Top 5 Technology Trends in ERP for 2023
December 23, 2022 | Digital Transformation, manufacturing Industry, Technology, Trends | No Comments
Enterprise resource planning (ERP) solutions continue to evolve and incorporate new technologies, extending their support to most business functions. ERP systems integrate nearly all organizational processes, from back-end processes like human resources and accounting to front-office functions like sales and customer service. ERP technology increases efficiency, profitability, productivity and competitiveness.
What is ERP and why has it evolved?
ERP stands for Enterprise Resource Planning. It is business process management software that helps organizations streamline operations and manage resources more efficiently. Inventory, financial data, customer data, and other business information are tracked and managed by ERP systems. However, the traditional ERP model can no longer meet the needs of modern enterprises. The reason is that the corporate landscape has changed dramatically in recent years.
Thanks to technological advancements, companies are now more global and interconnected than ever before. You're also dealing with more data than ever before. Therefore, they need an ERP system that is more flexible and adaptable to change.
Enterprise resource planning (ERP) systems are used by businesses to manage and integrate various business processes, such as finance, HR, supply chain, and customer relationship management. Here are some technology trends that are likely to shape the ERP landscape in 2023.
Here are five technology trends that are expected to have a significant impact on the enterprise resource planning (ERP) landscape in 2023:
1. Artificial intelligence (AI)
AI and ML are expected to play a more prominent role in ERP systems in the coming years. These technologies can help automate various processes, such as data analysis, forecasting, and decision-making, and can also be utilized to increase the precision and effectiveness of several ERP tasks, including financial reporting and supply chain management.
Ordinary people have long feared that computers would replace humans, leading to widespread unemployment. In fact, many human tasks today can be performed entirely by computers. For instance, some vehicles are self-driving.
As far as intelligence is concerned, artificial intelligence (AI) is a bit different because the real goal of AI makers is to have their computing technology support human activities, not replace them.
Artificial intelligence, also known as “machine intelligence," refers to computers that mimic human cognitive functions, such as problem-solving and learning. AI got off to a rocky start, but growth in computing power, theoretical understanding, and vast amounts of data has led to a renaissance in recent years. So the time is finally ripe for artificial intelligence.
Now connected to ERP systems, AI is helping people make decisions, work faster and make fewer mistakes. Operations research, software engineering, and computer science problems are partially solved with the help of artificial intelligence. Enhanced AI is available in 2023 ERP software. Even parts of certain tasks, such as B. Accounts Payable, are done by AI systems.
If AI can improve our free time and leisure time, it should be easily merged with ERP programs to automate business agreements. It has flourished in manufacturing and accounting. Due to the personal and professional presence of AI, MarketsandMarkets predicts that the AI market will be worth $407 billion by 2027.
2. Cloud computing
Cloud-based ERP systems are becoming increasingly popular, as they offer a number of advantages over on-premises systems, including lower upfront costs, faster deployment times, and easier scalability. As more businesses adopt cloud computing, it is likely that the majority of ERP systems will be hosted in the cloud by 2023.
Storing data in the cloud is nothing new. What's new is the involvement of the ERP community, because until recently, ERP users were afraid to store their company data in cloud storage.
One-third of enterprise IT budgets are now spent on cloud services. As such, expect cloud ERP to continue to diversify and offer more customization options and capabilities in 2023.
Access to global enterprise ERP from anywhere in the world is the main reason for cloud ERP adoption. Cloud ERP offers better data security, so it is not as risky as one might think. Cloud ERP is also easier to manage and reduces costs.
The cloud has had a lasting impact on the ERP and technology industries. It’s no surprise that MarketsandMarkets predicts that the global cloud computing market could reach $947.3 billion by 2026. Aside from the limited internet access and specific industry standards that make on-premises solutions a must, cloud ERP software is often a better choice for businesses.
3. Internet of things (IoT)
Direct Machine Integration – Sometimes called the “Internet of Things" or “Internet of Things". This technology refers to connecting computers to machines and other things.
The integration of IoT into ERP systems is expected to become more widespread in the coming years. By connecting devices, such as sensors and smart appliances, to the ERP system, businesses can collect and analyze real-time data to improve decision-making and optimize operations.
