Infor CloudSuite, which is custom-designed for AI-powered supply chain management and sector-focused automation. 

Choosing the right ERP for your business – simplified 

What we mentioned above are the key players of the global ERP market, but you might be looking for something more customized and affordable. Whatever you choose, you have to keep in mind the following considerations involved in the process, which are: 

• Defining your business goals – Identify the issues in your business that you would want to solve with an ERP.
• Assessing deployment needs: Based on your budgetary and operational requirements, choose between hybrid, on-premises, or cloud ERPs.
• Choosing an industry-specific solution—Consider whether you want to choose an industry-specific ERP, such as a manufacturing ERP for planning production or a retail ERP for omnichannel sales.
• Evaluating vendor support - Ensure that the vendor provides robust support for training and post-implementation challenges. 

With so many options to choose from, selecting the right one might feel overwhelming at some point. This is precisely where professional ERP consultants come into the picture to build a customized solution tailored to your unique business needs. 

Proquantic Software – fulfilling ERP needs 

We at Proquantic Software have the right and deep domain expertise. Our team of experts, with rich experience in the industry, will analyze and recommend the right system for you and oversee its implementation. We offer: 

• Evaluation of system: Identification of the ideal features for your ERP system
• Customization: We tailor the module to match your process
• Implementation: We will minimize disruption and streamline the deployment of your ERP
• Staff training: We provide training to your staff for the effective adoption and efficiency of the system 

Our ERP development and consulting services ensure a seamless adoption of business-dedicated systems, from planning to post-deployment support. 

Take a look at our customized enterprise solution case studies here for more info on our service enterprise application services. 

Conclusion 

Choosing the right ERP is beyond just selecting a software; rather, it’s about transforming the business with solutions that streamline the entire business process with versatility. Whether you are exploring an on-premises application or thinking of a cloud-based ERP, or even want professional consultation for better understanding and get a custom-built ERP for your enterprise, an informed decision on this matter will fetch you long-term success, and with this informative, we hope that Proquantic Software has been able to help you with the decision-making.