2020 ERP Trends

1 12020 ERP TrendsBased on the UK ERP Trends Survey by the Accenture SAP Business Group23 Welcome to Turning Intelligence into Value , Accenture s 2020 ERP Trends report. Based on a survey of 122 CIOs in the UK, this report offers deep insights into how ERP solutions are being used now, and how their future direction is changing. Now in its second year, the report highlights the evolving challenges and opportunities of today s ERP market. TURNING INTELLIGENCE INTO VALUE2020 ERP TRENDSFOREWORD23 This is a market that continues to change and grow at speed. According to gartner research, the ERP software market grew 10 per cent to a global market value of $35 billion in 2018 1. And that growth shows no sign of slowing. gartner forecasts that the ERP market will be worth $44 billion by 20222.

2 The cloud is the foundation of a modern ERP. And it will continue to be so, as highlighted by developments like SAP s new partnership with Microsoft. The company is the first global cloud provider to join SAP s new Embrace program to accelerate customer journeys to and in the cloud. Using cloud, companies are turning intelligent operations into value and bringing ERP capabilities out from the boiler room to their this market momentum and these developing relationships, challenges remain. These include an imminent ERP talent shortage. By 2021, gartner expects that ERP cloud enterprise application implementation labour rates will increase by 60 per cent due to high demand and a lack of skilled Securing and building the capability to take advantage of modern ERP solutions will be a key enterprise invite you to explore the five key Trends set out in this report, reflecting the ongoing changes taking place in the ERP space and the volatile conditions that businesses are dealing with.

3 A key finding that stood out this year is the strong focus on finding value. The most successful transformations are creating sustained business value from ERP solutions, using as a Service and cloud capabilities to support an agile and more customer-friendly enterprise . I hope you enjoy reading about the state of play in ERP today and I look forward to engaging with you on your technology Erik EllingsenManaging Director - SAP Business Group Lead UK and Ireland 1. gartner Market Share Analysis: ERP Software, Worldwide, 2018 , May 2019 2. gartner 2019 Strategic Roadmap for Postmodern ERP , May 2019 3. gartner 2019 Strategic Roadmap for Postmodern ERP , May 20194 ARE YOU READY TO TURN INTELLIGENCE INTO VALUE?Look around you. Every company is digitally transforming. But are they realising value from every corner of the enterprise and achieving their potential?

4 For many organisations, the answer is no. For them, digital is still only skin-deep, and value release is painstakingly slow. Yes, value is more pervasive at the front end, in the places where the company meets its customers. But it s frequently absent in the boiler room the ERP where much of the enterprise work gets done. And that is becoming a real barrier to investing more in technology-led innovation. In addition, even companies investing in modern technologies such as the cloud are carrying over legacy practices, skills and costs. They re getting stuck in a back office vs front office mentality. The net result? An inability to unlock sustained value. These companies are effectively creating the legacy ERP of the future . However, some are starting to think differently.

5 Our multi-year survey of UK CIOs shows that ERP systems are no longer just seen as back-office transactional solutions managed by IT. Instead, CIOs view the core ERP platform as the engine of the enterprise . And by enhancing and extending its reach out to the edges of the organisation, they re using it to transform their companies into technology businesses and realising the full value of investments. These leaders are changing their ERPs from siloed on-premise solutions into modern ERPs based on a digital core with real-time access to transactional data. They re creating pathways to data across the enterprise and infusing intelligence to help improve productivity, generate better insights and improve business decision CIO survey highlights five key Trends that are driving this embrace of the modern ERP, plus the good habits that organisations are developing to help them to create and sustain value from ERP modernisation.

6 These Trends can help other organisations create and sustain value with new ERP. It s time to open up the enterprise core and let digital shine throughout the Trends VS. 2020 TRENDS51 TREAT CLOUD AS THE GATEWAY TO MODERNISATIOND evelop a nuanced cloud strategy around digital transformation, cost savings and new business YOUR CORE INTELLIGENT AND EXTENDEDI nvest in intelligence and automation powered by AI, machine learning, and analytics; not as an add-on but as a core part of your ERP platform. Enable your business to extend at scale and in real WITH CLOUD CAPTAINS, NOT TRADITIONAL SERVICE FIRMSFind co-creation partners that differentiate by reimagining services delivery models, being technology agnostic, and specialising in your user experience (UX) seamless across channels and platforms and personalise INSIGHTS BY CONVERGING DATAT reat data as an asset.

7 Free up the data in your ERP systems and converge different data sources for deeper Trends 2019 FROM JOURNEY TO THE CLOUD TO JOURNEY IN THE CLOUD It is no longer about the lift and shift of infrastructure to the cloud. That s already happening. Now it s about optimising the cloud landscape and using cloud as your innovation platform. USE CORE CAPABILITIES TO SCALE INNOVATIONAn intelligent core ERP can bridge business and functional silos. It can help scale innovation using analytics and automation. CLOUD CAPTAINS PROVIDE THE EDGEC loud Captains are service providers who truly understand our cloud-based world, the implication of driving growth, increasing agility, and controlling cost through DevOps, automation, analytics and integration. BECOME HYPER-RELEVANTGood customer interaction is not enough on its own.

8 It takes intelligent customer engagement to create an exceptional customer experience. FUEL INSIGHTS WITH HIGH-QUALITY DATAThe use of more and more cloud solutions puts an extra focus on data quality. ERP Trends 202067 FROM JOURNEY TO THE CLOUD TO JOURNEY IN THE CLOUD 1 7 Enterprises have embraced the journey to the cloud and have undergone significant changes as a result. Our CIO survey shows that three-quarters of UK executives are already on some type of cloud. What s more, they re treating cloud not as an end in itself, but as a gateway to modernisation and as a platform for innovation. For them, cloud is a pathway to digital transformation, cost savings and vibrant new business models and strategies. WHAT S NEXT? NAVIGATING A MULTI-CLOUD WORLDSo what happens now that most enterprises are on the cloud?

9 For one, the conversation is no longer about the lift and shift of infrastructure. Indeed, our CIO survey confirms that two-thirds of IT stakeholders have moved on from lift and shift. That doesn t mean, however, that their journeys to cloud are over. Almost half of CIOs surveyed say their cloud journeys are still a work in progress. But the focus is now shifting towards optimising a multi-cloud environment and embarking on a journey within the cloud. Leading enterprises are using the disruptive power of the cloud to get ahead and transform operations. SaaS solutions provide standardised and cost-effective ways to simplify business applications in a modular fashion, taking advantage of new functionality and solutions to cut costs and improve are only using cloud to lift and shift infrastructure/reduce data centres, without leveraging SaaSHybrid (partially on-site, partially cloud-based)Cloud-based; public cloudCloud-based; private cloud Q: Please indicate whether your primary solution is:9 Multi-cloud environments can create new challenges for traditional ERP deployments.

10 Cloud-ready ERPs can help simplify and standardise. But, as ERPs expand beyond systems of record to become systems of engagement , enterprises must be able to orchestrate data and logic across several different clouds (and providers). For ERP, it s critical to have an architecture that supports reliable data reconciliation across multiple clouds so that data is combined, processed and disseminated effectively and securely. ACTIONS FOR A DIGITAL ERP: 1. Make multi-cloud compatibility an essential feature. Since ERP both drives the core of an organisation and extends out to its edges, it must have a multi-cloud environment already integrated and configured for common cloud services. For example, SAP has partnered with Google, Amazon and Microsoft to make SAP solutions available on Google Cloud Platform, Amazon Web Services, and Microsoft Azure.