Future Trends in ERP Systems: What’s Next for ERP
Enterprise resource planning systems are useful platforms that help businesses predict and project their internal financial plans. Right now, companies use this software to manage day-to-day tasks and activities. However, future trends in ERP systems point to including even more features for improving business decisions.
What’s yet to be incorporated into ERP systems will soon impact businesses overall. The addition of artificial intelligence into ERP systems has changed not only how the system operates, but the volume of data it can handle as well. As ERP systems integrate more information, company leaders will be able to make progressively informed decisions.
Creation of the Intelligent ERP (iERP) system
The Intelligent ERP (iERP) system uses machine learning and advanced data analytics to augment current ERP system offerings. iERP differs from ERP systems by featuring an assistive and conversational user experience. The system uses machine learning and advanced data analytics for executing actions similar to current practices. These actions include analyzing information, tracking and forecasting results, and reporting and managing data.
Similar to machine learning, this system can learn exceptions, evolving and adapting to business rules. Additionally, iERP can reuse previous responses when situations call for it. These iERP capabilities help ERP evolve from a record management platform into truly intelligent software. A self-maintained ERP system will free up time for individuals to work on higher-level endeavors.
Impact of artificial intelligence and business intelligence on financial planning
As businesses integrate additional smart technologies into their processes, from the manufacturing floor to the office, more data will be added to ERP systems for financial planning. Artificial intelligence, and its many branches, stand to evolve the ERP systems for business decision makers.
To help connect all devices used by a company, leaders will turn to the Internet of Things (IoT). The sharing of data between IoT-connected devices and ERP systems will help gather and analyze data, as well as simplify processes. Robotic and data monitoring devices included in everything from the factory floor to delivery trucks will transmit information via their IoT connection back to ERP solutions. One benefit of bringing IoT-connected device information into an ERP system will be the centralization of data storage and report generation.
Managers will have additional transparency as IoT and its connected devices follow a product’s life cycle. This transparency, when plugged into an ERP system, aids in businesses making better financial decisions. Leaders that know how quickly a product is made and when it lands in the customer’s hands can map out where improvements need to happen or what processes to update.
The manufacturing floor will change as well. Future trends in ERP systems point to AI-powered machinery talking directly with an ERP system. Companies adding more AI run machinery into their manufacturing process will see an automation of processes which, in turn, can help with creating better overall cost predictions for products.
The merging of IoT data into ERP software may have a ripple effect for some companies. Businesses may need to update their ERP back-end database and security. Leaders may look to cloud storage options to solve this potential problem.
The additional information from IoT-connected devices will increase overall business intelligence. Business leaders will be able to make increasingly informed decisions from the data at their fingertips via advanced analytics, increased interfaces and forecasts, along with automated workflows. Management can also improve efficiency and productivity by using this information to select the most beneficial updates to various business processes.
Leveraging collaborative features
As companies expand, either in number of employees or global footprint, collaborative features become increasingly important. Also, newer team members are often part of generations who have always had access to connected devices. ERP systems that include social media features will provide benefits to their users, such as increased cross-department communication or faster responses to consumer queries.
Although current ERP systems may already include chat features or activity trackers, updating these features so they better emulate social media functionality can help quicken adoption. A personalized employee profile, including activity trackers and other relevant information, will help managers set up their teams based on characteristics they require.
Setting up profiles across departments might also encourage more collaboration. Communication between different employees, if made as easy as instant messaging friends on social media, may help individuals share information between various groups. Employees who share information with everyone, regardless of their department, can help reduce the prevalence of information silos.
ERP systems will help improve more than just business operations and communications. Discussions with consumers will happen faster as well. Since social media has become a primary place for talking to consumers, ERP systems of the future will need to integrate with social platforms. This integration provides the ability to respond faster to consumer questions while generating additional data for company financial predictions.
As ERP systems evolve, their current features will change as well. These systems will include artificial intelligence factors that will reduce the time spent on creating projections. Additionally, artificial intelligence will be able to amass much greater quantities of information, allowing businesses to make higher quality predictions.
Aside from artificial intelligence, ERP systems will also incorporate social media-like features. Even though current ERP systems include collaboration options, future systems will adapt similar functionalities as those seen on current social media channels. Faster responses to employees, as well as to consumers, will be a primary business benefit of social updates to ERP systems.
Moving forward, ERP systems will go through major upgrades. Merging with other technological capabilities, these platforms will provide businesses with more information, with which to make better financial decisions.