Top 10 Game-Changing ERP Trends for 2024

As an enterprise leader, you should stay on top of the latest technology trends to drive innovation and gain a competitive advantage. ERP system is the backbone of organizations, supporting critical business processes. The year 2024 promises exciting advancements in ERP, pushing the boundaries of automation, intelligence, and user experience. There are several key trends that are poised to reshape the ERP landscape. From multi-cloud deployments to hyperautomation and enhanced cybersecurity, there are various emerging profitable opportunities for businesses to optimize their operations and gain a competitive edge.  Here are the top 10 ERP trends and innovations that are set to reshape how businesses manage their operations: 

1. Cloud-Based ERP Adoption 

Cloud deployment has become a game-changer in the ERP landscape, offering businesses increased flexibility, scalability, and accessibility. Small and mid-sized businesses (SMBs) are particularly drawn to the benefits of cloud-based solutions. According to SMB Group research, 70% of SMBs are likely to adopt cloud solutions for their ERP needs. The cloud eliminates the need for in-house IT infrastructure, allowing SMBs to leverage the power of the ERP systems that were once only accessible to larger enterprises. Cloud-based enterprise resource planning solutions offer easy-to-use applications, cross-platform compatibility, and mobile-native capabilities. These systems provide users with real-time data access from anywhere, empowering employees to stay connected and make informed decisions on the go. As the global cloud computing market is predicted to reach $1,240.9 billion by 2027 according to MarketsandMarkets™, it is clear that the cloud is here to stay and will continue to shape the future of ERP. 

2. AI and Machine Learning Integration 

Artificial intelligence (AI) is revolutionizing various industries, and ERP is no exception. AI-powered technologies, such as machine learning and natural language processing, are enhancing ERP capabilities by automating processes, improving data accuracy, and enabling advanced analytics. AI can automate tasks such as data entry, order processing, and invoicing, freeing up employees to focus on more value-added activities. By leveraging AI, enterprise resource planning systems can provide predictive analytics, identify patterns, and make intelligent recommendations, empowering organizations to make data-driven decisions and stay ahead of the competition. As per the report by MarketsandMarkets™ the AI market is projected to reach $1,345.2 billion in 2030, the integration of AI into a single unified system will continue to drive innovation and deliver enhanced user experiences. 

3. Hyperautomation and Robotic Process Automation (RPA)

Hyperautomation, the combination of automation tools like Robotic Process Automation (RPA) and Artificial Intelligence (Al), is enabling enterprises to dramatically improve business processes. RPA utilizes software bots to automate repetitive, rule-based tasks. When combined with Al technologies such as machine learning, hyperautomation can handle unstructured data and automate more complex processes. Software bots can log into the ERP systems to manipulate data, trigger responses, and complete processes according to predefined rules. They can handle high volumes of transactions efficiently and accurately.  RPA and hyperautomation tools integrate with the enterprise resource planning software using APIs and can automate processes such as: 

• Accounts payable and accounts receivable to speed up invoicing, payments, and collections.
• Customer service to automatically handle common inquiries and requests.
• HR and payroll to process employee records and payments rapidly and accurately.
• Procurement to expedite the purchasing, receiving, and payment of supplies and inventory. 

To implement RPA and hyperautomation, organizations should begin by assessing current processes to determine which repetitive, mundane tasks are suitable for automation. Various automation tools and software bots are available for employees to choose from, freeing them up for more strategic work. With the right solutions and integration, RPA and hyperautomation can significantly boost productivity, enhance user experience, and lower operational costs. 

4. Enhanced User Experience (UX) and Personalization

ERP platforms integrate technologies such as virtual assistants, augmented and virtual reality, and gesture control to create more immersive user experiences. Virtual assistants can handle an expanding range of user requests to increase productivity and reduce the time required for training new users. Extended reality interfaces enable new ways of visualizing and interacting with enterprise data in 3D. Gesture control provides users with more intuitive, touch-free options for navigating ERP systems and manipulating on-screen elements. Enhanced UX capabilities make ERP platforms more engaging, personalized, and accessible to users. As technologies continue to advance, enterprise resource planning software systems will become even more intuitive and seamless to operate. 

5. Voice-Activated Interfaces

Voice-activated interfaces are becoming increasingly common in enterprise software like ERP systems. As more organizations adopt voice-enabled technologies, vendors are working to integrate voice capabilities into their platforms. Voice-activated interfaces allow users to interact with the ERP platforms using voice commands. Users can navigate the system, enter data, run reports, and more using natural language. Voice interfaces reduce the time required to complete routine tasks like data entry. They also make the systems more accessible to users who cannot easily use a keyboard and mouse. However, voice interfaces may require additional security measures to prevent unauthorized access. They can also be more prone to errors, therefore ERP platforms will likely continue to require both voice and traditional interfaces.

6. Explainable Al for Transparency and Trust 

Explainable Al refers to machine learning models that can explain the reasons behind their predictions or decisions. As the enterprise resource planning systems increasingly incorporate Al for automation and insights, explainability is crucial for users to understand, trust, and effectively manage these systems. Explainable Al models in ERP can point to specific factors that lead to a recommendation or prediction, giving users visibility into the "black box" of Al.

7. Enhanced Cybersecurity Measures 

With the rise of hybrid cloud deployments and an increasingly remote workforce, ERP systems contain and manage more sensitive data than ever before. Robust cybersecurity is essential for ensuring data privacy, system integrity, and business continuity. Advanced cybersecurity tools such as data encryption, identity and access management (IAM), security monitoring and vulnerability scanning help prevent unauthorized access and quickly detect threats. Regular cybersecurity audits and penetration testing also provide an outside perspective on potential vulnerabilities. 

