Introduction
Enterprise Resource Planning (ERP) is no longer exclusively confined to the back office. In today’s world, it empowers front-end functions such as sales and marketing automation and e-commerce. It has become an essential component of conducting business.
According to research conducted by HG Insights, the global ERP market has witnessed an 8% growth since 2022. Furthermore, it is projected that 1.4 million companies will invest $183 billion in ERP software by 2024. As the market continues to expand, ERP trends will undergo a shift influenced by advancements in technology, such as generative AI (Artificial Intelligence), as well as evolving business requirements, including the need for compliance with government regulations.
Advancements in ERP solutions
Let’s explore the key ERP trends that are shaping the landscape of ERP in 2024 and beyond, reflecting the latest advancements in the field.
1.Industrial ERP will be driven by the capabilities of AI:
AI is increasingly being integrated into industrial ERP systems, with companies now seeking out AI features when considering purchasing these systems. The adoption of AI-powered ERP systems can greatly enhance efficiency, productivity, and decision-making capabilities. By utilizing AI-driven demand forecasting, businesses can optimize their inventory levels and minimize excess stock.
Furthermore, AI can be utilized to identify defects and anomalies in products, leading to improved quality control. Real-time monitoring of suppliers, logistics, and production processes also becomes possible, enabling the early identification of potential delays. By upgrading the ERP system to incorporate more AI capabilities, one can maximize revenue and maintain a competitive edge in the market.
2.ERP modernization drives the shift to cloud ERP.
Many ERP customers currently have on-premises systems, and they typically follow upgrade cycles that range from three to five years. However, as they seek to modernize their ERP systems, they are also exploring the option of moving to the cloud. In some cases, these customers may even consider switching vendors, opting for a cloud-first ERP system offered by a different provider. Despite economic conditions, organizations are still willing to invest in their core enterprise and undertake modernization projects for their ERP systems.
3.RFPs now mandate the incorporation of automation.
Automation, including robotic process automation and related tools, was once limited to specific products or ERP projects. However, the landscape has evolved, and now requests for proposal (RFPs) for ERP systems encompass enterprise performance management, analytics, and automation. We are witnessing a decline in RFPs that solely focus on finance. What was once confined to ERP or human capital management has expanded to include automation and other components.
4.A clean core sets the foundation for Software as a Service (SaaS) ERP.
Over the past year or so, vendors have embraced a clean core implementation, utilized standardized messaging, and are actively creating tools and resources to support it. SAP’s Clean Core strategy involves standardizing ERP business processes & data and ensuring that any expansions or integrations adhere to cloud standards. This is crucial because the cloud and the clean core concept are instrumental in transitioning toward a Software as a Service (SaaS) model.
In the future, SaaS ERP will become increasingly prevalent, particularly in 2024 and beyond. In the traditional on-premises world, users might have had to wait for up to two years to upgrade their system. However, with SaaS, they can immediately begin utilizing new features as soon as the vendor releases them.
5.Generative AI becomes ingrained.
Customers are seeking products that offer generative AI capabilities, and this trend within ERP shows no signs of slowing down. Customers prefer not to be burdened with the task of selecting the appropriate model or determining which one is best suited for a specific function. Instead, they want the integration process to be seamless.
In response to this demand, vendors are forming partnerships with generative AI providers to incorporate this feature into their products. According to an expert in the field, major ERP vendors are entering partnerships and will provide their customers with fully integrated access to these capabilities.
6.Analytics are essential and cannot be overlooked.
Analytics are increasingly becoming an integral component of ERP systems; as companies seek to update their software, the analytics are now included in the request for proposals (RFPs) when organizations are looking to modernize their systems or adopt new applications. The demand for analytics is unquestionably high, with companies recognizing the value and benefits they offer.
ERP analytics enables teams within a company to gain a deeper understanding of their operations and make well-informed decisions based on data. By having real-time visibility into various aspects of their performance, such as financial outcomes, the effectiveness of marketing campaigns, and the efficiency of supply chain operations, businesses can identify what strategies are effective, what areas need improvement, and drive revenue growth and customer satisfaction.
Industry-Specific Solutions:
When it comes to ERP solutions, there are many major players in the industry including but not limited to PeopleSoft, SAP, Oracle, UKG (Ultimate Kronos Group), and Workday. These companies have established themselves as leaders in providing comprehensive ERP solutions that cater to various industries. PeopleSoft offers a range of modules specifically designed for human resources, finance, supply chain management, and customer relationship management. SAP provides industry-specific ERP solutions that cover areas such as manufacturing, retail, healthcare, and utilities. Oracle offers a comprehensive suite of ERP solutions that integrate various business functions, including finance, procurement, and project management. UKG focuses on providing HR and workforce management solutions, while Workday specializes in cloud-based ERP solutions.
People Tech stands out as a trusted partner in implementing and supporting ERP systems to several marquee client bases. With years of experience and expertise in ERP solutions, People Tech has the knowledge and skills to deliver successful ERP implementations. We understand the complexities of different industries and can tailor our solutions to meet specific business needs. The team of experts can provide system integration services to seamlessly connect ERP systems with existing infrastructure. We also offer customization services to ensure that the ERP system aligns with unique business processes.
Visit www.peopletech.com, for more details.