For example, sensors installed on manufacturing machines can inform the manufacturer's ERP software in real time about the performance of the machines. A foreman or manager reviews and interprets the information. He then schedules after-hours maintenance when employees aren't around to collect their paychecks.
Unplanned failures and downtime are far less common when IoT and ERP are combined. That means fewer human technicians are needed, and fewer employees do nothing while waiting for machines to be repaired. IoT devices connected to an ERP can create this type of communication and efficiency across many different applications throughout the supply chain. This transparency on and off the chain will make the company more competitive.
IoT is already pervasive across multiple industries, including manufacturing, and it shows no signs of slowing down. MarketsandMarkets expects the IoT market to reach $650.5 billion by 2026.
4. Mobile ERP
The increasing adoption of mobile devices is driving the development of mobile ERP solutions, which allow users to access and manage ERP data and processes from their smartphones and tablets. With the rise of remote work and the growing importance of mobile devices in the business world, mobile ERP is likely to become increasingly important in the coming years.
Everyone is staring at their phones these days. Many people take their laptops and other mobile devices with them to restaurants, coffee shops, homes and offices.
We live in an age of instant access to information, and today's mobile workforce expects large enterprise software to have mobile apps. Apps provide managers and employees with real-time access to company information and customer communications. In order to address this need, ERP is indeed going mobile.
With an ERP mobile app, employees can send push notifications, create campaigns, and review and approve time, sales orders, and expenses at the local coffee shop or at a table in the backyard.
Mobility plays a vital role both inside and outside the workplace, which is why Allied Market Research predicts that the global smart mobility market will be worth $70.46 billion by 2027.
5. ERP Customizations and integrations
As businesses continue to look for ways to optimize their operations and improve efficiency, the demand for customizations and integrations within ERP systems is expected to increase. This includes the integration of ERP systems with other software and systems, such as customer relationship management (CRM) and enterprise asset management (EAM) systems, as well as the customization of ERP systems to fit the specific needs of individual businesses.
Customizing an ERP application means changing it at a macro level to meet the needs of a specific business or company.
ERP is custom-made when a company wants to add or change modules/features according to its needs, in addition to what the standard version has to offer. It also includes integrations with third-party or in-house applications to extend functionality and provide comprehensive automation solutions.
Example of ERP customization:
♦ Modify or extend existing functionality.
♦ Add new features and options that were not originally included.
♦ Configure the application to support third-party functionality.
♦ Add task management process.
Rather than customizing a system from scratch or over-customizing an existing system, ERP integration is a viable solution. The process combines multiple systems or modules to meet a company's specific needs.
Because this works with existing tools and modules, the need for customization is minimized, especially when working with vendors who understand the specific third-party modules and tools your industry requires. By integrating existing modules and tools, less time is spent on customization and code rewrites, saving costs and ensuring easy future upgrades. The process results in a more durable ERP system that delivers more value over the long term, increasing growth potential and success.
Artificial intelligence (AI), the Internet of Things (IoT), cloud computing, mobile enterprise resource planning (ERP), and customized ERP are all expected to play a significant role in shaping the digital landscape in 2023. AI will enable organizations to automate complex processes, analyze large amounts of data, and make better decisions in real-time. IoT will allow organizations to collect and analyze data from connected devices and systems, enabling them to improve efficiency and make more informed decisions. Cloud computing will allow organizations to access powerful computing resources on-demand and scale as needed, enabling them to be more agile and responsive to changing business needs. Mobile ERP will allow organizations to access their ERP systems from any device, enabling them to be more productive and efficient while on the go. Customized ERP will allow organizations to tailor their ERP systems to fit their specific business needs and processes, enabling them to get the most value out of their ERP investment.
Great Innovus helps organizations achieve digital transformation by building solutions utilizing AI, IoT, cloud computing, mobile ERP, and customized ERP. The company's team of experts works closely with clients to understand their unique business needs and goals, and then designs and develops solutions that leverage these technologies to help clients achieve their objectives. By leveraging the power of these technologies, Great Innovus helps clients to streamline their operations, improve efficiency, and drive business growth. Check out case studies at https://www.greatinnovus.com/case-study.html