We see it every year; less than sufficient ERP systems and practices creating impacts on companies who fail to treat it as a top priority. To maintain your company’s competitive edge and future stance, it’s required that you can readily adapt and transform to meet current challenges while your software continues to advance for the next generation of organizations.
In the past, Enterprise Resource Planning (ERP) was slow to change, however, wide advancements in technology have recently started a snowball effect of fast changes in ERP. These revolutionary progress requires companies to update their systems or be left behind within a few years – maybe even months.
Since the pandemic disrupted the working world and introduced more efficient practices, digital transformation is more important than ever – making ERP a top priority.
ERP implementation brings opportunities, complexity, options, and risk. Here are 5 of the major ERP changes to watch for in the year 2022.
What Is ERP?
If you don’t already know, or you need a quick brush-up, an ERP system is a suite of software that supports many business functions, from accounting to human resources to sales and marketing to engineering.
Quality ERP provides a central database for the entire organization, connecting groups with a single source of information that everyone can access. Driving productivity and process efficiency, ERP also includes real-time information that allows teams to make better decisions, faster.
The Future of ERP
#1. Cloud Based ERP:
Cloud-based ERP is not new, but additional features of security are. While businesses were previously skeptical about uploading their data to the cloud, many companies are now moving massive amounts of ERP data into cloud storage as they continue to see demonstrable results.
With instant access to a global company’s ERP from anywhere in the world, cloud ERP is easier to manage and drives down costs. Plus, Cloud ERP provides better security of data, so it is not as risky as people think.
Expect cloud ERP to continue to diversify and to offer more customization options and features in 2022.
#2. Artificial intelligence (AI):
A common fear felt by people all over the world expresses the digital-driven concern that computers will eventually replace human labor – creating massive amounts of unemployment. In fact, many of the jobs seen in the past can now be done by robots.
However, the real goal of AI development seeks to enhance current human practices rather than replace people entirely. AI refers to computers acting out human cognitive processes such as problem solving, decision making, and learning.
With increased digital capabilities and theoretical understanding backing massive amounts of data, AI is now connected to modern ERP systems. AI helps the people in organizations make decision and work more efficiently while avoiding many mistakes. ERP systems help solve challenges faced in software engineering, computer science, and other business operations.
Improved AI will be offered in 2022 ERP software.
#3. Mobile ERP
Today, everyone is staring at their cell phones, and many people are taking their laptops and other mobile devices to restaurants, cafes, homes, and to the office.
We live in an era of instant gratification with a world of information at our fingertips. Because of this, today’s mobile workforce expects a large-company software to have a mobile app. Apps provide business executives and employees access to live company information and customer communications.
ERP is adapting just the same, going mobile to meet this need.
ERP mobile apps allow workforce users to send push notifications, create events, review/approve time, sales orders, and expenses from anywhere.
Companies that implement this technology will have the edge over those that don’t because more work is getting done during the day. That means it’s gets done faster, and customers are happier.
#4. Two-Tier ERP
When ERP was in its infancy, companies would stumble into high cost mistakes when they would try to create ERP systems that only handled their back-office functions.
Today, companies that use two-tier ERP software are based in many locations, or they are large corporations with several subsidiaries. Two-tier ERP is the two-fold implementation of ERP within a company, where Tier one is used at the corporate level, and Tier two is managed by the subsidiaries.
As experienced by the early adopters of ERP, data management-related growing pains are still associated with ERP. A common issue is that employees in both tiers duplicate efforts. This negatively affects the accuracy of company records.
Despite its problems, two-tier ERP systems are adopted by companies when:
- A small subsidiary grows large enough to need ERP software.
- There is a subsidiary that has been in need of an ERP system.
- An acquired company’s ERP system is obsolete
#5. 3D printing
Three-dimensional printing (3D printing) is changing the game and modifying how manufacturers make complex products. Printers improve the parts, cut costs and drive efficiency, enabling huge amounts of well-made products to be cheaply and quickly manufactured.
Today’s three-dimensional printers allow engineers to make quick prototypes, and many different industries are continuing to embrace this new technology.
Fierce competition in the aerospace industry has made it a necessity for companies to adopt any new and revolutionary technology to equip them with a competitive edge.. In addition, the ability to quickly and easily create individual, specialized parts makes 3D printing a must-have technology for any large, seriously competitive manufacturing company.
The only problem that 3D printing presents is, as usual, data management. This is because so much data comes with it at every stage of production, and the software must handle a great volume of data.
ERP software was first introduced and implemented in large manufacturing companies to help manage their raw materials and parts. Throughout the years however,, more advanced technology was added to ERP systems to streamline processes and drive efficiency.
As technology continues to advance at accelerated speeds, each year brings many more exciting cutting-edge technologies to both offices and the manufacturing floor.
ERP will continue to develop and undergo changes in 2022. However, it’s crucial that companies keep informed on the latest technologies and ERP trends to ensure that any implementation is matched with beneficial return.
When implemented correctly, ERP software becomes the backbone of your company- managing people, processes, accounting, inventory, supply chain, and more. Furthermore, it equips you with the visibility into almost every area of your organization, where you can better recognize opportunities for improved productivity, increased efficiency, cost-reduction and accountability.
Whether your organization is recovering from a failed ERP implementation, currently engaged in one, or you already have a software solution in place, our team here at MCDA CCG can provide solutions to support any phase. Our experts can guide you through the logistics of implementation, provide your team with the customized consulting and training necessary to take full advantage of your software, and optimization services to make the most of your existing application.
The future shows powerful data of technological breakthroughs in ERP, ensure that your organization is in a position of strength.
Contact us today for a consultation with one of our experts by calling our office headquartered in Placentia, Orange County, California, today!