ERP software solutions have gained increasing traction among both large and small enterprises for its centralized approach to business processes. The companies can collect, store, manage, and interpret data from different business units with it.
ERP is also used to automate back-office tasks and streamline workflows across departments. The solutions can drive efficiency, reduce costs, and increase profitability when optimized.
By notwithstanding the hype around the Internet of Things(IoT) and Artificial Intelligence(AI), ERP trends are revolving around predictable developments in technology. This niche is capturing other SaaS solutions, possibly because of ERP’s more complicated setup.
Large multinational companies are in favor of an ERP approach at two levels. Two ERP systems are in place in this configuration—tier 1 at the corporate level and tier 2 at the secondary level. This strategy is based on the limitations of large corporations in the construction of a comprehensive ERP system across a multi-country organization with strong regulatory, cultural, geopolitical and market differences.
The recent increase in SMB adoption of ERP software is various from the early days of enterprise technology. ERP has become reasonable and practical for small and medium-sized businesses once exclusive to large corporations. In addition, SMBs recognize the huge cost savings that come with modern platforms’ comprehensive functionality and flexibility.
In the past year, security breaches and new regulations like the GDPR made the headlines. It is expected that this will encourage companies to prioritize data protection and compliance this year. ERP vendors notify, double their security protocols, and support compliance. The latest releases will include enhanced encryption, stringent restrictions on access, and detection of AI-powered threat. The phenomenon will prevent data from falling into the wrong hands.
Providers are likely to also incorporate more programs for governance, risk, and compliance (GRC) into their solutions. Compliance and GRC adoption will increase by 30 percent. ERP will abide by cybersecurity concerns and more stringent regulations to protect the business from future hackers and fines.
Because ERP software covers various aspects of business across industries and business models, they need to adapt to changes and strategies as quickly as customers and technology standards change to remain relevant.