ERP (Enterprise Resource Planning) systems have revolutionized the way businesses manage their operations, streamline processes, and leverage data insights. As we step into 2023, it becomes crucial for organizations to stay updated on the latest trends and advancements in Cloud ERP. Understanding these trends can provide valuable insights into the functions and applications of Cloud ERP systems and empower businesses to make informed decisions.
From front-office activities like sales force automation (SFA), marketing automation, and e-commerce to back-end operations like accounting, human resources (HR), procurement, and manufacturing, ERP solutions have developed and broadened their scope to support the majority of business operations. Businesses rely on ERP to reduce costs by getting rid of unnecessary processes and automating tedious work. It also gives staff access to vital information so they can make better decisions more quickly.
ERP Trends to Lookout for in 2023
ERP systems are always evolving as enterprises depend on them to conduct their operations, allowing them to incorporate new technology and perform a wider range of tasks. We’ll examine eight significant themes to watch in 2023 and beyond in this post.
#1. Cloud ERP
Prior to now, many businesses relied heavily on on-premises ERP software and were reluctant to move crucial business operations to the cloud. However, this is quickly changing. Businesses are adopting cloud ERP to gain from simpler deployment, lower costs, elasticity (the ability to use only the resources required at any given time), new functionality, a decreased need for internal IT resources, and the ability to easily add users and functions to accommodate business growth.
The outbreak has drawn attention to the advantages of cloud ERP and has sped up the move away from on-premises software, in part because cloud-based apps enable employees to conduct tasks from any location with an internet connection and are not location-specific. Many CFOs who are striving to minimize costs in the face of economic uncertainty are increasing their investment in cloud ERP in order to save money and better serve their remote workforces. 20% of the finance professionals surveyed said they anticipated spending more on cloud ERP solutions in 2020.
#2. Multi-Tier ERP
In the past, numerous businesses have attempted to implement a single ERP system for the main office, all regional offices, and all subsidiaries. However, because subsidiaries frequently had particular requirements, did not need the complete capabilities of the corporate system, and struggled with the one-size-fits-all approach, this technique was typically expensive and challenging to deploy.
Two-tier ERP is one of the top ERP trends for 2021 as a result of this. With two-tier ERP, businesses can take advantage of their existing ERP system investments at the corporate level (tier 1) while subsidiaries and divisions use a different ERP solution (tier 2) that is typically cloud-based. Larger companies may still rely on their primary ERP system for financials and other crucial processes, even though smaller business units employ systems customized to their own needs. The ability of the tiers to share data will also determine how effective this method is; some tier 2 cloud solutions offer ERP integration capabilities.
This approach has a number of benefits. As opposed to changing the corporate ERP system to operate for the entire firm, it is frequently less expensive. A tier 2 approach might be simpler to put into practice and allow subsidiaries more freedom to react to shifting market conditions. The two-tiered structure might also work better for companies that are expanding quickly. Large companies should “examine whether a two-tier ERP approach will give more commercial advantage than a single-tier one, particularly by updating small, potentially quickly expanding business units,” advises Gartner.
#3. Electronic Transformation
“Electronic / Digital transformation” is the process of integrating digital erp technology into all business operations in order to enhance daily operations. This strategy frequently improves communication, customer service, staff productivity, and competitiveness. It also increases revenue and competitiveness.
It makes reasonable to start with an ERP package to ease this transition since it typically affects the majority of a company’s operations. Three-quarters of UK firms are utilizing cloud ERP as a doorway to modernization, per Accenture’s 2020 ERP Trends report. A few advancements that can be viewed as being a part of this digital transformation include the usage of AI and sophisticated analytics, as well as the integration of ERP with IoT devices.
#4. Integration of ERP and Other Technologies
The digital transformation of a company must include modern ERP, but it is only one element of a larger technological investment. To enhance crucial operations, businesses are fusing their business software with other developing erp technologies, like IoT. Retailers, for instance, utilize warehouse management systems to monitor the movement of goods inside the warehouse while collecting information from mobile scanners and smart conveyors. Some businesses combine ERP and eCommerce to enhance the processes surrounding online orders. This integration starts order fulfillment, records payments, and maintains inventory levels automatically.
In the upcoming year, ERP and social media will also converge more. Businesses may gain a better understanding of their audience and enhance their digital marketing strategies and customer experience by gathering all of their customers’ and prospects’ social media activity in one location. Businesses may gain a better understanding of the entire sales process and experiment with new ways to target and sell by merging data from social media interactions with sales order history and customer contact.
