Top ERP Trends: Key Insights for Business Leaders
The world of business is constantly evolving, and the need for efficient business processes and decision-making has never been greater. According to Gartner’s latest forecasts for 2023, Enterprise Software spending is expected to grow by 9.3%, reaching cumulative spending of 856,029 Millions U.S. Dollars.
Businesses need to adapt to the new reality and embrace the future of ERP trends to stay competitive. These trends in the ERP industry include a shift towards cloud-based ERP software, such as Microsoft Dynamics 365 Business Central, modernization and customization of existing systems, migration to the cloud, A.I., integration with Big Data and BPM class systems, and the general trend of remote work.As the business world continues to evolve, organizations need to stay up-to-date with the latest enterprise resource planning trends to remain competitive and efficient in today’s market.
TOP 6 ERP Trends
1. Cloud Acceleration
The COVID-19 pandemic has accelerated the shift towards online business processes, prompting a rapid transformation of the business landscape. As a result, cloud solutions have become increasingly popular, providing organizations with the agility they need to keep up with new trends of ERP.
The concept of on-premise ERP needs to be updated. Today it’s being replaced by a cloud-based ERP that ensures accessibility, flexibility, and functionality. Gartner reports that cloud computing will be the main focus of the ERP market over the next 10 years.
Thanks to migration to the cloud, it became possible to maintain the required volume of traffic and store data, providing access from any device and location.
Cloud-based ERP systems allow companies to:
- reduce initial development costs
- speed up deployment and scaling times
- simplify settings to suit their unique needs
For cloud-based ERP, the initial investment is usually less since you don’t have to buy your equipment – you just need to set up the software and start working with it over the Internet. IT infrastructure maintenance is minimized as the cloud provider takes care of it. Such an approach allows you to free up the company’s resources and direct them to the development and growth of the business.
According to the “How Cloud ERP Compares to On-premise ERP” research, for companies with 100 employees, the total cost of ownership of cloud ERP systems in 4 years is 50% lower than the cost of owning on-premise ERP solutions.
Cloud-based ERP solutions don’t require updates: they are regularly updated by the vendor, so you can be sure you are using the latest version. In this case, all settings are automatically migrated. Also, clouds accelerate deployment speed. Deploying cloud-based ERP solutions takes 3 to 6 months while launching an on-premises ERP takes about a year.Cloud Acceleration is one of the key ERP technology trends businesses must consider to stay competitive and efficient in today’s market. By migrating to the cloud, organizations can reduce costs, improve accessibility and flexibility, and streamline their business processes.
2. AI Integration
The integration of AI is one of the future trends in ERP systems in the modern business world. AI-powered ERP solutions offer several benefits, including optimizing routine tasks, reducing operating costs, and eliminating errors caused by human factors. Artificial intelligence today can study and optimize enterprise processes and improve overall business performance, while ERP software provides the required amount of structured data.
Thanks to the Cloud + ERP + AI synergy – a large amount of data received is successfully supplemented with sufficient storage capacity, with further optimization of business processes based on this data.
The focus of the latest shifts in enterprise resource planning from routine to logical, analytical, and creative tasks increases the enterprise’s efficiency. For example, an AI-powered ERP solution for customer service integrates customer interaction with the order management process. AI solutions understand and learn from historical reports. Depending on the nature of the client’s request, the system predicts a possible request and offers a possible response to the client.
Maintenance is another way to integrate AI with ERP solutions. A digital assistant (DA) can help a maintenance technician determine the cause of a problem by analyzing the performance and service history of this equipment at other sites.The potential for AI-enabled ERP solutions is enormous. The combination and use of AI + ERP technologies lead to incredible, controlled growth of almost any enterprise, gradually freeing professionals from routine operations and making it possible to deal exclusively with intellectual and strategic tasks. At the same time, AI, in combination with ERP, takes over routine accounting operations with further data analysis, the main purpose of which is to optimize digital transformation and improve customer service.
3. Moving into Mobile ERP
Mobile apps are no longer a whim but a necessity. The segment of mobile-enabled ERP solutions will grow, and we expect explosive interest in this segment because the power and functionality of mobile devices are growing rapidly.
Not only interest but also a real need exists in the segment of supply, distribution, and merchandising companies.
Mobility is fast becoming a standard way of doing business, and mobile devices are the preferred way of communicating information to anyone, anytime, anywhere. Mobility in the business management process makes it possible to respond to all changes and stay ahead quickly. It helps to improve employee productivity and company efficiency. Mobile solutions ensure the interaction of CEOs with stores and consumers throughout the supply chain.
Thanks to such technologies, CEOs and managers can track the performance of enterprises even when they are “out of the office”: on business trips, vacations, etc. Mobile ERP access takes enterprise control to a new level. One of the leading ERP software trends is BYOD (Bring Your Own Device). Many people are getting used to their mobile devices and don’t want to change them to corporate ones. Today, employees can independently choose smartphones or tablets that are more convenient for them to use for corporate purposes. So, they need mobile business solutions as simple and familiar as consumer apps.
