Top ERP Trends To Watch Out For In 2021by Scarlett Jonathon Head of Marketing at DynamicsSmartz
In today's rapidly changing environment, businesses are continuously looking for flexible software solutions to streamline their processes and enhance their expertise. Most businesses these days use ERP solutions; however, keeping them up-to-date to keep pace with the latest technological development is equally critical.
With a full-blown pandemic underway, organizations are not just trying to return to where things were; they are determined to re-invent their business models, revamp their business processes, and transform their organizations from top to bottom.
Some of the drawbacks of legacy ERP systems are security limitations, soiled information, and spreadsheet dependency. As a result, to survive the cut-throat competition and uncertain market conditions, it is necessary to update your current business systems.
Both customers and service providers must keep up with the latest ERP trends. Let's examine the top trends in ERP that will dominate the year 2021.
Using cloud-based ERP applications is not exactly the latest ERP trend but it's most certainly the most game-changing one. ERP solutions have only been deployed in the past as on-site solutions with start-up fees and hardware costs. As a result, for small-scale businesses, this was a costly affair.
With the advent of cloud computing, cloud-hosted options are now provided by more and more service providers which makes ERP solutions more available to SMBs. With these systems, customers no longer have to think about costly system maintenance and upgrades. Besides, they can opt to use only the modules that they need, providing them with more control over their budgets.
SaaS ERP solutions are now leading the market due to the popularity of cloud adoption. Many businesses that use ERP on-site are aware of their constraints, including inflexibility, expensive scaling, and lack of innovation. When the pandemic forced several organizations to work remotely, these weaknesses became more pronounced, deeming on-site solutions inadequate, if not entirely obsolete. The expected growth of the market to $101.1 billion by 2025 (Markets and Markets, 2020) is now driven primarily by the rising demand for cloud-based ERP applications, particularly from SMEs.
The use of the cloud ERP doesn't end here. There are a rising number of organizations that opt for hybrid ERP solutions as well. Although 51 percent of chief information officers (CIOs) favor cloud ERP and 35 percent use on-premise solutions, 10 percent of businesses now use hybrid ERP tools according to Accenture's 2019 ERP Trends, and it is set to rise in the coming years.
2. The Integration of AI
For a few years now, artificial intelligence (AI) has been the talk of the ERP-town. AI and machine learning (ML) technology has slowly trickled into every industry in the last 5 years, infusing new possibilities into their systems and platforms. In the ERP and business applications landscape, 2021 will witness the exponential growth of AI.
Until now, to benefit from process automation and intelligence, organizations needed to invest in installing add-ons to their ERP and business applications. We will witness the emergence of 'iERP' technology in 2021, improving ERP and business software technologies with built-in functionalities of artificial intelligence and process automation. Innovative data processing will be the signature capability of the new ERP and business applications model, leading to the reduction of errors and loading time of information, implementation of new workflows, process automation of routine tasks, and conversion of complex, unstructured data into actionable insights.
iERP will enable companies to boost their bottom line and improve efficiency and productivity.
3. Increased Mobility
One of the essential functionalities of a modern ERP tool is end-to-end mobile support. In addition to on-the-go data access, ERP's mobile approach offers a multitude of advantages. Its ability to conduct business activities at anytime, anywhere is one of the most evident ones. This means that both back-end and front-end activities are possible on mobile devices like tablets and smartphones. The impact of increased mobility on the overall performance is excellent. Staff working outside office hours, for example, can close deals even from home. That's because they have access to all the data and tools they need at their disposal.
Mobility also means providing a method of data collection that is more precise and convenient. Workers can directly capture and key-in information from the field. This eliminates the need to wait for them to return to the office and enter data.
Mobile ERP also decreases the risk of delayed development due to improved communication. For instance, if there is a problem with the supply of materials, the production process would be put on hold. But if it is recorded in real-time, then steps can be taken to prevent or at least reduce losses.
4. Powerful Analytics
The key functionality of
any ERP system is the collection and organizing of data. But the analysis
feature of the data does not have much hold. Currently, ERP systems have
implemented powerful data analytics features since businesses prioritize the
system's ability to quickly and reliably make data-driven choices. In the
coming years, ERP users will see more robust analytics and reporting
5. The Integration of IoT (Internet of Things)
If combined, IoT and ERP can create a variety of possibilities. It is also possible to access these possibilities without any human intervention. Both of these combined would enable businesses to capture, analyze and process large amounts of data through sensors and other functions. This will help companies to gain insights in real-time and control production processes.
The modern age of ERP systems is increasingly emerging and altering the consumer aspect of doing business.
The requirements and needs of businesses in 2021 cannot be fulfilled by generic ERP systems. Niche solutions are constantly in demand, meaning ERP systems that are only intended for a particular industry. The unique features and functionalities needed by companies operating in the niche market are found in niche ERP, ensuring that these solutions provide far more value than generic applications. Besides, the service providers also have industry-specific experience, ensuring they will offer excellent assistance now and in the future while improving business processes and realizing business goals. We will also foresee more and more hyper-niche ERPs in 2021.
7. More than just an ERP
The current state of information and communication technology enables ERP to be perfectly integrated with other systems and tools. While ERP has historically been a stand-alone program, it is now becoming an organization's most significant software framework when linked with other systems, with Word, Excel, Outlook, and teams, for example, or with warehouse management systems, CRM, track and trace or transport. Companies seeking a new ERP system will not only concentrate on the system itself in 2021, but will also look at how the ERP system blends with the rest of the IT infrastructure.
Modern-day ERP systems are rapidly advancing and transforming the way companies do business. To drive efficiencies, more advanced technologies are added to ERP systems each year. With the constant advances in modular solutions, cloud computing, and other technologies, these systems can also be leveraged by small-scale companies.
There are several organizations that have not invested or are not entirely sure about ERP systems but ERP investment is worth a shot! It is also fortunate that large and small businesses now have access to these systems as they potentially help ensure continuity and effectiveness of the business in the midst of the pandemic.
Author Bio:Shawn Sauve is the Vice President and Global Dynamics Practice Lead at DynamicsSmartz – Microsoft Gold ERP and CRM Partner. Shawn has been helping organizations grow by aligning the right people processes and technology both within his organization and for the clients from various industries like Manufacturing, Construction, Financial Services, and Information Technology. He is a strategic thinker and visionary who can see the big picture and focus on key issues to accomplished established goals.
Created on Jul 8th 2021 03:05. Viewed 366 times.