ERP in 2016: Top Trends
With the turn of the calendar comes a raft of predictions for the coming year, and so it is with trends in enterprise resource planning (ERP). Among the most interesting trends are six put forth by Panorama Consulting, Manufacturing Business Technology (MBT), and Gartner.
- Classification of Tier I ERP systems will become obsolete. Although the systems themselves may not become obsolete, the definition of and difference between Tier I, Tier II, and Tier III ERP systems certainly will. There are simply too many options and sophisticated technologies in the market to think that the big three incumbents are the only packages capable of addressing the needs of large, upper mid-market, and high-growth organizations.
- Adoption of ERP systems is increasing among small and mid-size organizations. Until recently, larger enterprises had a big technological advantage over their small and mid-size rivals. However, new SaaS ERP software and mobile technologies are becoming more cost effective and easier to deploy, which is causing the smaller and mid-market to catch up to their Fortune 500 counterparts.
- ERP will be key to transforming real-time analytics into competitive advantage. Companies have already begun to receive real-time analytics from the Internet of Things (IoT) on the manufacturing floor and throughout the supply chain. ERP—specifically, cloud-based ERP solutions—can play a critical role in helping decision-makers leverage this real-time data at every stage in the manufacturing and sales cycle.
- Cloud ERP will help companies leverage Manufacturing-as-a-Service. The Manufacturing-as-a-Service model enables businesses to use a factory and pay only for the production time they need, rather than investing capital up front in building or buying a facility that they don’t yet need 24/7. This data-intensive model has been out of reach for most companies, but that’s changing. Adoption of cloud ERP—as well as increased machine learning, adoption of IoT sensors and supporting data models, and advanced intelligence—makes it easier for companies to interpret and act on data, and brings the benefits of this cost-effective model within reach for more companies.
- Cloud ERP providers will benefit from the rise of smart factories and production centers. The next 12 months will see the proliferation of algorithm-based businesses enabling automated background tasks including smart machines. Gartner’s technology trends for 2016 set a solid foundation for the growth of globally-based smart factories and production centers. Cloud ERP providers are ideally positioned for this trend, having proven their ability to provide manufacturing intelligence from the shop floor to the top floor.
Do you agree with these assessments? What do you see as key developments in ERP for the year ahead? What developments would you like to see?
Posted by Epicor Social Insights Team