Emerging Trends of ERP that is Driving the Whole Economy
“The success or failure of a new system hinges directly on the acceptance of that system by the organization’s end users”, -Phil Simon
Technology is promptly changing the way of life we are living now. It is emerging in every sector in all possible ways. The advancement of digital technology has undoubtedly fueled up the trajectory of productivity and economic growth. Globalization and digitalization have been pushing the companies hard to get their jobs swiftly. So, the vast corporate driven world is searching for new tools and tactics every now and then so that the companies can streamline their work and have a competitive edge in their work.
ERP or Enterprise Resource Planning is one of those powerful and plausible tools which critically manage thousands of businesses of all sizes and in all industries. ERP helps to plan, budget, predict, and report on an organization’s financial results. Starting a new venture is indeed a heavy lift but if you have knowledge and innovative ideas regarding methodological know-how, then you can flourish and flutter in very less time and have a good grip over the competitive industry.
Few recent prospective Business Trends of ERP-
1. Cloud ERP Model: Business organizations are adopting cloud ERP to take advantage of a simpler deployment, lower costs, elasticity which means, the ability to only use the necessary resources at any given point of time new functionality, less need for internal IT resources, and the ability to easily add users and functions to accommodate business growth. Cloud ERP is the software-as-a-service (SaaS) delivery model for it. The cloud can reduce both operational expenses and capital expenses, as it eliminates the need for companies to purchase software and hardware, or hire additional IT staff.
The pandemic has increased the value of cloud ERP and catalyzed the pace of shifting from on-premises software as it allows the employees to work remotely. The Global Cloud ERP Market is valued at $21671.91 million in 2022 and is projected to reach a value of $76099.88 million by 2030 at a CAGR of 17.00 percent in 2022-2030. Leading IT players like Oracle (US), Microsoft (US) and SAP (Germany) have developed these models and are successfully working efficiently with it.
2. AI-Powered Improve Solutions: ERP tools have an embedded system of Artificial Intelligence and Machine Learning which secretly works to meet increased demand for personalization and improve a broad range of business processes. AI technologies scrutinize vast amount of unstructured information, quickly detect and verify the patterns and predict various trends that wouldn’t be possible to mark with manual number crunching alone. AI, with machine learning, can optimize the supply delivery and labor schedules to increase productivity and lower costs. According to study, more than 40 percent of manufacturers planned to implement AI for inventory planning and logistics, and nearly 36 percent intended to use it for production scheduling and customer relationship management.
3. Two-Tier ERP:Two-tier ERP is one of the top ERP trends in 2023 which is a strategy that enables organizations to leverage their investment in existing ERP systems at the corporate level (Tier-I), while subsidiaries and divisions operate using a different ERP solution (Tier-II), which is often cloud-based. Some Tier-II cloud solutions include built-in capabilities for integration with corporate ERP systems. Tier-II solutions are very flexible from responding to changing business conditions. Now the companies have to choose whether Tier-I or Tier-II which will be perfect for their organizations.
4. Digital Transformation: ERP software can help you transform your business as part of a digital transformation. ERP can support your greater effort to add value to and improve your business through advanced technology. ERP provides the required platform on which the digital transformation initiative is launched. It helps with integrating orders, inventory, accounting, returns, shipping, and many more. It makes the next leap towards transforming your customer’s experience to the next level. The collaborative working of AI and IOT with ERP is the biggest success which is driving the world towards digital transformation.
5. Retail Technology: Retailers use warehouse management systems that collect data from mobile scanners and smart conveyers to track the movement of goods in the warehouse by utilizing barcoding, Radio Frequency Identification (RFID) tags and serial numbers and also, they can track the shipment of orders. Few companies incorporate ERP with e-commerce to improve online order workflows, automatically triggering order fulfillment, updating inventory levels and tracking the record of payment. By scrolling down and observing the social media trends, retail companies can keep track their dedicated and targeted customers, which helps them to improve their digital marketing strategies and the customer experience.
6. Mobile Based ERP Solutions: Today’s world is immensely driven by social media and smartphones. Now all services are using smartphone friendly interface which is helping users get work done when they’re not in front of a computer. Now, employees can complete their tasks like expense reporting, call logging and time tracking, and they can view the status of critical workflows or approvals from their smartphones very easily. Mobile ERP offers real-time data and insights and provides overall benefits including remote access of data and information, improved productivity, faster and more accurate data capture and increased agility. Today the ERP cloud technology is embracing mobile, social media platforms, analytics, and the latest emerging technologies and progressing ahead in the competition.
