Top ERP trends international organizations can’t ignore in 2020
From human resources and accounting to manufacturing and marketing, an ERP solution is a critical component of any business and directly impacts most parts of the organization. In recent years, the market for ERP solutions has grown rapidly- adoption is increasing and exciting innovations are happening. Below we explore the top ERP trends and innovations in 2020. Some of these have been developing over the past few years, while others are only starting to emerge. At Pipol, we understand the importance of keeping up to date on these industry trends so we can determine which ones are having the biggest impact on our international clients. That’s why we have our finger on the pulse and will keep you updated about all the latest innovations.
Greater reach for cloud-based solutions
In the past, ERP solutions were only available on-premise requiring expensive hardware as well as start-up, maintenance, and upgrade costs. In recent years, cloud-based solutions have grown in popularity, especially for small and medium-sized international organizations. These solutions are entirely managed by providers, making them easier and more cost-efficient to adopt. Cloud-based solutions are also modular-based and with SaaS ERP solutions, organizations only need to pay for the modules they use, allowing them to have tighter control of their budget. There’s also an increase in demand for hybrid ERP solutions, especially from our international customers as they prefer to combine on-premise with the cloud. This type of solution allows them to integrate several systems quickly and easily.
The popularity of iERP
Today we need to deal with huge volumes of data, and the data itself is also increasingly complex. International organizations are looking for new ways to process data so it can quickly be transformed into actionable insights to help with smarter decision-making.
iERP or ERP with intelligence tech integration is becoming more and more popular. These solutions allow organizations to benefit from automation and intelligent data processing to improve productivity, efficiency, and profits. iERP solutions can help automate operational processes and free up employees so they can focus on more value-building activities. Additionally, they can be used to create workflows, reduce errors, and minimize data loading time, while also offering ways to analyze historical data and more easily identify process improvements.
Mobile application for on-the-go access
The year 2020 has seen the greatest global pandemic of our time and overnight organizations needed to roll out remote working capabilities. Thankfully, solutions are no longer designed to be tied to a single machine and mobile support is now considered basic functionality of ERP solutions.This functionality allows employees to work outside of regular working hours to perform business operations anytime and anywhere- ideal for international organizations. And, there’s no need to return to the office to finalize the deal- employees can capture real-time data straight from the field. Mobile access also means better communication for quick decision-making, better workflow, and enhanced efficiency. For instance, it’s possible to know in real-time if materials are delayed so the manufacturing process can be immediately stopped.
Powerful capacity for advanced analytics
More and more, there has been less reliance on third-party applications and services as ERP solutions have started to incorporate powerful analytics for reporting and analysis. This helps organizations to quickly make data-driven decisions regarding finance or other business aspects and means all employees have the information they need to make quick, insightful decisions based on predictive analytics and trends.
Real-time data for accuracy and precision
Smart business decisions need timely and accurate information, and with access to real-time data, organizations can avail of precise insights, more efficient business operations, improved customer service, and much more.
ERP solutions offer seamless communication between various departments and provide management with greater visibility into the relevant data. They can be used to generate reports from captured data to support real-time responses. Real-time data in ERP can also improve customer service. By integrating with CRM software, organizations can better understand customers’ habits and trends so they can identify ways to improve customer engagement and retention rates.
Valuable financial modules
One of the most valuable components of an ERP solution is the financial module. From producing financial reports to payroll management, it offers all the necessary finance-related functionalities. With ERP solutions, financial transactions can be integrated with other modules to determine their impact on the entire organization. This allows organizations to quickly react and adapt when operational changes are implemented. And, with the increasing availability of powerful analytics within financial modules, it’s easier to record all your organization’s financial transactions and correlate the data with other modules for analysis.
Greater focus on digital marketing
International organizations wanting to gain a competitive edge would do well to leverage ERP marketing modules. These tools use powerful analytics to evaluate marketing campaigns, for instance, to see if the campaign is targeting the right audience. Marketers can now base their marketing strategies on relevant, real-time data from the ERP system.
There has also been a massive increase in the use of social media, with billions of users around the globe. This trend will have a major impact on digital marketing in the future. Moving forward, we can expect greater integration between ERP solutions and the various social media platforms, with functionality for publishing posts and running analytics from within social media platforms.
More user-friendly and personalized solutions
We’ve come a long way from the days of the one-size-fits-all solutions and today we enjoy much more personalized solutions that meet specific customer needs. With more customizable solutions, it’s possible to reduce investment and maintenance expenses as employees can create their customizations, reducing the need for dedicated IT staff.
There are a variety of industry-ready solutions that can easily be customized to support specific requirements and in the future, we can look forward to more user-friendly interfaces and operable tools that work for everyone and not just specialist tools. Overall, this personalization can increase the efficiency of employees and have a positive impact on the organization’s performance. Furthermore, personalized ERP solutions can help international organizations seamlessly integrate with the latest innovations such as AI and IoT.
The rise of Additive Manufacturing
Additive manufacturing or 3D printing allows manufacturers to reduce costs while improving efficiency in their processes. 3D printers need digital data from electronic sources and because ERP solutions have the capacity and capability to handle all the data, they are the perfect complement to this new technology. ERP solutions can connect all the processes in one single platform allowing you for instance to monitor the availability of materials as well as track products through the production, shipment, and delivery processes.
IoT and ERP working together in harmony
Internet of Things (IoT) technology allows you to embed computing devices in other, non-computer-based objects so they can transfer data to other interrelated pieces of technology, without needing any human interaction. When ERP solutions are combined with the Internet of Things (IoT), it’s possible to analyze key metrics and uncover more about the device’s capabilities. For example, within the manufacturing industry, the Internet of Things (IoT) can be used to set up a network of sensors to gather production data which can be turned into valuable insights about the efficiency of the manufacturing operations.
Greater flexibility with a Two-Tier Model
Two-tier ERP is often adopted by international organizations based in multi-locations or with several subsidiaries. At the corporate level, Tier one runs the legacy solution, while Tier 2 is managed by the subsidiaries. This offers subsidiaries more control, flexibility, and agility and gives them the freedom to customize their solution based on their specific needs such as regional and language requirements, while at the same time remaining connected with the Tier 1 system. And, because Tier 2 systems are less expensive, this approach can offer many cost-savings. However, the downside of this type of solution is that master data management requires great attention to ensure data isn’t duplicated or inconsistent.
Better ERP security and compliance
In the past, organizations used too much time and effort on system updates and patches. Thankfully, there has been an increase in prioritizing compliance and security, and with cloud-based ERP solutions, systems are automatically updated, and organizations can always be sure they are running the most current version. The cloud offers a highly innovative platform and is under constant development with Microsoft releasing biannual updates every spring and fall.
The right model for your organization
With these emerging trends and innovations, there are now various choices of ERP deployment and selecting the most suitable solution depends on many factors. At Pipol, we understand that international organizations are unique and have specific requirements for data and functionality. And, with our vast experience and expertise, we have the know-how to ensure you get the right solution for your business. To find out more, get in touch today.