AI Unleashes Transformative New ERP Capabilities, ISG Says
MWN-AI** Summary
A recent report by Information Services Group (ISG) highlights the transformative impact of artificial intelligence (AI) and cloud computing on Enterprise Resource Planning (ERP) systems. The ISG Buyers Guides for ERP assesses 20 software providers, revealing that the integration of AI technologies—such as generative AI and natural language processing—enhances the usability and adaptability of ERP platforms for various industries.
According to Robert Kugel, executive director at ISG Software Research, AI is reshaping organizational interactions with ERP systems, making operations more efficient by reducing errors and automating tasks. By 2028, it is anticipated that nearly all ERP providers will incorporate AI, further streamlining processes and enabling companies to focus on strategic analysis rather than routine data entry.
The research emphasizes that the shift towards cloud-based ERP solutions since the early 2000s has improved scalability and performance, with projections indicating that over 80% of ERP systems purchased by non-product companies will be cloud-based by 2028. Additionally, integrating ERP with human capital and supply chain management systems through application programming interfaces (APIs) is becoming critical for improved decision-making.
ISG’s evaluation categorizes software providers into specialties such as Healthcare ERP and Midsize Enterprise Resource Planning, identifying leaders in each segment. Notable leaders included SAP S/4HANA, Oracle, and IFS, recognized for their exemplary performance across several evaluation dimensions.
The report underscores the need for enterprises to strategize their ERP modernization efforts to mitigate risks and maximize their technology investment return. It serves as a comprehensive guide for organizations looking to enhance their ERP capabilities through AI and cloud technology. For further insights, the complete reports and executive summaries can be found on ISG's website.
MWN-AI** Analysis
As organizations increasingly recognize the transformative potential of AI-enhanced Enterprise Resource Planning (ERP) systems, it is essential for investors and business leaders to consider strategic implications highlighted in recent research by Information Services Group (ISG). The study indicates that companies adopting cloud-based, AI-enabled ERP solutions are poised to enjoy significant productivity gains through automation and improved integration tailored to their specific industry needs.
Investors should take note of key players in the ERP market, such as SAP, Oracle, and IFS, identified by ISG as leaders across various categories of ERP solutions. With substantial migration to cloud platforms expected—over 80% of ERP systems in non-product companies projected to be cloud-based by 2028—companies investing in traditional on-premises solutions may face obsolescence.
The integration of AI and technologies like Natural Language Processing (NLP) into ERP systems is not merely an enhancement. It fundamentally shifts operational paradigms by minimizing manual data entry and expediting decision-making. This scalability and efficiency derive from connecting ERP systems with other essential business applications, revealing new opportunities for streamlined operations.
For investors, diversifying portfolios to include software providers that are aggressively adopting AI and cloud solutions could yield significant returns. Companies seen as innovators, like Acumatica and Epicor, should not be overlooked either, as they could disrupt conventional markets and offer new competitive advantages.
Additionally, organizations must approach ERP modernization carefully. As Mark Smith from ISG notes, strategic planning is crucial to mitigate risks and ensure these transformations align with broader corporate priorities. Companies, while investing in new systems, should maintain focus on how those technologies align with future operational strategies.
In summary, businesses that recognize the pivotal role of AI in shaping ERP systems can position themselves for sustained growth, making it an attractive sector for investment now and in the coming years.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Companies adopting cloud-based, AI-enabled platforms for business benefits from automation, integration, industry-specific capabilities, new research finds
Enterprise resource planning (ERP) software has evolved to serve the needs of a wide range of industries and company sizes and continues to gain new capabilities through AI and cloud computing, according to new research from global AI-centered technology research and advisory firm Information Services Group ( ISG ) (Nasdaq: III ).
The ISG Buyers Guides™ for Enterprise Resource Planning, produced by ISG Software Research, provide the rankings and ratings of 20 software providers and their products to support the core processes of large and midsize enterprises. The research finds that migration to the cloud and integration of AI, generative AI, natural language processing (NLP) and agentic systems are making ERP systems more usable, adaptable and extensible.
“AI is redefining how organizations interact with software, including the ERP systems at the core of enterprise operations,” said Robert Kugel, executive director, Business Research, ISG Software Research. “By 2028, almost all ERP software providers will have incorporated AI to reduce errors, lighten workloads and speed up processes.”
ERP platforms improve enterprise efficiency and decision-making by integrating data, processes and reporting across departments. Beginning as on-premises software, they have gradually migrated to the cloud since the early 2000s, which has increased scalability, continuity and performance and enabled faster implementation and continuous upgrades. By 2028, ISG expects more than 80 percent of ERP systems purchased by non-product companies to be deployed in the cloud.
AI is already increasing ERP productivity with early capabilities such as anomaly detection and automated data entry, ISG finds. It makes repetitive accounting and administrative functions more efficient and allows staff to focus on more valuable analytical tasks. Intelligent agents are managing operations such as expense accounting and reconciliation with limited human intervention.
Connecting ERP with other software, such as human capital and supply chain management systems, has become increasingly important, the research finds. Application programming interfaces (APIs) form the basis of reliable integration among systems, which improve transparency and accuracy for more unified, data-driven decision-making.