#5. Personalization
In the past, it was challenging to customize ERP solutions with complicated programming languages to the unique requirements of any organization. On the other hand, businesses now have access to cloud ERP solutions, commonly referred to as “low-code” platforms because of how simple they are to adopt. To meet the needs of various businesses, an increasing number of different ERP solutions are being developed.
Businesses seek ERP systems with features like highly customizable dashboards to meet their demands as they concentrate on providing clients with more individualized, pertinent experiences. The development of AI-based chatbots, which can interpret user voice or text input and respond to user queries using customer and order data contained in the ERP, is one such trend.
#6. Enhancements and Insights Powered by AI
To fulfill the increased demand for personalization and to enhance a variety of corporate activities, artificial intelligence and machine learning capabilities are being integrated into ERP systems. A few ERP systems in the past permitted the addition of AI capability; however, many manufacturers today offer ERP software with these features already built-in.
Businesses can gain significantly from AI. Organizations rely on AI to provide pertinent business insight as they gather more operational and customer data than ever before. Massive amounts of unstructured data are scanned by AI algorithms, which spot patterns and foresee trends that are impossible to spot with manual number crunching alone. As a result of AI, many processes are improved and automated. 36% of firms expected to use AI for production scheduling and customer relationship management, while 40% planned to use it for inventory planning and logistics, according to a 2019 IFS poll.
#7. Forecasting Statistics
The need for AI-infused ERP reflects the growing desire of businesses to mine their operational and customer data for fresh, pertinent insights that will raise their top and bottom lines.
A focus in 2021 and beyond will be on utilizing predictive analytics to anticipate and address what is likely to happen in the future. While using ERP data to demonstrate past events has always been feasible, this year will see a greater emphasis on this topic. To determine when issues are most likely to arise, software with machine learning skills, for instance, can comb through data on machine repairs kept by a maintenance business. The maintenance schedules of the company can be modified to replace or repair items before they break.
#8. Mobile ERP
Vendors of ERP software have long provided mobile functionality, and mobile apps are growing more popular. In order to allow staff to execute both back-end and front-end tasks wherever they are, from the warehouse floor to a retail checkout terminal to an airport, ERP solutions are expanding to provide on-the-go access to crucial company data. For geographically scattered workforces functioning across several time zones, mobile ERP can also improve collaboration.
Mobile ERP apps with simple user interfaces allow users to carry out tasks even when they are not in front of a computer. Employees may submit expenses, log calls, keep track of their time, and check the progress of crucial workflows or approvals using their mobile devices. Real-time data and insights are provided by mobile ERP in addition to more basic advantages like always-on remote access, improved agility, and enhanced productivity.
Let’s now look at why is it important for you to stay updated on these trends!
Why stay updated on ERP Trends
Staying updated on ERP (Enterprise Resource Planning) trends is of paramount importance for organizations for several reasons:
- Competitive Advantage: The business landscape is evolving rapidly, and staying updated on ERP trends allows organizations to gain a competitive edge. By leveraging the latest ERP technologies and functionalities, businesses can optimize their processes, enhance productivity, and make data-driven decisions, giving them an advantage over competitors.
- Improved Efficiency and Productivity: ERP systems are designed to streamline and automate various business processes. By staying abreast of ERP trends, organizations can identify new features and functionalities that can enhance efficiency and productivity. They can leverage advancements such as AI, machine learning, and automation to eliminate manual tasks, reduce errors, and improve overall operational efficiency.
- Enhanced Decision-Making: ERP systems provide a wealth of data that can be leveraged for strategic decision-making. Staying updated on ERP trends allows organizations to understand how data analytics, business intelligence, and real-time reporting capabilities are evolving. This knowledge enables organizations to derive meaningful insights from their ERP systems, empowering them to make informed decisions and respond quickly to changing market dynamics.
- Adaptation to Evolving Business Needs: As businesses grow and evolve, their requirements change. Staying updated on ERP trends ensures that organizations are aware of new functionalities and modules that can address their evolving needs. Whether it’s expanding into new markets, adopting new business models, or complying with changing regulations, being up-to-date with ERP trends helps organizations align their systems with their current and future business objectives.
