ERP Trends You Must Watch in 2020
Enterprise resource planning (ERP) technology is growing at a very rapid pace. As a matter of fact many implementation specialists are finding it difficult to keep up with what is available, and that leads to ultimately implementing the wrong solution in some cases. However, this same rapid development is making it possible for companies to grow exponentially faster than they ever could before. What used to take decades to build is now only taking a fraction of that time.
Before 2020 rolled around, a steady advancement of ERP software had been marketed as Software as a Service (SaaS) and moved into the cloud. Many companies developing ERP learned that the days of the on-premise solution would soon fade as cloud based services came about. Fast forward to today, and you’ll see a new wave of innovation is flowing in with these features becoming commonplace within ERP systems.
Now, Microsoft Dynamics 365 implementation experts are working with companies to show them that Dynamics 365 is pushing envelope and setting the standard past what was thought to be possible just a few years ago. Combining customer relationship management (CRM) and ERP services, Microsoft Dynamics 365 uses advanced machine learning and artificial intelligence to deliver much needed and very accurate data to the users that have adopted the software.
Currently Microsoft Dynamics 365 leads the way in the holistic digital transformation of ERP services. The SaaS tool resides in the cloud, supporting sales, marketing, finance, operations, service, commerce, and human resources needs. Most recently they added the commerce element on top of their retail platform to allow enterprises the opportunity to have the e-commerce solution they deserve with Dynamics 365 Commerce. With built in A.I. pumping customized data to both users and customers to create unique experiences, businesses can run at an optimized performance level.
Here in 2020 53% of businesses name ERP and CRM as a priority to tackle It by implementing these systems by far are the most worth while investments for many an enterprise and small to mid-market companies as well. Organizations feel this way for a very good reason. That reason is that an ERP improves 95% of businesses who implement it. They reduce costs, increase revenue, cut out wasted administrative time, and most importantly house all of a company’s data in one easy to use place. Not living among spreadsheets stored locally on managers desktop computers.
ERP trends you should be watching in 2020 are:
- Increases in small and mid-size businesses adopting an ERP
- ERP systems being used in digital businesses
- A rise in two-tiered ERP offerings
- The high importance being placed on ERP mobile applications
- A paradigm shift from operations to customer satisfaction
All of these trends won’t necessarily affect your business, but companies should still pay attention to them, as some of the features might be worthwhile for them.
#1: Small businesses have created a market
More small-to-medium businesses (SMB) have started using ERP software because of the increased availability of SaaS. This is expected to continue as technology companies work toward better catering to the needs of SMBs.
End-to-end performance management software was once used exclusively by larger enterprises due to the cost. However, increased accessibility and affordability have made it possible for SMBs to get on board.
Affordable ERP systems allow SMBs to operate like an enterprise-scale business, which makes them more efficient.
Though the upfront cost remains steep, they are low enough to be quickly offset by improvements in efficiency and unified IT costs.
#2: Applying ERP Mobile Apps
You and your employees live in a world where instant access to vital information and performance indicators can help your business run optimally. ERP mobile apps provide real-time insights and access to customer communications.
Your workforce can create events, review project updates, approve sales orders, push notifications, and more, all from a mobile device.
All this flexibility means that you can get more done, faster.
#3: Sights Set on Customers
Traditionally, ERP systems are designed to help manage your company through operations management, focusing on accounts, audits, supply chains, and warehouses. However, 2020 will see a significant shift in focus to customer satisfaction.
ERP implementation will complement your company’s strategies for improving customer engagement.
The integrated artificial intelligence will handle massive data sets better. This includes individual customer preferences, which will allow you to offer more personalized interactions with clients.
#4: Teeing up Two-Tier ERP
Companies with multiple locations — especially regional divisions — are using two-tier ERPs for more efficient and flexible business management: a legacy application at the corporate level, and a second ERP for subsidiaries or regional offices.
Costly failures in the early days of ERP systems (which only handled back-office functions) clarified the need for a two-tier system.
The second tier is especially important for larger subsidiaries that cannot be fully supported by the legacy system. It can be customized to fit the niche needs of the subsidiary while remaining connected to the larger system.
You’ll want to consider adopting a two-tier ERP system for one of several reasons:
- You have acquired a company with an outdated or unsupported ERP system.
- One of your subsidiary’s industries is not well featured at the corporate level.
- You have a small subsidiary that has grown enough to justify having its own ERP system.
#5: ERP As The Core Of Digital Business
As digital business evolves, companies rely on system integration with their ERP as the core of all business activities.
There is a lot of new technology that your business can use to minimize risks and maximize profits. However, all of these bells and whistles need to be integrated into a strong digital business core to function optimally.
Your business can undergo a digital transformation by combining top-flight ERP systems with cutting-edge technology.
ERP is a natural foundation for artificial intelligence and machine learning systems because it is already integrated into every aspect of your business and provides the necessary connections between employees, executives, and customers.
Final Thoughts — ERP Implementation: The Top 5 ERP Trends to Watch in 2020
When you and your team understand the significance of the top ERP trends for 2020, you can plan for how they can impact your business.
In the past, ERP implementations evolved slowly with the pace set by massive corporations. However, as the software is used more widely by agile SMBs, ERP technology will change more rapidly.
If you establish an ERP at the foundation of your company, it will be easier to integrate new technology and systems that improve your business. At the same time, you will be able to keep track of the key performance indicators (KPIs) that provide the most important insights into your company’s successes and failures.
Failing to adopt trending ERP technology leaves companies vulnerable in a competitive and optimized market.
Need help identifying how you can get ahead of the curve with these 2020 ERP trends? Contact the experts at Hexalinks.