Let's look at what trends companies should pay attention to in 2025 to stay ahead of their competitors.

The ERP of the Future: A Comprehensive Guide to SAP S/4HANA and Its Transition Process

According to the research, the global ERP market has grown by 52% since 2022, and expected that in 2027, companies will spend $130 billion on ERP software. The market is anticipated to grow due to constantly evolving technologies such as generative artificial intelligence and changing business requirements. 

This rapid growth highlights an increasing demand for systems that provide real-time data to support faster and more accurate decision-making. As businesses navigate complex environments, access to live insights becomes critical to staying competitive and adapting to changing conditions.

Along with this, ERP trends will also change. Let's look at what trends companies should pay attention to in 2025 to stay ahead of their competitors.

Key Takeaways

• Businesses prioritize cloud ERP for faster digital transformation, modern working processes, and foundational process standardization.
• ERP providers focus on mobile-friendly interfaces and customized solutions tailored to industry needs.
• AI transforms ERP with predictive analytics, enhanced decision-making, and proactive issue resolution, while big data ensures real-time actionable insights.

Key ERP Trends to Follow in 2025

Focus on cloud technologies

ERP system providers actively invest in cloud technologies instead of on-premise systems. What determines the growing interest in cloud ERPs? 

There are three key reasons: 

#1 Fast digital transformation of businesses

Companies from fast-changing industries face immense pressure to transform, adopt new business models, and pivot quickly. Cloud ERP software touches nearly every aspect of a business, offering the fastest path to complete digital transformation.

#2 Support for modern working processes

Employees expect to work securely from anywhere with modern, user-friendly tools. At the same time, businesses need to automate processes and improve efficiency to do more with fewer people. Cloud ERP meets these demands, making these capabilities essential rather than optional.

#3 Core process standardization

Organizations use cloud ERP to standardize foundational processes like tax compliance and accounts receivable management. By automating and streamlining these routine tasks, businesses can redirect resources to focus on innovation and differentiation, ensuring they stay competitive now and in the future.

Cloud models offer many advantages, including the potential for companies to increase their IT investments and scale their business, even if their internal technical departments are relatively small. Thanks to convenient applications and cross-platform capabilities, cloud-based ERP allows these companies to implement more advanced technologies in the future.

IoT is not a trend but a necessity

IoT has spread across industries and shows no signs of slowing down. Allied Market Research estimates the global IoT market could reach $73,918.82 million in 2026.

The Internet of Things enables closer interaction among various devices within the enterprise. For example, companies use IoT sensors to monitor equipment, products, and many other physical assets. IoT helps gather information in areas such as:

• Employee productivity
• System efficiency
• Energy consumption
• Downtime
• Assembly speed
• Delivery time

Transition to a two-tier ERP

Placing all company data on a single ERP platform can be challenging when an organization encompasses multiple offices and/or subsidiaries in different cities and countries. This is due to differences in local laws and business requirements. Attempting to ensure compliance with all of them within one universal solution can lead to disaster.

This is where a two-tier ERP comes to the rescue. This approach involves using two systems simultaneously: one at the corporate level (tier 1) and the other for company divisions (tier 2). Typically, the second tier is a cloud ERP platform.

When using this approach, companies must ensure that employees can interact with each other and exchange data seamlessly between the two tiers. To achieve this, many cloud technology providers offer ERP systems that work at the local level and can be integrated with corporate ERP platforms when needed.

AI leading the way

MarketsandMarkets forecasts that the AI market will hit $1,345.2 billion in 2030. Previously, companies had to pay for add-ons to the basic version of their ERP systems to ensure data transparency and advanced reporting. However, such features are now standard for most technology stacks, mainly due to the rapid development of artificial intelligence (AI) and machine learning (ML) technologies.

The advancement of AI and ML technologies allows businesses today to obtain answers to questions that until recently seemed like science fiction. For example:

• What will my sales be in the next six months?
• Is adverse weather expected, and how will it affect my supply chain?
• How do my sales this quarter compare to the same period last year?

Thanks to AI embedded in modern ERP systems, companies can make data-driven decisions without deep coding knowledge. Here are some examples of how AI in ERP systems help businesses:

Big Data is at the forefront

As mentioned, real-time data access is crucial for every business as it forms the foundation for evaluations and decision-making. An ERP system helps companies combine data streams, serving as a central collection point. 

Modern ERP analytics not only present data but also guide users in their tasks by providing actionable, context-rich insights. This helps employees make more informed decisions and improves efficiency across various business functions.

Additionally, it can automatically detect anomalies in data, such as unusual transactions or process irregularities. When an anomaly is identified, the system sends an alert, "inviting" the user to address the issue proactively, reducing the risk of errors or missed opportunities.

From this perspective, it is no wonder that Allied Market Researching predicts that the global big data and BA market could reach $684.12 billion in 2030.

