3 forces shaping the evolution of ERP
The digital transformation in the business in the past few years have given most enterprises a lot to think about, but with little time to make decisions. Shifts to working from home, data analysis and arching, and rethinking supply chain and logistics are some things companies have had to consider greatly. The challenges of the past two years “are tipping the scales toward speedier adoption of next-generation ERP systems,” noted a report published by Boston Consulting Group. “It will be virtually impossible to use traditional ERP to manage the anticipated huge growth in e-commerce and the need for flexibility and speed.” There is a push towards more automation and flexibility in many industries because of this new shift in the workplace. An article on CIO by Joe McKendrick shares how 3 forces have influenced and shaped the evolution of ERP – where things are falling short, and where enterprises are looking today.
Workforce shifts. The COVID-19 pandemic essentially forced many companies to move from an on-prem to a cloud-based ERP while the world was on lockdown. Since then, we’ve seen a larger number of hybrid and remote workers, this being the new “normal” in the workplace.
Analytics. Next-gen ERP platforms drive on analytics, and companies see real-time transparency of their sales, inventory, financials, and production volumes, according to the Boston Consulting Group. “Powerful data-driven analytics enables more agile decisions, such as adjustments to the supply chain to improve resilience. Robust e-commerce capabilities help companies better engage with online customers before and after a sale.”
Supply chains. McKendrick notes, “Unprecedented and ongoing supply chain disruptions underscore the need for greater visibility, more predictable lead times, alternative supply sources, and faster response to disruptions. A survey from FiveTran and Dimensional Data found that 86% of executives seek access to real-time data through their ERP systems. However, only 23% said such capabilities exist within their current ERP systems and 99% reported they are unable to access the information they need.”
