ERP software has been a technology mainstay for businesses since the 1990s. As a result, it’s no surprise that there are many trends in this space to watch out for over the next few years. In this blog post, we will take a look at some of the most important ERP software trends for 2022 and how they might affect your business strategy.
In 2022, the cloud-based ERP market is projected to reach $54 billion. The cloud’s expansion has been rapid in recent years and will continue at roughly a 12% annual rate over the next few years. In contrast, on-premise solutions are expected to grow by an annualized rate of 0.25%.
This data highlights how companies have increasingly looked toward SaaS applications. For their enterprise needs due to cost savings and convenience factors. By 2022, more than half of all organizations that use software will do so. Through a service model such as SaaS or hosted services, according to Gartner’s research.
One major trend we expect throughout this period is many businesses migrating from older SAP systems towards newer methods with more modern features. SAP is currently the market leader, with over 50% of all ERP software revenue in 2016. But this figure will drop to less than 40% by 2022, according to Gartner.
We expect that these trends will lead customers towards other platforms, such as Oracle and Microsoft Dynamics, which are set up for cloud-based deployments.
As companies look to adopt new technology throughout 2018, many will turn towards artificial intelligence (AI) to automate mundane tasks and simplify complex processes.
AI can be applied virtually across every area of an organization. From sales forecasting models based on machine learning algorithms, chatbots. Then to field customer service questions or predictive analytics capabilities integrated into core back-office systems.
According To IDC forecasts, worldwide spending on cognitive/AI solutions is expected to grow at a CAGR of 46.0% over the next few years. Reaching $79.82 billion in 2022, this trend will be felt across all segments of ERP software. Including industry-specific packages like our manufacturing and distribution solutions.
Which can provide real-time insights into inventory, sales pipeline analysis, workforce planning models. Demand forecasting capabilities based on predictive algorithms and others. ERP updates are not limited to front office applications either.
Back-office systems such as accounts payable automation tools will play an important role. Throughout this period, by streamlining invoicing processes while eliminating errors that cause costly holdups for businesses. As companies look towards ways to generate more revenue without taking on extra overhead costs or expansion efforts. Then customers increase their expectations for customer service and support. This trend will continue to gain momentum.
In 2022, we expect that companies will become more efficient in their use of resources by increasing the amount of data available at any given time through real-time monitoring systems. This is where an accurate implementation process is vital. Companies are already using IoT devices throughout their operations. Such as sensors attached to forklifts or wearable trackers on warehouse employees.
Which provides valuable insights about how these assets are used over some time. As AI capabilities grow, software solutions can be integrated with sensor technology. So that companies have access to more information without needing manual inputs from users. For example, if an asset shows signs that it is wearing down faster than usual. Then alerts may be sent out immediately via text or email to maintenance staff so that they can be fixed before it is too late.
The automation of manual processes will continue at a rapid pace throughout the next few years as more companies look towards software solutions that integrate with IoT devices and other technology systems. From planning an office move, allocating resources based on real-time analytics.
For better business performance, we are handling invoicing activities without needing user input, updating website content. In real-time, AI capabilities are making these types of tasks simpler than ever before. By drawing insights from large amounts of data instantly.
By 2022, companies will be able to achieve more in less time through intelligent automation of data-intensive tasks. ERP software continues to play a vital role throughout the modern business environment. Organizations are looking for ways to become more efficient and improve their performance.
New technology trends are emerging within each sector over the next few years. We expect that ERP vendors will invest in making sure they are ready with innovative solutions, which can support these changes by integrating AI capabilities into core back-office systems, automating manual processes using IoT devices. Companies should be able to streamline operations while achieving greater success than before (https://www.forbes.com/sites/forbestechcouncil/2021/09/20/future-thinking-erp-trends-how-the-industry-is-evolving/).