The lack of comprehensive resource planning software was the key limit of many enterprises for a long time. However, things changed with the growing need for new-generation business process management. ERP software needed to become more responsive in reacting to changes in the supply chain, costs, exchange rates, payroll, labor attrition, etc.
Today, ERP became a database with built-in analytics, where AI can provide the speed, insights, and automation to reduce costs and improve inventory velocity.
As we look ahead to the technological developments of 2023, compared to other IT segments, such as data center systems and hardware, corporate ERP software has a more consistent growth model, signaling trends for high business demand in software support.
From artificial intelligence to the rise of extended reality, plenty of exciting developments are on the horizon. This article will explore some of the most interesting and potentially groundbreaking tech trends to watch out for in the coming year.
Why ERP is highly demanded across enterprises
Businesses rely on ERP to streamline processes, cut unnecessary costs, and automate routine tasks. Additionally, it provides access to real-time business-critical information, which drives decision-making. ERPs are also being adopted to effectively plan and streamline data under one platform, regulating operating costs, improving decision-making, and increasing sales. With enterprises relying on software solutions increasingly, they continue to evolve, include more functionality, and integrate with new technologies.
The global ERP software market is projected to reach $66.38 billion by 2026. The Panorama ERP Report provides the following reasons for implementing ERP systems:
- 17% for improved business performance
- 14% for easier jobs for employees
- 14% for ensuring compliance
- 13% for integrated systems
- 9% for replacing legacy systems
The integrated nature of ERP — seeing all aspects of the business together in one place and connecting them — could also lead to other improvements. Due to the software as a service (SaaS) delivery model, most major ERP vendors announced record growth in bookings and revenue in 2022. For example, the SAP S/4HANA Cloud backlog was up 100% in Q2 2022, with SAP Cloud being the most significant revenue stream.
Key trends driving ERP market growth
The increasing digitalization of businesses and rising government favorable policies for digital technology software implementation have propelled market growth. ERPs are being implemented across small and medium-sized enterprises to manage their business operations better while enhancing collaboration and simplifying compliance & risk management. Therefore, Enterprise Resource Planning attracts many new technological developments that will drive growth in 2023 and beyond. Now, let’s look at the close-coming trends. These are:
Priority for accounting
The finance module has always been one of the most valuable aspects of the modern system. And this trend in ERP implementation became even more critical as inflation and the COVID-19 pandemic have led to much cost-cutting at even top-tier enterprises. ERP provides finance-related functions such as general ledger management, payroll, fixed assets, сash management, etc. It is also responsible for preparing financial reports for various departments.
The cloud ERP trend is undeniable – the global cloud ERP market is estimated to reach $40.5 billion by 2025. This is because cloud services meet the need for wide availability and provide teams with access on mobile devices such as phones and tablets anytime, anywhere. Moreover, ERP cloud technologies easily connect to other cloud applications, such as sales tax calculations in sales order processing. Hybrid setups are also gaining popularity as ERP vendors offer companies a way to blend on-premise systems with cloud-based applications.
Mobile ERP for remote work
Following the previous trend, mobile ERP software allows the workforce to operate anytime from anywhere and conveniently capture data on a mobile phone. It made data sharing easier, faster, cheaper, and more accessible. Mobile-based ERP solutions simplify interaction, enhance communication, and improve the workforce’s productivity.
One of the brightest trends is AI and ML-driven tools. They are now part of the business, including collecting, analyzing, and reporting more prominent, complex, and unstructured data. And, of course, using chatbots and digital assistants to automate and speed up the process for better customer experiences. Using AI in enterprise resource planning ensures providing the required amount of structured data with a high level of security and fewer manual errors.
Driving factors of ERP market growth
The need for transparency and operational efficiency in business processes has forced companies operating globally to adopt various business models. Advancements in technology minimize the complexity of enterprise resource planning software systems and allow third-party apps to maintain corporate processes more efficiently. According to the 22nd Annual Global CEO Survey conducted by PwC, 80% of all CEOs believe that product commercialization will significantly influence their organizations and business models in the following years.
Worldwide, companies are focused on enhancing their business processes to increase operational productivity while keeping track of running costs. Organizations are looking for an integrated solution to handle various business operations, including sales and marketing, procurement, and supply chain management.
Integration of ERP software has made business operations simplified and more efficient. Manual data entry is no longer necessary, allowing companies to see all the data in a single uniform platform. This cloud-based software may make complex procedures, such as a multi-step production plan, easy and painless.
ERP has many built-in modules, such as supply chain management, customer relationship management (CRM), HR, and more, making it one of the most attractive software solutions on the market. This is what makes it the most scalable option for a company that’s growing.
Applying these trends can become a strategic software investment for an enterprise – and a great way to outpace the competitors who saw the ERP software possibilities earlier.
Follow TechTheLead on Google News to get the news first.