Singapore and Indonesia ERP Implementation Market Trends

Growth Drivers

• Surge in Penetration of Smartphones- In Indonesia, about 75 percent of people used smartphones in 2021. By 2028, there would probably be 270 million smartphone users in the country. Implementing ERP is possible on smartphones. The way firms perform their daily operations is being impacted by mobility. Hence, mobile ERPs improve mobility inside an organization's structure, boosting productivity. Instead of using a stationary computer, users in a mobile ERP configuration could comfortably access their ERP system through mobile devices such as smartphones and tablets. Users of mobile ERP could effortlessly produce, access, and share company information via handheld mobile devices. Without making a substantial investment in equipment or setup, this guarantees instant access to data. Hence owing to growing penetration of smart phones, the market is estimated to boost.

• Growing Demand for Cloud Services- Around 19% of Singaporean enterprises were estimated to be utilizing cloud computing services in 2020.

• Surge in Number of Small and Medium Enterprises - Over 60 million SMEs (Small and Medium-sized Enterprises) were operating in Indonesia as of 2021, or one SME for every five citizens. About 59 million of them, or approximately 97%, were microbusinesses.

• Growing Use of Internet - Around 4 million people used the internet in Singapore in 2020. This figure is expected to rise significantly further during the next few years.

• Surge in IT Workforce - Around 90,000 IT and software experts, or around 3% of all employees, work in Singapore, according the Ministry of Manpower.

Challenges

• Hidden Cost of ERP Implementation – ERP implementation consists of various hidden cost. These cost include, labor cost, training cost, and more. Additionally, it also incurs customization charges when a company wants to modify the default ERP software of a vendor or add a desired module. Customized ERP System require more work and money to upgrade, which is an additional hidden cost. Also, ERP system requires lots of maintenance, which is also estimated to boost the expenses of the organization. Hence this factor is anticipated to hinder the growth of the market. 
• Lack of Highly Technically Sound Employees
• Issues of Integration with On-Premises Deployment Model