ERP trends to look out for in 2020
An ERP solution is often one of the most paramount decisions a company will have to make. Although ERP solutions have become relatively less expensive over the years, it’s still an important financial decision and one whose functionality has a direct impact on most parts of your business, like human resources, accounting, manufacturing, and marketing. ERP solutions being a critical component of business, buyers should research not only what’s currently available, but also what ERP solution trends are on the horizon.
These are the Top ERP trends to look out for in 2020:
1. Two-Tier Model:
This model is a combination of more than one software or vendor. Given its difficulty with integration in the initial stages of implementation, it is advisable for businesses to prepare an implementation strategy for this type of model of ERP.
2. Increased Adoption in SMBs:
Mostly small and mid-sized businesses tend to adopt ERP systems, especially, as companies are making judicious IT investments. ERP can fortunately provide an end-to-end performance in just one system. A few years ago, ERP was mainly used in large enterprises, but with the increased affordability and accessibility, the software has become popular in SMBs, as well.
3. Agile ERP:
Among CIOs, the waterfall model will become less desirable, and Agile model will take over the market. The reason behind that is, In the waterfall methodology, the problem does not get noticed or addressed until it becomes a major one. In a dynamic business environment, Agile ERP works better.
4. Customer-Centric ERP:
Most ERP solutions are designed to fulfill managing requirements in areas such as, accounts, audits, supply chain, and warehouse. A customer-centric approach has never proved useful in the ERP solution. In 2020, we will be seeing significant changes in this approach because a strategic tactic will be applied, and tech giants will try to make it more customer-friendly.
5. Security & Compliance:
ERP has become a necessity for most businesses. There has been an increase in prioritizing compliance and security in businesses. One has seen specific ERP’s like SAP Business One which is GST compliant and it continually upgrades the software.
6. Personalized ERP:
We will witness an increase in personalization with ERP solutions with the rise of AI. The flexible solution will support personalization and will have more user-interfaces. ERP and AI have to function together to provide a more personalized experience to the customer because they are both like the body and brain.
7. Focus on Functionality:
The functionality will be considered over the pricing; if existing ERP solutions cannot provide certain features required by customers, then they will most likely be replaced by a newer solution, one which may already be available in the market.
8. Real-Time Insights:
Most of the new ERPs are transforming. They now enable systems to generate reports from captured data and support real-time responses. The transformed infrastructure creates a way for traditional ERPs to execute such processes, which can supply businesses with insights for planning and forecasting purposes.
Real-time insights generated from said ERP trends and proper strategic planning can be helpful for businesses in the long-term.
9. Augmented Human Capabilities:
Some advanced ERP solutions will put forward unique intelligence capabilities, which can enable automation. ERP alongside advanced human capabilities will increase the efficiency of an employee, which can potentially have a direct impact on the performance of the company.
10. Friendly User Interface (UI):
As organizations start adopting the latest technology to get more real-time data. Interaction with the ERP system will increase as an increase in the number of employees. Better UI and appealing design will be part of a newly evolved interface. This is necessary because most of the employees are from the tapping generation than from the typing generation.
11. BI & ERP:
ERP systems will move forward by providing real-time insights for the product development, productivity, marketing, operational efficiencies of businesses. For example, a production manager in the manufacturing industry can monitor the floor’s scrap rate from the real-time data with this combination of BI and ERP.
12. Cloud-Based ERPs:
In 2019, we saw an increase in the adoption of the cloud among businesses, large and small. This trend seems to continue in 2020 as well, especially, as cloud solutions are entirely managed by providers, which free IT teams from strict maintenance efforts. As in-house servers are not required to support this functionality, there is also the added bonus of lower up-front costs.
To Sum Up:
2020 will witness new ERP trends getting introduced in the market, which can disrupt the entire business and technical scenario in an organization. High-level decision-makers must watch out for upcoming trends and see how they can affect the structure, output, and business results of an organization.