2020 has kicked off a new decade of ERP trends. As new technologies are brought to market and drive innovation forward, the concept of ERP as we know is evolving. This blog highlights some of the most important ERP trends, some of which have been gaining momentum for a few years. These changes in the ERP landscape will require companies to modernize their systems or be left behind within a short span.
As we all know, ERP systems initially were adopted because they offered an automated solution for managing enterprise resource planning across an organization. But in today’s dynamic and unpredictable environment, these systems cannot always handle the usage or recurring revenue requirements. Dependence on spreadsheets to handle these other use cases, siloed information across departments and security limitations are just some of the shortcomings of legacy ERP systems. In a recent article, Gartner forecasts that the ERP market will be worth $44 billion by 2022, owing to adoption of new technology trends. Finance leaders globally agree that to stay competitive, it is essential for businesses to modernize their ERP solutions and follow best practices to better meet their customers’ needs.
In this blog, we have compiled a list of top emerging trends to watch for. Evaluating business software solutions in light of these trends can help future proof your business.
1. Cloud Acceleration
As the cloud continues to drive ERP modernization, it remains the biggest enabler for most of the technological advancements in ERP, such as, real-time data analytics, B2B invoice processing and blockchain. Cloud ERP provides better data security, ease of management and helps lower operational costs while supporting access to a global company’s ERP from anywhere in the world. With one-third of companies’ IT budgets being spent on cloud services now, one can expect cloud ERP adoption to continue to grow and its product capabilities expand.
Companies that are using on-premise ERP solutions are realizing its limitations, such as the inability to quickly add new monetization models and the lack of innovation, which is driving more businesses to invest in cloud ERP. Hybrid ERP is seeing a rise and is set for rapid growth as it combines the offering of both on-premise and cloud-based ERP. As a result, it has become ideal for businesses with a main focus on products and assets, such as digital media and business services.
2. Integration of AI and other Intelligent Tech
Artificial intelligence (AI), especially machine learning and natural language processing (NLP), is transforming how people engage with ERP. When AI is connected to ERP systems, it supports flawless operations and faster strategic decisions. Operations research, software engineering, and computer science challenges can be solved quickly with the help of AI. This intelligent ERP (iERP) provides companies with a significant edge through innovative data processing and by translating business data into actionable decisions. AI, especially machine learning and natural language processing (NLP), are changing how people interact with ERP. Chatbots, the broader trend of robotic process automation (RPA), are being used to replace some of the manual and repetitive work. This AI-driven ERP also helps to organize and structure the enormous amount of data the business collects. Intelligent ERP (iERP) solutions can also create workflows, reduce errors, lessen information loading time, and much more.
3. Mobile ERP
Complete mobile access is foreseen to become an essential function of a modern ERP tool. Mobile apps give executives and employees access to real-time company information and customer communications. Aside from on-the-go data access, mobile ERP access, enables users to perform business operations anytime and from anywhere. Mobility also means having a more accurate and convenient data capture process. In addition, mobile ERP minimizes production delays because of real time communication. Other benefits include, quicker decision-making, better workflow, and enhanced efficiency.
4. Powerful Analytics
ERP systems have always been very valuable in terms of collecting and organizing financial and operational data, but they have not always had strong reporting and analysis capabilities. Modern ERP systems are now equipped with powerful data analytics features. Deployment of analytics platforms that enhance legacy ERP systems with more robust reporting capabilities are on the horizon. The future of ERP is moving towards an end-to-end solution that can process both structured and unstructured data, leveraging the power of big data and predictive analysis.
5. Emergence of 3D Printing
The growing adoption of 3D printing has laid the foundation for new manufacturing ERP trends. Three-dimensional printers allow engineers to make quick prototypes to manufacture components saving both time and cost. This ability to quickly and easily create individual, specialized parts is making 3D printing an essential technology for industries like defense and aerospace. However, to handle these new manufacturing streams, business systems need to be upgraded.
6. Direct Machine Integration
This technology refers to the connectivity of computers with machines and other things, leading to minimal malfunctions and shut-downs. IoT devices connected to ERP can streamline communication across the entire supply chain. This level of visibility into the supply chain can give companies a strong competitive edge. By combining ERP and Internet of Things (IoT), organizations can deliver a more integrated and automated experience.
In recent reports, businesses are expected to integrate 7.5 billion IoT devices into their operations by next year. And in 2020, companies are projected to spend $40 billion on systems and platforms that will facilitate this automation and end-to-end integration. Due to the rise of cloud computing, modular systems, and other technological innovations, not only large enterprises but also smaller businesses can easily adopt these solutions.
By focusing on these factors, organizations can embrace the new digital landscape and improve customer satisfaction, while optimizing their revenue management. Digital transformation is essential for any business looking to grow and stay ahead of the competition. It is imperative to choose the right order-to-cash (O2C) platform for your business to scale. However, by adopting a platform like RecVue, during a digital transformation initiative, it can be a game-changer in terms of leveraging technology and automation to deliver performance optimization and cost and time savings. RecVue’s unified platform integrates with any CRM, ERP and front-end order processing systems, enabling customers to improve efficiencies across order-to-cash, revenue and general accounting, while gaining real-time access to data. Finance groups are able to increase accuracy and timeliness of billing and invoicing and aggregate billing information in a single system to improve analysis and forecasting. RecVue’s monetization platform includes a 360-degree view into the entire contract lifecycle, rules-based attribute pricing, complete order-to-invoice capabilities, pay-side management for third party obligations, and robust analytics and reporting.
Contact us to learn how RecVue’s superior monetization platform can give your ERP, the competitive and innovative advantage it needs.