4. ERP with Real-time Data
The biggest step in the evolution of ERP is the usage of in-memory computing (IMC) technologies. Thanks to that, ERP systems can analyze and process large amounts of data in real time. Through human-machine interaction, the ERP system can determine which processes should be automated and which should be developed. It allows employees to become more productive.
ERP systems interfaces should transfer important information to those employees who need it at the moment, at any time, and anywhere. So in this way, the company’s management can make more effective decisions. It gives businesses a competitive edge in the digital economy, as they can quickly and flexibly adapt to emerging obstacles in real time.
5. Integration of IoT
The ubiquity of IoT (Internet of Things) is a new trend in ERP deployment. It means additional potential for the enterprise’s digital transformation is opening up. Using IoT data in ERP systems can solve the problem of decoupling between data from networked devices, on the one hand, and operational and strategic decisions, on the other.
Today, IoT can be practically applied in traditional enterprise I.T. areas such as customer service, forecasting, inventory management, and business analytics (B.I.).
Today, IoT can be practically applied in such traditional areas of enterprise IT as customer service, forecasting, inventory management, and business analytics (BI).
Any businesses looking to build an IoT infrastructure need a cloud-based ERP system. It’s the only type of platform that can facilitate the connections needed to turn data from various devices on the shop floor into actionable information for decision-making at higher levels of enterprise management. In addition, you need to combine machine and equipment signals so that they can be fed into the structured data environment of the ERP system.
Combining and presenting IoT data through an ERP interface will provide enterprises with many competitive advantages in the future. Thinking about how the IoT can impact the user experience is important. Interaction interfaces are a sore point in the field of intercorporate relations. As more millennials and gen Z come to work as a workforce, you will need user-friendly interfaces to fill jobs, especially in older industries. How we combine IoT technology with ERP software will determine the quality of this experience.
6. Blockchain and ERP
The interest of enterprises in blockchain-based technologies is growing, and over time, they are likely to be applied to the top ERP trends. So far, the blockchain is at the hype stage, but there are real cases in practice. The use of a distributed ledger in supply chains seems promising. There are already examples of blockchain applications in ERP systems in industries for which traceability is important.
For example, Samsung said they’re exploring the possibility of using blockchain to reduce costs associated with the supply chain. As the company calculates, blockchain implementation can provide it with savings of 20%. We’ll see whether this forecast will come true, but Samsung is not the only one who expects to reduce logistics costs using blockchain. Maersk, the trucking giant, is partnering with IBM to implement blockchain for drug transport operations. Given that the quality of medicines can affect people’s lives, the improvements blockchain can provide regarding the traceability of medicines can be very valuable.
In 2023, companies will be able to achieve more in less time through intelligent automation of data-intensive tasks. We expect businesses to migrate their ERP system to the cloud and invest in integrating AI capabilities into core software, automating manual processes using IoT devices, and focusing on upskilling and training to ensure maximum business success next year.
Our Dynamics 365 ERP consulting experts can take responsibility for your evolution of enterprise resource planning software and digital transformation to adopt new and advanced technologies to align with ongoing challenges, including Greenfield BC implementation, upgrading from Dynamics NAV to Business Central, migrating from Oracle NetSuite or QuickBooks to Business Central, seamless integration with allied Dynamics 365 platforms.
What’s Next for Business? Future of ERP
To prepare for the future of ERP, businesses must proactively identify and address their current and future needs. As cloud-based ERP systems become more prevalent, companies should evaluate software and consider migrating to a cloud-based solution. It will enable them to access their data from anywhere, reduce I.T. infrastructure costs, and scale their systems to meet their growing needs.
Furthermore, businesses must prepare for future trends in ERP systems, such as integrating A.I. and Machine Learning algorithms into their ERP software. It includes identifying areas where automation can reduce manual labor and improve decision-making. Businesses should also build a data-driven culture to ensure their systems can provide valuable insights that drive strategic decision-making.
Another way of evolution of enterprise resource planning system is a mobile-first approach. It means ensuring that ERP systems are accessible and user-friendly on mobile devices and investing in technologies enabling mobile data access.
As ERP systems increasingly integrate with IoT devices, businesses must ensure they have the necessary infrastructure to capture and analyze real-time data. It will enable them to make more informed decisions, optimize their processes, and gain a competitive advantage.
Finally, businesses must prioritize security to protect their sensitive data from cyber threats. It includes implementing security protocols, regularly reviewing and updating security measures, and investing in secure ERP systems that offer robust security features.
