Enterprise Resource Planning (ERP) has proven to be an indispensable tool in managing every business process, whether it is purchasing, sales, accounting, human resources, or marketing.
ERP has also evolved at a lightning-speed pace in recent years, thanks to the continuing advancements related to buyers’ behaviors, market conditions, competition, and technological innovations. Already, many companies have multi-functional and extended ERP software in place capable of providing intelligent insights, creating personification in client interactions, supporting remote work operations, and enhanced automation to meet the growing demands of the customers and gain a competitive advantage.
This year, ERP continues to evolve as emerging trends are set to transform it anew. Businesses that seek to transform themselves to the next level should be mindful of these trends and take advantage of them so they can make informed decisions and achieve further growth.
We shall have a look at 10 of these trends and see how each can transform ERP and the business as a result:
1. Artificial intelligence with machine learning
Whether it is about automating repetitive tasks or proactive problem solving, Artificial Intelligence (AI) can help mitigate inefficiencies and improve productivity within the organization. AI takes ERP integration to the next level through predictive analytics and hyper-automation, leading to better decision-making and enhanced customer experience. Its capabilities such as machine learning, natural language processing, and chatbots have by themselves have proven to have helped reduce costs, facilitate greater productivity, and improve the business’ overall operations.
2. Cloud-Based ERP’s continued growth
Cloud ERP system, also known as SaaS ERP software, has been in use for a long time. But thanks to the pandemic, Cloud ERP has seen an increased adoption due to its ease of implementation, low deployment cost, and enhanced collaboration features. It can also extend access to real-time information, facilitate remote working, and ensure high-end data security. Moreover, deploying cloud-based ERP software is beneficial for small and medium enterprises thanks to the small cost and fewer resources involved.
3. Increased demand for ERP in the healthcare sector
While ERP has become an invaluable tool in many industries, one particular that has benefited the most is the healthcare industry. ERP has made it possible for hospitals and healthcare organizations to enhance their patient care by keeping patients, doctors, and clinical staff connected in real time. It has also helped them stay compliant with government and industry rules and policies thanks to its database that they utilize to store safety protocols, as well as perform back-office operations with fewer expenses or overheads.
4. Internet of Things is taking ERP further
Internet of Things (IoT)-enabled ERP systems are highly used within manufacturing environments or businesses requiring fully-automated data collection. Combining IoT’s capability to track places and components round the clock with ERP’s ability to collect information from IoT devices and generate real-time reports, this provides for better visibility and decision making.
5. Straightforward approach with headless architecture
Headless architecture makes it possible for users to accomplish multiple tasks from a single interface, making complex tasks easier and the user experiences simplified to a great extent. And by separating business logic from the data, headless architecture powered-ERP makes it easy to execute task-specific interfaces that is also tailored to a particular end-user.
6. Mobility remains a game-changer
ERP mobility is the game-changer for every organization in this competitive era. For example, your salespeople require visiting clients out of the office, empowering them with the capability of viewing real-time sales figures and stock information from their mobile device, which becomes extremely important to close the deals. An ERP system that is responsive to multiple platforms and devices can positively impact your employees, suppliers, and stakeholders as it keeps them connected even on the go.
7. The rise of the Three-Tier ERP
ERP applications are evolving towards a three-tier architecture (or n-tier architectures), wherein the ERP components, namely the application logic, database, and user interface, are distributed among three or separate devices in a connected network. Such architecture is seen to be more scalable, fast, secure, flexible, and robust, and can integrate data from multiple sources. This makes it a perfect ERP system for growing companies.
8. Low Code/No Code applications
Many ERPs now come with low code/no-code customization abilities, which means users can tweak the application as required by the industry, the organization or specific user needs even if they lack technical capabilities. This allows for greater development flexibility which in turn allows for greater innovation that enables their users to stand out from the competition.
9. Automation and simplification in ERPs
Business leaders today expect that the best-in-class technologies they are using or planning to use will include advanced automation across multiple departments and processes running within their respective organizations. Especially so with ERPs, with automation built into many ERP systems to eliminate manual entries, handle the mundane tasks, and simplify various processes. This allows for improved productivity and efficiency, as users are ensured they easily have access to the right information at any time.
10. Data-driven decisions using big data analytics
Big data analytics-powered ERP solutions can pull data from multiple sources to create comprehensive reports that provide deeper and futuristic business insights. This is crucial especially for many companies that are now more inclined to make data-driven decisions and prioritize forecasting to gain a competitive advantage.
All in all, these trends serve to underscore the importance of having an ERP system deployed within an organization so they can achieve operational efficiency, make data-driven decisions, and facilitate mobility, especially in this fast-paced digital environment. And as advancements in technology become more rapid than before, it is imperative that businesses adopt a modern-age ERP with the functionalities that will help them meet strategic business goals and achieve unprecedented growth.