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AI Transforming ERP Software Systems, ISG Says

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Information Services Group (ISG) predicts that artificial intelligence will revolutionize Enterprise Resource Planning (ERP) systems by 2027. According to their research, nearly all ERP software providers will integrate AI to reduce workloads, speed up processes, and minimize errors.

The study highlights that over 80% of ERP systems purchased by non-product companies will be cloud-based by 2027, promoting continuity, improving performance, and lowering costs. ISG evaluated 21 software providers across six ERP categories, naming top leaders including SAP S/4HANA, Oracle, Infor, IFS, Sage Intacct, and Workday.

The research emphasizes that modern ERP systems offer enhanced functionality and usability through cloud-based environments, making them easier to maintain. However, ISG warns that enterprises need to strategically assess new software and providers' AI capabilities rather than implementing simple replacements of existing systems.

Information Services Group (ISG) prevede che l'intelligenza artificiale rivoluzionerà i sistemi di Pianificazione delle Risorse Aziendali (ERP) entro il 2027. Secondo la loro ricerca, quasi tutti i fornitori di software ERP integreranno l'IA per ridurre i carichi di lavoro, velocizzare i processi e minimizzare gli errori.

Lo studio sottolinea che più dell'80% dei sistemi ERP acquistati da aziende non produttrici saranno basati su cloud entro il 2027, promuovendo la continuità, migliorando le prestazioni e riducendo i costi. ISG ha valutato 21 fornitori di software in sei categorie ERP, nominando i principali leader tra cui SAP S/4HANA, Oracle, Infor, IFS, Sage Intacct e Workday.

La ricerca mette in evidenza che i sistemi ERP moderni offrono funzionalità e usabilità avanzate attraverso ambienti basati su cloud, rendendoli più facili da gestire. Tuttavia, ISG avverte che le aziende devono valutare strategicamente le nuove capacità AI dei fornitori di software, piuttosto che implementare semplici sostituzioni dei sistemi esistenti.

Information Services Group (ISG) predice que la inteligencia artificial revolucionará los sistemas de Planificación de Recursos Empresariales (ERP) para 2027. Según su investigación, casi todos los proveedores de software ERP integrarán IA para reducir cargas de trabajo, acelerar procesos y minimizar errores.

El estudio destaca que más del 80% de los sistemas ERP comprados por empresas no productivas serán basados en la nube para 2027, promoviendo la continuidad, mejorando el rendimiento y reduciendo costos. ISG evaluó a 21 proveedores de software en seis categorías de ERP, nombrando a los principales líderes como SAP S/4HANA, Oracle, Infor, IFS, Sage Intacct y Workday.

La investigación enfatiza que los sistemas ERP modernos ofrecen funcionalidad y usabilidad mejoradas a través de entornos basados en la nube, facilitando su mantenimiento. Sin embargo, ISG advierte que las empresas necesitan evaluar estratégicamente las nuevas capacidades de IA de los proveedores de software en lugar de implementar simples reemplazos de los sistemas existentes.

정보 서비스 그룹 (ISG)는 인공지능이 2027년까지 기업 자원 관리 (ERP) 시스템을 혁신할 것이라고 예측합니다. 그들의 연구에 따르면, 거의 모든 ERP 소프트웨어 제공업체가 AI를 통합할 것으로 나타났으며, 이는 업무 부담을 줄이고, 프로세스를 가속화하며, 오류를 최소화하는 데 도움이 될 것입니다.

이 연구는 80% 이상의 ERP 시스템이 비제품 기업에 의해 구매되어 2027년까지 클라우드 기반으로 전환될 것이라고 강조하며, 이는 연속성을 촉진하고, 성능을 향상시키며, 비용을 절감할 것입니다. ISG는 6개 ERP 카테고리에서 21개 소프트웨어 제공업체를 평가하여 SAP S/4HANA, Oracle, Infor, IFS, Sage Intacct, Workday와 같은 주요 리더를 선정했습니다.

연구 결과에 따르면 현대 ERP 시스템은 클라우드 기반 환경을 통해 향상된 기능과 사용성을 제공하여 유지 관리가 더 쉽습니다. 그러나 ISG는 기업이 기존 시스템의 단순한 교체가 아닌 새로운 소프트웨어와 제공업체의 AI 기능을 전략적으로 평가해야 한다고 경고합니다.

