Gone are the days when Enterprise Resource Planning (ERP) systems were slow to change, because with the recent and ever advancing technology trends, ERP systems have experienced a myriad of quick and effective enhancements that leave companies with the difficult decision of whether to get on board or be left behind.
These are a few of the major trends currently happening in the ERP world, that you don’t want to miss out on.
AI – Artificial intelligence
People often speak of how computers will replace humans and cause increasing unemployment, and true to the fact, many tasks can already be fulfilled by computers without human intervention, like for instance Automated Data processing. Taking over human function is not the purpose of AI, but rather for computer technology to enhance our daily lives.
In the world of ERP, AI adds huge benefit in helping people make quicker decisions, work smarter, minimise errors and increase productivity. Improvements to AI within ERP software will greatly assist in automating many tasks, just imagine having your Supplier processing done in a jiffy.
With great emphasis being placed on going mobile, why should your ERP not follow suite? We have become accustomed to having access and information available at our fingertips and we carry our cell phones, laptops and most other mobile devices with us on holiday, to restaurants, social gatherings, homes, and back to the office.
So, while fast becoming a mobile workforce, the expectation is to have large scale ERP software with mobile capabilities, allowing employees and key decision makers to have full functionality, ranging from creation, processing, workflow notifications, and approvals, to visibility of all business data and performance. Most modern ERP systems have mobile functionality and with the high demand to have flexibility, we will see this functionality grow to enable access to full ERP functionality.
IoT – Internet of Things
The internet of things (IoT), known to some as direct machine integration, is all about connecting computers and other devices, whether household equipment or large manufacturing machinery. The latter can be greatly enhanced by using IoT, as this assists in increased efficiency, improved forecasting, insights into machine operations and overall improved asset life.
With a growing demand to have metrics and information available, IoT will become a large part of ERP and is already seeing significant growth. This ranges from having sensors that provide information on performance, to actual output and monitoring optimal functioning.
For a very long time, most businesses have stayed clear of having their data in the cloud, based mostly on concerns regarding security and retrievability, but in more recent times, the availability of cloud-based ERP has brought many business advantages. Amongst others, costly infrastructure layout is avoided, and businesses can function with smaller IT teams. An additional advantage is that small businesses who do not have permanent IT employees are now also able to enjoy the growth associated with having a full ERP.
As we see this trend progressing, more and more businesses are looking towards cloud-based solutions, hosting their ERP systems in the cloud, and storing and retrieving massive amounts of critical business information, ensuring availability to teams globally. Cloud ERP offers reduction of cost while doing so safely, efficiently, and effectively. An estimated 33% of business IT budgets are set to be spent of cloud services.
ERP Stats and Growth Projections in 2022*
- Fifty-three percent of businesses name ERP and CRM as priority investments.
- Twenty-nine percent of businesses fear cloud ERP is a security breach risk.
- The revenue of ERP software will reach $47 billion between 2017 and 2022.
- Cloud ERP sees much greater investments.
- ERP improves 95% of businesses that implement it.
- ERP implementation causes operational disruption in 66% of businesses
- A record 68% of ERP customers are satisfied with the ERP software they chose.
- ERP improves processes in 95% of the businesses that implement it.
*statistics source: Team Linchpin. Trends Transforming Enterprise Resource Planning In 2022. JANUARY 16, 2022.
Having been introduced in the 1960’s, ERP software’s slow start and resistance to change, is long a thing of the past. Historically being a go-to solution for mostly large manufacturing organisations to assist in their operational complexities, ERP systems are now making huge improvements to both large and small businesses’ operations, efficiencies and ultimately profits. As technology advances, we can expect to see cutting edge technologies being added to and forming an integral part of ERP systems.
Author: Bruce Lee – Business Management Consultant – Vizi Solutions