ERP software is trending in the business market. Most businesses have already implemented this fantastic technology to achieve efficiency and growth. Along with the ERP evolution, other technologies began emerging to support this system and enhance business efficiency.
Digitalization has changed the business world entirely. It has changed the world. Almost everyone has the accessibility to use the internet with their smartphone or any other device. Likewise, businesses must be updated with the latest technology to stay competitive.
Pandemic covid 19 made us realize the importance of staying updated with technology. Businesses that had cloud-based ERP systems ready had settled down well after the lockdown was implemented. Companies that failed to implement technology performed poorly, and some had to shut down. So the use of technology has become essential to succeed in the business.
What is an ERP system?
ERP system is an excellent business management solution to manage the day-to-day operations of any business. It is an intelligent solution to optimize and streamline business processes.
ERP systems were developed in the 1960s, but the term ‘ERP’ was given to it by Gartner in 1990. Earlier ERP systems were inefficient, had many permit issues, and included much manual labor. It was time-consuming and had many errors. ERP systems evolved mainly over time, and now we have an efficient system that helps businesses achieve growth and success.
Modern ERP software is highly efficient in conducting seamless business operations by removing bottlenecks. It is a flexible, agile, modular, and resilient solution to perform all business functions. It is an automated solution to complete all business tasks faster. ERP systems are customizable based on their industry needs.
Data can be easily accessible in the modern ERP system. It is a centralized system where all the users can access the data. Data is stored in information silos and is highly secured.
ERP systems can be divided into three common types – Cloud ERP systems, On-premise ERP systems, and Hybrid ERP systems.
1) Cloud ERP system
Cloud ERP systems are a cost-effective solution to invest in for your business. In this type, you can access the system from any device and location. Plus, the software updates and maintenance are supported by the ERP vendor. It is subscription-based.
2) On-premise ERP system
On-premise ERP systems are planted in the physical office location. Employees can access data in the devices installed in the office.
3) Hybrid ERP system
A Hybrid ERP system combines a cloud ERP system and an on-premise ERP system. Usually, large organizations implement both cloud and on-premise ERP systems to get maximum advantage for the business.
Trends to look for in 2023
ERP system is evolving each time, and new trends are emerging. ERP systems can be integrated with other technology to gain maximum benefit to achieve business efficiency and higher profits. Technologies like business intelligence, artificial intelligence, machine learning, and many more can be integrated into the ERP system to enhance its benefits for the business.
1) Integration of ERP solution with AI (artificial intelligence)
Artificial intelligence is one of the trends that integrates with the ERP system and enhances the features to operate the business skillfully. It is intelligent automation invented to benefit when there is a hiring crisis.
If AI is implanted in the ERP system, it can improve the system from standard automation to predictive analysis.
2) Progress in ERP Intelligence
When integrated with other advanced technology like AI, ML, and RPA (Robotic process automation), ERP systems can perform valuable tasks. Get accurate forecasts to create business strategies. Cut operational costs and improve productivity. Remove bottlenecks and produce error-free data. With all these features embedded in the ERP software, it will provide the best features required to operate businesses efficiently.
3) Internet of things (IoT)
There is much competition among businesses at one end. And on the other end, customers want a more personalized experience from industries nowadays. This data is centralized in the system, where the customer can access the updated information.
Companies investing internet of things enable the potential to connect to other systems, provide personalized customer experience and allow effective management of BI.
4) Cloud-based ERP deployments
Cloud ERP systems are a flexible solution for businesses. It is a cost-effective solution for companies on a budget. ERP vendor provides updates and the latest technology to businesses after deploying the ERP system. It is customizable based on the industry requirements. The software is maintained and supported by the ERP vendor.
A cloud ERP system allows the integration of other technology down the road.
5) Mobile-friendly ERP system
Modern ERP systems are user-friendly and have an interactive dashboard. All the employees can easily use the system. Conventional ERP systems were complex and a contrast to modern erp systems. ERP systems are now mobile-friendly, as more people access data with their mobiles from anywhere with the help of the internet.
For example, when checking the inventory, the employees are more likely to use a tab or mobile device to check and record the status in that location.
6) Demand for customization and industry-specific solution
Modern ERP systems open room for customization. Nowadays, businesses demand industry-specific requirements to achieve increased productivity and business efficiency. Customizations are costly and time-consuming, and ERP vendors must go to the edge to meet these industry-specific requirements.
To customize, a code has to be written. Then to support the customization, updates have to be given by the ERP vendor, and it has synchronized with the existing system. But with all these complexities, new features are designed and added each day.
7) Priority on security
Data is the most critical component of any business. No business wishes that their data gets stolen. ERP systems now offer a secure system providing multiple security and permit authorizations. Companies can be relieved by all these technological security developments.
Enterprise resource planning is the best business management solution. When it is integrated with other systems, it provides the best-in-class solution for businesses. The business owner should research and get the best solution for their business. ERPs are a costly investment for many companies. So wise decision should be taken when purchasing the software.
Ishant is an SEO expert with a rich and long history of helping companies across industries to rank high on multiple search engines. Currently, he’s working with Sage Software Solutions, a leading ERP, CRM, and HRMS provider in India.