Today, providers of business software such as ERP systems are constantly working on further solution development to support their customers in the future-oriented design of their processes. Let’s take a closer look at some key ERP trends that can improve your business in 2024.
1. Cloud Computing
According to a Forrester report, the rise of cloud-native technologies is one of the ERP trends and most important drivers of enterprise digital transformation in 2024. Cloud-based software will ensure more efficient workflows, time savings, a lower total cost of ownership, and a complete transformation for users to work from anywhere.
Nowadays, many companies have hybrid or remote working policies. In addition, software staff augmentation has made it possible for companies to expand without acquiring in-house talent. In this case, moving ERP software to the cloud has become mandatory for business continuity. It is expected that in 2024, accelerated cloud-native software implementation will increase for ERP solutions, data storage, and other ancillary business applications.
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2. Low-Code ERPs
Have you ever wanted to automate any of your daily tasks with an extra text box to enter some customer data or a new dropdown list with your custom options? The low-code technology allows ERP users to create their own apps, configure dashboard views and workflows, and customize processes. Gartner Forecasts Worldwide Low-Code Development Technologies Market to Grow 20% in 2023.
Compared to traditional development and change management cycles, pre-configured modules for new functional elements ensure easier and faster software personalization without IT support or tedious programming. Companies using a low-code ERP can quickly respond to changing markets and customer demands. They can use their ERP software to differentiate their business.
3. Mobile ERP
Mobile ERPs have become a necessity in recent years due to the rise of remote and hybrid work formats. That is why this mobile business software will continue to improve in 2024. Mobile ERPs provide permanent remote access to real-time data and insights into all crucial workflows.
With mobile ERPs, companies can achieve seamless ERP availability anytime and in place. This ensures a high level of cooperation between teams, positively affecting productivity, agility, and communication.
4. Automation With AI-driven ERP Systems
According to Gartner, AI-driven ERP is a key feature of the fourth ERP era. Like Industry 4.0, Gartner assumes that the ERP ecosystem includes customers and suppliers, as well as partners, competitors, and stakeholders, often with interchangeable roles.
We are already at the stage where interoperability, agility, and hyper-connectivity are the essential parts of ERP software. AI makes a significant contribution to the transformation and development of next-generation software. Whether we’re trying to automate daily tasks or address issues, AI can help users identify and eliminate inefficient processes.
AI technologies, including machine learning, help companies gain double the benefit from ever-expanding data amounts. Companies already try to equip their ERP systems with decision-making intelligence — from recommendations on specific measures to complete enterprise planning. According to the Gartner study, 30% of all ERP data from forecasts and predictive analysis will be generated with AI by 2024.
5. Internet of Things
The Internet of Things (IoT) is the term for integrating computers and other machines. For example, it supports the digital network of production machines and is particularly important for manufacturing companies. IoT helps production companies to raise processes to a new, digital level.
IoT has now spread to various industries and is expected to continue growing in popularity in the coming year. MarketandMarkets expects the global cloud computing (IoT) market to reach $650.5 billion in revenue by 2026.
6. Customer-Centric ERP
Legacy ERP systems focus on physical products or employees rather than catering to the needs of a service-based organization. Thus, business leaders are inclined towards a customer-centric system. It helps them simplify customer data across the organization and turn them into valuable insights and reports.
Customer-oriented ERP streamlines inventory management, order-taking, CRM, and billing to increase customer satisfaction- truly serving the customer as king! It boosts your business growth by efficiently managing resources, finances, and workforce to deliver on-time results.
A cloud-based ERP built around customer satisfaction facilitates you to gain and retain customers, cut down on costs, collaborate with suppliers and vendors, and maximize organizational success.
7. Fully Integrated ERP
A non-integrated or manual system is prone to mistakes and communication errors and consumes more time. With different departments using different software to input data in the ERP, streamlining and making it available in real-time becomes difficult.
Thus, fully integrated ERP is becoming more and more prevalent. As per Opentext, over 92% of enterprises use centralized integration platforms, and 79% consider it a crucial implementation. Integrated ERP automates your business processes, preventing redundancy and errors.
As its name implies, a fully integrated ERP allows you to integrate with third-party applications. CRM, HRM, Trading Partner System, and several other systems are integrated with the ERP. It facilitates communication by compiling information across the organization in a single database with real-time updates.
Anyone can get valuable data from inventory counts to invoices to customer insights with a single click. Integrated ERP accelerates the workflow and enables everyone to build coherent communication, error-free, and data-driven policies. All through a single interface!
8. Embedded Analytics in ERP
One of the core functionalities of the ERP system is that it maintains a single database across the organization. Employees or executive leaders can leverage this data to streamline processes and make informed decisions.
In the past, companies used a separate analytics platform and personnel to interpret data from the ERP system. But now ERP systems come embedded with analytics tools that can convert complex data into attractive charts, graphs, drill-downs, and dashboards. It helps all the stakeholders- owner, employees, customers, and suppliers- devise a business strategy based on data insights.
These interactive charts and graphs help you identify trends and patterns, enabling you to make an informed decision. With analytics built within the system, you save yourself the hassle of transferring data to a third-party application. Moreover, there is no need for specialized staff; anyone can leverage this data to increase business efficiency.
9. Software-as-a-Service (SaaS) ERP
SaaS ERP runs on the vendor’s server, and users access the software through a web browser or smartphone app over the internet. It reduces the cost and complexities of installing an on-premise system. Moreover, the SaaS-based ERP is stored on the cloud and is flexible and easy to manage.
SaaS ERP follows a multi-tenancy model with each tenant’s data secured safely. Compared to on-premise systems- that offer almost no customization- it is easy to customize and integrate. The vendor offers regular updates with no additional resources.
Since it is hosted on the cloud, technologies that require cloud- such as AI, IoT, and Blockchain- are easy to integrate. The interface is modern and interactive, and the analytics game is strong!
10. Two-Tier ERP
Implementing a single ERP system across corporate offices, regional offices, and subsidiaries has historically been challenging due to unique subsidiary needs and the one-size-fits-all approach. However, the rise of two-tier ERP addresses this issue.
In this model, businesses maintain their primary ERP system at the corporate level (tier 1) while subsidiaries utilize a separate cloud-based ERP solution (tier 2), tailored to their needs. This approach offers cost savings, easier implementation, and greater flexibility for subsidiaries to adapt to evolving business conditions.
Gartner suggests that large businesses consider the two-tier approach for its potential commercial advantages, particularly for fast-growing units. Effective data sharing between tiers is crucial, with some tier 2 solutions offering built-in ERP integration capabilities.
The Bottom Line
2024 will be a year of significant challenges and, at the same time, will allow companies to transform for the future. That is why moving to a modern ERP system that meets the current trends must no longer be postponed.