What are the most important ERP trends for new professionals to know?

Adoption of cloud-based ERP systems, with the integration of artificial intelligence and machine learning, a focus on user experience and mobile accessibility, the rise of industry-specific ERP solutions, a shift towards modular and scalable ERP architectures, heightened emphasis on cybersecurity within ERP systems, and the growing role of analytics and business intelligence in enhancing decision-making capabilities. Additionally, awareness of trends related to IoT integration, blockchain applications, and sustainability.

In 2024, the ERP landscape will be marked by its ability to embrace emerging technologies and meet changing business requirements. These developments signify a move towards smarter, easier-to-use, and more secure ERP systems that can effectively assist businesses in an ever-more digital environment. As these trends progress, they hold the potential to introduce greater innovation and operational effectiveness to enterprise resource management.

Cloud-based ERP offers better composability offering customers to select and configure only the necessary modules, avoiding unnecessary features. Extend ERP functionalities to meet specific business needs without overhauling the entire system. Quickly adapt to changing business environments and requirements. Upgrade individual components without affecting the entire system. Easily incorporate emerging technologies and trends. Customers can adopt a sustainable and adaptable ERP system that grows with the business and Integrate analytics tools that provide deep insights across different modules. Combining Cloud ERP with composability provides a robust, flexible, and scalable solution that can adapt to the dynamic needs of modern businesses.

Cloud ERP adoption is transforming how organizations manage resources by offering unparalleled flexibility and scalability. Migrating ERP systems to the cloud reduces infrastructure burdens, enhances accessibility, and supports remote work. This shift enables real-time updates, improved collaboration, and robust security measures, making Cloud ERP a strategic imperative for agile and efficient operations in today's dynamic business environment.

The question is not ‘if’ but ‘when’. Most of organisations are aware of the pros and cons on moving to cloud but they are also aware that it is inevitable. However on deciding ‘when’ to move to cloud few factors can be taken into consideration namely- Current ERP support costs charted over a mid term and long term horizon( varies for each case ), impact to business operations, change in business processes ( low to medium ) , tangible and immediate end user benefits ( reporting and data analytics) . It’s also important to decide the ‘how’ which encompasses scoping, time and cost of migration, and right tools to aid the move .

ERP systems with built-in machine learning algorithms are causing a revolution in business; with the potential to bring greater predictive accuracy to every phase of production, they are helping organizations in making critical investment decisions. As machine learning enables computer programs to grow and learn by studying predictive and statistical analytics, the algorithms iterate in milliseconds, enabling you to achieve optimized outcomes in minutes instead of weeks or months. Although predictive analytics is possible without machine learning, machine learning capabilities improve the accuracy of predictive analytics over time.

I would say AI and Machine learning have been around for a while on the ERP landscape. What's new is the usage of Generative AI and that's definitely a trend to watch. AI and ML has helped automate mundane tasks but where Gen AI is coming into the play is generating reports and other content which normally are generated by humans utilizing the data curated by either operational system or AI supported actionable insights. As an example financial data is there on the system but people need to properly present to the shareholders the company status. Even that it's still the early days we are not far from the days where the quarterly and yearly reports will be generated by AI and why not even the long waited earning call speeches of executives.

In my experience, this is the hungriest part for development in ERPs. AI and ML will transform user experience deeply. There will be no time consumed for repetable tasks; Users and customers will be focusing more strategic and tactical operations other than daily and repetable staff.

AI, ML and other technologies are the driving force for the future of ERPs. These tools are defining the future and functionalities of ERPs. They are improving on the capabilities of ERPs to gain deep insights on the overall operations of the business and the ability of stakeholders to make informed decisions in a fast changing business climate. They will define the next generation of solutions that will drive change in businesses.

This is the Future of ERPs. I look forward to a fast, fruitful and seamless collaboration between AI and ERPs, where ERPs will take a more forward thinking approach in delivering solutions that will empower clients to make strategic decisions.

IoT devices and big data analytics contribute to a more nuanced and real-time understanding of the business environment, customer behaviors, and market trends. This integration enhances ERP's capabilities in providing comprehensive insights and enabling predictive analytics, which can be pivotal in forecasting and responding to future business scenarios. For new professionals, it's crucial to understand not only how to effectively incorporate IoT and big data into ERP systems but also to ensure the integrity, security, and governance of this data. Mastery in managing these aspects is key to unlocking the full potential of IoT and big data within the ERP framework, thereby driving informed decision-making and strategic planning.

