Question

Question 1:     Some of top ERP vendors include Microsoft, Oracle and SAP. Perform an online search on ERP systems in the market, and evaluate where are these ERP systems heading in the future? Do you agree or disagree with the trends discussed? Explain it in detail

Answer 1

What is ERP system: ERP systems refer to business process management that integrates and centralized various management processes such as finance, marketing, operation, inventory management, etc and allows data transfer between each process. ERP system helps in improving the performance of the employees that leads to achieving organizational goals much faster. The best ERP system available in the market is Microsoft, Oracle, and SAP.

Below are the main objectives of ERP systems,

a. Integration between various business processes.

b. Accessing important information quickly.

c. Optimization of business processes.

d. Reduction of time and cost in managing different processes.

e. Improve employee and organization performance.

Future trends of ERP systems

ERP systems have become one of the important needs of any business in today's time because business processes have become complex and more analytical. There has been increasing business competition and customer demand. Because of this every business use its resources efficiently and effectively and ERP systems are helping organizations in managing complex business processes and integrate them in a centralized form.

Due to changes in business processes, ERP systems are also getting updated. Below are the trends that are shaping future ERP systems and their objectives,

• Cloud-Based Connectivity: The future of ERP systems are cloud-based technology that is being used in many ERP systems provided by big players such as SAP, Oracle, and Microsoft, but almost every ERP system will have cloud connectivity and safe data storing features. With Cloud-based technology, they will not require in-house infrastructure because that more small and medium enterprises will be able to afford ERP systems to make their processes integrated and well-performed.
• Blockchain System: Blockchain is one of the technologies that is being discussed today and will become the future for ERP systems also. It is one of the most secure platforms for transactions and future businesses will be connected with blockchain technologies. Specific business processes such as supply chain, customer acquisition, and customer service will be using more blockchain technology.
• Internet of Things: Internet of Things (IoT) is the technology where devices are connected through the internet and are able to transfer data from one device to another without human interactions. IoT technology will be used in ERP systems as well where data connectivity and data transfer will be done more smoothly with the use of the internet. This will reduce infrastructure costs and the size of infrastructure in the organization.
• Artificial Intelligence: Artificial Intelligence will help ERP systems with high automation and integration in various business processes. Artificial systems will use in a reallocation of human resources to reduce wastage in the business process. Another use of AI in ERP will be chatbots to reduce the cost of operation.
• Personalized ERP systems: The ERP systems are being developed towards achieving personalized ERP systems. Companies will look more personalized ERP systems rather than customization. These ERP systems would be updated automatically without updating them manually with the update in industry trends and regulatory frameworks. ERP system will become a more user-friendly and powerful user interface to help in fewer operation costs towards the training and development of the employees. Powerful dashboards, Ease to use systems and user-friendly will attract more businesses to use ERP systems in the future.
• Data Analytics: More powerful data analytic tools are being developed with ERP systems to make data more secure, easily transferable and effective decision making with the help of data. ERP systems will become more intelligent in analysis, the way to use the information, and powerful reporting. Data is one of the important factors of any business and ERP system and data analytics tools will make the organization smarter in doing business, efficient ways of reducing cost and improve productivity.

Yes, I completely agree with the trends of the future ERP systems discussed above.  Cloud connectivity and powerful data management are the most important requirement in current ERP systems. Today business processes are becoming long and more complex, the problems that businesses are facing today are completely different from what they had in 10 years before and this complexity is going to be increased. ERP systems are being developed in such a way that all these issues will be solved effectively and in a cost-effective manner. ERP systems will transfer from desktops to mobile devices. Business processes would be handled with the help of mobile devices. ERP systems have to be developed in the same way business processes are evolving today. ERP systems will be more flexible and user friendly. We can see that in the future almost all businesses will use ERP systems in some way to make business more performed and more smooth.