Top ERP Trends: Key Insights for Business Leaders

Throughout 2024, Gartner projects that global IT spending, including enterprise software, will continue to expand, though at a slightly slower pace. Forecasted to rise by 7.5%, overall IT spending is expected to total $5.26 trillion. This includes significant software expenditures driven partly by innovations like Generative AI (GenAI). However, businesses may feel the financial impact of GenAI, as much of the revenue from GenAI-related sales will be funneled back to AI model providers, effectively acting as a “tax” on software companies.

These figures emphasize the growing importance of adaptive strategies. Businesses must embrace emerging ERP trends, such as a shift toward cloud-based ERP software like Microsoft Dynamics 365 Business Central, the modernization of existing systems, and the integration of A.I. and Big Data. As the landscape continues to evolve, it is clear that organizations must stay ahead of these developments to remain competitive in today’s fast-changing market.

Source: BizTechReports

Businesses need to adapt to the new reality and embrace the future of ERP trends to stay competitive. These trends in the ERP industry include a shift towards cloud-based ERP software, such as Microsoft Dynamics 365 Business Central, modernization and customization of existing systems, migration to the cloud, AI, integration with Big Data and BPM class systems, and the general trend of remote work. As the business world continues to evolve, organizations must stay updated with the latest enterprise resource planning trends to remain competitive and efficient in today’s market.

TOP 8 ERP Trends

1. Cloud Acceleration

The COVID-19 pandemic has accelerated the shift towards online business processes, prompting a rapid transformation of the business landscape. As a result, cloud solutions have become increasingly popular, providing organizations with the agility they need to keep up with new trends of ERP.

The concept of on-premise ERP needs to be updated. Today it’s being replaced by a cloud-based ERP that ensures accessibility, flexibility, and functionality. Gartner reports that cloud computing will be the main focus of the ERP market over the next 10 years.

Thanks to migration to the cloud, it became possible to maintain the required volume of traffic and store data, providing access from any device and location.

Cloud-based ERP systems allow companies to:

• reduce initial development costs
• speed up deployment and scaling times
• simplify settings to suit their unique needs

For cloud-based ERP, the initial investment is usually less since you don’t have to buy your equipment – you just need to set up the software and start working with it over the Internet. IT infrastructure maintenance is minimized as the cloud provider takes care of it. Such an approach allows you to free up the company’s resources and direct them to the development and growth of the business.

According to the “How Cloud ERP Compares to On-premise ERP” research, for companies with 100 employees, the total cost of ownership of cloud ERP systems in 4 years is 50% lower than the cost of owning on-premise ERP solutions.

Cloud-based ERP solutions don’t require updates: they are regularly updated by the vendor, so you can be sure you are using the latest version. In this case, all settings are automatically migrated. Also, clouds accelerate deployment speed. Deploying cloud-based ERP solutions takes 3 to 6 months while launching an on-premises ERP takes about a year.Cloud Acceleration is one of the key ERP technology trends businesses must consider to stay competitive and efficient in today’s market. By migrating to the cloud, organizations can reduce costs, improve accessibility and flexibility, and streamline their business processes.

2. AI Integration

The integration of AI is one of the future trends in ERP systems in the modern business world. AI-powered ERP solutions offer several benefits, including optimizing routine tasks, reducing operating costs, and eliminating errors caused by human factors. Artificial intelligence today can study and optimize enterprise processes and improve overall business performance, while ERP software provides the required amount of structured data.

Thanks to the Cloud + ERP + AI synergy – a large amount of data received is successfully supplemented with sufficient storage capacity, with further optimization of business processes based on this data.

The focus of the latest shifts in enterprise resource planning from routine to logical, analytical, and creative tasks increases the enterprise’s efficiency. For example, an AI-powered ERP solution for customer service integrates customer interaction with the order management process. AI solutions understand and learn from historical reports. Depending on the nature of the client’s request, the system predicts a possible request and offers a possible response to the client.

Maintenance is another way to integrate AI with ERP solutions. A digital assistant (DA) can help a maintenance technician determine the cause of a problem by analyzing the performance and service history of this equipment at other sites.The potential for AI-enabled ERP solutions is enormous. The combination and use of AI + ERP technologies lead to incredible, controlled growth of almost any enterprise, gradually freeing professionals from routine operations and making it possible to deal exclusively with intellectual and strategic tasks. At the same time, AI, in combination with ERP, takes over routine accounting operations with further data analysis, the main purpose of which is to optimize digital transformation and improve customer service.

