Benefits of Opkey for Automation Purpose

© Opkey. All rights reserved.
2024
State of ERP
Testing Report

“Worldwide spending on IT will hit $4.7
trillion in 2023 and then $5.1 trillion by
2024.”
Worldwide Spending on IT
Introduction
What's shaping ERP testing in 2024?
To better understand the trends driving us forward, we took
a step back to analyze the context of a rapidly evolving
market. We’ve identified 3 new growth drivers and 2
continuing trends that are transforming the industry today.
Opkey completed a survey of 500+ business leaders and IT
professionals from a variety of industries. We blended the
findings with third party research and engaged in
real conversations with individuals who work in all phases of
the testing lifecycle, with the goal of understanding the
current state of ERP testing.
$5.1 Trillion
2024
$4.7 Trillion
2023
2023 2024 2025 2026 2027 2028 2029 2030
$15B in 2023
$51B in 2030
Projected Global Test Automation Market
Size 2023 – 2030 (19% CAGR)

IT Leader
We surveyed 500+ professionals from industries across the globe,
all with experience in ERP planning, management, purchasing, and testing.
14 nations
across Europe,
North America,
and APAC
500+
Total
Respondents
Respondent Job Functions:
Industries Surveyed:
ERP Systems Architect
ERP Solutions Manager
QA Lead
Testing Center of Excellence Team Members
Business Analyst CIO
CFO
Technology Finance Managed Services
Oil & Gas Healthcare & Life Sciences Legal Services
Insurance & more
& more
Opkey’s 2024 Survey

Did you spend more on
testing in this past year,
compared to the year
before?
Are you using more SaaS
apps this year compared
to last year?
Have you moved or started
to move on-premise ERP
systems to the Cloud?
Opkey’s 2024 Survey
Keeping up with releases
What is the biggest challenge you
face in ERP testing?
27%
23%
18%
17%
15%
Integration Testing
Security & privacy concerns
User Acceptance Testing
Performance Testing
Are you considering incorporating AI
into your testing protocols?
Yes 85%
No 22%
No 10%
NA 5%
Yes 79%
No 21%
Yes 76%
No 16%
Not Sure 8%
Yes 78%

What did we find?
Key Trend #1 Key Trend #2
Key Trend #4
CONTINUING
TRENDS
Speed is paramount.
People want ERP
testing implemented
faster.
Industry-specific ERPs
are growing,
as is the need for
industry-specific
testing solutions.
It’s still a SaaS
Mess. Effective
end-to-end testing is
the solution.
Key Trend #3
The shift from manual
testing to automation
continues.
AI: Where is it
taking us and what’s
the impact on
testing?
Key Trend #5
NEW TRENDS

Key Trend 1
Leaders want ERP
testing implemented
faster.

Pressure for higher ROI
Employee demand for
more hands-on POC
More executive sign-offs
needed on purchases
Stronger guidelines about
privacy & security
38%
29%
20%
13%
The
survey
says…
Of the below, what do you think is the
biggest factor contributing to longer
buying cycles in SaaS?
38%
29%
20%
13%
of respondents agreed with
the following statement:
“Ease and speed of onboarding
are a top priority when
evaluating and/or purchasing a
new testing tool.”
73%

Buying practices are changing
81% of our survey respondents agreed or strongly agreed with the following statement:
“This year, my company is more meticulous than years past in evaluating and
purchasing new platforms and technologies.” Organizations are getting choosier
about adopting new tools, and as a result, we're seeing buying cycles get longer.
What’s behind these longer cycles? CIOs, leadership, and procurement teams are
getting more involved in IT purchasing decisions than ever before, driven by economic
uncertainty necessitating faster ROI from new purchases.
Additionally, Forrester found that employees are becoming more demanding when it
comes to purchasing new SaaS products, and are requiring more extensive
proof-of-concept than in previous years.
“The number one thing I’m
prioritizing when
evaluating testing
solutions is speed of
implementation and
delivery. We spent millions
of dollars on our ERP
systems, and we need to
ensure they are properly
tested."
-VP of IT,
Fortune 500 CPG Company
SaaS buying cycles have increased 37% for net new purchases, according to a
report by Vendr.

Testing platforms need
to prove they can
benefit users quickly
Leadership teams are prioritizing faster onboarding and top-quality
customer service when working with new SaaS vendors. 73% of our
survey respondents agreed with the following statement: "Ease and
speed of onboarding are a top priority when evaluating and/or
purchasing a new testing tool." ERP testing platforms must evolve to
keep up with this demand for more robust POC's while ensuring faster
end-user implementation expectations.
Pre-built and reusable
tests that can be used
out-of-the-box
A
Industry-specific expertise
and templates
B
Process mining & test
mining
C
Automatic importing of
legacy test cases
D
How are testing platforms speeding up
onboarding?
"Five year ago, we were expected to have our partner software
in the hands of an end-user six months after completing a POC.
Today, that timeline has decreased to 1-2 months."
-VP of Delivery, SAP Practice, System Integrator

