The world of enterprise resource planning (ERP) is rapidly evolving. Advanced tools and technologies are gaining traction and making ERP platforms more sophisticated than ever before.
For companies considering digital transformation, monitoring ERP trends is a must. When you know where the industry is headed, you can more accurately evaluate what type of enterprise software will best fit your needs, both now and in the future.
Today, we’re sharing a few of the most promising developments in the ERP realm. Read on to discover how these modern solutions and approaches could apply to your business and how they’re reshaping the market.
6 ERP Trends for 2022 and Beyond
1. More Cloud-Based ERP Deployments
For years now, ERP has been slowly making a transition away from on-premise systems and into the cloud. While similar systems, including CRM and SCM systems, have been in the cloud for quite some time, ERP has been moving to the cloud more slowly.
Now, that movement has accelerated. Vendors are investing more in cloud technology than ever before, while making these systems increasingly accessible for smaller businesses.
Today’s cloud-based ERP systems are well-suited for small-to-midsized companies. These companies can choose between implementing a system fully located in the cloud or implementing a hybrid model that still offers a degree of in-house IT control.
Cloud models offer many benefits, including the ability for smaller companies to ramp up their IT investments, even if their internal tech departments are relatively small. With user-friendly apps and cross-platform capabilities, cloud ERP is making it more feasible for these companies to launch more advanced technologies down the road.
Note: The most mature cloud ERP functionality is found in the top ERP systems as featured in our industry report.
The 2023 Top 10 ERP Systems Report
This report is relevant to organizations across industries and outlines the best ERP vendors that we believe will help organizations prosper in 2023.
2. Increased Focus on Mobile-Friendly, Real-Time Access
Mobile ERP and cloud-based ERP go hand-in-hand. When companies migrate their ERP functions to the cloud, they gain the ability to tap into business insights at any time from mobile devices. This is in contrast to keeping the information stored on in-house computers where you must be in the office to access it.
Real-time visibility is a major selling point for ERP vendors. Companies can use intelligent dashboards to create reports and forecasts and make better-informed business decisions.
However, companies need the right devices and resources to access this data. As such, they’re looking into vendors’ mobile tools so they can streamline data capture straight from the source.
They’re specifically looking for mobile enterprise solutions that offer robust offline capabilities, including data and process syncing as soon as Wi-Fi is restored.
3. More Pressure to Deploy the Internet of Things
In short, the Internet of Things (IoT) refers to the way disparate devices connect to one another. When companies invest in machines that talk to one another, they can achieve a range of benefits. These include:
- Improved asset management
- More accurate forecasting
- Enhanced cross-department communication
- More advanced, real-time business intelligence
Increasingly, customers are expecting companies to have access to IoT. Then, they want companies to use those insights to deliver a more customized and personalized customer experience.
As companies evaluate ERP systems, they’re looking at IoT for the sake of the customer experience but also because they want to connect to other systems, including systems they may implement in the future.
4. Growing Popularity of Industry-Specific Solutions
Many high-profile vendors offer industry-agnostic solutions that provide core and advanced capabilities to support any type of organization. In fact, basic, out-of-the-box ERP functionality is all that some companies need.
However, many businesses require at least some degree of specialization for the platform to support their unique workflows. Excessive customization can be costly and time-consuming, so many vendors are providing industry-specific products for clients with more unique needs.
For instance, the ERP system functionality that a government contractor requires might differ from that of a private sector agency. Other fields that typically require ERP customization or configuration include:
Often, these specialized solutions will come at a higher price point than their generic counterparts. However, they can deliver major cost-savings down the road as you don’t have to customize the solution to make it work for specific industry use cases.
5. More Options for Advanced ERP Intelligence
Over time, ERP systems have become more advanced. Now, you can find platforms that incorporate such technologies as artificial intelligence (AI) and machine learning (ML).
Together, AI and ML expand the data analytics capabilities of ERP solutions by transforming a tome of business data into actionable insights. These technologies can also facilitate a range of smart functions, such as:
- Zero-touch automation
- Intelligent advisors
- Interactive assistants
Executives can leverage these tools to make smarter decisions and implement process improvements. They can also use them to identify red flags and mitigate issues before they snowball into bigger problems.
Other benefits of advanced ERP intelligence include:
- Optimized workflows
- Shorter lead times
- Fewer manual errors
- Fewer manual tasks
6. A Different View of ERP in a Post-Pandemic World
It’s impossible to talk about the future of ERP software without considering that these systems will be operating in a post-pandemic world.
Product and labor shortages are affecting markets around the world, especially the manufacturing realm. Due to these shortages, companies are finding it difficult to keep enough inventory in stock. This issue is especially troublesome for enterprises that operate with complex supply chains. If a disruption occurs at one touchpoint, it can affect the entire outcome.
In the wake of this uncertainty, ERP systems, particularly manufacturing ERP systems, are becoming even more valuable. Companies are specifically looking for platforms that can provide the following:
- Real-time supply chain visibility
- Reports and forecasts on customer behavior and trends
- Sophisticated automation in core sectors (HR, procurement, finance)
Companies can use these tools to make spur-of-the-moment business decisions in response to rapid changes in the market and customer demand.
The Possibilities are Endless
Companies continue to find new ways to implement ERP technology within their organizations. For some, this means moving their deployments to the cloud. Others are making deep investments in AI, ML, and other automation technologies to stay ahead of the competition. Then, there are companies looking for supply chain support as they navigate their post-pandemic operations.
These are only a few of the ERP trends you need to know. To learn more, contact our ERP consulting firm below. Your free consultation awaits.