Let's look at which trends companies should pay attention to in 2024 to stay ahead of their competitors.
ERP Trends: What Businesses Should Pay Attention to in 2024
According to HG Insights research, since 2022, the global ERP market has grown by 8%, and it is expected that in 2024, 1.4 million companies will spend $183 billion on ERP software. It is anticipated that the market will continue to grow under the influence of constantly evolving technologies such as generative artificial intelligence and changing business requirements. Along with this, ERP trends will also change.
Let's look at which trends companies should pay attention to in 2024 to stay ahead of their competitors.
Focus on Cloud Technologies
ERP system providers actively invest in cloud technologies instead of on-premises systems. Cloud models offer many advantages, including the potential for companies to increase their IT investments and scale their business, even if their internal technical departments are relatively small. Thanks to convenient applications and cross-platform capabilities, cloud-based ERP allows these companies to implement more advanced technologies in the future.
IoT is Not a Trend But a Necessity
The Internet of Things (IoT) enables closer interaction among various devices within the enterprise. For example, companies use IoT sensors to monitor equipment, products, and many other physical assets. The IoT helps gather information in areas such as:
- Employee productivity
- System efficiency
- Energy consumption
- Downtime
- Assembly speed
- Delivery time
Transition to Two-Tier ERP
When an organization encompasses multiple offices and/or subsidiaries in different cities and countries, placing all company data on a single ERP platform can be challenging. This is due to differences in local laws and business requirements. Attempting to ensure compliance with all of them within one universal solution can lead to disaster.
This is where two-tier ERP comes to the rescue. This approach involves using two systems simultaneously: one at the corporate level (tier 1) and the other at other company divisions (tier 2). Typically, the second tier is a cloud ERP platform.
When using this approach, companies must ensure that employees can interact with each other and exchange data seamlessly between the two tiers. To achieve this, many cloud technology providers offer ERP systems that work at the local level and can be integrated with corporate ERP platforms when needed.
AI Leading the Way
Previously, companies had to pay for add-ons to the basic version of their ERP systems to ensure data transparency and advanced reporting. However, such features are now standard for most technology stacks, mainly due to the rapid development of artificial intelligence (AI) and machine learning (ML) technologies.
For example, companies use generative AI in ERP systems to forecast demand, automate customer service, develop new products, and much more. The advancement of AI and ML technologies allows businesses today to obtain answers to questions that until recently seemed like science fiction. For example:
- What will my sales be in the next six months?
- Is adverse weather expected, and how will it affect my supply chain?
- How do my sales this quarter compare to the same period last year?
Thanks to AI embedded in modern ERP systems, companies can make data-driven decisions without deep coding knowledge.
Movement Towards Hyperautomation
Hyperautomation is the process of automating as many business processes as possible. With the help of AI, ML, and robotic process automation (RPA), an increasing number of companies are automating manual processes while simultaneously optimizing operations within ERP systems that were already automated. Using this approach to configuration, companies can eliminate functional gaps and issues in workflows, ultimately gaining more benefits from automation technology.
Mobility
The COVID-19 pandemic has permanently altered the approach to organizing work. Despite its end, employees are increasingly reluctant to return to offices, preferring remote work. In response, ERP providers are increasingly developing mobile versions of their systems.
Modern ERP interfaces are becoming more convenient and accessible on various devices, including smartphones and tablets, providing seamless access to critical business functions worldwide.
Let's not Forget About Cybersecurity and Data Privacy
Since ERP systems contain critical business data, enhancing measures to protect them from leaks is a top priority for companies and providers. For example, SAP S/4HANA incorporates advanced security protocols and complies with global data privacy regulations to guard against cyber threats.
"Green" ERP
Today, sustainable development is becoming a key factor in developing and deploying ERP systems. "Green" ERPs help reduce carbon emissions, control energy usage, and support sustainable business practices.
If your company is increasing corporate responsibility for environmental sustainability, a "green" ERP system will help you implement the strategy developed in this direction.
More Customization Opportunities
ERP providers are increasingly offering companies individualized and industry-specific solutions. These customized ERP systems meet the unique requirements of various sectors such as manufacturing, healthcare, retail, etc., ensuring that enterprises receive tools specifically designed to address their industry challenges.
LeverX’s Expertise in ERP
LeverX is a global IT integrator with over 20 years of experience in the ERP solutions market. Leveraging our accumulated experience, our experts deliver turnkey projects in both the implementation of ready-made ERP systems (cloud and on-premise versions of SAP S/4HANA) and the development of custom ERP solutions.
LeverX specialists can join your project at any stage. For instance, we can start with consulting, analyze your current IT landscape, and develop recommendations for its improvement, taking into account technological trends and updates.
In addition to ERP systems' implementation and deployment stages, we provide services for supporting and enhancing already deployed solutions. Our company also has an R&D department with access to the latest technological innovations even before their official release, and we are always happy to share insights with our customers.
The Bottom Line
The main distinguishing feature of the ERP market in 2024 is the adaptability and flexibility of systems to new technologies and changing business needs. Based on the trends outlined in this article, we conclude that enterprise resource planning systems will become increasingly intelligent, user-friendly, and secure. This will enable businesses to stay afloat in the digital space.
If you want to learn more about ERP trends and how they can benefit your business, feel free to reach out to our experts for consultation.
