Nimbleness is not typically a virtue of ERP systems. But get ready for some changes in the ERP space this year.
With the move to cloud computing and an influx of Millennial workers who expect business systems to work as simply and efficiently as consumer services, innovation in the ERP space has picked up of late. From artificial intelligence and greater connectivity to the first signs of block chain technology adoption, ERP makers are evolving their offerings like never before.
Here are six of the biggest ways that ERP will evolve this year.
Block chain technology, not to be confused with Bit coin and related digital currencies that leverage it, serves as a form of digital ledger technology where records are shared over a peer-to-peer network of independently owned notes. With block chain technology, interactions can be shared and verified more easily as transactional objects.
This is the year we’ll see ERP systems move from a system or record to a system of intelligence.
Powered by AI and advanced analytics, and fueled by IoT data, ERP systems are beefing up predictive analytics and actionable data that can be used by assembly line employees and management alike.
Once the stuff of legend, ERP implementation costs have been on the decline for years. This trend will continue in 2018, as more businesses move to the cloud and take advantage of standardized processes instead of custom configurations that have historically made implementation a project management nightmare.
It has been a slow decline, but legacy ERP systems finally are on the way out. Cloud-based ERP has won, and 2018 is the year that on perm starts to seriously disappear from the ERP landscape.
Further development of the cloud-based product suites from vendors such as Oracle, Infor and Microsoft will bring in more niche functionality for the majority of vertical industry solutions, according to Default, which will help channel partners better understand the intellectual property they must provide and facilitate faster digital transformation for businesses.
ERP software is transforming from a system of record that facilitates data collection and adherence to a critical component for driving business value through connectivity. As ERP moves to the cloud, it is becoming the nerve center for a web of connections among various cloud systems and IoT data lakes.
Part of this new role requires better standards-based connectivity, with ERP systems evolving to support improved interoperability.
As part of that increased connectivity, ERP systems will have to evolve so they coexist with the flood of niche applications for industry that have cropped up and gained significant adoption.
Large ERP vendors like Oracle, SAP and Inform can no longer simply acquire an industry leader and have a monopolized solution because there are too many applications right now that fill the void.