Investing in ERP software to streamline your workflows, save money and boost productivity is wise. Buying into new technological ERP trends to centralize operations and earn an edge over your competitors is wiser.
To sate our curiosity and inform readers, we spoke with several SME thought leaders to gain their thoughts about the future of ERP and understand common pitfalls when shopping for the latest technologies.
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Table of Contents
Key Takeaways
- One common mistake when browsing for future trends in ERP includes falling for the hype and allure of new technology.
- Although AI is sweeping numerous industries, it can provide misleading data and showcase vulnerabilities.
- Business intelligence, business analytics and predictive analytics provide insights into internal and external factors you’d miss otherwise.
Top ERP Trends
Here are eight future trends in ERP to keep an eye on.
1. Cloud Deployment
A favorite among future trends in ERP, this software’s shift to the cloud is fascinating to small and mid-sized businesses. When we chatted with Laurie McCabe of SMB Group Inc., she gave us insight into how this may affect smaller organizations.
Cloud adoption among SMBs for all applications, including ERP, will only continue to rise. SMB Group research shows that 70% of small and medium businesses (SMBs) say they are likely to buy a cloud solution the next time they need a new application.”
The benefits of cloud-based ERP are numerous and often provide the most help to small businesses. Cloud-based solutions make it so small businesses don’t have to maintain their systems by themselves, drastically reducing the need for in-house IT.
These software types allow small companies with just one or two IT employees to take advantage of an ERP system they otherwise couldn’t afford to maintain.
In summary, the cloud ERP software industry provides users with easy-to-use apps and cross-platform or mobile-native capabilities.
However, legacy ERP software vendors need help measuring their pure-cloud counterparts; their apps often need robust integration capabilities.
The cloud has made a permanent mark on the ERP and technology industry. It’s no surprise that MarketsandMarkets predicts the global cloud computing market could reach $1,240.9 billion by 2027.
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2. The Internet of Things (IoT)
The Internet of Things (IoT), aka direct machine integration, refers to the connectivity between computers and other devices. IoT provides improved asset management, efficiency, forecasting, real-time business insights, communication, BI and more.
IoT also supports autonomous vehicles, real-time analytics, AI, eCommerce retail and more.
Among other factors, customer demand has necessitated a growing IoT presence in the business world. As a result, IoT integration will be seen everywhere within the ERP software industry and become an asset for ERP software buyers.
Shelly Gore, CEO and co-founder of A Bigger View, explained to us about this trend’s growing influence in the past few years:
IoT was a mere buzzword until the full power of what it had to offer began to be realized by companies, and the many great advantages it gave these companies over their competitors, for a very reasonable cost. Proactive maintenance, rapid increases in quality and idealized production scenarios are just a few of the many advantages.”
She added, “Remote work and automation heighten the need for these technologies, which provide critical data to [make] smart decisions.”
IoT has spread across several industries, including manufacturing, and shows no signs of slowing down, which is likely why Allied Market Research estimates the global IoT market could reach $73,918.82 million in 2026.
Check out our free ERP comparison guide for more IoT-based ERP solutions.
3. Mobile ERP
With everyone on their smartphones, tablets and other devices, mobile ERP is becoming a juggernaut in the industry. Who wouldn’t want to keep tabs on their business consistently, even when away from the office?
Gore stated how this trend could boost efficiency.
For example, in a warehouse or production facility, scanners allow all workers, even new hires, to report real-time inventory movements as they happen. This data, in a centralized ERP, can then be seen by sales, purchasing, quality and senior management at all other locations globally. Mobile ERP connects every person and activity in an organization regardless of physical location.”
Sam Gupta, the principal consultant at ElavatIQ, mentioned that mobile ERP could automate processes that most users don’t have much background knowledge about, such as business, accounting or marketing.
The mobile interface simplifies the interaction so that they need to understand only a few scenarios and how they navigate their way around exceptions. For example, warehouse workers may be able to scan a whole pallet with one scan, which could potentially receive the inventory in the warehouse, register the number of cases and products, update quantity in appropriate locations [and more].
Now, this seems to be a very complex workflow if you were to teach these warehouse workers how to enter this data. But with the mobile scanners, it makes it easier to scan multiple data fields and assign to the entire form without having to do multiple scans.”
Gupta also discussed how mobility boosts transaction lead and cycle times.
If an executive needs to be always in front of their computer to approve a specific amount on a purchase order or a quote on a sales order, it might delay the cycle time, especially if you may have [a] mobile workforce. The mobile interface expedites the transactions and their processing, which will result in superior customer and employee experience.”
