Trends Transforming Enterprise Resource Planning in 2023

Table Of Contents-

1) What is ERP?

2) How & Why is it evolving?

3) ERP Trends for 2023

4) ERP Stats and Growth Projections in 2023

5) Conclusion

What is ERP?

The term ERP stands for Enterprise Resource Planning, an automated tool, either on-premise or on cloud, that helps manufacturing organizations streamline their operations and manage their resources effectively.

Irrespective of the industry type and size of the business, this software efficiently manages the core processes of a manufacturing organization such as:

It also allows to easily collect, analyse, organize, and share the needed information anywhere within the organization to avoid miscommunication and encourage quick decision making.

1. Production

2. Planning

3. Procurement

4. Risk management

5. Compliance management

6. Supply chain operations, etc.

How & Why Is It Evolving?

The history of ERP goes back to 100 years. Since then, according to the changing manufacturing standards, evolution of ERP is continued.

Before the beginning of the twentieth century, ERP adoption got popular amongst the manufacturers and many organizations started leveraging enterprise software with an aim of boosting operational efficiency.

Today, with the incorporation of many new technologies, the ERP software has extended its support to streamline almost all the organizational processes, from back-end HR and financials to front-office processes like production, packaging, distribution, etc.

Earlier, only on-premises version of ERP was introduced in which the hardware, on which the software is installed and run, are placed in the company premises, but with time the ERP technology started embracing the power of internet, delivering a new set of features for enhanced working.

Have a quick look at the ERP’s journey of transformation till date-

ERP Transformation Journey-

HISTORY OF ERP

1960s

Inventory Management and control

1970s

Material Requirements Planning (MRP)

1980s

Manufacturing Resource Planning (MRP II)

1990s

Enterprise Resource Planning (ERP)

2000s

Web Functionalities with Internet (ERP II)

2010s

Cloud-Based ERP

ERP Trends For 2023-

Cloud ERP on the increase

Increased Integration with other business systems

Rise of Artificial Intelligence & Machine Learning

Increased Focus on Finance Module

Increased Mobility

Rise of Industry-specific solutions

Cloud ERP On The Increase-

Cloud-based ERP is the improved version of on-premise ERP that is hosted on vendor’s server in the cloud. Regardless of the user’s location, these ERP systems offer the capability of accessing real-time updates of the business anywhere, anytime. This makes a cloud ERP a better choice for manufacturers.

Why Cloud Adoption Will Take Off?

There are numerous reasons for this. To state a few of them:

1. Increasing manufacturing complexities every year

2. Organizations need to better equip themselves against disruption

3. To respond efficiently even remotely

4. To reduce hefty IT budgets

5. To become operationally efficient

6. To have a robust security for business data

Benefits of cloud-based ERP-

Stats- According to a new report published by Allied Market Research, the global cloud-based ERP market was valued at $13.23 billion in 2016 and is projected to reach $32.18 billion by 2023, growing at a CAGR of 13.6% from 2017 to 2023.

Source: https://www.alliedmarketresearch.com/cloud-based-enterprise-resource-planning-erp-market

Cloud ERP offers-

 Enhanced security

 Easy compliance with the industry regulations

 Disaster management & recovery capability

 More Scalability

 Increased Mobility

 Lower installation and operating costs

 The ability to connect with business on any device, having internet

Increase In Integration With Other Business Systems-

ERP integration with various business systems will be one out of the prominent trends in the upcoming year. Earlier, ERP systems used to be the standalone solutions but today, integrating the ERP system with supplementary systems help

 Increase the overall capability of the ERP software

 Deliver additional functionalities to the organization.

It has been observed that software integration optimizes the functioning and help deliver more actionable insights that facilitates in making data-driven decisions. Additional benefits include:

6. Increased scope of capabilities

Types Of ERP Integration-

1. CRM- This integration of ERP helps organizations manage, retain, and acquire customers.

2. Business Intelligence- This integration offers a comprehensive view of the business operations allowing manufacturers to make data-driven decisions.

3. Human Resources- This integration helps to manage all the employee related processes and store information in a unified database.