Providers of ERP software are designing systems to address the distinct needs of specific industries and sectors, such as healthcare, pharmaceuticals and logistics, the research finds. They embed relevant processes and regulatory frameworks into these products, allowing enterprises to implement the software more quickly, with less need for external customization.
ERP platforms have also become segmented by enterprise size to best match the complexity of the system to customers’ organizational scale and requirements, ISG finds. The main differentiation is between platforms for large enterprises, with 1,000 or more employees and often global scale, and midsize organizations with between 100 and 999 employees. ERP software for the latter market usually strikes a balance between breadth and usability, incorporating preconfigured industry-specific capabilities.
For its Buyers Guides for Enterprise Resource Planning, ISG evaluated software providers across four platform categories — Enterprise Resource Planning, Healthcare ERP, Manufacturing ERP and Midsize Enterprise Resource Planning — and produced a separate Buyers Guide for each. A total of 20 providers were assessed: Acumatica, Aptean, Epicor, Exact, Forterro, IFS, Infor, Microsoft, Oracle, Oracle NetSuite, QAD, Ramco, Rockwell Automation, Sage Intacct, Sage X3, SAP Business One, SAP S/4HANA, TechnologyOne and Workday.
ISG Software Research rates software providers in five evaluation categories: Overall, Product Experience (incorporating Capability and Platform) and Customer Experience. Providers ranked in the top three for each evaluation category are named as Leaders. Within each platform category, those with the most Leader rankings are named as Overall Leaders.
The Overall Leaders of the Buyers Guides for Enterprise Resource Planning were the following:
Enterprise Resource Planning: SAP S/4HANA was the top Overall Leader, followed by Oracle and IFS. All three Overall leaders were designated Leaders in five evaluation categories. All three were rated Exemplary, along with Infor, Microsoft and Sage X3. Acumatica and Epicor were rated Innovative.
Healthcare ERP: Oracle was the top Overall Leader, followed by SAP S/4HANA and Workday. Oracle and SAP S/4HANA were designated Leaders in five evaluation categories each, and Workday was a Leader in four categories. All three Overall Leaders were rated Exemplary, along with Sage Intacct. No providers were rated Innovative.
Manufacturing ERP: SAP S/4HANA was the top Overall Leader, followed by Oracle and IFS. SAP S/4HANA and Oracle were designated Leaders in three evaluation categories each, and IFS was a Leader in two. All three Overall Leaders were rated Exemplary, along with Infor, Microsoft and Sage X3. Acumatica and Epicor were rated Innovative.
Midsize Enterprise Resource Planning: IFS was the top Overall Leader, followed by Sage X3 and Microsoft. IFS was designated a Leader in five evaluation categories, Sage X3 in four and Microsoft in three. All three Overall Leaders were rated Exemplary, along with Infor. Acumatica, Epicor and Forterro were rated Innovative.
“ERP modernization requires strategic planning to mitigate risk and support broader transformation and best use of investment, resources and time,” said Mark Smith, partner and chief software analyst, ISG Software Research. “This comprehensive portfolio of research on ERP provides the opportunity and dimensions of focus to determine the relevance of software providers and see whether their strategies, roadmaps and AI directions align with an enterprise’s current and future priorities.”
The ISG Buyers Guides™ for Enterprise Resource Planning are the distillation of more than a year of market and product research efforts. The research is not sponsored nor influenced by software providers and is conducted solely to help enterprises optimize their business and IT software investments.
Visit this webpage to learn more about the ISG Buyers Guides™ for Enterprise Resource Planning and read executive summaries of each of the four reports. The complete reports, including provider rankings across seven product and customer experience dimensions and detailed research findings on each provider, are available by contacting ISG Software Research.
About ISG Software Research
ISG Software Research provides authoritative coverage and analysis of the business and IT software industry. It distributes research and insights daily through its user community, and provides a portfolio of consulting, advisory, research and education services for enterprises, software and service providers, and investment firms. Its ISG Buyers Guides™ help enterprises evaluate and select software providers through tailored assessments powered by ISG’s proprietary methodology. Visit http://research.isg-one.com/ for more information and to sign up for free community membership.
About ISG
ISG (Nasdaq: III ) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251217851395/en/
Press Contacts:
Laura Hupprich, ISG
+1 203 517 3100
laura.hupprich@isg-one.com
Julianna Sheridan, Matter Communications for ISG
+1 978 518 4520
isg@matternow.com
FAQ**
How does the research by Information Services Group Inc. III suggest that AI and cloud technology are specifically enhancing the usability of ERP systems in enterprises?
What are the top-rated ERP software providers according to Information Services Group Inc. III, and how do these rankings influence investment decisions in the ERP market?
With Information Services Group Inc. III predicting that over 80% of ERP systems will migrate to the cloud by 2028, how should investors assess the potential growth of specific ERP providers?
In what ways can the insights from Information Services Group Inc. III's Buyers Guides™ help investors evaluate the long-term operational strategies of ERP software providers?
**MWN-AI FAQ is based on asking OpenAI questions about Information Services Group Inc. (NASDAQ: III).
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