For manufacturers, the year 2020 was extraordinarily intricate. The remote operations management introduced discrepancies in the ERP systems that were required to be mitigated to ensure smooth workflow management. From supply chain management to distribution organizations, companies faced several challenges in shifting the entire on-premises operational infrastructure to the remote environment.
The lockdown situation all over the world enforced companies to manage operations digitally. The ones having the flexibility of cloud ERP system equipped operations seamlessly amid COVID-19 outbreak. The reason is that cloud ERP allows companies to get access, manage, and perform activities from anywhere. The data gets updated in real-time which makes data management and decision making easy for the manufacturers. ERP system is expected to reach a revenue of about $48.21 billion worldwide by 2025. Considering these increasing figures, businesses are vigilant in their adoption at a rapid pace.
This article demonstrates some ERP trends for 2021 among which some are as a result of 2020 ERP revolutions that play a central role in transforming the ERP industry.
Cloud ERP
One of the outstanding trends in 2021 is a cloud-based ERP system. In 2018, cloud-based ERP systems had an enterprise application growth rate of 20.7%. The spending on global cloud app is expected to reach $226.9 billion by 2022. The prevalence of cloud-based ERP system will keep on gaining ground in 2021. Due to the continued lockdown situation and efficient performance results, cloud-based ERP will be praised by enterprises to keep managing the business infrastructure in a smooth way.
According to an international survey of ERP users, among 64% of companies using SaaS, about 21% are using cloud-based ERP system. The reason is the efficient configuration of ERP systems according to the need of manufacturing companies. It does not require any technical expertise to make changes in the processes and systems.
Read: 5 Easy Steps to Select a Suitable ERP Software
Artificial Intelligence and Automation
High-end technologies are prevailing in the ERP systems to automate certain modules. Instead of manually operating each function that tends to be highly time-consuming and inefficient can be mitigated by automating it. AI and machine learning technologies can curb the risks of work-intensive tasks and help increase business productivity to a greater extent.
In the year 2021, ERP systems will integrate AI technology to replace humans and drive the processes on their own. From problem-solving to monitoring and automated tracking, business processes can be improved. By employing the strong underlying algorithms of AI, ERP systems are improving the power of decisions making dynamically based on history and current events.
Mobile ERP
Mobile ERP will be a trend in 2021. The increase in mobile phone usage calls out for business solutions that could easily be operated through handy devices. According to a survey by Statista, smartphone users are expected to reach a number of 2.8 billion by 2021. The estimation requires some work to be done by the innovative business software as well. Mobile ERP will start becoming a part of an ERP system and it would consist of some crucial modules that are necessary to be under the monitoring line of a business executive.
Through mobile ERP, the managers would be able to get push notifications in real-time to get updated with the sales, orders, shipment details, and thee expenses. Updates from the warehouse to the shipment order tracking are the real-time information to which a manager must be acknowledged all the time. Similarly, the complaints could also be resolved immediately without any delay. Thus, the work could be done faster that would ultimately add to customer satisfaction and retention.
Also Read: 5 Ways of Harnessing the Benefits of AI and ERP
Customization and Integration
Integration of additional useful modules in an ERP system will be a trend of 2021. Businesses would invest in the integration of highly productive third-party apps and tools that could help increase business productivity and efficiency. For instance, instead of manually performing all the accounting processes, businesses can integrate the accounting software with an ERP system in order to automate the billing and invoicing module. The tools can also be customized according to the features that are most frequently used in the organization.
One automated module accelerates the performance of other modules as well. For example, if the accounting department would be able to generate automated reports, the HR management would ultimately be able to monitor the resources much better. Thus, business productivity and operational efficiency will boost up.
ERP and Blockchain
ERP systems in fusion with blockchain technology present a secure environment to protect real-time organizational and customer information. Today, the instances of data breaches and cyber threats have increased which need to be mitigated by employing strong security solutions. Blockchain is capable of protecting sensitive information by encrypting it with strong cryptographic has functions. Thus, the data remains protected and the chances of data breach reduce. Another advantage of blockchain integration is the fulfillment of stringent compliance obligations.
Similarly, many other high-end technologies in the intersection with ERP are used to propose a complete business solution. The transformation in ERP systems thus helps businesses grow at a rapid pace and get appreciated in the relevant market.
Two-Tiered ERP System
Another emerging trend to be noted in 2021 is the implementation of a two-tiered ERP system. It corresponds to the two levels of the ERP system; one to be operated at the corporate level and the other for the subsidiaries. The cost of system failures in bigger organizations is very high. To curb the risks and percentage of failures, the ERP system is operated at two levels. This makes testing and practical implementation easy for the companies. At level two, subsidiaries manage all the operations related to the management of business models and languages in an efficient way.
This is the demand for digital transformations that are taking place at the organizational level. A copy of records would eliminate the risk of wrong or manipulated data values by the employees intentionally or unintentionally.
Conclusion
The advanced ERP systems are changing the way businesses used to operate. The companies are employing innovative business solutions to keep ongoing processes highly streamlined. This does not only increase productivity but gives power to companies to retain themselves in hard times. The year 2021 is a reflection of the challenges companies faced in 2020. The post COVID measures include the adoption of cutting edge technologies that could directly or indirectly enhance business productivity. Moreover, it optimizes the rate of customer acquisition, retention, and satisfaction to a significant level.
