Enterprise resource planning or ERP has been a sore spot for many IT managers because of its lack-lustre growth in the technological arena.
However, things are now all set to change, and much of it can be attributed to the usage of cloud-based services and machine learning. ERP innovations are all set to shake up the market. While the journey to technological superiority has been painfully slow, innovations in enterprise resource planning systems are perched to become more versatile and user-friendly.
They are responsible, flexible, and collaborative in their use. Let us see the breakthrough innovations that are the main heroes in ERP technology.
More and more ERP vendors are gravitating towards cloud-based services. This allows users to store massive amounts of information and access it remotely with the click of a button. Gone are the days when this process was painful and involved retrieval of information through manual manipulation of spreadsheets.
Now, people sitting at various points in the supply chain can access this information and take immediate action as per business requirements. While you pay for the storage space on cloud-based ERPs, it definitely increases efficiency and productivity. Research has revealed that cloud-based ERP innovations bring down infrastructural costs by almost 50%.
AI or Artificial Intelligence as A Key Innovation Strategy for ERP
Companies today are thriving on automation. With automated technologies like AI, procedures have become more streamlined and simplistic. AI or machine learning has a lot to offer to modern-day ERP innovations. Through recognition and identification, AI can spot places where processes are unusually lengthy and suggest changes that can be instituted to make it more efficient.
Thus, AI has contributed rampantly to making ERP processes not only smooth but also employee-friendly wherein they can use these systems with greater ease and familiarity.
Internet of Things
IoT is currently in its nascent stage, but technology experts say that ERP systems are likely to go through a mammoth technological overhaul with the introduction of IoT in its systems.
IoT functions on the premise of transferring data over the internet without human intervention. It is increasingly being used in modern GPS systems, sensors and RFIDs. ERP innovations include devices which can be attached to equipment or even vehicles. These then give out vital data with regard to utilization of assets, maintenance of current usable assets or the smooth running of manufacturing units. All this is done without human intervention.
Predictive Big Data Analytics
Erstwhile ERP systems were the nerve centres of large amounts of data pertaining to HR systems, vendor specifications and customer orders. Delving deep into this data was not only cumbersome and herculean but also near impossible. Data mining without automated functionality in place cannot be done.
This is where Big Data Analytics is coming into play in ERP technological innovation. Cloud-based services are enabling ERP systems to figure out how to break down this data, compartmentalize it into silos and use it to predict current and future trends. ERP analytics are gaining momentum in a rapid way to give real-time and actionable insights to people sitting at the helm of affairs.
Digitized Ledgers Using Blockchain Technology
Blockchain technology has given a massive impetus to innovations that boost ERP. Earlier on blockchain was primarily being used for crypto-currency and bitcoins. With research, IT experts are harnessing the potential of block chain technology and integrating it successfully to be used in ERP systems.
While Blockchain is still in its nascent stage, companies like SAP and Oracle have pioneered the technology successfully into their own business processes.
Blockchain has paved the way for digital ledgers, which helps to store large amounts of confidential data in a highly secure manner. This includes information like critical transactions, the deliverance of these transactions, vendor information, contract bids, intellectual property rights and a plethora of information related to supply chain management.
Mammoth organisations which have intricate and complex purchase and demand processes and long supply chains benefit greatly from this technology.
The aforementioned points are a testament to the fact that businesses are benefiting greatly with innovations in their ERP systems.
These innovations are allowing companies to leverage their business processes in a timely and efficient manner and phase out rudimentary processes that no longer serve them. While the investment in these technologies is costly, the promises are tremendous, proliferating growth and improving the company’s bottom line.