3. Moving into Mobile ERP

Mobile apps are no longer a whim but a necessity. The segment of mobile-enabled ERP solutions will grow, and we expect explosive interest in this segment because the power and functionality of mobile devices are growing rapidly.

Not only interest but also a real need exists in the segment of supply, distribution, and merchandising companies.

Mobility is fast becoming a standard way of doing business, and mobile devices are the preferred way of communicating information to anyone, anytime, anywhere. Mobility in the business management process makes it possible to respond to all changes and stay ahead quickly. It helps to improve employee productivity and company efficiency. Mobile solutions ensure the interaction of CEOs with stores and consumers throughout the supply chain.

Thanks to such technologies, CEOs and managers can track the performance of enterprises even when they are “out of the office”: on business trips, vacations, etc. Mobile ERP access takes enterprise control to a new level. One of the leading ERP software trends is BYOD (Bring Your Own Device). Many people are getting used to their mobile devices and don’t want to change them to corporate ones. Today, employees can independently choose smartphones or tablets that are more convenient for them to use for corporate purposes. So, they need mobile business solutions as simple and familiar as consumer apps.

4. ERP with Real-time Data

The biggest step in the evolution of ERP is the usage of in-memory computing (IMC) technologies. Thanks to that, ERP systems can analyze and process large amounts of data in real time. Through human-machine interaction, the ERP system can determine which processes should be automated and which should be developed. It allows employees to become more productive.

ERP systems interfaces should transfer important information to those employees who need it at the moment, at any time, and anywhere. So in this way, the company’s management can make more effective decisions. It gives businesses a competitive edge in the digital economy, as they can quickly and flexibly adapt to emerging obstacles in real time.

5. Integration of IoT

The ubiquity of IoT (Internet of Things) is a new trend in ERP deployment. It means additional potential for the enterprise’s digital transformation is opening up. Using IoT data in ERP systems can solve the problem of decoupling between data from networked devices, on the one hand, and operational and strategic decisions, on the other.

Today, IoT can be practically applied in traditional enterprise I.T. areas such as customer service, forecasting, inventory management, and business analytics (B.I.).

Today, IoT can be practically applied in such traditional areas of enterprise IT as customer service, forecasting, inventory management, and business analytics (BI).

Any businesses looking to build an IoT infrastructure need a cloud-based ERP system. It’s the only type of platform that can facilitate the connections needed to turn data from various devices on the shop floor into actionable information for decision-making at higher levels of enterprise management. In addition, you need to combine machine and equipment signals so that they can be fed into the structured data environment of the ERP system.

Combining and presenting IoT data through an ERP interface will provide enterprises with many competitive advantages in the future. Thinking about how the IoT can impact the user experience is important. Interaction interfaces are a sore point in the field of intercorporate relations. As more millennials and gen Z come to work as a workforce, you will need user-friendly interfaces to fill jobs, especially in older industries. How we combine IoT technology with ERP software will determine the quality of this experience.

6. Blockchain and ERP

The interest of enterprises in blockchain-based technologies is growing, and over time, they are likely to be applied to the top ERP trends. So far, the blockchain is at the hype stage, but there are real cases in practice. The use of a distributed ledger in supply chains seems promising. There are already examples of blockchain applications in ERP systems in industries for which traceability is important.

For example, Samsung said they’re exploring the possibility of using blockchain to reduce costs associated with the supply chain. As the company calculates, blockchain implementation can provide it with savings of 20%. We’ll see whether this forecast will come true, but Samsung is not the only one who expects to reduce logistics costs using blockchain. Maersk, the trucking giant, is partnering with IBM to implement blockchain for drug transport operations. Given that the quality of medicines can affect people’s lives, the improvements blockchain can provide regarding the traceability of medicines can be very valuable.

7. Low-Code/No-Code ERP Customization

Low-code and no-code platforms have rapidly gained popularity in recent years. These platforms enable users, even those with limited technical skills, to create or modify ERP applications with minimal coding effort. This trend is particularly useful in ERP customization, as businesses often need to adapt their ERP systems to fit specific workflows without relying on extensive developer input.

Benefits include:

• Faster Customization
  Adjust ERP solutions quickly to meet specific business needs without extensive development work.
• Lower Costs
  Save time and money typically spent on hiring developers.
• Agility
  Allows companies to iterate on ERP configurations, helping them adapt to market changes more flexibly.