Staying up-to-date with the latest cybersecurity tools and best practices is key to safeguarding ERP systems and the critical business data they contain. Explainable Al and rigorous cybersecurity work together to build trust in enterprise resource planning software systems by giving users visibility and control over how their data is being accessed and used, as well as confidence in the integrity and reliability of the system. With transparency and security at the forefront, ERP platforms can better support digital transformation initiatives and drive more strategic business outcomes.

8. Multi-Cloud Deployments

Multi-cloud deployments allow organizations to distribute their ERP systems across different cloud platforms, whether public, private, or hybrid. This provides flexibility and resilience if any single platform experiences downtime. 

Avoiding Vendor Lock-In 

Using a multi-cloud approach means that you are not locked into any single cloud provider. If one provider increases their prices significantly or makes undesirable changes to their platform, you have the flexibility to move some or all of your workloads to alternative providers. You can also take advantage of different providers’ strengths by matching workloads to the most suitable platform.

Increased Resilience 

Distributing your ERP system across multiple regions and availability zones on different cloud platforms reduces the impact of outages. If there is a major issue with one provider, your ERP system can fail over to another. Using a multi-cloud approach also protects you from data loss in the event of a disaster at a single data center.

Optimized Performance 

You can optimize performance by deploying different modules and workloads on the platform that will provide the best performance for each use case. For example, you may deploy modules that require intensive computing power on a platform focused on high performance, while deploying back-office modules on a platform that prioritizes low costs. 

A multi-cloud ERP deployment introduces additional complexity in managing and securing systems and data across platforms. However, with a well-architected solution, the benefits of reduced risk, increased flexibility, and optimized costs can outweigh the challenges. With multi-cloud management tools and services constantly improving, deploying enterprise resource planning software systems across multiple clouds is becoming an increasingly viable option for organizations. 

9. Extended Reality (XR) in ERP

Extended reality (XR) technologies such as virtual reality (VR), augmented reality (AR), and mixed reality (MR) are transforming ERP systems. XR integrates digital information with the user's environment in real-time. Many enterprise resource planning software vendors are incorporating XR capabilities into their solutions. XR can enhance ERP in new ways, such as interactive 3D data visualization, visual digital twin experience, remote interactive collaboration, and eye and hand tracking techniques. 

While XR is an exciting new frontier for enterprise resource planning software, there are challenges to overcome around cost, user acceptance, and practical implementation. However, as the technologies mature and become more affordable and seamless, XR is poised to transform how people interact with and benefit from the enterprise resource planning software solutions. The future of ERP will likely include a mix of traditional and XR interfaces tailored to different user needs and tasks. 

10. Integration with Ecommerce and Other Applications

The one-size-fits-all approach to business is outdated. Future-forward organizations are implementing ERP systems that are aligned to their business goals and industry-specific requirements. Businesses embrace these integrations to unlock new levels of efficiency, gain valuable insights, and thrive in a competitive landscape. The integration of enterprise resource planning software systems with ecommerce platforms and other industry verticals such as Finance, CRM, Retail, Manufacturing, Distribution, and Healthcare enable organizations to transform from siloed systems to connected business hubs. 

Ecommerce-Focused Solutions

The integration of the ERP systems with ecommerce platforms enables businesses to streamline operations, enhance data visibility, and provide a seamless experience for customers. Here are the emerging enterprise resource planning software trends in the ecommerce landscape: 

• Centralized data management includes product information, inventory levels, order processing, and customer data to ensure consistency across systems.
• Increased generative AI for curated product recommendations, personalized shopping experiences, and enhanced customer satisfaction.
• Balancing personalization with privacy and consent to win customer trust, gain deeper customer insight, and drive conversions.
• Automated order fulfilment processes and maintenance of accurate inventory levels.
• Improved customer experience by providing a unified view of customer interactions, order history, and personalized recommendations.
• Composable commerce redefines ecommerce by unleashing greater flexibility without the need for long, arduous, and expensive replatforming.
• Out-of-the-box B2B, B2C, and B2B2C commerce experiences. 

The ERP landscape is evolving rapidly to keep pace with the fourth industrial revolution technological advancements and changing business needs. To stay competitive, organizations must keep an eye on the latest trends and adopt solutions that streamline operations, reduce costs, improve experiences, and gain valuable insights. By adapting to these trends and leveraging the innovative capabilities of next-generation enterprise resource planning systems, businesses can unlock new opportunities for growth, efficiency, and resilience in 2024 and beyond. 

Kensium is a full-service implementation agency providing connected cloud-based ERP and commerce solutions for retail, manufacturing, and distribution businesses. Our technology-agnostic approach in the ERP implementation process has been enriched through frictionless experience with several strategic ERP initiatives. We can build an ERP from scratch and optimize your processes and functions into a unified platform. From planning and organization to maintenance and support, our expert team guides you through the well-orchestrated implementation journey to ensure success and overcome the challenges and risks.  Kensium is committed to leverage the innovative capabilities of cloud-based and AI-powered ERP systems to unlock new opportunities for business growth, efficiency, and resilience in 2024 and beyond. Connect with our team to learn how Kensium can help you implement the right ERP solution and reap the rewards of a single system to manage your entire business.