Enterprise resource planning (ERP) technology is continually evolving to meet the needs of the market.
Prior to 2020, a steady advancement of ERP software was marketed as Software as a Service (SaaS) and moved into the cloud. Today, a new wave of innovation is sweeping in with these features becoming ubiquitous in ERP systems.
Now, Microsoft Dynamics 365 is pushing beyond what was thought to be possible just a few years ago. Combining customer relationship management (CRM) and ERP services, Microsoft Dynamics 365 uses advanced machine learning and artificial intelligence to provide data-based solutions.
Fundamentally, Microsoft Dynamics 365 leads the way in the holistic digital transformation of ERP services. The SaaS tool runs in the cloud, supporting your sales, marketing, finance, operations, service, commerce, and human resources needs.
Going into 2020, 53% of businesses name ERP and CRM as priority investments. For good reason: ERP improves 95% of businesses who implement it.
The top five ERP trends to be aware of in 2020 are:
- The increase in small and midsize business (SMB) users
- The rising importance of ERP mobile apps
- A shift from operations management to customer satisfaction
- The push for two-tiered ERP offerings
- ERP used as the core for digital businesses
Not all of these ERP trends will directly impact your business, but some of the new features will certainly be worth exploring in your ERP implementation efforts.
#1: Make Room for More SMB Users
More small-to-medium businesses (SMB) have started using ERP software because of the increased availability of SaaS. This is expected to continue as technology companies work toward better catering to the needs of SMBs.
End-to-end performance management software was once used exclusively by larger enterprises due to the cost. However, increased accessibility and affordability have made it possible for SMBs to get on board.
Affordable ERP systems allow SMBs to operate like an enterprise-scale business, which makes them more efficient.
Though the upfront cost remains steep, they are low enough to be quickly offset by improvements in efficiency and unified IT costs.
#2: Applying ERP Mobile Apps
You and your employees live in a world where instant access to vital information and performance indicators can help your business run optimally. ERP mobile apps provide real-time insights and access to customer communications.
Your workforce can create events, review project updates, approve sales orders, push notifications, and more, all from a mobile device.
All this flexibility means that you can get more done, faster.
#3: Sights Set on Customers
Traditionally, ERP systems are designed to help manage your company through operations management, focusing on accounts, audits, supply chains, and warehouses. However, 2020 will see a significant shift in focus to customer satisfaction.
ERP implementation will complement your company’s strategies for improving customer engagement.
The integrated artificial intelligence will handle massive data sets better. This includes individual customer preferences, which will allow you to offer more personalized interactions with clients.
#4: Teeing up Two-Tier ERP
Companies with multiple locations — especially regional divisions — are using two-tier ERPs for more efficient and flexible business management: a legacy application at the corporate level, and a second ERP for subsidiaries or regional offices.
Costly failures in the early days of ERP systems (which only handled back-office functions) clarified the need for a two-tier system.
The second tier is especially important for larger subsidiaries that cannot be fully supported by the legacy system. It can be customized to fit the niche needs of the subsidiary while remaining connected to the larger system.
You’ll want to consider adopting a two-tier ERP system for one of several reasons:
- You have acquired a company with an outdated or unsupported ERP system.
- One of your subsidiary’s industries is not well featured at the corporate level.
- You have a small subsidiary that has grown enough to justify having its own ERP system.
#5: ERP As The Core Of Digital Business
As digital business evolves, companies rely on system integration with their ERP as the core of all business activities.
There is a lot of new technology that your business can use to minimize risks and maximize profits. However, all of these bells and whistles need to be integrated into a strong digital business core to function optimally.
Your business can undergo a digital transformation by combining top-flight ERP systems with cutting-edge technology.
ERP is a natural foundation for artificial intelligence and machine learning systems because it is already integrated into every aspect of your business and provides the necessary connections between employees, executives, and customers.
Final Thoughts — ERP Implementation: The Top 5 ERP Trends to Watch in 2020
When you and your team understand the significance of the top ERP trends for 2020, you can plan for how they can impact your business.
In the past, ERP implementations evolved slowly with the pace set by massive corporations. However, as the software is used more widely by agile SMBs, ERP technology will change more rapidly.
If you establish an ERP at the foundation of your company, it will be easier to integrate new technology and systems that improve your business. At the same time, you will be able to keep track of the key performance indicators (KPIs) that provide the most important insights into your company’s successes and failures.
Failing to adopt trending ERP technology leaves companies vulnerable in a competitive and optimized market.
Need help identifying how you can get ahead of the curve with these 2020 ERP trends? Contact the experts at k-eCommerce.