This growing trend is backed by major ERP providers who now offer built-in low-code/no-code tools to improve accessibility for businesses of all sizes.

8. Advanced Analytics and Business Intelligence (BI) Integration

As data collection grows, integrating advanced analytics with ERP systems has become critical for deriving actionable insights. This trend includes predictive analytics, real-time dashboards, and enhanced business intelligence features built directly into ERP platforms. Instead of just tracking operational data, these tools allow companies to forecast demand, analyze performance, and drive data-based decision-making.

Key benefits include:

• Improved Decision-Making
  Access to real-time insights helps businesses make better decisions.
• Predictive Capabilities
  AI-based analytics tools can predict trends or performance outcomes.
• Personalized Dashboards
  Tailored reports and insights for different departments within the organization.

The integration of advanced BI into ERP systems enhances organizational productivity by turning raw data into actionable business intelligence.

Throughout 2024 companies will be able to achieve more in less time through intelligent automation of data-intensive tasks. We expect businesses to migrate their ERP system to the cloud and invest in integrating AI capabilities into core software, automating manual processes using IoT devices, and focusing on upskilling and training to ensure maximum business success next year.

Our experts can take responsibility for your evolution of enterprise resource planning software and digital transformation to adopt new and advanced technologies to align with ongoing challenges, including Greenfield BC implementation, upgrading from Dynamics NAV to Business Central, migrating from Oracle NetSuite or QuickBooks to Business Central, seamless integration with allied Dynamics 365 platforms.

What’s Next for Business? Future of ERP

To prepare for the future of ERP, businesses must proactively identify and address their current and future needs. As cloud-based ERP systems become more prevalent, companies should evaluate software and consider migrating to a cloud-based solution. It will enable them to access their data from anywhere, reduce I.T. infrastructure costs, and scale their systems to meet their growing needs.

Furthermore, businesses must prepare for future trends in ERP systems, such as integrating A.I. and Machine Learning algorithms into their ERP software. It includes identifying areas where automation can reduce manual labor and improve decision-making. Businesses should also build a data-driven culture to ensure their systems can provide valuable insights that drive strategic decision-making.

Another way of evolution of enterprise resource planning system is a mobile-first approach. It means ensuring that ERP systems are accessible and user-friendly on mobile devices and investing in technologies enabling mobile data access.

As ERP systems increasingly integrate with IoT devices, businesses must ensure they have the necessary infrastructure to capture and analyze real-time data. It will enable them to make more informed decisions, optimize their processes, and gain a competitive advantage.

Finally, businesses must prioritize security to protect their sensitive data from cyber threats. It includes implementing security protocols, regularly reviewing and updating security measures, and investing in secure ERP systems that offer robust security features.

Consider Digicode Your Trusted Partner

Digicode is a full-service custom software development company in USA that offers Microsoft Dynamics ERP Services to adopt new and advanced technologies to align with ongoing challenges, including Greenfield BC implementation, upgrading from Dynamics NAV to Business Central, migrating from Oracle NetSuite or QuickBooks to Business Central, seamless integration with allied Dynamics 365 platforms. We are committed to providing our clients with end-to-end software development services, from initial discovery and design to development, testing, and maintenance. Our unique selling proposition is our ability to deliver high-quality, reliable, scalable ERP systems that meet our client’s needs.

Our team of experienced developers, designers, and project managers has expertise in developing ERP systems that integrate with current trends in ERP, various technologies and platforms. We have worked on multiple ERP projects, including inventory management, order management, financial management, and supply chain management systems. Our experience in these projects has enabled us to tackle complex challenges of ERP implementation and adopt top ERP trends that meet our client’s business objectives.

One of our recent projects involved implementing Dynamics 365 Business Central for a Science and Technology Center. The client faced challenges with many manual and Excel-based processes because of their limited and outdated ERP system. They recognized inefficiencies and inaccuracies caused by the system, and they wanted a single ERP system to manage and control project grants and create advanced reporting. We helped upgrade its ERP system, enabling them to automate its operational and financial accounting and generate corporate reporting.

You can find more information about our ERP projects on our portfolio page.

At Digicode, our client’s success is our success, so we are committed to providing exceptional service and high-quality solutions. If you are looking for a trusted partner to implement the ERP system that meets your business needs, we invite you to contact us to learn more about our services.