7. Personalization & Customization: In today’s corporate driven world to go forward in a business, personalization and customization plays a pivotal role. Coding and configuration are driving the whole scenario and poorly managed customizations have long-lasting consequences on your system. AI-based assistive and conversational user interfaces such as chatbots, which can interpret user voice or text input and respond to questions using customer and order information stored within the ERP. There is a growing demand of ERP solutions tailored to the needs of specific industries, where they can customize things as per their own choice. The companies are focused on delivering more personalized and relevant experiences to customers and for this they need ERP systems that can accommodate those needs with features like highly customizable dashboards.
Recent Market Demand of ERP Solutions
The rising demand of AI based and Cloud Computing-based ERP software are upscaling investments by the leading players of the market to adopt and absorb these advanced technologies, which has widened the usage and dependency of ERP tools and thus boosted the growth of this market. The global ERP software market is dominated by key players such as IBM Corporation, Infosys, Microsoft Corporation, NetSuite Inc., Oracle Corporation, Sage Group Plc., SAP SE, SYSPRO, TOTVS S.A., and Unit4. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
According to Fortune Business Insights, the global Enterprise Resource Planning (ERP) software market size is projected to grow from $46.86 billion in 2023 to $71.34 billion by 2030 exhibiting a CAGR of 6.2 percent. ERP is one of the most potential sectors for investors, with an overall funding of $17.1 billion in more than 1500 companies. Most interestingly, more than one third of the funding has been raised in the last three years. ERP is further collaborating with other technologies, such as internet of things (IoT) devices and social media, to automate even more and provide greater visibility and a better customer experience. The pandemic fostered the work from home culture and ERP is the effective supporter which promotes remote work.
Future of ERP Solutions
In a nutshell, this vast corporate world is beautifully driven by advanced technologies. The new generation wants to focus more on starting the startup as compared to working as an employee due to this the demand for ERP systems will rise. In the upcoming days, the use of IoT in ERP will increase and an employee can automate, link, and sync the various things and handle through their ERP modules provided to them. Most of the ERP will switch to the cloud-based model which not only secures the database of ERP marketplace but also explores more features of it to enhance their performance.
In the upcoming future, ERP will play a crucial and proactive role in the growth of market requirements and trends. More complex problems will be solved very easily and effectively by advanced ERP technologies. As with each passing days, ERP technology will flourish, more ERP vendors and ERP creators will come to this sector and more openings for jobs will emerge in the particular field making it the most profitable sector contributing in India’s GDP growth.
Technology is promptly changing the way of life we are living now. It is emerging in every sector in all possible ways. The advancement of digital technology has undoubtedly fueled up the trajectory of productivity and economic growth. Globalization and digitalization have been pushing the companies hard to get their jobs swiftly. So, the vast corporate driven world is searching for new tools and tactics every now and then so that the companies can streamline their work and have a competitive edge in their work.
ERP or Enterprise Resource Planning is one of those powerful and plausible tools which critically manage thousands of businesses of all sizes and in all industries. ERP helps to plan, budget, predict, and report on an organization’s financial results. Starting a new venture is indeed a heavy lift but if you have knowledge and innovative ideas regarding methodological know-how, then you can flourish and flutter in very less time and have a good grip over the competitive industry.
Few recent prospective Business Trends of ERP-
1. Cloud ERP Model: Business organizations are adopting cloud ERP to take advantage of a simpler deployment, lower costs, elasticity which means, the ability to only use the necessary resources at any given point of time new functionality, less need for internal IT resources, and the ability to easily add users and functions to accommodate business growth. Cloud ERP is the software-as-a-service (SaaS) delivery model for it. The cloud can reduce both operational expenses and capital expenses, as it eliminates the need for companies to purchase software and hardware, or hire additional IT staff.
The pandemic has increased the value of cloud ERP and catalyzed the pace of shifting from on-premises software as it allows the employees to work remotely. The Global Cloud ERP Market is valued at $21671.91 million in 2022 and is projected to reach a value of $76099.88 million by 2030 at a CAGR of 17.00 percent in 2022-2030. Leading IT players like Oracle (US), Microsoft (US) and SAP (Germany) have developed these models and are successfully working efficiently with it.
2. AI-Powered Improve Solutions: ERP tools have an embedded system of Artificial Intelligence and Machine Learning which secretly works to meet increased demand for personalization and improve a broad range of business processes. AI technologies scrutinize vast amount of unstructured information, quickly detect and verify the patterns and predict various trends that wouldn’t be possible to mark with manual number crunching alone. AI, with machine learning, can optimize the supply delivery and labor schedules to increase productivity and lower costs. According to study, more than 40 percent of manufacturers planned to implement AI for inventory planning and logistics, and nearly 36 percent intended to use it for production scheduling and customer relationship management.
