Enterprise Resource Planning (ERP) solutions have been around for decades, however in the past two years the systems have evolved rapidly to keep up with the ever-changing technology and fluctuating consumer trends. Today, small to mid-sized businesses need to reevaluate how they are leveraging their current ERP approach and focus on finding ways to leverage features for managing business operations, executing backend functions, and integrating systems in the digital age that simplify tasks and streamline processes while maintaining operational efficiency and lowering costs.
4 Major Trends in Enterprise Resource Planning
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Harness the Power of Artificial Intelligence
The rapid ascension of Artificial Intelligence (AI) gives businesses valuable technology – if they harness it properly. AI adds value through its ability to quickly learn and provide tools and data when used in conjunction with other systems. As AI continues to grow more powerful and people continue to adapt to its capabilities and potential use cases, it becomes more common to find AI built into business systems like ERP. As a solution, ERP are fundamentally built on the foundation of streamlining business operations and automating processes. With AI, this can be taken a step further – by learning those processes and harnessing the data from operations, AI can be integrated into ERP systems for automating as well as forecasting, allowing businesses and employees to gain valuable insights for making smarter business decisions proactively. The key factor in the success of AI will be finding the balance between the technology and the people using it, especially when it comes to ERP and continued technological advancements.
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Embrace Technology and the Future with GenAI
As boomers near retirement age and more and more of the younger generations enter the workforce and take over business management, the impending generational shift in the workforce looms large. Millennials and Gen Z, and to some extent, even Gen X, have begun to take over the workforce and in doing so have begun to shift the priorities, culture, and practices of businesses across industries by leaning into shifts in technology and building for a future that adapts as AI continues to grow and evolve. They are often referred to as GenAI, highlighting the focus and emphasis the younger generations place on technology and the adoption of artificial intelligence.
By embracing this tonal shift and leaning into the technology focus of Gen AI, ERP companies have to make sure to keep up with the changes and embrace the new technologies or risk being left behind. Unlike many of the other current trends in ERP, which are based mostly around technology and policy, this trend towards Gen AI is more of a cultural shift, which could have further ramifications and an even larger impact that goes beyond the scope of technological advancements. Building a future in which GenAI takes the reigns requires not just the adoption of more advanced technology, but also the implementation of systems that modern and intuitive, allowing for more proactive decision making - both now and in the future. This shift could see both short and long-term changes in the way businesses operate, the ideas that are prioritized, and even the necessary skillsets for employees. When it comes to reliance on ERP software and advanced technology, current and future generations could be prioritizing differently than the old guard, and it is vital for ERP companies to monitor this shift to maintain relevance in a growing field.
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Drive Proactive Decision Making and Business Forecasting with Advanced Analytics
The digital transformation continues to build upon itself as trends with data and analytics move from reactive decision making towards a more proactive data model. The growing reliance on cloud technology has highlighted the key benefits that come from the ability to access information from anywhere at any time and the capacity to incorporate a wide range of data and information into business practices. Rather than reacting to the data, businesses are capitalizing on the benefits of unprecedented data and insights within their ERP to make more proactive decisions. This trend towards proactive data and decision making allows businesses to forecast trends, monitor and plan for fluctuations due to seasonality, mitigate costs, and address key challenges before they occur, thanks to key patterns and previously unseen variables that can be found within the system.
As more ERP companies trend in this direction, it becomes not just beneficial but necessary for operational planning and making key business decisions. The reliance on analytics and data for proactive decision-making influences outcomes and drives growth when it comes to saving costs, testing new technologies and integrations, addressing problems before they arise, and even building more sustainable business practices.
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Go Green and Build Sustainable Business Practices for the Future
One of the major ideological shifts that has continued to reverberate throughout the younger generations is the reliance and prioritization of sustainable business practices. Gone are the days of excess waste and toxic emissions being acceptable business practices. As key decision makers prioritize green initiatives and lawmakers continue to implement policies that not only support but encourage more sustainable business practices, this becomes a priority that can be implemented into ERP solutions. The shift towards AI and predictive analytics models make this easier than ever, as companies can forecast material needs to eliminate waste, automate processes to cut down on production time, and monitor results to streamline operational efficiency – all of which can be impactful ways to engage in more sustainable business practices.
By addressing these concerns from the ground up, business owners and employees turn to ERP solutions that allow them to maintain sustainable business practices and may even prioritize those goals over other aspects within the ERP. With this ongoing trend, it is key for developers to find ways to continue to address sustainability concerns, whether that be through functionality that allows businesses to upcycle or eliminate waste, or even shifting to a reliance on data-driven insights that shine a light on best practices and potential for growth in green initiatives.
Key Results of Current ERP Trends
Streamline Operations and Reduce Costs by Implementing ERP
For many businesses, the decision to implement an ERP comes down to the need for more automated processes and efficiency. No matter what the industry, relying on simpler tools such as excel can lead to errors and too many manual processes. An ERP solution provides the tools needed to integrate business systems and improve operations by automating tasks, communicating across departments, and optimizing processes within an organization. The value of streamlining processes and operations directly correlates back to the costs associated with production and efficiency, and ERP solutions allow businesses to mitigate costs by eliminating the reliance on manual processes, finding operational inefficiencies, and providing solutions to challenges posed across all functional business areas.
Maintain Competitive Advantage Within Your Industry with Advances in ERP
Business owners and decision makers are tasked with determining what they want to prioritize when it comes to an ERP system so that they can run key operations and make the best decision for their business. With so many ERP options available on the market, many of which run the same functional tasks but may entice users with more targeted product solutions, it has become more vital than ever to understand your unique business needs when comparing and shopping for an ERP solution.
Taking advantage of key trends allows businesses to maintain a competitive advantage when it comes to key business operations. By harnessing the power of AI, embracing the generational shift, and adopting a proactive approach to data and decision making, businesses can utilize their ERPs to address key challenges and make more informed business decisions that will allow them to grow and thrive.
As businesses continue to grow and evolve, and as technology advances and work culture shifts, the need for reliable solutions that go beyond the functionality of Excel and basic accounting solutions becomes more necessary than ever. When it comes to ERP solutions, knowing and understanding those trends allows businesses to take stock of what is important and how to prioritize goals and needs. This in turn makes the process of choosing an ERP less daunting. The evolution of the modern ERP system mirrors the evolution of technology and culture, allowing for a seamless integration for businesses and continued growth in 2024 and beyond.
