In today’s rapidly evolving technology landscape, enterprises are constantly on the lookout for flexible software solutions to streamline their processes and strengthen their expertise. While a majority of enterprises use ERP solutions, it is equally important to keep them up-to-date to keep pace with the latest technological advancements. Security limitations, soiled information, and spreadsheet dependence are a few of the disadvantages of legacy ERP systems. As a result, it is essential to upgrade your existing enterprise systems to sustain the cut-throat competition and volatile market conditions.
Understandably, keeping up with the latest ERP trends is advantageous to both the consumers and service providers. As we approach the year 2021, we are going to see many advances in the field of enterprise resource planning. Let’s explore the top ERP trends that will dominate the year 2021.
Cloud-based ERP systems are likely to go mainstream in the coming years and we’re going to see significant progress in 2021. ERP applications were initially offered as on-premise solutions with startup fees and hardware costs. As such, they were too expensive for small businesses and many enterprises refrained from investing in ERP software development. With the advent of cloud computing, more vendors are now offering cloud-hosted solutions. It makes ERP systems more accessible to SMBs and users no longer have to worry about expensive system maintenance and upgrades.
As of today, SaaS ERP solutions are now dominating the market with the increasing adoption of cloud-based models. Companies using on-premises ERP are realizing its limitations including inflexibility, cost scaling, and lack of innovation. It is, therefore, quite evident that cloud adoption is going to play a vital role in improving present-day ERP systems.
Artificial Intelligence (AI) Integration and Other Smart Tech
In many cases, enterprises need to install additional plugins to their ERP systems for performance enhancement or feature extension. However, it’s becoming increasingly common these days for ERP solutions to have such functionalities built-in.
An ERP system with artificial intelligence features (also known as iERP) enables companies to automate their complex business processes through intelligent data processing methods.
There is enormous structured or unstructured data for companies to collect. Hence, they need to find ways to analyze this data and extract value out of it. In such instances, AI-driven ERP systems can be used for data mining and big data analytics. They can create workflows, reduce errors, lessen information loading time, and more.
An iERP solution can also analyze historical data and combine it with information from other departments. It aids decision making processes with accurate risk assessment and forecasting. AI, in addition to other next-gen technologies, when combined with ERP, can significantly enhance an organization’s productivity and operational efficiency.
Increased Adoption of Mobile Apps
Complete mobile support will be among the basic functionalities of a modern ERP tool. Apart from providing on-the-go access to data, the mobile approach in ERP brings a plethora of benefits. One of the obvious capabilities is to perform business operations anytime and anywhere. It means that both back-end and front-end activities are available on mobile devices such as smartphones and tablets. For example, employees working outside office premises can close deals even from home. It is possible because of the easy access to all the information and tools they require in one place.
Mobility also leads to having a more accurate and convenient data capture process. Employees can gather and key-in information straight from the field. It eliminates the requirement to wait for them to return to the workplace and enter data. Moreover, it reduces the instances of production delay by providing better communication between different entities. For example, during the materials delivery issue, the manufacturing process would be put on hold. However, appropriate measures could be taken through real-time communication which could avert or at least minimize losses.
The legacy ERP systems have always been extremely useful in collecting and organizing data. However, they are not as powerful in reporting and analysis. Most of the present-day ERP systems are natively equipped with powerful data analytics features. It is majorly because companies are prioritizing the ability to make data-driven decisions quickly.
As of today, businesses are using ERP systems with integrated analytics, ad-hoc reporting, and data visualization capabilities. Such features provide them access to relevant information in real-time. They use that information to make critical business decisions related to finances, future investments, or other business aspects. As such, decision-making is now available at all levels, from the manufacturing division up to the executives.
In the coming years, ERP users can be excited about more robust analytics and reporting capabilities. The future of ERP points to an end-to-end tool that can process both structured and unstructured data. It signifies that another process that ERP stakeholders will need to prioritize is learning how to leverage big data analytics.
Internet of Things (IoT) Integration
IoT and ERP, when combined, can open a vast range of possibilities. Without requiring any human involvement, IoT offers smooth connectivity to every sensor or physical device in a network. Emerging with a more consumer-centric approach to business is just a way ERP systems can use this innovation.
With IoT and ERP integration services, companies can gather, analyze, and process a vast amount of information through sensors. Similarly, businesses can gain real-time insights into machine performance and closely monitor production processes.
Although it isn’t a new invention, a majority of businesses are yet to extract the real benefits of ERP-IoT integration. It is because the kind of solution, especially the legacy ones, isn’t built to take in data from a network of sensors.
According to Gartner, businesses are expected to integrate 8.4 billion IoT devices into their operations, by the end of 2021. Companies will require a system that will allow them to interface the network for maximizing IoT capabilities.
Wrapping it up
The modern-day ERP systems are rapidly progressing and changing the way companies do business. More advanced technologies are added to ERP systems every year to drive efficiencies. It will continue its growth with many changes coming into the picture by 2021. Future ERP trends indicate that we will see buyers move to the cloud as vendors offer personalized solutions with continuous updates. Companies are adopting new technologies like AI and IoT to edge ahead of their competitors. To accommodate these features and challenges, companies must put more effort into ERP implementation than ever before.
We, at Oodles ERP, provide end-to-end ERP software development services to address varied business requirements of our clients. We have established ourselves as a seasoned ERP development company that enables organizations to gain better control over their resources to drive profitable returns. Our ERP development services bridge the gap between all the important business functions and bring them under a centrally-managed software platform. For project-related queries, drop us a line at firstname.lastname@example.org.