According to Gartner there are significant signs of revival and an increase in investment in renovating and replacing ERP[1]. 2022 promises to be a growth year but what of the trends that will dominate the year ahead. We’ll look at how cloud computing, AI and IoT are set to rule the market movement and innovation foci for this year and beyond. How can you tap into this new technology?
Focus on IoT-enabled ERP
By the end of 2022, IoT-enabled ERP will be almost mandatory. IoT-enabled ERP systems are being highly used within manufacturing units or businesses requiring fully automated data collection. Depending on the type of business, many parameters must be monitored and tracked 24/7, like raw material shipments, assets, warehouses, etc. IoT devices installed at places and components that need to be tracked round the clock send the information to the ERP systems, which then compile the information and generate real-time reports for better visibility and decision making. Companies without this advancement will quickly lose market share as they’re outpaced by their competitors.
Cloud-based ERP leads
Cloud computing introduced a whole new world of ERP, enabling cloud-hosted options that drive more efficient work practices, save time, reduce total cost of ownership, and help companies to change the way they work.
Gartner predicts that companies will drive business value from their cloud application investments by restructuring their ERP support team to leverage new cloud dynamics.[2] In the same article the analyst powerhouse predicts that by 2023, organisations that update their support team for SaaS ERP will realise 50% more business value than those that keep their on-premises model.
Despite the data security concerns that accompanied the industry’s transition to the cloud, it has been successfully adopted, thanks to the growing availability of mobile platforms and increased security. Open, flexible, and scalable cloud applications have led the market to be dominated by SaaS ERP solutions. And those outlay and maintenance efficiencies are seeing leading firms slash their operating costs, prevent critical equipment failures, and improve management decision times.
Remote access critical
And it’s good that the cloud is leading the way because remote access is now critical. As departments increasingly work remotely, mobile access to ERP data is paramount. IT teams can respond to possible breaches from anywhere and sales teams can win deals with access to real-time stock info. Tapping into the ERP software remotely will provide for better off-site management across accounting, manufacturing, sales, and marketing in the longer term.
Machine-learning & AI for automation
A core spoke of the trivergence, AI (powered by machine learning) will help companies make better decisions across key areas like marketing, sales, and operations. AI can offer efficiencies in maintenance, outbound contact, management time and more. When combined with blockchain and IoT, data sources are real-time enabled and secure across the same type of decentralised storage points that fuel cryptocurrency.
Digitising the supply chain
Following nearly two years of supply disruption, the name of the game in ERP will be the digital supply chain. Along with the increasing prices, the supply reliability regarding materials and semi-finished products is currently the top priority for most manufacturing companies. Efficient purchasing and supplier management is vital here. An article by the consulting firm PWC has good news. It shows that by digitising your supply chain, you're investing in revenue growth and cost reduction. And that might help your organisation weather any lingering supply chain issues.
Death of one-size-fits-all ERP
Advances from key providers already look to offer more user and organisation-centric experiences. But in 2022, expect blanket integrations to all but cease. ERP consultants will help businesses shape their requirements and interfaces into unique IPs that better serve their business needs and result in the necessary cost savings to provide a competitive advantage. And this will include future proofing and all the required scalability the cloud and SaaS is known for.
ERP Trends 2022