Top Seven ERP Trends for 2022
COVID pandemic has accelerated the Digitization, Digitalization and Digital Transformation plans for many companies. Companies have all of a sudden understood that Technology can enhance efficiencies and profitability. Technology not seems esoteric.
In addition, the final ten years have seen many technologies and concepts mature from the POC (Proof of Concept) part to become ‘Industry Ready’. Technologies like Artificial Intelligence(AI), Remote Collaboration, Machine Learning(ML), Robotics Process Automation(RPA), Industrial IOT and Blockchain has demonstrated its worth to the early adopters who made these technologies part of their daily activities. The info and intelligence offered by these technologies have added worth to the adopters.
Companies have begun technology as an income driver rather than a price element. This shift in perspective means larger readiness to embrace technology.
ERP(Enterprise Resource Planning) is the backbone of any technology initiative in the organization. ERP will each drive and be impacted by the shift to the technology adoption mindset of the businesses. This blog seems to be art seven trends that may affect the ERP market within the coming years.
While on the demand aspect Organizations are evaluating ERP as part of their Digital Transformation initiative, ERP service providers are offering new income models to lower the pain of the purchasers and enhance the client experience. They have introduced easy and revolutionary income models that give a way of predictability to their clients. They are often including new features to their applications to fulfill myriad requirements of the customer.
Both these features, demand pull and provide push will drive the ERP market in the years to come.
Global ERP Market:
The ERP Market is predicted to develop from 54.40 Billion USD in 2022 to 70.23 Billion USD by 2022 based on the market analysis agency Valuates Reports. The main factors impacting the rise in demand are technology adoption, effectivity enhancement and cloud & mobility. Yet another driver is the demand for ERP from the SME segment.
While North America will see the most important market share, Asia will see the best enhance in demand for ERP, particularly driven by SMEs in India, China and Singapore.
Global Cloud Computing market will develop from 445 Billion USD in 2021 to 832 Billion USD by 2025 ( and further to $947 Billion by 2026). ERP Service providers are anticipated so as to add new technology solutions to their Cloud portfolio to profit from this investment.
Trend 1: Cloud ERP: Cloud ERP service providers are providing numerous value propositions. They are transferring away from the normal pitch of Capex (Capital Expenditure) versus Opex (Operational Expenditure) and are actually stressing superior safety, data redundancy, versatile payment plans and superior options of their ERP systems. This makes Cloud adoption a lovely possibility for corporations contemplating ERP. On-premise model limitations like regular and disruptive upgrades, high amount of Capex and shrinking consultants ecosystem as consultants shift to Cloud ERP make Cloud adoption an easier decision for clients.
Trend 2: Integration with Advanced Technologies: Cloud computing is enabling ERP service providers to shortly integrate superior technologies like IIOT, Blockchain and Business Intelligence with their ERP. ERP Vendors are already offering standalone technology systems to their clients and we’ll see these getting integrated shortly. A easy instance of this integration is using real-time information offered by IIOT to set off the Blockchain smart contract that automatically generates a new Sale Order within the ERP software. Another instance can be the usage of Machine Learning to auto-fill information in ERP thus decreasing information entry and enhancing consumer expertise. Improving consumer expertise would be the preliminary aim of those integrations, however quickly they are going to begin producing enterprise value by enabling higher evaluation and decision-making.
Trend 3: Industry particular solutions: The 4 years of the 21st Century was driven by Generic ERPs and Cloud adoption. Now that the cloud has matured, ERPs that present niche, industry specific solutions will be the future. The core ERP will remain unchanged of course, but ERP service providers will offer more area of interest and modular solutions that will deliver a plug and play integration with ERP. For instance, while the generic Procure to Pay solution will still be accessible, the ERP Vendors will provide bolt on solutions to deal with the advanced procurement process or the dairy or a meat processing business, the distinctive provide chain necessities of a Wholesale Distribution business or the advanced costing necessities of a logistics business.
While the second decade of the 21st Century targeted on generalization, the approaching decade will see specialization coming again with a vengeance.
Trend 4: Digital Transformation: This is a change in mindset for a company, where it adjustments the best way it makes use of Technology. The goal is to make IT as a enterprise value proposition and a income driver quite than only a resource consuming department. An ideal transformation will change every aspect of the Organization starting from sourcing to customer relationship and everything in between.
The COVID pandemic of 2020 has energized the digital transformation initiatives. While mobility and remote working was all the time the objective of the transformation, the pandemic eliminated the skepticism around that. The pandemic has satisfied many CEOs that Digital Transformation might work and there’s lot extra appreciation and budget getting into for it.
ERP is the foundation of a profitable Digital Transformation. Implementing ERP as part of a 5 yr Transformation plan shall be a key development within the coming years.
Trend 5: Mobility, Voice, Bots, Collaboration: ‘ERP on the go’ and ‘ERP Everywhere’ are going to be the new ERP trend. Mobility will allow each date entry (input) in addition to information access (output). While many ERPs are already enabling mobility, it’s going to explode with Cloud Adoption. It is just a matter of time earlier than the salespersons at a customer web site will examine the cell for accessible to promise and scan the QR code on the product to enter a brand new sales order.
Voice shall be another related development. Already CEOs are integrating their ERP with Alexa and getting the newest manufacturing numbers at their desk by asking a easy query to Alexa or Siri. Going ahead Voice might be used for information enter, the place a purchaser can create a purchase order requisition by dictating the order to Alexa. Potential is enormous.
RPA is getting integrated with ERP to create Chatbots that may assist stakeholders get their clarifications shortly and accurately. Chatbots also can encourage internal collaboration. In addition, ERPs are integrating collaboration tools like chats and videos (and even Wiki) to their ERPs.
Future for ERP seems exciting.
Trend 6: Plug and Play Integration: With Cloud Adoption, Integration using standard APIs will be the new ERP trend. Customers will no longer be depending on a single vendor for the whole solutions. You may see clients using one ERP for their core processes and using solutions from totally different distributors for their specific requirements. For instance, they could use ODOO as their core and use Oracle HCM (Human Capital Management) for HR, a 3rd party payroll vendor for their Payroll, a sourcing solution from another service provider and a complicated planning system from yet one more vendor. These niche solutions will need to be seamlessly integrated with ERP systems by ERP vendors. This shall be similar to many apps being put in on your mobile phones.
Trend 7: Intelligent ERPs (iERP) that use AI and ML for advanced analytics: With the advent of Cloud ERP applications, the analytics options supported by ERP applications have gotten stronger by the day. Most of the applications have enabled embedded information warehouse instruments like Cubes to have a 360 degree interaction with ERP. Unlike the previous where information flowed from ERP to the Data Warehouse, the superior ERPs allow Data Warehouse to make use of the data to generate transactions in ERP.
While information if available in abundance, the currently available analytics instruments are weak in producing intelligence out of the data. In addition, these tools are good at analyzing structured information, but they’re weak at dealing with unstructured data. That is where new technologies like AI and ML will play a significant part sooner or later. They will use each structured and unstructured information for predictive analytics and determine gaps in addition to opportunities.
Artificial Intelligence and Machine Learning are going to make ERPs Intelligent.
What are the challenges that ERP Service providers can anticipate within the coming year?
COVID remains the main concern. In 2022, corporations scaled down on their IT Investment. They aren’t anticipated to assessment the IT Budget within the present yr as effectively. In a survey, greater than 80% of corporations reported similar or decrease sales anticipated in 2023 compared to 2022. No new ERP Investment is predicted within the first half of 2022.
The trends we mentioned so far will come into impact as quickly because the pandemic scenario improves and world regains confidence.
