Due to the need for businesses to manage their operations and processes with more effective and integrated solutions, the ERP market is expanding and diversifying quickly. However, ERP expands to various industries and market segments, including cloud and AI, and is not a one-size-fits-all solution. It changes and adapts to meet the varying demands and expectations of stakeholders, including clients, staff, and employees. In this blog post, we will explore some of the major trends and figures that will influence ERP in 2023 and beyond.
Cloud is the new norm
Cloud ERP/ SaaS is one of the fastest-growing segments of the enterprise software market, as more organizations adopt cloud-based solutions for their core business processes. The main factors driving the adoption of cloud ERP are the increasing need for operational efficiency, digital transformation, remote work, and business continuity amid the COVID-19 pandemic. For its many advantages, such as lower initial costs and operational expenses, quicker deployment, scalability, flexibility, security, and accessibility, more than 80% of ERPs are SaaS-based, according to HubSpot.
New analytical technologies, such as business intelligence and artificial intelligence, are advancing ERP functionalities to provide deeper and richer data insights. By 2023, 50% of new ERP software will have embedded AI and advanced analytics, according to Gartner. Nowadays, organizations can use real-time data and analytics with these tools to make decisions quickly and efficiently but in the future, we anticipate major developments, including more presence of AI features.
Data-driven “fortune teller”
ERP systems can benefit from predictive analytics by offering data-driven insights and recommendations for better decision-making and assessing the likelihood of potential future scenarios based on past data and the state of the market. Forecasting business revenue growth, cost reduction, risk mitigation, and customer satisfaction are some of the most desired features. Additionally, the analytics may help with demand planning, production scheduling, quality assurance, and customer service. According to a Forbes Insights survey, 53% of businesses believe that ERP is one of the sectors where investments in predictive analytics should be prioritized.
Low-code no-code developments
In 2023, low-code no-code (LCNC) platforms will continue growing in popularity and power as more people start using them to build applications without knowing how to code. According to Codeless, by 2024, no code will make up more than 65% of the work involved in developing an application. Aside from being 10 times faster than conventional software development and adding value to 85% of projects that use them, LCNC platforms also have a few other advantages. The platforms also struggle with scalability and integration, though.
Large organizations can use different ERP systems for their corporate level and their subsidiaries or divisions thanks to the technology strategy known as two-tier ERPs. With this approach, businesses can cut their ERP costs by up to 50% and shorten implementation times by 30%. Additionally, compared to using a single ERP system, two-tier ERPs can help businesses adopt new technologies like cloud, AI, and IoT more quickly and easily. However, this also presents some difficulties that require careful attention, such as data integration, governance, and security.
What could you improve within your organization’s ERP in 2023? Contact our specialist to learn more.