How Technology is Defining The Future of ERP- Ripple Effect on Business Outcomes and HR
ERP or Enterprise Resource Planning platforms are evolving, yet we use them less in this part of the world. With the changes in business requirements beyond Africa, don’t be caught unaware, hence, ERP is also changing. The future of ERP exhibits the future of business. With the increase of AI and mobile app development services, businesses are ready to put data at the heart of every decision. Companies now prefer cloud-based ERP. As per a recent survey, more than 94% of enterprises regard cloud-based ERP as a safer option. ERP systems are becoming more dynamic. They can now take care of all organizational functions!
PS: If you don’t have an ERP system in place or are looking to get one for your business? Then you need to know about the trends that will shape the future of ERP.
I have put together about 5 Trends to look out for in 2020 beyond Africa:
1) We will have more buzz on ERP, this will culminate into more ERP users therefore moving already existing ERP users to the Cloud. It’s a ripple effect for the Cloud ERP.
2) Small size businesses and enterprise should be ready for updates else they’ll be moved to the sidelines. To be prepared for one big release, the company (both large and small enterprises) will have to adapt to many smaller releases. This will help reduce the steep learning curve between the systems.
3) Have you heard of Blockchain Technology and Intelligence? Do you know what its used for? Let me quickly educate you on what Blockchain is all about. “Blockchain” What Is Blockchain and what is it’s value?
Simply put, blockchain is a decentralised database shared among a network of computers, all of which must approve an exchange before it can be recorded. Typically if we want to send someone some money, we would need a third party, like a bank to verify the exchange. The advantage of blockchain is that it stores an indelible ledger of all previous transactions in a string of ‘blocks’, meaning we know who owns what and who can send what to whom., while blockchain is widely associated with Bitcoin and other cryptocurrencies, blockchain technology is set to revolutionize how ERP, HR , Recruitment and other functions operate within business. Blockchain, the decentralized distributed database, is being trialled and implemented by numerous companies across multiple industries on a global scale. No longer confined to cryptocurrency, blockchain’s capabilities can be extended to sectors such as logistics, fashion, healthcare and even humanitarian causes like we saw with the ID2020 digital identity initiative which aims to provide a global identity solution for refuge. Be informed that Blockchain has found takers in various enterprise software. It will find its way in the ERP also. The blockchain is one of the most secure platforms for carrying out transactions. Though, it is only in the nascent stages right now. But the future of ERP will feature blockchain. Specific organizational functions can become more efficient with blockchain. Supply chain management and customer acquisition will become more active with this technology. Many companies where shipping and tracking are essential functions have started using blockchain integrated with their ERP.
4) Artificial Intelligence services are impacting every facet of business operations. The concept of machine learning is going to revolutionize ERP. It will help businesses achieve high levels of automation. It will replace the need for human resources across various functions. The concept of robotic process automation (RPA) is catching up. Whereas previous systems focused on specific processes, RPA is applicable across all departments. This will help companies reallocate wasteful human resources to more productive avenues. Another extension of AI is in the form of Chatbots, So expect more chatbots as reallocation of funds will be towards business automation.
5) IoT: One of the most important goals of an ERP software is to provide real-time actionable data and information to the business leaders. Its integration with IoT technology helps accomplish that goal. Manufacturers are equipping their resources (products, machines on the shop floor, etc.) with chips, sensors, and tools through which they can be connected together by using the internet. And when these connected devices are combined with automated systems, it becomes possible to gather information, analyze it, and create an action. Looking at how large enterprises are starting to create their own IoT ecosystems, it won’t be surprising if ERP solutions join the IoT bandwagon and the vendors use data from this connection.
Closing thoughts
Over the years, businesses have evolved, and so have the ERP systems. Even in the near future, businesses will continue to look for better and more efficient ERP solutions to stay ahead in the race. Cloud ERP systems, intelligent ERP solutions (integrated with technologies like AI, IoT etc.), in-memory computing, mobile ERPs, two-tiered & hybrid ERP approaches, and micro-verticalized ERP software are likely to be the buzzword.