4. E-Commerce- With this integration customers can be kept in a continuous loop during the entire sales process.

5. POS- This integration offers immediate access to realtime information related to purchase and sales.

Rise Of Artificial Intelligence & Machine Learning-

Powerful tools like AI & Machine Learning make it possible for the manufacturers to gain the deeper market insights in order to

1. Drive efficiency

2. Reduce waste

3. Predicting future with these technological advancements, companies get a demands detailed and transparent view of their current position and statistics through the generated reports.

Benefits Of Artificial Intelligence & Machine Learning-

1. A comprehensive view of the operations

2. Data-backed business decisions

3. Helps in creating high-level strategies according

4. to the market conditions

5. More efficient execution of processes

6. Helps focus on the competitors’ moves Therefore, incorporating these technologies and making ERP more intelligent than ever will be a prominent trend in the upcoming year.

Increased Focus On Finance Module-

Amid the inflation, businesses will have a more conservative approach to spending in the next year, and for which companies will have increased focus on their finance module to keep a track of the current spending pattern, identify the prominent areas of waste, and increase profitability.

Reasons behind increased focus on finance module

1. Rise in price-sensitive consumers

2. Increasing competition

3. Secure profits in the bag

4. To avoid overspending and maintain a healthy cash flow

5. To keep tabs on the money coming in and going out

6. To get notified of the revenue shortfalls

Statsistics-

Deloitte’s quarterly CFO survey shows that cost reduction and increasing cash flow are the top two priorities for CFOs for 2023.

Increase In Mobility-

As businesses are expanding their operations globally, they want their ERP to be more flexible and mobile. Mobile ERP software allows every team member to upload, access, and share the business-critical information through their hand-held devices like mobile phones, tablets, etc.

Operational Benefits of Mobility

 There Real-time updates of all the business insights at fingertips

 Increase Overall Productivity

 Ensure Cost Reduction with Increased Efficiency

 Faster Access to Critical Information

 Facilitates Collaboration between People at all Levels

 ROI Improves

 Increase Sales

Rise of Industry-Specific Solutions-

The manufacturing outlook spotlights that the industry will continue to evolve, and the challenges will also keep on increasing. Also, every company has its own goals, unique challenges, and separate workflow. This clearly suggests that the one-size-fits-all approach for ERP will no longer works. Hence, manufacturers are requesting personalized solution to settle their specific challenges.

According to a report, only 3% of companies use generic ERP without any personalization, instead everyone else requests customization.

Therefore, the future reflects the trend of implementing industry-specific ERP solutions to maintain a competitive advantage and to stay ahead in the competition.

Enterprise Resource Planning Stats and Growth Projections in 2023

 By 2023, the aerospace and defense industries will have experienced the highest ERP software adoption growth (8.86% since 2014).

 The ERP market in the Asia Pacific is expected to reach $9.77 billion by 2023.

 Fifty-three percent of businesses name ERP and CRM as priority investments.

 Twenty-nine percent of businesses fear cloud ERP is a security breach. risk

 The revenue of ERP software will reach $47 billion between 2017 and 2023.

Source- https://linchpinseo.com/

Enterprise Resource Planning Stats and Growth Projections in 2023

• Cloud ERP sees much greater investments.

• ERP improves 95% of businesses that implement it.

• ERP implementation causes operational disruption in 66% of businesses

• A record 68% of ERP customers are satisfied with their chosen ERP software.

• ERP improves processes in 95% of the businesses that implement it.

Source- https://linchpinseo.com/

Conclusion-

Initially, only large manufacturing organizations used the ERP software to manage their parts and raw materials. Later, to increase efficiency, more cutting-edge technology was incorporated to ERP systems. In this fashion, ERP started evolving out slowly, but now it is advancing quickly and fundamentally altering how manufacturers and other firms conduct business.

More fascinating cutting-edge technologies enter offices and the factory floor every year. In 2023, ERP will still go through a lot of changes.

How BatchMaster Can Help?

If you are also planning to get benefitted from the upcoming trends, installing a feature-packed and completely reliable solution like BatchMaster ERP is required. Hence, get in touch with our experts today and schedule a demo.

Thanks!