3. Two-Tier ERP:Two-tier ERP is one of the top ERP trends in 2023 which is a strategy that enables organizations to leverage their investment in existing ERP systems at the corporate level (Tier-I), while subsidiaries and divisions operate using a different ERP solution (Tier-II), which is often cloud-based. Some Tier-II cloud solutions include built-in capabilities for integration with corporate ERP systems. Tier-II solutions are very flexible from responding to changing business conditions. Now the companies have to choose whether Tier-I or Tier-II which will be perfect for their organizations.
4. Digital Transformation: ERP software can help you transform your business as part of a digital transformation. ERP can support your greater effort to add value to and improve your business through advanced technology. ERP provides the required platform on which the digital transformation initiative is launched. It helps with integrating orders, inventory, accounting, returns, shipping, and many more. It makes the next leap towards transforming your customer’s experience to the next level. The collaborative working of AI and IOT with ERP is the biggest success which is driving the world towards digital transformation.
5. Retail Technology: Retailers use warehouse management systems that collect data from mobile scanners and smart conveyers to track the movement of goods in the warehouse by utilizing barcoding, Radio Frequency Identification (RFID) tags and serial numbers and also, they can track the shipment of orders. Few companies incorporate ERP with e-commerce to improve online order workflows, automatically triggering order fulfillment, updating inventory levels and tracking the record of payment. By scrolling down and observing the social media trends, retail companies can keep track their dedicated and targeted customers, which helps them to improve their digital marketing strategies and the customer experience.
6. Mobile Based ERP Solutions: Today’s world is immensely driven by social media and smartphones. Now all services are using smartphone friendly interface which is helping users get work done when they’re not in front of a computer. Now, employees can complete their tasks like expense reporting, call logging and time tracking, and they can view the status of critical workflows or approvals from their smartphones very easily. Mobile ERP offers real-time data and insights and provides overall benefits including remote access of data and information, improved productivity, faster and more accurate data capture and increased agility. Today the ERP cloud technology is embracing mobile, social media platforms, analytics, and the latest emerging technologies and progressing ahead in the competition.
7. Personalization & Customization: In today’s corporate driven world to go forward in a business, personalization and customization plays a pivotal role. Coding and configuration are driving the whole scenario and poorly managed customizations have long-lasting consequences on your system. AI-based assistive and conversational user interfaces such as chatbots, which can interpret user voice or text input and respond to questions using customer and order information stored within the ERP. There is a growing demand of ERP solutions tailored to the needs of specific industries, where they can customize things as per their own choice. The companies are focused on delivering more personalized and relevant experiences to customers and for this they need ERP systems that can accommodate those needs with features like highly customizable dashboards.
Recent Market Demand of ERP Solutions
The rising demand of AI based and Cloud Computing-based ERP software are upscaling investments by the leading players of the market to adopt and absorb these advanced technologies, which has widened the usage and dependency of ERP tools and thus boosted the growth of this market. The global ERP software market is dominated by key players such as IBM Corporation, Infosys, Microsoft Corporation, NetSuite Inc., Oracle Corporation, Sage Group Plc., SAP SE, SYSPRO, TOTVS S.A., and Unit4. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
According to Fortune Business Insights, the global Enterprise Resource Planning (ERP) software market size is projected to grow from $46.86 billion in 2023 to $71.34 billion by 2030 exhibiting a CAGR of 6.2 percent. ERP is one of the most potential sectors for investors, with an overall funding of $17.1 billion in more than 1500 companies. Most interestingly, more than one third of the funding has been raised in the last three years. ERP is further collaborating with other technologies, such as internet of things (IoT) devices and social media, to automate even more and provide greater visibility and a better customer experience. The pandemic fostered the work from home culture and ERP is the effective supporter which promotes remote work.
Future of ERP Solutions
In a nutshell, this vast corporate world is beautifully driven by advanced technologies. The new generation wants to focus more on starting the startup as compared to working as an employee due to this the demand for ERP systems will rise. In the upcoming days, the use of IoT in ERP will increase and an employee can automate, link, and sync the various things and handle through their ERP modules provided to them. Most of the ERP will switch to the cloud-based model which not only secures the database of ERP marketplace but also explores more features of it to enhance their performance.
In the upcoming future, ERP will play a crucial and proactive role in the growth of market requirements and trends. More complex problems will be solved very easily and effectively by advanced ERP technologies. As with each passing days, ERP technology will flourish, more ERP vendors and ERP creators will come to this sector and more openings for jobs will emerge in the particular field making it the most profitable sector contributing in India’s GDP growth.
