Trends in Enterprise Resource Planning (ERP) for 2022
December 22, 2021 •ROARK
The ERP system enterprise resource planning system is the brain function for all the functions within a company. Hello everyone. My name is Eric Roark. I'm the CEO of ROARK. And I'm here to talk to you about the trends for ERP systems in 2022. So there's a lot going on with technology nowadays. And ERP is no different than anything else. So let's jump into our top trends in 2022 for ERP.
The Move to the Cloud is Real in ERP
So first and foremost, the move to the cloud is real. This has been happening over a number of years and today more than ever, companies have moved to the cloud. Now there's a fine balance here between the old client-server systems that a lot of these ERPs were growing up with versus the new cloud-based systems, which they're developing. So just make sure that the time is right for you. If it is, it can be very beneficial. And the fact of having the flexibility of moving to the cloud and being able to work from anywhere in remote teams.
ERP Cloud integrations are important
Now, whenever you move everything's to the cloud, you've got to look at the integrations. So cloud integrations are a big trend that's happening. So we've been moving to more and more best of breed software, which is, this software is really good at this. The software is really good at that. You want the information from each software or even capabilities from each software to work together to give you the best possible solution in a seamless manner. So integration becomes a very key component as you move forward with your ERP and other systems together.
Automation of routine processes with your ERP
Automation and routine processes. We're seeing this more and more. So we started a long time ago by moving from green ledger sheets to spreadsheets. Then we moved to ERPs themselves, which really automate this stuff. Now the trend that's coming up is automating the routine data processes and using software technology in order to do that more efficiently and more effectively. So the clerical work is starting to move on and accounting and finance professionals get ready for more analytical work because that's where we're going.
Automation of payments & receivables within ERP systems
When we talked about automation, payments, and receivables during the COVID crisis. This has obviously been a big issue because you can do the accounting online, especially if you have a cloud-based system and remote or VPN access.
But what do you do with signing checks and being able to collect checks?
Well, the automation of both the payables and the receivable function is not only providing convenience, efficiencies, reductions in DSO. But it is a cheaper way to go. So we're seeing that as a major trend as we go into 2022.
ERP and Cybersecurity
So now as we get into using technology and cloud-based technologies, what becomes more important than ever is cybersecurity. You guys have all heard it from Target to even Microsoft, which is scary enough. Cybersecurity is very important and making sure that your provider is up on cybersecurity. Look, if you're looking at the client server-based systems, you're going to have to do those things yourself. If you're going to the cloud, you're going to want to make sure that your cloud service provider has the appropriate level of security.
Utilizing AI to analyze data in the ERP
Now, whenever we move into these efficiencies, we talked about before we're on the cusp of utilizing AI or artificial intelligence to really be able to analyze data and provide feedback. So as we gather more and more data, we've done a good job manually turning it into information. Now we're looking for artificial intelligence to be able to help us with that and those trends.
Mobility + remote work with your ERP
Next is mobility, and being able to work remotely. So we've seen during the pandemic that remote work has become more and more important, but now we're taking it to the next level. First, it was the desktop computer. Then it became the laptop computer. In today's age, we're doing more and more from this device right here, your mobile phone. You're going to see that trend continue on. So that way, whenever you're out and about, and you can answer questions or do the things that you need to do to be able to keep working.
ERP Implementation cost overruns
Whenever we look at implementing a new system, one of the trends that have been ongoing and still continue is cost overruns. When you get into these implementations, a lot of times your staff may not have done implementations before, and there's a very specific way to do it. And even whenever you do an implementation, there's always that little bit where you're going. "Okay. I think we've got everything, but we're going to go live." And then you got to debug some of the things that didn't come up. But cost overruns are very common in implementations. And one of the biggest trends that we see is we try to use the internal staff rather than additional resources and I'd highly encourage looking at the resources, looking at the constraints of the day-to-day work, which is typically most of the work that's done. And then seeing what other resources that you need, because of the effects on your customers, vendors, employees of not having these systems working right. And just because the ERP is the central brain for everything, it could cost significant dollars for your business.
Getting your business ready for and ERP in 2022
As the ERP industry moves towards 2022, it will be imperative to leverage cloud computing and automation of routine processes. With more data being stored in the cloud, cybersecurity becomes a greater concern for organizations as well. Integrating AI into your company’s process can allow you to quickly analyze large amounts of data that might otherwise take days or weeks on end with human labor only. By understanding your team's capacity and bringing in additional support while adding a new ERP system, companies are able to better prepare themselves against implementation cost overruns which have been historically high in this sector.
You can take a look at all the trends in enterprise resource planning for 2022 and get insights into how you too might prepare your company to meet these challenges.
Contact us today if you want help with any of this, or just need some general advice on the best way forward! We’d love to hear from you.