Gartner Research

Hype Cycle for ERP, 2023

Published: 12 July 2023

Summary

A composable ERP strategy creates opportunities for a business to improve its agility, be more innovative and deliver extra value. Application leaders can use this Hype Cycle to understand which technologies and frameworks can be utilized to underpin this composable approach.

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What You Need to Know

Requirements for agility and composable business strategies are forcing CIOs to review their approaches to ERP. Composable ERP strategies — ERP application strategies that combine various technologies to deliver adaptive, resilient and value-enabling business capabilities — are therefore of increasing interest to ERP application leaders. This development highlights the importance of a focus on enabling the creation of business value by using technology that helps a business achieve its differentiation or innovation goals.

This year’s Hype Cycle for ERP features innovations such as generative AI in ERP, sustainability in ERP and extended planning and analysis (xP&A)

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The Hype Cycle: Understanding the pitfalls and opportunities of innovations

How does a Gartner Hype Cycle™ work?

A Gartner Hype Cycle provides an objective map that helps you understand the real risks and opportunities of innovation, so you can avoid adopting something too early, giving up too soon, adopting too late, or hanging on too long. Every Hype Cycle includes five phases:

The innovation trigger starts when an event, like a technological breakthrough or a product launch, gets people talking.

The peak of inflated expectations is when product usage increases, but there’s still more hype than proof that the innovation can deliver what you need.

The trough of disillusionment happens when the original excitement wears off and early adopters report performance issues and low ROI.

The slope of enlightenment occurs when early adopters see initial benefits and others start to understand how to adapt the innovation to their organizations.

The plateau of productivity marks the point at which more users see real-world benefits and the innovation goes mainstream.

The Hype Cycle is more than just a diagram. You also get:

Evidence-backed insight

Hype Cycles tap into deep research, surveys and conversations with technology suppliers and Gartner clients.

An analysis of objective and value

The y-axis measures expectations. The x-axis relates them to the proven value of that innovation over time.

A long-term view

It often takes between three and five years for an innovation to move through the Hype Cycle, but some fall off along the way.

Gartner Hype Cycle is just one of our many offerings.

We provide actionable, objective insight to help organizations make smarter, faster technology decisions to stay ahead of disruption and accelerate growth.

Pick the right provider with confidence

We work with you to select the best-fit provider to avoid the costly repercussions of a poor decision.

Align deal structures and optimize spend

We benchmark pricing against the market so you avoid unnecessary charges.

Reduce complexity and risk

We analyze contract terms and conditions to protect you against future price increases and unanticipated costs.

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