Consider Digicode Your Trusted Partner
Digicode is a full-service custom software development company in USA that offers Microsoft Dynamics ERP Services to adopt new and advanced technologies to align with ongoing challenges, including Greenfield BC implementation, upgrading from Dynamics NAV to Business Central, migrating from Oracle NetSuite or QuickBooks to Business Central, seamless integration with allied Dynamics 365 platforms. We are committed to providing our clients with end-to-end software development services, from initial discovery and design to development, testing, and maintenance. Our unique selling proposition is our ability to deliver high-quality, reliable, scalable ERP systems that meet our client’s needs.
Our team of experienced developers, designers, and project managers has expertise in developing ERP systems that integrate with current trends in ERP, various technologies and platforms. We have worked on multiple ERP projects, including inventory management, order management, financial management, and supply chain management systems. Our experience in these projects has enabled us to tackle complex challenges of ERP implementation and adopt top ERP trends that meet our client’s business objectives.
One of our recent projects involved implementing Dynamics 365 Business Central for a Science and Technology Center. The client faced challenges with many manual and Excel-based processes because of their limited and outdated ERP system. They recognized inefficiencies and inaccuracies caused by the system, and they wanted a single ERP system to manage and control project grants and create advanced reporting. We helped upgrade its ERP system, enabling them to automate its operational and financial accounting and generate corporate reporting.
You can find more information about our ERP projects on our portfolio page.
At Digicode, our client’s success is our success, so we are committed to providing exceptional service and high-quality solutions. If you are looking for a trusted partner to implement the ERP system that meets your business needs, we invite you to contact us to learn more about our services.
How will the rise of Industry 4.0 impact ERP trends in 2023, and what opportunities will it present for businesses?
The rise of Industry 4.0 is expected to have a significant impact on ERP market trends in 2023.
The capacity to exploit data to enhance production processes and boost efficiency is one of the primary opportunities given by Industry 4.0 for organizations. ERP systems intended to interact with Industry 4.0 technologies, such as IoT sensors and AI-powered analytics, may give real-time insights into manufacturing processes, allowing firms to discover bottlenecks and inefficiencies and make data-driven choices to optimize their operations.
Furthermore, Industry 4.0 technologies can enable more flexible and agile manufacturing processes, which can be especially valuable for businesses operating in volatile markets. ERP systems built to support agile manufacturing processes can assist organizations in swiftly adapting to changing conditions.
The potential for increased collaboration and connectivity across supply chains is another opportunity presented by Industry 4.0. ERP systems built to interact with supplier systems and other supply chain technology may help firms track and manage their supply chains more effectively, increasing efficiency and lowering costs.
What are the biggest challenges facing companies implementing current ERP trends, and how can they overcome these challenges?
The biggest challenges facing companies implementing current ERP software trends include integrating with legacy systems, data migration, change management, cost, and training. To overcome these challenges, companies should analyze their systems, choose the right ERP software, plan for data migration, implement change management strategies, evaluate costs, and provide employees with proper training and ongoing support. Here Digicode’s experienced ERP developers can help. We offer guidance in choosing the right ERP software, customizing the software to integrate with legacy systems, and developing a comprehensive plan for trends of ERP implementation. Additionally, we can provide training and ongoing support to employees, ensuring they can effectively use the new ERP solution.
How is Digicode catching up to these ERP trends?
Initially, Digicode always stays up-to-date, monitoring ERP trends and adopting these technologies for our clients. Our ERP consultants attend technology conferences, research ERP industry trends, and review our software development process standards regularly.
To comprehend the clients’ needs and pain points, Digicode’s experts also engage in market research. It enables us to implement ERP solutions tailored to each client’s specific needs.
Finally, integration with other systems is essential. Many businesses use a variety of software systems to manage their operations. We can guarantee that the Digicode ERP solutions can easily integrate with other systems, provide seamless data migration, increase efficiency, and lower the risk of errors.
By doing this, Digicode’s ERP consultants create superior ERP solutions that are tailored to each client’s unique requirements and aid companies in streamlining their operations and increasing efficiency.
How is emerging technology shaping the future of ERP systems?
Emerging technologies such as artificial intelligence, machine learning, the Internet of Things (IoT), blockchain, and cloud computing are shaping the future of ERP systems in several ways. Firstly, A.I. and machine learning are being introduced into ERP systems to automate regular processes, analyze data, and deliver predictive insights. It enables organizations to make faster and more informed decisions.
The IoT enables ERP systems to collect and analyze real-time data from connected devices like sensors and smart machines. The data can be used to optimize operations, improve quality control, and reduce downtime.
Thirdly, blockchain technology is integrated into ERP systems to improve supply chain transparency and traceability. It helps to prevent fraud, counterfeiting, and other supply chain risks.
Finally, cloud computing is becoming the preferred deployment model for ERP systems due to its scalability, flexibility, and cost-effectiveness. Cloud-based ERP systems can be accessed from anywhere, enabling remote work and collaboration.
In general, emerging technologies are assisting in the evolution of ERP systems into more intelligent, agile, and connected platforms that can support future organizational innovation, productivity, and growth.