How ERP’s Have Changed in the Last 4 Years
blog/how-erps-have-changed-in-the-last-4-years
2024-06-14
Over the past few years, after the 2020 pandemic introduced unprecedented levels of uncertainty and rapid change in business environments, organizations were suddenly facing sudden shifts.
These shifts include a change of demand, supply chain disruptions, and even new ways of working (i.e., remote work).
These sudden changes brought new challenges for businesses, and many of these businesses were forced to learn lessons the hard way.
The lessons in question? Be agile, be resilient, and be quick to adapt.
And as businesses shifted towards being more agile and ready for swift adapting, they began to require their technology to be sufficient enough to meet their evolving needs, such as their Enterprise Resource Planning systems (ERPs).
How Have ERPs Changed in the Last 4 Years?
Firstly, to help organizations stay competitive and responsive to market changes, modern ERPs now incorporate agile methodologies that allow for iterative development, frequent updates, and quick responses to changing business needs.
To build resilience, ERPs now focus on robustness and redundancy, which integrates advanced analytics and AI to predict and mitigate risks, ensure business continuity, and quickly recover from disruptions.
Cloud-based ERPs, with their inherent disaster recovery capabilities, have become more prevalent.
Speed has become a critical factor in decision-making and execution.
The pandemic forced businesses to make rapid decisions and implement changes swiftly to survive and thrive.
Modern ERPs leverage real-time data processing, streamlined workflows, and enhanced user interfaces to enable faster decision-making.
They also support rapid deployment and scalability, allowing businesses to quickly implement new modules or scale up their operations as needed.
3 Ways ERP Vendors Are Advancing Systems for the Future
SMB IT decision-makers revealed that nearly 70% of businesses use an ERP solution for their daily operations.
Remarkably, almost 95% reported that their ERP systems helped them manage the impacts of the pandemic.
Clearly, ERP is a vital tool for overcoming today’s challenges, but it must continue evolving to stay relevant.
Here’s how ERPs are advancing:
1. Driving Smarter Decisions with AI and ML
Artificial intelligence (AI) and machine learning (ML) are transforming ERP systems.
These technologies enable ERP to generate actionable insights, boosting overall effectiveness, reducing downtime, and improving processes.
Machine intelligence integrates robust data with real-time performance information, delivered through mobile ERP.
This integration enhances functionality and data collection, leading to smarter, more informed business decisions and a better customer experience.
2. Embracing Cloud Solutions for Resilience
The transition to cloud-based applications is critical for business resilience and flexibility.
Gartner predicts that over 85% of organizations will adopt cloud-first principles by 2025.
However, concerns about regulatory compliance, cybersecurity, and other issues have led some firms to prefer on-premises solutions. Modern cloud-based ERP systems address these concerns by offering modular applications tailored to specific needs, with built-in cybersecurity.
This approach allows businesses to use the cloud confidently and effectively.
3. Enhancing Efficiency and Agility
The integration of various business processes within ERP systems is crucial for maximum efficiency and agility.
This integration reduces redundant tasks and increases visibility across all data facets.
Enhanced visibility, supported by AI, allows businesses to quickly adapt to changing conditions, mitigating the impact of disruptive events.
With the right tools, businesses can strategize effectively to handle or avoid worst-case scenarios.
Key Takeaways
Adopt ERP systems that incorporate agile methodologies. This will allow your business to benefit from iterative development, frequent updates, and the ability to quickly respond to changing business needs, keeping you competitive in a dynamic market..
Transition to cloud-based ERP systems to benefit from inherent disaster recovery capabilities and greater resilience. Address concerns about regulatory compliance and cybersecurity by selecting modern cloud-based ERPs that offer secure, modular applications tailored to your specific needs.
Your ERP system should be keeping up with the latest advancements. Without AI and AI-power features, your business risks falling behind.