ERP TRENDS

Trend #1: The future of Cloud heats up (even more)

Cloud ERP adoption has exploded in recent years and it’s showing no sign of slowing down. The global market is expected to nearly double , growing from $64.7 billion in 2022 to $130 billion by 2027. The benefits of cloud ERP have long been understood – however recent, pressing concerns are causing demand to spike even more.

For example, many companies are struggling to compete and stay profitable in fast-changing industries – and as a result, they are under intense pressure to transform. They need to think outside the box, adopt new business models and lines of revenue – and they need to be able to pivot on a dime. Since cloud ERP software touches nearly every aspect of a company, it’s the fastest path to complete digital transformation and new, more advanced business capabilities.

The changing world of work – including talent scarcity, the Great Resignation, and remote and distributed workforces – is also driving cloud ERP adoption. Employees and contractors expect to be able to work from anywhere, easily and securely, with modern tools that are a pleasure to use. And organizations expect to be able to do more with less people by automating processes and gaining new efficiencies. These are no longer nice-to-have’s. They’re musts. Businesses are rushing to meet these expectations with cloud ERP. And SaaS ERP vendors are delivering with cloud capabilities to meet those demands – the future of cloud ERP never looked so good.

Lastly, organizations are turning to cloud ERP in greater numbers to standardize. A lot of what they do, they have to do just to be in business – like paying taxes and managing accounts receivable. By using cloud ERP to standardize their core processes, they can free up more time to focus on what differentiates them now, and what might differentiate them tomorrow.

The year 2021 saw the ERP software market grow 11% to a market size of $44.4 billion in total software revenue. Most major providers saw improved revenue growth as end-user activity for new and expansion ERP activity started to recover.

Trend #2: Mobile ERP evolves into multi-device experiences

Mobile ERP is nothing new – it’s been around for decades. However, it’s evolving from basic apps into smart, multi-device experiences. With this more advanced form of mobile ERP, a user’s tasks and to-do’s follow them across all the devices they use as they go about their day: a laptop, desktop, mobile phone, smart home speaker, smartwatch, smart TV, or almost anything else that can connect to the Internet. And the system knows where they left off, so the experience is seamless.

Trend #3: Integration with AI and IoT 

Nobody goes out to buy “AI-powered ERP” – that’s just tech marketing. Artificial intelligenc e and machine learning are much more subtle than that. They work behind the scenes to improve everything, from insights and user experiences to automation and business processes. In the past, a lot of this was achieved through add-ons and integrations, but now many ERP vendors offer these capabilities built right in as a part of the ERP technology stack. 

When combined, ERP and the Internet of Things (IoT) also offer a wide range of business benefits. For example, data from mobile scanners and smart conveyor belts can be used to track goods within a warehouse. Cars can provide real-time information back to manufacturers, who can then identify and fix problems before they happen. Smart shelves in retail stores can automatically place orders when inventory gets low. With so many different actors and data sources, it’s essential that a business has confidence in the integrity of its IoT data – before it’s used to shape decisions and actions. This is where ERP comes in. The IoT on its own is fascinating, but the data needs to be fed into an ERP system to really make the magic happen, with trust and confidence.

Trend #4: More powerful ERP analytics 

ERP systems have always collected data and provided basic reporting capabilities, but now they have evolved far beyond “basic”. AI-powered analytics, data visualization tools – and even what-if analysis – have replaced the dashboards of days past. We’ve shifted from “what happened?” to “what’s happening” to “what would happen if?”

Conversational, message-based analytics have also come to the fore. Now, instead of a user having to mine their data, they can simply ask questions such as, “What does my sales forecast look like for next month in North America?” or “What impact will the weather have on my supply chain in Asia?” ERP analytics can also act on commands, like “Optimize my transport routes to minimize carbon impact.” 

Today’s powerful ERP technologies and analytics not only provide the data, but also guide users in their tasks, provide context-rich insights, and flag anomalies – sending an alert and “inviting” the user to participate in the process when an anomaly is seen. We have evolved to the point where, with good ERP analytics, the system can even autonomously act on a user’s behalf.

#5: Two-tier ERP 

Two-tier ERP has been around for 40 years, but it’s gaining in popularity – which makes it a top trend for 2023.

With two-tier ERP, companies use two different ERP systems to address their needs. A Tier 1 ERP with the functionality required to run a large global company is used at the corporate level. While subsidiaries and divisions run a more flexible a Tier 2 ERP that supports their specialized needs – usually in the cloud.

This approach is typically less costly than trying to retrofit a corporate ERP system to work for the entire business. It also provides subsidiaries with the ability to operate nimbly and respond to changing business conditions on the fly – while still providing the parent company with essential insight into the financials and other key aspects of their Tier 2 businesses.