Research conducted by Forterro indicates that despite widespread usage, UK ecommerce firms are not fully capitalising on cloud ERP systems.
The study, titled "The UK Midmarket Ecommerce Report: Key Tech Trends, Best Practice and Future-Proofing," was conducted by OnePoll and surveyed 100 ERP decision-makers in UK midmarket e-commerce firms as part of a larger European survey. It highlighted that although 87% of UK e-commerce organisations use cloud-based or hybrid ERP systems, 64% of firms see the cloud as an underutilised resource.
A significant study finding was the potential financial impact of ERP system downtime. On average, UK midmarket ecommerce firms estimate losses of GBP £26,580 daily for a single day without ERP functionality. Furthermore, half of the survey respondents expect staff productivity to suffer, and 47% anticipate reputational damage from downtime.
David Coste, President of North & Western Europe at Forterro, stated, "Ecommerce is one of the most competitive sectors, and those operating within it have to differentiate themselves with service excellence. ERP is instrumental in helping deliver that excellence, and its importance to ecommerce is illustrated by the potential fallout should it not be available. The lost revenue is one thing, but the long-term reputational damage could be disastrous, so constant availability is imperative."
While the adoption of cloud ERP systems is high, there remains a hesitance to exploit its full capabilities, with 41% of firms acknowledging that ineffective cloud utilisation limits their ability to benefit from technologies like AI and IoT. Despite this, many firms recognise the key advantages of cloud ERP systems, which include ease of backup and accessibility (43%), high availability (41%), and improved processing speed and performance (40%).
Security emerged as a foremost concern, with 43% of respondents indicating it as their top technology priority, reflecting widespread apprehension about cyber threats. Cost reduction (36%) and supply chain improvement (32%) were also important future considerations.
The industry endures challenges brought by global economic and political uncertainty, with 40% identifying it as a primary challenge. Other concerns include maintaining a robust sales pipeline (39%) and retaining and acquiring talent (36%).
Coste emphasised the importance of technological adoption, stating, "UK ecommerce firms are facing a variety of challenges that make their existence that bit harder, so business leaders must do all they can to protect themselves now and in the future. Technology is a key element in that process, and cloud ERP can be fundamental for any ecommerce firm, helping to increase operational efficiencies and unlocking potential within other technologies."