- Integration with Emerging Technologies: ERP systems are increasingly integrating with emerging technologies such as IoT, AI, blockchain, and cloud computing. By staying informed about ERP trends, organizations can understand how these technologies are being integrated into ERP solutions. This knowledge enables them to explore new possibilities, leverage the synergies between ERP and emerging technologies, and unlock innovative solutions to complex business challenges.
- Cost Optimization: Keeping up with ERP trends helps organizations identify cost-saving opportunities. This could include migrating to cloud-based ERP solutions, leveraging scalable subscription models, or adopting modular approaches that allow organizations to choose specific functionalities as per their needs. By staying updated, organizations can identify cost-effective solutions that offer the best value for their investment.
Hence, staying updated on ERP trends is crucial for organizations to remain competitive, enhance efficiency, make informed decisions, adapt to changing business needs, leverage emerging technologies, and optimize costs. It empowers organizations to harness the full potential of ERP systems and drive sustainable growth in an ever-evolving business landscape.
How to stay updated with the Latest Cloud ERP Trends?
Staying updated on ERP (Enterprise Resource Planning) trends requires a proactive approach to gather relevant information from various sources. Here are some effective ways to stay updated on ERP trends:
- Industry Publications and Blogs: Subscribe to industry-specific publications, magazines, and blogs that focus on ERP. These sources often publish articles, news, and insights about the latest trends, advancements, case studies, and best practices in the ERP space. Regularly reading these publications can help you stay informed about the latest developments.
- Webinars and Online Events: Participate in webinars and online events hosted by ERP vendors, industry experts, and professional organizations. These events often cover topics related to ERP trends, new features, and emerging technologies. They provide an opportunity to learn from experts, ask questions, and gain insights into the evolving ERP landscape.
- ERP Vendor Updates: Stay connected with your ERP vendor and subscribe to their newsletters, blogs, and social media channels. Vendors regularly release updates, new features, and roadmaps for their ERP solutions. By staying connected, you can receive firsthand information about the latest trends and advancements in the ERP system you use or plan to adopt.
- Industry Conferences and Trade Shows: Attend industry conferences and trade shows related to ERP and enterprise software. These events bring together industry leaders, experts, and vendors under one roof, providing an excellent platform to learn about the latest trends, attend educational sessions, network, and engage in discussions about ERP advancements.
- Online Communities and Forums: Join online communities and forums dedicated to ERP discussions. Platforms such as LinkedIn groups, online forums, and professional networking sites facilitate knowledge sharing among professionals in the ERP field. Engaging in these communities allows you to participate in conversations, ask questions, and exchange ideas with peers, industry experts, and ERP enthusiasts.
- Networking and Peer Connections: Establish connections with professionals in your industry who have experience with ERP systems. Networking with peers, attending industry events, and engaging in professional organizations can help you build a network of professionals who can share insights, experiences, and updates on ERP trends.
- Continuous Learning and Training: Invest in continuous learning and training programs related to ERP. Many vendors offer training courses, certifications, and learning resources to keep users updated on the latest features and functionalities of their ERP systems. Taking advantage of these training opportunities allows you to stay current with ERP trends while enhancing your skills and knowledge.
Remember, staying updated on ERP trends is an ongoing process. Make it a habit to allocate dedicated time to stay informed, explore new resources, and engage with the ERP community. By adopting these strategies, you can stay ahead of the curve and ensure that your organization benefits from the latest advancements in the ERP landscape.
Experts Corner
Staying updated on ERP (Enterprise Resource Planning) trends is crucial for organizations to gain a competitive advantage, improve efficiency and productivity, enhance decision-making, adapt to evolving business needs, integrate emerging technologies, and optimize costs. It empowers organizations to harness the full potential of ERP systems and drive sustainable growth in an ever-evolving business landscape.
To stay updated on ERP trends, organizations can employ various strategies. They can subscribe to industry publications and blogs, participate in webinars and online events, stay connected with ERP vendors, attend industry conferences and trade shows, join online communities and forums, network with peers, and invest in continuous learning and training programs. These approaches ensure access to the latest information, insights, and best practices in the ERP space.
By proactively staying updated on ERP trends, organizations can align their systems with their business objectives, leverage technological advancements, optimize their operations, and stay ahead of the curve in an increasingly competitive business environment. It is an ongoing process that requires dedication and engagement with the ERP community, but the benefits of staying informed far outweigh the effort invested.
