Innovations in technology platforms and ERP systems will be a natural progression of digital transformation, according to new analysis from Priority Software. The ERP vendor, which is based in Israel, says that ERP trends will continue to be driven by customers’ needs for great flexibility in a data-driven, dynamic and multi-dimensional business environment.
Efrat Nakibly, chief of marketing and customer success at Priority Software, said: “The business world had little choice but to adapt to the new normal and the next normal that called for more stringent business continuity and risk management strategies. While ERP was relatively slow to change, it became clear that connectivity, interoperability, and agility were must-haves for any organisation intent on surviving a now dynamic and complex environment, where every business decision could potentially ‘make it or break it.’
“Now more than ever, companies are increasingly relying on ERP to manage their business operations, by integrating new technologies and supporting a broader range of front and back-end functionality. What’s more, organisations are now required to quickly adapt the way they plan, execute, and measure their performance to meet the requirements of a fast-changing business landscape, and adopt new, critical operational methodologies to meet their strategic business goals.”
According to Priority, as the business management software ecosystem continues to evolve and remote working becomes the norm, the emphasis on using self-service capabilities, powered by low-code technology, is here to stay, to further ensure business insights and accurate decision making.
The analysis also highlights the following ERP industry trends for 2022:
- Headless architecture which preaches for full separation between business logic and data and the development of task-specific interfaces, independently designed and implemented from the back end. By implementing a headless architecture, complex operations become simple and user experiences are tailored to provide each end-user with a personalised, cross-organisation interface, from warehouse employees and sales teams to human resources, store managers, and customers.
- Cloud computing introduced a whole new world of ERP, enabling cloud-hosted options that drive more efficient work practices, save time, reduce total cost of ownership, and help companies to change the way they work. Despite the data security concerns that accompanied the industry’s transition to the cloud, it was successfully adopted, thanks to the growing availability of mobile platforms and increased security. Open, flexible and scalable cloud applications led the market to be dominated by SaaS ERP solutions. Many organisations that still use on-premise ERP are starting to understand how and why they’re getting left behind.
- Machine learning & AI is a growing trend that will echo across all ERP features, including industry-specific solutions, such as manufacturing and distribution. AI technologies, including machine learning, are helping organisations draw additional value from the ever-growing volumes of collected data. AI continues to empower companies to gather new, actionable insights, enhance their operational processes, and best use their reams of business data.
- IoT integration, known as direct machine integration combined with vast amounts of data have shaken the ERP landscape, introducing new possibilities for operational excellence and workflow automation. IoT integration allows ERP systems to gather, store, and process unprecedented amounts of data collected from new, external endpoints in real-time, without developing connectors to external sources. This data is used by industries to obtain accurate and relevant user information and address their unique requirements, and demands. As a result, the industry will see the rapid advancement of IoT integration into the ERP ecosystem, as organisations continue to demand advanced asset management capabilities, greater efficiency, improved forecasting, real-time insights, and enhanced interoperability.
- Mobile ERP apps gained popularity during the global lockdown, when businesses started to explore newer ways to leverage mobile tools as an extension of their ERP system. Today, with the surge in remote working, more and more organisations are onboarding mobile ERP, where it’s fast becoming making a necessary operational tool. Mobile ERP solutions drive system visibility and accessibility companywide, accelerate business processes, boost productivity, and save time, resources, and costs across the board.
- The two-tier ERP approach essentially uses ‘two systems’ to address the needs of large organisations with multiple locations and/or subsidiaries. This technology allows for master data management, or rather, a single source of accurate data for the entire enterprise. Two-tier ERP systems are gaining popularity, providing global subsidiaries or branches with specific regional and vertical industry tools and functionality.