This is the age of digital transformation and automation. Most business operations from accounting to customer management, are now supported by ERP Systems. However, ERP reduces expenditure of the businesses by automating repetitive tasks. It also gives staff members access to vital data so they can make decisions more quickly and effectively.
Moreover, ERP systems are evolving to support a wider range of business functions. Also, they are incorporating new technologies as businesses depend more and more on them to run their operations. In this blog, we’ll go over five key ERP Trends to watch in 2024 and beyond regarding ERP systems. But before that, let’s have a quick overview of the key takeaways for the future of ERP.
Key Findings
- Businesses all around the globe will continue to switch to a cloud ERP solution. According to Statista, the global cloud ERP market is projected to expand at a rate of 13.6% per year and reach $40.5 billion by 2025.
- AI and machine learning in particular will automate more business processes, customise customer interactions, and generate new insights this year and beyond.
- ERP is integrating with more and more technologies, like social media and IoT devices. The integration capability makes ERP a powerful resource to increase automation areas, improve visibility, and enhance the user experience.
- In the wake of the coronavirus, companies depend more on distributed workforces. Therefore, having a solution that can facilitate remote work has become essential.
Now, let’s look into the significant trends to watch in 2024 and beyond about ERP Software.
ERP Trends in 2024
Various trends will continue to go further regardless of time. Let’s have a look at some ERP Trends one by one.
Digitalisation and Modernisation
This refers to connecting digital technology with all modern business functions to streamline day-to-day operations. However, this trend enables organizations to be more competitive and grow their revenues. It is because digitalization boosts employees’ productivity, enhances customer service, and improves communication. One good place to start facilitating this transformation is an ERP suite that usually links all parts of an organization.
Further, according to Accenture’s previous report on ERP trends, about 75% of UK companies use cloud ERP as a modernization tool. However, this trend incorporates various approaches, such as the adoption of AI, machine learning, IoT device integration, and so on.
Cloud-Based ERP Systems
In the past, a lot of businesses relied on on-premises ERP Software and were hesitant to put critical business information in the cloud. However, this situation is changing quickly. Cloud ERP is becoming more and more popular among businesses. The reason behind its popularity are several reasons, such as:
- Cloud ERP systems are easy to deploy.
- Low cost of implementation.
- Cloud ERP reduces the dependency on internal IT resources and staff.
- Its functional flexibility to meet unique business needs.
- Ease of expansion and much more.
Moreover, the pandemic has heightened awareness of the benefits of cloud ERP. It is because cloud-based apps let employees complete tasks remotely with an internet connection—not just in an office. This is the time that ignited the culture of working from home significantly. As a result, most CFOs worldwide are investing more in cloud ERP products to provide superior support for their remote workforce.
Integrations with ERP Systems
Modern ERP implementation is the main factor in a company’s digital transformation. However, this software is capable of integrating with various business technologies, like supply chain and sales, with IoT connectivity. It improves business functionality, connects all departments, improves communication, and, ultimately, helps them grow.
Retailers, for instance, track the movement of goods inside the warehouse using warehouse management systems (WMS) that gather information from QR scanners. To enhance online order workflows, some businesses combine ERP and e-commerce systems. This allows for automated order fulfilment, inventory level updates, and payment recording.
Additionally, there will be more integration between social media and marketing software systems. Through this approach, businesses can comprehensively understand their audience and develop personalized digital marketing strategies.
AI-Powered Systems
Now, ERP providers are deploying their systems with AI and ML capabilities, more than in the past. These systems help to meet the evolving demands for personalization and enhance a variety of business processes in the back end. In addition, companies can generate data-driven reports timely, and gain valuable insights for their operations. However, in the past, businesses could add AI functionality to some ERP systems, but more vendors are now offering ERP software that already has these features.
Mobile ERP
For a while now, ERP vendors have provided mobile support, and mobile apps are taking place on the list of ERP trends. However, ERP systems are developing to give workers mobile access to vital business information, enabling them to perform back-end and front-end operations from any location. Additionally, mobile ERP can promote cooperation among dispersed workforces located in various time zones.
Furthermore, user-friendly mobile ERP applications can facilitate productivity even when users are not in front of a computer. Workers can use their phones to view the status of important workflows or approvals, schedule meetings with clients, and get notifications before meetings. In addition to real-time data and insights, mobile ERP offers a host of other advantages, such as:
- Constant remote access to the system.
- Enhanced communication and better productivity.
- Quicker data collection.
- Greater agility and the list goes on.
These are the five key trends regarding ERP Systems in modern businesses worldwide. But, the upcoming future is far more than what we can think of. This is because of the super-fast development of AI systems and the evolving technology in all industries.
Final Words
Many businesses are shifting to cloud ERP. One of the main reasons for this shift is this system helps them to manage their resources online. However, this change will happen faster in the upcoming years. Modern businesses want to be fast and flexible now. And, to be fast and flexible all they need is an ERP implementation into their workflows. Businesses that have already invested in cloud ERP will search for methods to extend the cloud’s capabilities.
An additional trend to keep an eye on is the continued development of ERP Supply Chain Management capabilities. It can shield the company from supply chain disruptions or other abrupt shifts in the state of the global economy. There will be a lot more to come in the future; just stay tuned with NYGGS for more information.