Movement towards hyperautomation

Hyperautomation is the process of automating as many business processes as possible. According to Gartner, organizations can cut costs by up to 30% by using AI, machine learning, and RPA. With these tools, an increasing number of companies are automating manual processes while simultaneously optimizing operations within ERP systems that were already automated. Using this approach to configuration, companies can eliminate functional gaps and issues in workflows, ultimately gaining more benefits from automation technology.

Mobility

The COVID-19 pandemic has permanently altered the approach to organizing work. Despite its end, employees are increasingly reluctant to return to offices, preferring remote work. In response, ERP providers are increasingly developing mobile versions of their systems.

Modern ERP interfaces are becoming more convenient and accessible on various devices, including smartphones and tablets, providing seamless access to critical business functions worldwide.

For example, a remote sales manager can use a mobile ERP app to check real-time inventory levels, approve purchase orders, and generate customer invoices directly from their smartphone. This level of accessibility ensures that business processes continue without delays, regardless of where employees are located, making mobile ERP solutions an essential tool for modern, distributed workforces.

Industry-specific ERPs

Only 3% of companies use standard, out-of-the-box functionality for their ERPs. It indicates a strong preference for tailor-made, industry-specific, or at least customizable solutions. 

ERP providers are increasingly offering companies individualized and industry-specific solutions. These customized ERP systems meet the unique requirements of various sectors such as manufacturing, healthcare, retail, etc., ensuring that enterprises receive tools specifically designed to address their industry challenges.

For example:

• In manufacturing, such ERPs can include features, such as production planning, supply chain management, and predictive maintenance tools. 
• For healthcare providers, industry-specific ERPs integrate patient record management, billing, and regulatory compliance.
• In retail, ERP systems are often customized to manage point-of-sale systems, track customer preferences, and handle dynamic pricing. 

Let's not forget about cybersecurity and data privacy

Since ERP systems contain critical business data, enhancing measures to protect them from leaks is a top priority for companies and providers. To clarify why, we give only three figures:

SAP S/4HANA, a next-generation ERP from SAP, incorporates advanced security protocols and complies with global data privacy regulations to guard against cyber threats.

This ERP helps companies mitigate the following potential risks:

• Data breaches
• Unauthorized access
• Malware and ransomware
• Insider threats
• Integration vulnerabilities

"Green" ERP

Today, sustainable development is becoming a key factor in developing and deploying ERP systems. "Green" ERPs help reduce carbon emissions, control energy usage, and support sustainable business practices.

If your company is increasing corporate responsibility for environmental sustainability, a "green" ERP system will help you implement the strategy developed in this direction. Especially since the green technology market size is growing exponentially. It is predicted to increase from $23.63 billion in 2024 to $30.03 billion in 2025 at a compound annual growth rate (CAGR) of 27.1%.

What Challenges Can Businesses Face When Implementing ERP

It is clear that implementing an ERP system is a significant step for any business, offering the potential for streamlined processes, improved efficiency, and better decision-making. However, the path to successful implementation is not without its hurdles. Below, we explore the key challenges organizations face when adopting ERP systems (the stats were taken from Forbes):

Delays in implementation

Despite the goal of completing the ERP implementation within a year, only 49% of companies manage to stay on schedule. Timelines often exceed initial plans by up to 30%.

Budget overruns

ERP implementation projects frequently exceed their planned budgets, with 45% of companies facing cost overruns, which adds financial strain to businesses.

High failure rates

Approximately half of ERP implementations fail to achieve their objectives, and for first-time buyers, the failure rate can be even higher, ranging from 55% to 75%.

Employee resistance

Resistance to adopting new ERP software is a significant barrier, with 82% of individual users reluctant to embrace the system. This lack of buy-in can hinder the system's effectiveness.

Low adoption rates

On average, only 26% to 27% of employees actively use the ERP system, which falls far short of the ideal 50% engagement rate. As companies grow, the percentage of users actively engaging with the system often decreases.

Underutilization

The practical usage of ERP systems within organizations is often lower than expected, leading to a mismatch between the system's potential and actual value delivered.

LeverX’s Expertise in ERP

LeverX is a global IT integrator with over 20 years of experience in the ERP solutions market. Leveraging our accumulated experience, our experts deliver turnkey projects in both the implementation of ready-made ERP systems (cloud and on-premise versions of SAP S/4HANA) and the development of custom ERP solutions.

LeverX specialists can join your project at any stage. For instance, we can start with consulting, analyze your current IT landscape, and develop recommendations for its improvement,  considering technological trends and updates.

In addition to ERP systems' implementation and deployment stages, we provide services for supporting and enhancing already deployed solutions. Our company also has an R&D department with access to the latest technological innovations even before their official release, and we are always happy to share insights with our customers.

The Bottom Line

The main distinguishing feature of the ERP market in 2025 is the adaptability and flexibility of systems to new technologies and changing business needs. Based on the trends outlined in this article, we conclude that enterprise resource planning systems will become increasingly intelligent, user-friendly, and secure. This will enable businesses to stay afloat in the digital space.

If you want to learn more about ERP trends and how they can benefit your business, contact our experts for consultation.