Information Services Group (ISG) prévoit que l'intelligence artificielle révolutionnera les systèmes de planification des ressources d'entreprise (ERP) d'ici 2027. Selon leur recherche, presque tous les fournisseurs de logiciels ERP intégreront l'IA pour réduire les charges de travail, accélérer les processus et minimiser les erreurs.

L'étude souligne que plus de 80 % des systèmes ERP achetés par des entreprises non productrices seront basés sur le cloud d'ici 2027, favorisant la continuité, améliorant les performances et réduisant les coûts. ISG a évalué 21 fournisseurs de logiciels dans six catégories ERP, désignant des leaders majeurs tels que SAP S/4HANA, Oracle, Infor, IFS, Sage Intacct et Workday.

La recherche souligne que les systèmes ERP modernes offrent une fonctionnalité et une convivialité améliorées grâce à des environnements basés sur le cloud, ce qui les rend plus faciles à entretenir. Cependant, ISG avertit que les entreprises doivent évaluer stratégiquement les nouvelles capacités d'IA des fournisseurs de logiciels, plutôt que de procéder à de simples remplacements des systèmes existants.

Information Services Group (ISG) prognostiziert, dass künstliche Intelligenz bis 2027 die Systeme zur Unternehmensressourcenplanung (ERP) revolutionieren wird. Laut ihrer Forschung werden fast alle ERP-Softwareanbieter KI integrieren, um Arbeitslasten zu reduzieren, Prozesse zu beschleunigen und Fehler zu minimieren.

Die Studie hebt hervor, dass über 80% der ERP-Systeme, die von Nicht-Produktion Unternehmen erworben werden, bis 2027 cloud-basiert sein werden, was die Kontinuität fördert, die Leistung verbessert und die Kosten senkt. ISG hat 21 Softwareanbieter in sechs ERP-Kategorien bewertet und dabei führende Anbieter wie SAP S/4HANA, Oracle, Infor, IFS, Sage Intacct und Workday genannt.

Die Forschung betont, dass moderne ERP-Systeme durch cloud-basierte Umgebungen verbesserte Funktionalität und Benutzerfreundlichkeit bieten, die Wartung erleichtern. ISG warnt jedoch, dass Unternehmen die neuen Software- und KI-Fähigkeiten der Anbieter strategisch bewerten müssen, anstatt einfache Ersatzlösungen für bestehende Systeme einzuführen.

Positive
  • Predicted industry-wide AI integration in ERP systems by 2027 will boost productivity
  • 80% projected cloud-based ERP adoption by 2027 will lower costs and improve performance
  • Enhanced configurability and customization options reducing total ownership costs
  • Cloud-based environments improving system maintenance and functionality
Negative
  • Current enterprise deployments are too customized and need costly re-implementation
  • Upgrading systems poses risks of operational disruption
  • Significant costs associated with system upgrades and replacements

Insights

This comprehensive research report from Information Services Group (III) reveals profound strategic implications for both the ERP market and III's market position. The projected AI integration across ERP platforms by 2027 represents a major market transformation that positions III advantageously in several ways:

The timing of this research demonstrates III's forward-looking expertise in identifying technological inflection points. By quantifying specific predictions (80% cloud adoption for non-product companies) and providing detailed vendor rankings, III strengthens its position as a trusted advisor in enterprise software decisions - a critical role as companies navigate complex AI-driven transformations.

From a business perspective, this research creates multiple revenue opportunities for III:

  • Increased demand for implementation consulting as companies seek to modernize legacy ERP systems
  • Growing need for vendor selection advisory services, particularly valuable given III's comprehensive evaluation of 21 providers
  • Potential for expanded research subscriptions as organizations seek guidance on AI integration strategies

The report's structure, breaking down analysis into six distinct categories, showcases III's deep understanding of market segmentation and positions them uniquely against competitors like Gartner and Forrester. This granular approach particularly appeals to mid-market clients, an increasingly valuable segment as ERP modernization accelerates.

The emphasis on AI's role in talent retention and productivity improvements indicates III's evolution beyond traditional IT research into broader business strategy consulting - a higher-value market segment with greater revenue potential.

ISG research says most ERP software will incorporate AI fully by 2027

STAMFORD, Conn.--(BUSINESS WIRE)-- Artificial intelligence in all its forms, including GenAI, natural language processing, agents and agentic devices, will revolutionize enterprise resource planning (ERP) systems and the ways individuals and enterprises work with the software by 2027, a new research report from leading global technology research and advisory firm Information Services Group (ISG) (Nasdaq: III) says.