Internet of things - Though Internet exist several years before in the IT domain.. now it is effectively used example to call out.. google Assistant.. Alexa are couple of examples.. Imagine.. they are all working on Voice Commands and execute the tasks.. Example Selecting a particular Song through Alexa is a IOT.. it actually recognize the voice and the description of the Song and search on behalf of us in the total population of Audio MP3s and play immediately.. This is classic example of IOT with Big Data.... Hence those designing the ERP should have the Holistic picture of their Domain and Technology and design the Solution and where ever possible implement the Automation , using AI , ML and RPA and also using IOT and Big Data..

The Internet of Things (IoT) connects devices, enabling data exchange. This generates massive datasets, known as Big Data. IoT devices collect and transmit real-time information, while Big Data analytics processes and interprets this data. Together, they offer insights for informed decision-making. IoT relies on Big Data to extract valuable patterns and trends, enhancing efficiency in areas like healthcare, smart cities, and logistics. This synergy revolutionizes data-driven decision processes, transforming industries through interconnected devices and advanced analytics.

IoT and big data integration in ERP is pivotal. IoT sensors gather real-time data, enhancing visibility into operations. Big data analytics processes this information, uncovering patterns and trends. This synergy improves decision-making, predictive maintenance, and supply chain optimization within ERP systems. New professionals should grasp this trend to harness the power of interconnected devices and vast data sets, unlocking efficiency gains and strategic insights in ERP implementations.

Integrating IoT and big data with traditional data collection methods like barcodes, QR codes, and RFID significantly enhances their utility. These advancements enable the collection of a broader range of data, including dynamic information such as temperature and real-time imagery, enhancing ERP systems' analytical capabilities. Further advancements include AI and ML for predictive analytics and automated decision-making, blockchain for secure and transparent product tracking, and AR/VR for improved ERP system interfaces. These technologies collectively transform ERP systems into more potent tools for smarter, data-driven decision-making, ensuring comprehensive insights and greater business operation control.

A vida se tornou móvel. Os sistemas ERPs tiveram que acompanhar essa mudança de hábitos. Assinar um contrato diretamente no smartphone, aprovar pagamentos, prorrogar cobranças, liberar crédito, fazer o pedido de venda e acompanhar a entrega na palma da mão se tornou fundamental para os executivos dos negócios de todos os tamanhos e nichos, portanto, um ERP com funções de mobilidade é crucialmente importante para a expressa maioria dos negócios.

Social ERPs could be a game changer with the help of Mobile/IoT devices where India could gain an advantage with Aadhaar, ONDC, and UPI on the horizon. The next phase would be to use a unified application framework using microservices and underlying connectors of Transactions and Payments. The only missing data set would be to have OGD provide standard data structures that can be consumed by organizations to ascertain that their digital interactions with other parties are seamless and use common definitions. Small enterprises are going to benefit the most from this kind of infrastructure and availability of information services which are cost-effective and help them operate at par with mid and large organizations.

Mobile and social integrations are transforming how businesses interact with ERP systems and stakeholders. Mobile ERP facilitates on-the-go access to vital business data, enabling flexible and responsive operations. Users can perform tasks, approve workflows, and access real-time information, boosting productivity and decision-making. Social ERP, on the other hand, leverages social media-like collaboration tools within the ERP platform, facilitating communication, knowledge sharing, and teamwork among users. This integration not only enhances accessibility and communication but also promotes a more agile and collaborative approach to enterprise management in an increasingly mobile and interconnected business environment.

Mobile phones are innovation for this Decade.. Hence connecting ERP via Mobile is additional Feature and that is another development. Generally for the top management will be comfortable using small hand devices for the portability .. hence the workflows and approvals are easily done when they are out of station as well. Now a days mobile plays vital role and lot of new development in Android and other platforms which is challenging and also looking for more adaptability and compatibility. Social media is vibrant now and mobile plays very pivot role in that as now all most all the social networking sites are available in mobile it will be easy to review and post the comments and also promote the same. Hence it is inevitable to have this.

Green and sustainable Enterprise Resource Planning (ERP) emphasizes environmentally responsible practices in business operations. It integrates eco-friendly features such as energy-efficient data centers, paperless processes, and supply chain transparency. By incorporating sustainability metrics, organizations aim to minimize environmental impact and align their operations with ethical sourcing, contributing to corporate social responsibility and global sustainability goals.