Mobility plays a vital role in and out of the workplace, which is why Allied Market Research predicts the global smart mobility market will hit a value of $70.46 billion by 2027.
4. Two-Tier ERP
Two-tier ERP is a concept where mid-sized and small companies run two merged solutions simultaneously. This trend is also accessible to companies that have multiple locations or subsidiaries.
Two-tier ERP ties in with cloud computing and, generally, makes ERP systems more accessible for all companies.
A surge in digital transformation and eCommerce means current businesses require mobility. Due to increased demand for this technology and convenience, customers must access the companies’ offerings via the web.
5. Artificial Intelligence (AI)
AI is making huge strides in technologies like ChatGPT, Alexa, Siri, Spotify, Netflix, Xfinity and more with voice activation and providing movie/TV show recommendations based on what you’ve already watched.
If AI can improve our leisure and personal time, it should easily fuse with ERP programs to automate business protocols. It’s already thriving in the manufacturing and accounting realms.
Thanks to AI’s personal and professional presence, MarketsandMarkets forecasts that the AI market will hit $1,345.2 billion in 2030.
Gupta predicted that as more solutions receive AI capabilities, the easier they will be for users.
The biggest challenge with most ERP systems has always been to remember the complex workflows and feature sets that may take longer time to learn for users that might not be familiar with the design or inner workings of the ERP systems. The AI capabilities are maturing, especially because of ChatGPT. So now we will see a lot more acquisition of these capabilities and them being incorporated as part of the ERP to drive user experience.”
The end users might not feel the direct impact because of the AI technologies. They will feel as if the user experience [has] become richer and the systems are becoming easier to use. These AI-driven trends will drive the adoption of newer cloud-native ERP systems in 2024.”
Gupta also provided some examples of ERP leveraging AI.
Automatically assign bins depending upon the availability during receipt of the product in your warehouse. Entering data automatically from the invoices that may be sent in the PDF form via email through a physical copy. Changing the buttons and workflows depending upon the users’ actions on a specific screen so that the user doesn’t have to remember [a] 300-page document to navigate through the ERP system.”
Gore weighed in on how this technology adds more layers to data insights for better decision-making.
AI can analyze large amounts of data, selecting the few nuggets of information that are critical to decision-making. Merging AI’s power with a wealth of good ERP data puts the right data at the right time in front of the exact person who needs to act on it in an organization.”
Lisa Anderson, founder and president of LMA Consulting Group Inc., added that ERP and AI can improve decision-making with adequate data.
Instead of wasting valuable time and precious resources producing the wrong products, maintaining the incorrect equipment and/or running suboptimal production sequencing runs, leveraging AI with ERP workflows will provide quick wins in terms of customer performance, profitability and cashflow.”
She warned that AI’s data can also mislead.
As is common sense, AI will not add value in every situation. In fact, it can simply provide incorrect information quicker in some circumstances.”
McCabe identified a few mistakes in AI when sifting through data.
Cons include that people using AI may not understand how it is making decisions, making it difficult to validate and/or trust AI outputs. Data security and privacy concerns are also a factor because AI can potentially introduce new vulnerabilities that people may not be aware of, such as biases in algorithms to screen job candidates.”
Gupta added that we should limit AI in certain operations.
The use of AI should be limited to suggestive workflows, such as finding opportunities that might need attention or discovering GL anomalies. AI can operate on the fuzzy datasets [and] augment incomplete datasets. But that might also make debugging more challenging, especially if the algorithm becomes too complex.”
6. Industry-Specific ERP
ERP no longer satisfies the one-size-fits-all mold. Some companies still want an ERP system with a mix of different modules, but more companies are shifting to software that meets their industry-specific needs, like food and beverage ERP. Most vendors also appeal to differently-sized companies because enterprises aren’t the sole economic providers.
McCabe discussed that industry-specific ERP solutions make a better impression on clients than the all-in-one model.
ERP and business management solutions that are built from the ground up to satisfy the needs of a specific industry are likely to fill more of a customer’s needs more easily than horizontal solutions.”
Anderson explained that her clients prefer more prominent ERP vendors over industry niche systems.
[Our clients] believe there is less risk in name brands. And they assume they will have the resources to invest, which is essential to maintaining pace with technology advances.”
7. Digital Transformation
Digital transformation transforms business operations into a digital landscape with the latest technology, including IoT, AI, digital twin and more. This trend simplifies automation, provides higher productivity and garners more revenue.
Gupta explained that this trend’s outcome isn’t new, but its maturity has evolved.
