Enterprise software adoption and value

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Enterprise Software Adoption and Usage Statistics

The common consensus among enterprise software users is that they feel they’re paying too much for unnecessary capabilities in software while having to create customizations for the things they do need. Forty percent of purchasing companies consider functionality as the most crucial aspect of enterprise software. The top three benefits identified are the availability of information (14%), improved data reliability (11%), and improved productivity/efficiency (11%).

RESEARCH STRATEGY

Our research commenced by looking for similar reports to the 2008-2009 ERP/enterprise software study. We were not able to locate any related reports that provided the same data points initially addressed. We were able to identify several data points in separate studies and surveys, which when compiled together or calculated together will lead to a fuller understanding of buyer sentiment concerning enterprise software.

We expanded our search to scholarly articles involving enterprise software research and utilized databases such as Google Scholar and EBSCO. This research method yielded relevant data points on buyer-perceived qualities of enterprise software. Reports from 2016-2019 were found that also produced a few pertinent points of interest.

Concerning the two data points about the most important type of ongoing enterprise software support that is needed and factors that undermine enterprise software success, no scholarly papers included relevant information. We turned our attention to reports provided from ERP software makers in hopes of finding additional information. None of the reports prepared by enterprise software solution providers dealt with these two specific data points.

Another attempt to elicit data corresponding to these two data points was made by reviewing CEO interviews of both sellers and buyers. These interviews contained discussions about the most critical type of ongoing enterprise software support that is needed and factors that undermine enterprise software success. These interviews were mostly about building long term relationships with buyers and future upgrades using AI, data privacy protection, and blockchain technologies. These responses also indicate that the priority of buyers and sellers have changed from the data points of 2008-2009.

Reports behind paywalls were located that may contain additional information regarding ongoing enterprise software support and success.

USABILITY ISSUES VERSUS TOTAL COST OF OWNERSHIP

An astounding 47% of enterprise software users feel that they are paying for unnecessary capabilities, features, and functionality in their software. Additionally, this same group is paying more for customizing the software to do the things they need and fit their processes. In 2017, 38% of software buyers felt that enterprise software did not do a good job of preparing them for a mobile digital transformation but also did not feel this impeded their work. By 2018, this number decreased to slightly over 20%. However, in 2017, only 31% of end users regularly accessed enterprise software with a mobile device.

ENTERPRISE SOFTWARE SUCCESS DEFINED

The most important enterprise software qualities for enhanced productivity in the context of SMEs in 2018 are efficiency, expandability, functionality, reusability, safety, and usability. During 2018, 81% of software buyers realized measurable business benefits due to enterprise software. These benefits came primarily in the form of key business processes being improved or from seeing an improvement to all of their business processes. Additionally, another 10% felt that there were no measurable benefits. A 1% decrease in the success rate from 2015 to 2016 was recorded among enterprise software buyers.

VALUE ASSESSMENT of Enterprise Software

A Select Hub survey carried out in 2018 showed that 40% of purchasing companies regarded ‘functionality’ as the most important aspect to consider when selecting software. The primary driver for realizing software value is that the software aligns with the business strategy of the purchasing company.

TOP BENEFITS OF ENTERPRISE SOFTWARE

The top three benefits of enterprise software include the availability of information (14%), improved data reliability (11%) and improved productivity/efficiency (11%).

Effectiveness of Enterprise Software

Surveys show that in 2019, 50% of enterprise software users feel their current software cannot manage their business processes. Information on factors that undermine the success of enterprise software was not publicly available and locked behind a paywall. Information regarding the need for enterprise support is similarly behind paywalls.

ADDITIONAL (OLDER) DATA

A 2012 study on successful software adoption showed that 21.43% of end users resisted adopting new technology while 14.29% of those studied felt their leadership opposed the adoption of new technologies. In 2016, 41% of organizations recouped project costs in two years or less which is an increase of 14% from the previous year.
Sources
Sources

Quotes
  • "The objectives of this study are to determine the quality factors from management's perspective and to determine the relationship between the quality and the impacts of the productivity of SMEs. It is implemented through a survey conducted in Malaysia which involves forty three respondents who are among the managers and management of SME companies. The survey indicates that efficiency, expandability, functionality, reusability, safety and usability are the most influential quality factors for the management of the SMEs. The research hypotheses defined in this study are accepted with strong relationships between the defined variables. It shows that the higher level of SME productivity is linked to the higher level of software quality assessment and factors."