This is one area, which certainly needs focus and will surely become a hygiene factor, going forward. A few pointers to reflect on- 1- Inclusion of Sustainability requirements should be a part of core ERP implementation program’s scope. Shift from just including typical ERP business process requirements- Like R2R, P2P, O2C, etc 2- In addition, core process requirements to be evaluated for adverse or positive impact they will have on ESG agenda- like printing of reports to be discouraged from system itself , electronic ways to share transactional reports to be encouraged, tracking EPR ESG impacts, etc In summary gone are the days to have just functional, non functional requirements, time to add Sustainability requirements to ERP scope!

To effectively measure the impact of ESG (Environment, Social, Governance) factors, a Green & Sustainable ERP solution is crucial. This entails the incorporation of master data and intricate calculations to derive meaningful values. The process extends to generating comprehensive reports with a commitment to transparency and tracking. The integration of ESG considerations directly into the ERP system not only ensures accuracy in measurement but also aligns with a forward-thinking and environmentally conscious approach to business management.

By integrating green principles, organizations can not only cut costs but also bolster their brand image as eco-friendly and socially responsible entities. Moreover, aligning ERP strategies with the United Nations' Sustainable Development Goals offers a framework for contributing to global efforts like combating poverty, protecting the environment, and promoting prosperity. For new professionals, it's essential to grasp the nuances of implementing green and sustainable ERP solutions. This includes understanding how to measure and report on their performance and impact, ensuring that these systems effectively contribute to broader sustainability goals while maintaining business efficiency and compliance.

Classic example for contribution to Environment is below:- Reducing the Carbon Emission to Zero is the global Vision. Our contribution to this would be we need to think a)Avoid printing ticket in Hard copy b)Using multiple tissue papers c) Using Car for Single person to go to same place by all the members Like this Individuals discipline will become corporate discipline and will implement by way of reducing the Cost and improve the efficiency.

The trend hasn't changed: Increase Customer Value. Cloud, AI, or IoT are not business goals, but technologies that enable business value - the "Enablers." So, to find the Trends let's first define the issue. Today, companies must navigate increased cost of doing business, impacted by factors such as high interest rates and energy costs, disrupted supply chains, or shortage in labor. Therefore, the Trends to navigate the issues are: gain business agility, efficiency, scalability, and resiliency. Now, back to the Enablers, we find (1) Cloud ERP to accelerate time-to-value, decrease TCI and TCO, while ensuring resiliency, adaptability, and scalability; or (2) reliable and responsible embedded AI, to hyperboost efficiency and productivity.

While all the trends mentioned are important, the key piece is the changing trends in Business Processes. The world of Supply Chain is undergoing tectonic shifts. You can't be a good ERP professional if you are still stuck in the 'Bar Code' mode of Material Receipt when the world has shifted to QR Codes and Automated Receiving. While GPS is the norm in Transportation and Logistics, most ERPs still expect you to manually enter the quantity of fuel you filled in the gas station. AI, Blockchain, Digital Twin, IOT, IIOT and Control Tower are where SCM is going while ERPs are still stuck in the old Data Warehouse Management Models. An ERP Professional should read more about the changes in their domain to advise their customers better.

The latest technologies like AI are being embedded in the ERP's and ERP professionals should have the knowledge of how AI works and how to use it effectively . ESG reporting and sustainability are also gaining massive momentum and it is important to tie the ERP to these efforts . The other advancements like IOT , Cloud etc are not very new and have been around for some time so most ERP professionals will have the knowledge of how it works !

The integration of ERP systems with reporting tools like Power BI is pivotal for data-driven decision-making. This synergy enables the seamless extraction and visualization of ERP data within Power BI, fostering the creation of dynamic reports and dashboards. By consolidating information from various ERP modules, organizations can gain a comprehensive view of their operations. This integration streamlines reporting processes, supports real-time analysis, and empowers stakeholders to make informed decisions based on visually compelling data presentations, exemplifying the convergence of operational data and advanced analytics.

ERPs today are increasing offering API centric approach to integration facilitating seamless connectivity with other business applications. This can help turbocharge data exchange and collaboration across organizational ecosystem and even outside the organization. ERPs today are also increasingly offering support for third party integrations using APIs which can not only accelerate integration but also help organizations quickly incorporate new technologies and features. This can be a cost effective approach to quickly roll out new cutting edge tools and features and enhance ERP systems capabilities.