Key Trend 2
Industry-specific ERPs are growing,
as is the need for industry-specific testing solutions.

of respondents responded
“Yes” to the following
statement:
The survey says…
How important is it that a new tool or platform
has capabilities for your specific industry?
Somewhat
important
Not a
consideration
29% 18%
53%
Very important
“Have you purchased or are planning to
purchase an industry-specific ERP solution in
the next 3 years?"
59%

Industry specific ERPs are in
Companies are increasingly demanding industry-specific ERP solutions because they recognize the value in tailored software
that caters to their unique operational needs. Generic ERP systems, while versatile, may not fully address the specialized
requirements and regulatory compliance standards inherent to various industries, such as healthcare, manufacturing, or
finance. By opting for industry-specific ERP solutions, organizations can streamline processes and ensure compliance while
benefiting from features and modules designed specifically for their sector. These solutions offer a competitive advantage by
fostering industry best practices, facilitating better decision-making, and supporting growth strategies tailored to the nuances
of their market, ultimately driving greater operational excellence.
A Sampling of Industry Specific ERPs
SAP S/4HANA for Manufacturing
Oracle NetSuite for Retail
Epicor ERP for Distribution
Infor CloudSuite for Healthcare
Microsoft Dynamics 365 Finance & Operations for Finance
Oracle Health for Healthcare
Syspro for Food and Beverage
Sage X3 for Construction
JD Edwards EnterpriseOne for Agriculture
Exact for Professional Services

What’s the impact on testing?
The proliferation of industry-specific ERPs has spurred the development of
specialized testing solutions finely tuned to the intricacies of these domain-specific
ERP systems. These solutions come equipped with pre-configured settings,
certifications and reporting that not only streamline testing processes but also
ensure rigorous compliance. For example, consider a healthcare company in need of
a new testing platform. This organization will benefit from the following aspects of an
industry-specific ERP testing solution to pair with their ERP platform:
1) HIPAA certified
2) Pre-built healthcare templates for testing common modules such as supply
chain and HR
3) Audited reporting to provide a clear audit trail
"I can't get approval from
higher-ups on anything
that isn't fully FedRAMP
certified. I don't have a
choice about that, so any
new software must have
the proper authorizations
for us to move forward. "
-Director of Systems,
Government Entity
Yes – 84%
No/Not Sure - 16%
Do you consider industry
compliance requirements when
making a new SaaS purchase?
84%

Key Trend 3
It’s still a SaaS Mess. Effective end-to-end
testing is the solution.

The survey says…
“Are you testing more SaaS applications in
this past year, compared to the year before?”
Yes: 68% No/Not Sure: 32%
What are your plans in 2024 to
combat SaaS Mess in your
organization?
Implement an end-to-end
testing solution 42%
More frequent testing 29%
Increase QA resources 16%
Other 13%

It’s still a SaaS Mess
Last year, we coined the term "SaaS mess" to describe the intricate
challenges arising from highly customized and hybrid SaaS ERP
systems. Our survey and research confirmed that this complexity
persists. It may even be greater than before, with tech stacks
becoming more convoluted and challenging to test. 85% of our
respondents say increased testing complexity is a concern.
Testing teams are actively addressing SaaS mess on multiple levels.
First, there is a growing shift towards centralizing testing activities.
Enterprises are also embracing more flexible, No-Code test
automation platforms, enabling individuals of varying technical
backgrounds and with different levels of functional expertise to
engage in testing.
“We were in a rush to onboard highly
personalized solutions in the last 5
years, but now I’m handling a very
complex testing load.”
-QA Lead, Manufacturing Company
18%
82%
Yes
No
Is increased
testing
complexity a
concern now,
compared to
previous
years?

The pivotal strategy for addressing the challenges posed by SaaS Mess
lies in the adoption of thorough end-to-end testing protocols. Even amid
the increasing adoption of industry-specific ERP systems, organizations
are seeking a unified, central end-to-end testing platform capable of
efficiently managing these diverse systems.
Consider a manufacturing company that uses Salesforce for their sales
processes and SAP for their supply chain. When Salesforce undergoes an
update, testing teams must not only assess the Salesforce application's
functionality but also scrutinize each connected process in their SAP
supply chain. This intricate testing process poses a significant workload
for QA and functional teams already operating with limited bandwidth.
End-to-end testing solutions solve this by allowing organizations to assess
modifications in a single application and their repercussions across the
entire technology stack, enhancing the efficiency of the testing process.
“Our growing SaaS stack has made
our testing program much more
complicated. There are many more
moving parts than in the past, yet
I'm expected by leadership to keep
our business applications
properly functioning at all times."
-Director of IT, Retail
End-to-ending SaaS Mess

Key Trend 4
The shift from manual testing to automation
continues.