The ISG Buyers Guides for Enterprise Resource Planning, produced by ISG Software Research, say current technology trends will revolutionize ERP systems by making complex processes faster and easier to execute and condensing highly repetitive accounting and other tasks through automation. Almost all providers of ERP software will incorporate AI by 2027 to reduce workloads and speed processes and reduce errors, the reports say.

“ERP systems, which have served as the central nervous system of enterprises for decades, are in the midst of a technology revolution,” said Robert Kugel, executive director, Business Research, ISG Software Research. “AI-powered change is already underway in the form of anomaly detection to flag potential errors and technology that makes processes faster and easier to execute. The use of AI in ERP platforms will boost productivity and enable enterprises to attract and retain the best talent.”

Modern ERP systems offer enhanced functional depth, usability, adaptability and manageability, largely because their cloud-based environments make them easier to maintain. The shift from on-premises to cloud-based ERP continues to accelerate, driven by improved configurability and customization options for specific industries, the reports say.

By 2027, more than 80 percent of ERP systems purchased by non-product companies will be deployed in the cloud to promote continuity, improve performance and lower costs, ISG says. In addition, as developers refine and tailor ERP platforms to a greater number of specific industries, implementation, maintenance and total costs of ownership have decreased.

While the decision to upgrade or replace a core ERP system is challenging due to associated costs and potential disruptions, ISG says CFOs should recognize that outdated systems pose risks to enterprise operations. Enterprise leaders should take a strategic approach to assessing new software and providers’ AI capabilities, rather than implementing a simple like-for-like replacement.

For its 2024 ERP Buyers Guides, ISG evaluated software providers across six application categories – ERP, ERP Financial Management, ERP Manufacturing, Midsize ERP, Midsize ERP Financial Management, and Midsize ERP Manufacturing – and produced a separate Buyers Guide for each. A total of 21 providers were assessed: Abas, Acumatica, Aptean, Deltek, Epicor, Exact, IFS, Infor, Microsoft, Oracle, Oracle NetSuite, QAD, Ramco, Rockwell Automation, Sage Intacct, Sage X3, SAP Business One, SAP S/4HANA, TechnologyOne, Unit4 and Workday.

ISG Software Research designates the top three software providers as Leaders in each category. For the 2024 study, the leading providers in ranked order are:

ERP: SAP S/4HANA, Oracle and Infor
ERP Financial Management: Oracle, SAP S/4HANA and Workday
ERP Manufacturing: SAP S/4HANA, Oracle and Infor
Midsize ERP: Infor, IFS and Epicor
Midsize ERP Financial Management: Infor, Sage Intacct and SAP Business One
Midsize ERP Manufacturing: Infor, IFS and Sage X3

“Software providers increasingly are transforming their ERP systems to run on modern, cloud-based platforms that allow for continuous enhancements, including AI,” said Mark Smith, partner, ISG Software Research. “Unfortunately, current enterprise deployments have become too customized and need to be re-evaluated and re-implemented to take advantage of the benefits of AI and other new technologies. Our ISG Buyers Guides provide a roadmap for assessing and selecting ERP software providers that accelerates time to value and reduces total cost of ownership.”

The ISG ERP Buyers Guides are the distillation of a full 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 ERP Buyers Guides and read executive summaries of each of the six 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 www.isg-research.net for more information and to sign up for free community membership.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI and automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

Press Contacts:

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Julianna Sheridan, Matter Communications for ISG

+1 978 518 4520

isg@matternow.com

Source: Information Services Group, Inc.

FAQ

What percentage of ERP systems will be cloud-based by 2027 according to ISG (III)?

According to ISG, more than 80% of ERP systems purchased by non-product companies will be cloud-based by 2027.

Who are the top three leaders in ERP Financial Management according to ISG's 2024 study?

The top three leaders in ERP Financial Management are Oracle, SAP S/4HANA, and Workday.

How will AI transform ERP systems by 2027 according to ISG (III)?

AI will revolutionize ERP systems by making complex processes faster, automating repetitive tasks, reducing workloads, speeding processes, and reducing errors.

What are the main benefits of modern cloud-based ERP systems according to ISG (III)?

Modern cloud-based ERP systems offer enhanced functional depth, usability, adaptability, manageability, improved configurability, and lower total costs of ownership.

Who leads the Midsize ERP Manufacturing category in ISG's 2024 analysis?

In the Midsize ERP Manufacturing category, the leaders are Infor, IFS, and Sage X3, in that order.

Information Services Group, Inc.

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