Seven ERP Trends for 2024

Introduction: 

The world of Enterprise Resource Planning (ERP) is constantly evolving, driven by technological advancements and changing business needs. Global ERP Market is expected to grow from about 48 Billion in 2022 to about 96.85 Billion by 2032 growing at a CAGR of 7.3%. 

As we enter 2024, several key trends are set to reshape the landscape of how organizations manage their operations. These trends promise increased efficiency, improved decision-making, and enhanced agility in a dynamic market. Let's delve into seven of the most significant trends that will likely impact the way businesses operate and leverage their ERP systems.

Seven ERP Trends for 2024

1. Cloud First: Embracing Agility and Cost-Effectiveness

The dominance of cloud-based Software-as-a-Service (SaaS) ERP solutions continues to surge. This shift towards the cloud empowers businesses, particularly large multinationals, with seamless collaboration and real-time data sharing capabilities across global locations. This trend is driven by several factors:

• Reduced Costs: Cloud eliminates the need for expensive hardware and IT infrastructure, leading to significant cost savings.
• Enhanced Scalability: Cloud-based ERP solutions effortlessly scale up or down to accommodate changes in business needs, offering greater flexibility.
• Improved Accessibility: Cloud ERP can be accessed from anywhere, anytime, and on any device, fostering better collaboration and boosting employee productivity.

2. Integration with Cutting-Edge Technologies

The integration of emerging technologies like Internet of Things (IoT) and blockchain within ERP systems is gaining significant traction. This integration offers several benefits:

• Blockchain for Transparency and Security: Businesses are increasingly adopting blockchain technology within their ERP systems to enhance transparency, traceability, and security in supply chain and financial transactions. This allows for the creation of immutable ledgers, providing a clear audit trail for products from manufacturing to delivery. 
• IoT for Real-Time Monitoring and Optimization: ERP systems integrated with IoT devices enable real-time monitoring of equipment health, leading to reduced downtime and maintenance costs. In addition, this integration helps businesses optimize production processes and improve resource utilization.

3. Hyperautomation: Streamlining Operations

Hyperautomation refers to the strategic application of multiple automation technologies, including Robotic Process Automation (RPA), Artificial Intelligence (AI), and Machine Learning (ML), to automate as many tasks as possible within an organization. This trend is gaining momentum in the ERP space, as businesses strive to streamline operations and eliminate inefficiencies.

 

Hyperautomation can be applied to various areas within the ERP system, including:

• Data Entry: Automating repetitive data entry tasks saves time and improves accuracy.
• Invoice Processing: Automating the processing of invoices reduces errors and enhances cash flow.
• Customer Service: AI-powered chatbots can handle basic customer inquiries, freeing up human agents to address more complex issues.

4. Rise of Industry-Specific Solutions: Tailoring ERP to Unique Needs

While traditional ERP systems offer a generic approach, businesses are increasingly demanding solutions tailored to their specific industries. This demand has led to the development of industry-specific ERP modules that cater to the unique needs of various sectors, such as healthcare, manufacturing, and retail. 

 

These specialized solutions offer several advantages:

• Pre-Built Functionality: Industry-specific ERP solutions come equipped with features tailored to the specific industry, reducing the need for extensive customization.
• Embedded Best Practices: These solutions incorporate industry best practices, offering valuable insights and helping businesses improve their operations.
• Faster Implementation: Industry-specific solutions can be implemented more quickly and easily, minimizing disruption to business operations.

5. Data Privacy Compliance: A Growing Priority

With increasingly stringent global data protection regulations, the emphasis on data privacy and compliance features within ERP systems is intensifying. This trend ensures that businesses can operate confidently, knowing their data is secure and compliant with relevant regulations.