Test automation
is on the rise. How are you currently
handling ERP testing?
61%
of respondents say that they
plan to invest further in test
automation in 2024.
Manually via Partner
32%
Combination
22%
20%
Automated In-House
15%
Automated via Partner
11%
Manually In-House
How would you rate your
current testing program?
Needs improvement
89%
Other/Don’t Know
8%
3%
Does not need
improvement

Automation is still growing
Last year, 55% of our survey respondents said that they planned to invest in test automation in the next year. This year, 61% said
that they are planning to invest further in test automation in the year to come. This 6-point jump reflects a growing awareness
of the benefits of making the switch from manual to automated testing. However, our data also shows that only 26% of
enterprises have already implemented some form of automation, while 89% believe their testing program needs improvement.
These numbers show that interest is high, and adoption is underway, but many orgs have yet to make the leap.
Test automation is increasing in popularity for several reasons:
Efficiency: Automation accelerates the overall
testing process, helping organizations release
software more quickly.
Reusability: Automated test scripts can be
reused across different test cycles and
environments, reducing the effort required
to maintain and execute tests.
Scalability: Automation can easily scale
to handle many test cases,
making it suitable for complex and
extensive software projects.
Cost Savings: Although there is an initial
investment, the long-term benefits include
lower testing costs across the board.
3 4
2
1

Enhanced Test Reporting: Test automation
tools provide detailed reporting and logging,
making it easier to track and analyze test
results and identify the root causes of issues.
Test Data Generation: Automation
tools can generate test data, simplifying the
process of creating and managing data for
testing.
Support for Multiple Platforms: Automation
tools can be used for testing on various
platforms, including web, mobile, and desktop
applications, ensuring comprehensive
coverage.
Competitive Advantage: Organizations that
embrace test automation can release
high-quality software more frequently,
gaining a competitive edge in the market.
7
9
8
10
Coverage: Automated tests can cover a wide
range of scenarios, ensuring comprehensive
test coverage that may be challenging to
achieve with manual testing alone.
Repeatability: Automated tests can be
executed repeatedly with consistent results,
making it easier to identify and address issues
consistently across different environments
and platforms.
5 6

Key Trend 5
AI: Where is it taking us and what’s the impact
on testing?

Where does AI fit into
ERP testing?
78%
of survey respondents are
considering incorporating AI into
their testing protocols, yet only
8%
reported that their investment in
AI-based technology has increased
over the past year.
Organizations can leverage AI to enhance the efficiency
and effectiveness of their software testing processes, leading to more
reliable and robust software systems.
More specifically, AI helps with the following aspects of the testing
lifecycle:
Test Case Generation: Al-powered tools use algorithms to
automatically generate the ideal tests. They can also scan for
potential edge cases and problematic code that may not be
apparent to manual testers.
Test Execution: Al can perform functional and performance testing
automatically by simulating user interactions and verifying the
expected results.
Test Maintenance: Al can save significant time in maintenance and
ensure the overall quality control of software systems. AI allows for
more manageable labor hours and can lift the burden on testing
teams to be constantly available.
1
2
3

"By 2026, more than 80% of
enterprises will have used AI APIs
and models and/or deployed
AI-enabled applications in
production environments, up from
less than 5% in 2023."
AI + ERP Testing
Want to learn more?
Download Opkey’s
Whitepaper:
AI and Test Automation:
A Beginner's Guide
How else can AI supercharge your ERP testing processes?
Defect Prediction:
Machine learning algorithms can analyze historical data
from previous testing efforts to predict the likelihood of
future defects. This information can help developers
prioritize testing efforts and allocate resources more
effectively.
Regression Testing:
Al can automate regression testing by comparing the
results of new builds against previous builds, identifying
changes and potential issues that need to be addressed.

https://www.netsuite.com/portal/resource/articles/erp/erp-statistics.shtml
https://www.aptean.com/en-US/insights/blog/industry-specific-erp
https://www.gartner.com/en/articles/generative-ai-can-democratize-access-to-
knowledge-and-skills
https://www.vendr.com/insights/saas-trends-report-q3-
2023?utm_source=linkedin&utm_medium=social&utm_campaign=2023-Q4-10-GLOB-OSL-
IN_q3-saas-trends-report-ryan-neu
https://go.applause.com/rs/539-CKP-074/images/state-of-digital-quality-23-
global.pdf?li_fat_id=fc575a89-b19a-4f3f-ae6c-88b3e4220b5f
https://go.forrester.com/wp-content/uploads/2023/10/Forrester-Predictions-
2024.pdf?utm_source=newsroom&utm_medium=pr&utm_campaign=predictions_2024
https://www.linkedin.com/pulse/saas-age-ai-what-expect-2024-dteam-cdpfe/
https://www.saastr.com/the-second-half-of-2023-could-be-really-good-for-saas/
https://www.crn.com/news/software/gartner-software-and-it-services-lead-5-1-trillion-
tech-market-in-2024
https://www.bloomberg.com/company/press/generative-ai-to-become-a-1-3-trillion-
market-by-2032-research-finds/
https://www.fortunebusinessinsights.com/automation-testing-market-107180
References

Thanks
for reading.
You’ve never seen
test automation like this before.
Are you ready to transform
your ERP testing?
Learn more about our ERP Specific,
AI-enabled test automation at
www.opkey.com or reach out to
info@opkey.com.

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