Back to blogs
The future of ERP systems: 5 trends and predictions
Author: Nicklas Gustavsson
Feb 28, 2023
Enterprise resource planning (ERP) systems have been around for decades, evolving and adapting to meet the changing needs of businesses. As technology continues to advance at a rapid pace, the future of ERP systems is an exciting topic of discussion. With new technologies and trends emerging, ERP systems are poised to become even more powerful and useful tools for organizations of all sizes and industries.
In this article, we'll explore some of the most significant trends and predictions for the future of ERP systems. Whether you're a business owner, IT professional, or simply curious about the future of ERP systems, this article will provide valuable insights into what lies ahead.
Cloud-based ERP systems
Cloud-based ERP systems are becoming more popular due to their scalability, flexibility, and cost-effectiveness. They offer greater accessibility, remote capabilities, and built-in disaster recovery, making them a good fit for businesses with remote teams or fluctuating demand.
Cloud-based ERP systems also offer an advantage in upgrading and keeping up-to-date with the latest technology. With automatic upgrades from the cloud provider, businesses can easily take advantage of new features and functionality. Cloud-based systems also offer greater flexibility in customizations and integrations.
They are often offered on a subscription or pay-as-you-go basis, making them more affordable than on-premise systems that require significant upfront investments in hardware and software. As a result, the future of ERP systems is likely to see an increasing shift towards cloud-based systems.
However it is worth considering some of the potential drawbacks for cloud such as concerns about data security, reliance on a reliable internet connection, limited customization options, dependence on cloud providers for maintenance and availability.
The rise of mobile devices and remote work has made it more important for ERP systems to be accessible from anywhere, at any time. With cloud-based ERP systems, employees can access the system from any device with an internet connection, improving employee productivity and customer service. In addition to improving employee productivity and flexibility, mobile accessibility can also help businesses to better serve their customers. For example, a sales representative can use their smartphone or tablet to access the ERP system while on the go, allowing them to quickly check inventory levels, pricing information, or order status.
However, businesses need to ensure that the system is optimized for mobile devices and that sensitive data is protected when employees access the system from outside the office.
Open APIs and integration with other technologies
A growing trend in the ERP industry is the move towards more open application programming interfaces (APIs). Traditionally, ERP systems have been closed systems, with limited or no ability to integrate with other applications or systems.
Open APIs enable businesses to connect their ERP systems with a wider range of applications and services, allowing for greater flexibility and customization. For example, an e-commerce business could integrate their ERP system with their online store, allowing for automatic inventory updates and order processing.
By providing more open APIs, ERP vendors can also foster a more vibrant ecosystem of third-party developers and integrators. This can help to drive innovation and create new business opportunities, as developers create new applications and services that integrate with ERP systems.
Another benefit of open APIs is that they are becoming more integrated with other technologies, such as IoT devices, blockchain, or virtual and augmented reality. This integration has the potential to revolutionize the way businesses operate, allowing them to take advantage of new data sources and leverage emerging technologies to drive innovation and efficiency.
One key benefit of integrating ERP systems with IoT devices is the ability to gather real-time data from connected sensors and devices. This can provide businesses with valuable insights into their operations and supply chains, enabling them to identify inefficiencies, improve processes, and reduce costs. For example, a manufacturer could use IoT sensors to monitor production equipment and detect when maintenance is needed, reducing downtime and improving productivity.
AI and data analytics
The increasing use of artificial intelligence (AI) and data analytics is a growing trend in modern ERP solutions. ERP systems are increasingly being designed to handle large amounts of data, and AI and data analytics can be used to extract insights from this data and provide actionable insights to businesses.
One key application of AI and data analytics in ERP systems is predictive analytics. By analyzing historical data, ERP systems can use machine learning algorithms to predict future outcomes and trends, such as demand for specific products or potential production bottlenecks. This can help businesses to make more informed decisions and better allocate resources.
AI and data analytics can also be used to improve customer service and engagement. By analyzing customer data, ERP systems can provide insights into customer behavior and preferences, enabling businesses to tailor their marketing and sales efforts to better meet customer needs.
Overall, the trend towards more AI and data analytics in modern ERP solutions has the potential to transform the way businesses operate. By providing insights and predictions that are beyond the capabilities of human analysis, ERP systems with AI and data analytics capabilities can help businesses to make more informed decisions and drive efficiency gains.
Emphasis on user experience
In recent years, there has been a growing trend towards improving the user experience (UX) of ERP systems. Historically, ERP systems were often criticized for being difficult to use and having clunky interfaces, which led to low adoption rates among employees. However, as more businesses recognize the importance of user-friendly software, ERP vendors are investing more in improving the UX of their products.
One way in which UX is being improved in modern ERP systems is through the use of intuitive interfaces and simplified navigation. ERP vendors are increasingly using design principles from consumer software to create more visually appealing and user-friendly interfaces. This can make it easier for employees to learn how to use the system and to find the information they need. As ERP vendors continue to invest in UX improvements, we can expect to see more visually appealing, intuitive, and mobile-friendly interfaces in future ERP systems.
In conclusion, the future of ERP systems looks promising with various trends and innovations that are set to improve the way businesses operate. Cloud-based ERP systems offer businesses greater accessibility, flexibility, and cost-effectiveness, while mobile accessibility enables employees to access the system from anywhere, at any time. Open APIs and integration with other technologies, such as IoT devices, blockchain, or virtual and augmented reality, are becoming more popular, allowing businesses to take advantage of new data sources and leverage emerging technologies to drive innovation and efficiency.
Furthermore, the increasing use of AI and data analytics has the potential to transform the way businesses operate by providing insights and predictions that are beyond the capabilities of human analysis.
Finally, with the emphasis on improving the user experience, modern ERP systems are becoming more visually appealing, intuitive, and mobile-friendly, making it easier for employees to use and learn how to use the system. As businesses continue to evolve and adapt to changing needs, the future of ERP systems is an exciting area of development to watch.
Get in touch with the author!
Management Consultant | Business Applications
Back to blogs