While the maturity of digital transformation may have increased with the invention of newer technologies, such as Industry 4.0 or headless commerce, the fundamentals are still the same. In the context of ERP, digital transformation is meant to be looking at complete architecture, including enterprise systems that form the operational core, rather than shoving everything inside an ERP.”
Anderson emphasized that adopting digital transformation is not only the future of ERP but vital in relevancy amongst competitors and the global supply chain.
As prices escalate with increased inflation and rising input costs and labor shortages persist, manufacturers and distributors have found that it is essential to automate, digitize and better utilize data to not only provide a superior customer experience and enhanced visibility but to reduce costs, do more with less, minimize risks and reduce the resources required to support business growth.”
8. Analytics
Business intelligence (BI) and business analytics (BA) tools allow you to gather and evaluate in-depth data regarding KPIs, profits, client satisfaction and more.
BA and BI’s relevance in measuring data to make effective choices will never fade. This relevancy is a potential reason for Allied Market Researching to predict the global big data and BA market could reach $684.12 billion in 2030.
Anderson stated that analytics can help companies in reimagining efforts.
Regular and predictive analytics can be essential to supporting your customers’ needs, knowing where to focus efforts to grow business profitability, and they can play a vital role in assessing key decisions for your business, such as whether to reshore, nearshore, reallocate capacity, increase prices and/or rationalize products.”
She also mentioned that predictive analytics can keep you ahead of everchanging data.
Predictive analytics takes business analytics a step further by predicting where your business is going so that you can stay ahead of changing conditions instead of constantly racing to keep up.”
McCabe said predictive analytics can give you an extra set of eyes for internal and external factors that you wouldn’t see otherwise.
[Predictive analytics] can also help forecast operational needs and challenges, such as predicting machinery maintenance requirements or supply chain disruptions, so companies can minimize downtime and reduce operational costs. Predictive analytics also can provide insights into customer behavior, preferences and purchasing patterns so companies can tailor marketing, sales and product strategies more effectively.”
Common Mistakes and Pitfalls
There are common issues to avoid when browsing for future trends in ERP, such as falling for the bells and whistles without seeing appropriate data and giving in to biases from peers.
Gupta explained that going off of your peers’ experiences isn’t enough when investing in ERP trends.
The most common mistakes are being too biased to newer technologies or believing that what worked for their peers would work for them. Unfortunately, each ERP installation is unique regardless of similarity in the industry or business model. The difference exists primarily because of data, which drives process and system architecture.”
He continued: “The easiest way to avoid [this mistake] would be to unwire data and process overengineering and designing enterprise architecture prior to committing to a system or technology.”
Anderson discussed how evaluations can debunk the hype of new technology.
Pursuing fads is a common mistake. Know your business requirements and critical success factors. If an ERP trend addresses functionality that is a top priority business requirement, assess the functionality with the ERP supplier. Perform a business use case if needed before getting swept up into bells and whistles instead of pragmatic results.”
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Next Steps
To successfully implement ERP trends or software, you must thoroughly research today’s market. You must understand which ERP trends suit your company’s size, industry and functionality requirements.
Not sure about the next steps? Take a look at our free, in-depth comparison report to see how certain products stack up against each other and how they align with your company’s needs.
Which ERP trends do you think will take center stage in the coming year? Let us know in the comments.
SME Contributors
Laurie McCabe brings more than 25 years of experience in the IT industry to her current role as co-founder and partner for SMB Group. Laurie has built widespread recognition for her capabilities and insights in the small and medium business (SMB) market in several areas, including cloud computing, mobile solutions, business solutions, social networking and collaboration, and managed services.
Shelly Gore is an ERP, Netsuite and IT expert for A Bigger View, a global network of IT and business professionals and innovation systems group (ISG) that covers the most current trends, including Netsuite and cloud-based technologies. Gore has expertise in several industries and business processes, including manufacturing, distribution, retail, construction, logistics and travel, life sciences, and professional services.
Sam Gupta has been a thought leader in digital transformation for almost 20 years, emphasizing financial systems and ERP. He is a principal consultant at ElevatIQ, a digital transformation consulting firm dedicated to business process automation, customer experience, ongoing enhancements and marketing automation.
Lisa Anderson is the founder and president of LMA Consulting Group Inc., a consulting firm specializing in manufacturing strategy and end-to-end supply chain transformation that maximizes the customer experience and enables profitable, scalable, dramatic business growth. Ms. Anderson has been named a Top 40 B2B Tech Influencer by Arketi Group, a 50 ERP Influencer by Washington Frank and ranked in the top 46 most influential in Supply Chain by SAP.