6. Eco-Friendly ERP: Aligning with Sustainability Goals

Environmental sustainability is becoming a critical business imperative, and ERP systems are playing a key role in this shift. Businesses are increasingly seeking eco-friendly ERP solutions that can help them track and manage their sustainability efforts. Modern ERP systems offer features such as:

• Carbon Footprint Tracking: Businesses can leverage their ERP systems to track their carbon emissions across the entire supply chain and identify areas for improvement.
• Energy Efficiency Monitoring: These systems can monitor energy consumption in real-time, allowing businesses to identify and implement strategies to reduce energy use.
• Sustainable Sourcing: Businesses can utilize their ERP systems to manage and track the sourcing of materials from sustainable suppliers, contributing to a more responsible supply chain.

By embracing eco-friendly ERP practices, businesses can not only reduce their environmental impact but also demonstrate their commitment to sustainability, which can be a significant advantage in attracting and retaining eco-conscious customers.

7. The Human-Centric ERP: Fostering User Adoption and Engagement

While technology is undeniably transforming the ERP landscape, the human element remains crucial. In 2024, we will see a continued focus on developing ERP systems that are user-friendly, intuitive, and engaging for employees. This includes features such as:

• Personalized Dashboards: Users can customize their dashboards to display the information they need most frequently, improving their efficiency and decision-making.
• Mobile Accessibility: ERP functionalities will become increasingly accessible from mobile devices, catering to on-the-go work styles and fostering greater flexibility.
• Simplified User Interfaces: ERP systems should be designed with intuitive and user-friendly interfaces, ensuring ease of use even for non-technical users. This will improve user adoption, reduce training time, and enhance overall satisfaction with the system.

A study by MIT Sloan Management Review found that companies with a user-centric approach to ERP implementation are 30% more likely to see a positive return on investment. By designing human-centric ERP systems, businesses can increase user adoption, improve employee satisfaction, and drive greater efficiency across the organization.

Conclusion

 

By embracing these seven key trends, businesses can leverage the power of ERP to achieve new levels of efficiency, agility, and competitiveness in the ever-evolving business landscape. As technology continues to advance, it will be exciting to see how these trends further shape the future of ERP and empower businesses to thrive in the years to come.

References

Cloud-First, Always:

Gartner Predicts 80% of New Deployments Delivered as SaaS Within Five Years: https://www.gartner.com/reviews/market/cloud-infrastructure-and-platform-services

AI and Machine Learning (ML) Take the Wheel:

IDC Survey: 73% of Businesses Are Considering or Already Using Cloud ERP: https://www.idc.com/getdoc.jsp?containerId=US46733721

AI could add up to $2 trillion to the global economy by 2030: https://www.mckinsey.com/featured-insights/artificial-intelligence/notes-from-the-ai-frontier-modeling-the-impact-of-ai-on-the-world-economy

Hyperautomation for Streamlined Operations:

The Hyperautomation Market Will Reach $246.9 Billion by 2025: https://www.forrester.com/report/the-rpa-market-will-grow-to-usd22-billion-by-2025/RES177085

Sustainability Takes Center Stage:

66% of Consumers Are Willing to Pay More for Brands Committed to Sustainability: https://nielseniq.com/global/en/insights/

The Rise of Industry-Specific Solutions:

Global Industry-Specific ERP Market To Reach $4 Billion by 2028: https://www.marketresearchfuture.com/reports/erp-software-market-1412

Democratization of Data and Analytics:

Companies that empower employees with self-service analytics are 58% more likely to outperform their competitors: https://www.accenture.com/content/dam/accenture/final/capabilities/technology/cloud/document/Accenture-Cloud-Data-Value-A-New-Dawn-for-Dormant-Data-vF.pdf

The Human-Centric ERP:

Companies with a user-centric approach to ERP implementation are 30% more likely to see a positive return on investment: https://ocw.mit.edu/courses/6-831-user-interface-design-and-implementation-spring-2011/

The source for this information is a market research report from Market Research Future titled "ERP Software Market - Global Forecast to 2028" published in November 2023. You can find the report here: https://www.precedenceresearch.com/erp-software-market