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Almost all aspects of business operations, from backend procedures such as accounting and HR to front office functions such as sales force automation (SFA), marketing automation, and e-commerce, are supported by enterprise resource planning (ERP) solutions that have broadened and developed over time.
ERP helps reduce expenses by automating repetitive work while quickly giving staff members access to vital data for decision-making.
ERP Trends For 2024
Cloud ERP
At first, businesses tended to prefer on-premises ERP software over cloud ERP for its ease of deployment and cheaper costs, its elastic capacity (enabling business units only to use resources required at any given moment), its increased functionality, and reduced dependency on internal IT resources as well as ease of expanding to accommodate additional users and features as their needs change.
But today, this trend is changing quickly: Cloud ERPs have gained rapidly in popularity among businesses due to their easier implementation, lower costs, and capacity elasticity features ( i.e., using only what resources are needed at any one moment), new functionality as well as ease of expansion to accommodate additional users and features according to business needs.
The pandemic has raised awareness of cloud enterprise resource planning (ERP) benefits.
It has hastened its adoption, allowing staff members to complete tasks from any internet-enabled location--not just an office. Some CFOs are investing more heavily in cloud ERP as an effort to cut expenses during uncertain economic conditions; twenty percent of finance executives surveyed in 2024 planned on increasing spending on cloud ERP systems.
Two-Tier ERP
Before today, many companies attempted to implement one ERP system across all their regional offices, subsidiaries, and headquarters.
Unfortunately, doing so often proved expensive and challenging: subsidiaries often had unique requirements not met by corporate systems, and adopting one-size-fits-all strategies for each location proved difficult.
As such, two-tier ERP is one of the hottest trends in ERP for 2023. By taking this approach to ERP management, companies can maximize the return on their ERP investment at corporate levels (tier 1).
At the same time, their divisions and subsidiaries use separate cloud-based solutions (tier 2) tailored specifically to them (sometimes smaller business units switch out while large corporations may continue using their core ERP for financials or essential tasks; one key determinant in how successful this implementation strategy may be: some cloud solutions even feature integrated corporate ERPs).
There are multiple advantages to taking this route. Retrofitting one ERP system across an organization often costs more, while setting up and customizing separate tier 2 ERP solutions is usually simpler and gives subsidiaries greater adaptability to shifting market conditions.
Two-tier strategies may also provide greater benefits when businesses experience rapid expansion - according to Gartner, large enterprises should determine whether modernizing small, rapidly expanding business goal units through two-tier ERP strategies would lead to greater business requirements benefits than using only a single-tier system.
Digital Transformation
Digital transformation, or the integration of digital technologies across business functions, is an approach used to optimize day-to-day operations and can often improve customer service and communication, employee productivity, revenue, and competitiveness.
An ERP suite can be the cornerstone of this transformation because its reach encompasses much of a company. According to Accenture's 2020 ERP Trends report, 75% of UK businesses currently utilize cloud ERP as part of their modernization effort - specifically adopting AI/advanced analytics capabilities as well as connecting their ERP with IoT devices is highlighted among many other trends that enable digital transformations.
Additional Technology Combined With ERP
Modern ERP may form the backbone of digital transformation for most companies; however, its impact is only one piece.
Businesses are using ERP alongside cutting-edge technologies like IoT to enhance key processes. Retailers, for instance, often employ warehouse management systems with mobile scanners and smart conveyors to track goods flow within the warehouse.
Some enterprises combine ERP with e-commerce functionality to streamline order fulfillment, inventory level updates, and payment recording automatically - improving key procedures significantly in this process.
Further integration between ERP and social media will strengthen this year, giving businesses greater insight into their audiences and improving digital marketing strategies, customer experiences, and sales processes by viewing all customer and prospect social media activity in one place.
They can gain more information about sales processes while testing novel approaches by merging data collected via interactions on social media with order history or customer communication data.
Personalization
Once upon a time, adapting ERP platforms with intricate scripting languages to each company was impossible. Businesses today can now benefit from low-code native cloud ERP platforms that make configuring them simpler than before - along with industry-specific ERP solutions offered by experts.
ERP systems with features like highly configurable dashboards are essential to businesses that aim to offer customers more customized and relevant experiences.
Chatbots and AI-powered conversational and assistive user interfaces that understand user text or voice input while responding to inquiries using customer and order data stored within an ERP are other trending technologies used today.
AI-Powered Realisations And Advancements
ERP systems with artificial intelligence and machine learning capabilities help meet the increasing need for personalization while streamlining various business processes in the background.
In the past, businesses could add these features as add-on modules; now, more vendors offer software with these features already built-in.
Businesses stand to benefit immensely from AI technology. AI solutions could bring numerous advantages for them:
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More insights: Organisations increasingly turn to AI technology in search of better business intelligence decisions in light of the growing trove of operational and customer data they are amassing.
AI tools can quickly scan unstructured data sets for patterns or forecast new trends that would remain hidden from manual analysis alone.
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Improved processes: Artificial Intelligence can automate many functions, from just-in-time inventory strategy for reduced carrying costs to optimizing labor schedules and supply delivery as soon as feasible - to boost output while decreasing expenses.
According to IFS's 2019 study, 36% of manufacturers intended to use AI for customer relationship management/production scheduling, while 40% planned to utilize it for inventory planning/logistics planning/logistics planning purposes.
Predictive Analytics
AI-enhanced ERP has become an indispensable asset to many businesses looking to analyze customer and operational data and uncover insights that could increase profit margins and ensure greater returns.
2024 and beyond will see ERP data analysis become increasingly focused on predictive analytics to predict likely future events, like machine learning software that analyzes maintenance company machine repair records to predict when breakdowns might happen and optimize maintenance schedules to service or replace parts before they become an issue.
Mobile ERP
ERP providers have increasingly offered mobile support, and mobile apps have become more prevalent. ERP systems are developing to give workers access to vital business growth data on the go from any location, including airports, retail checkout counters, and warehouse floors - also helping dispersed workforces that span multiple time zones work cooperatively together more easily.
User-friendly ERP mobile apps enable workers to complete tasks even when not sitting at a computer, using phones for functions like time tracking, expense reporting, and call logging - and monitoring workflows and approvals in real-time.
Beyond real-time data and insights, mobile ERP offers benefits like remote access 24/7 for added productivity as well as faster data collection with greater precision for greater agility.
Collaborative ERP
Today's business systems often utilize "swivel chair" ERP collaboration. Suppose one wants a colleague's input while creating a purchase order, for instance.
In that case, one must leave ERP and enter Microsoft Teams, Slack, or Zoom before returning to ERP. Therefore, employees must jump between applications when communicating with suppliers, customers, or partners.
Certain ERP systems now enable more collaboration. Microsoft recently formed a partnership allowing users to share links directly into Teams chat for real-time ERP data access; envision a conversation shortly where this pertinent ERP data would automatically push out.
Conclusion
To sum up, the future trends of ERP are a fascinating patchwork of cutting-edge technologies and user-friendly features.
Businesses that adopt these trends will not only be able to adapt but also take the lead in the constantly changing global market.
