ERP solutions have expanded their reach to support most of the business functions. In 2024, ERP will continue incorporating new approaches to become more advanced, integrated, and industry-focused.

Embedding these trends with existing ERP systems will help cut costs, automate redundant tasks, and make progressive Business decisions.

Here are the top five ERP trends to look for in 2024.

1. Cloud ERP

Firms use on-premises ERP apps and are reluctant to move core business apps to the cloud. Cloud Erp facilitates simpler deployment, lowers costs, and offers elasticity. As per a report by Opkey, “2023 State of ERP Testing Report,”

Companies can also add users and functions to accommodate growing business needs.

As per a recent by Markets and Markets,” Cloud-Based ERP Global Market Report 2023,” the cloud-based ERP market is expected to grow to USD 65.89 billion in 2027. It will record a CAGR of 10.7%. In 2024, cloud ERP will touch every aspect of the business- the fastest path to digital transformation.

2. Integration of AI and ML Capabilities into ERP

Previously, firms used to add AI functionalities to ERP systems. In 2024, more firms will integrate AI and ML capabilities into ERP systems. It will help meet the increased demand for personalization. At the same time, vendors will offer ERP software with AI capabilities built in.

Opkey’s report also states that-

Embedding AI and ML capabilities into ERP-

• Offers Better Insights

Firms gather vast operational and customer data. In 2024, they will adopt AI to deliver valuable business insights. This is possible because AI assesses unstructured information, identifies patterns, and predicts trends.

• Improves the Processes

AI automates and improves multiple business processes. For instance, a manufacturer adopts a just-in-time inventory strategy to deliver components to minimize inventory carrying costs.  AI can optimize the supply delivery and labor schedules, boosting productivity and lower costs.

3. Mobile ERP

Mobile ERP apps simplify and streamline business processes. It eliminates the need to enter the data manually into ERP systems, reducing time and effort. Mobile Erp allows users to create, access, and share data directly from their mobile devices.

In 2024, mobile ERP apps will emerge as indispensable tools. They will help enhance visibility across departments, empowering users with seamless access to the ERP system from any mobile device, irrespective of time or location.

These solutions will enable firms to use the power of mobile technology to make informed decisions and perform critical tasks. This boosts overall productivity and responsiveness.

4. Customization and Personalization

ERP customization refers to the enhancements made in the original code of the software solution. This is typically done to add functionalities and features that businesses need.

As per a report by Panorama Consulting Group, “The 2023 ERP Report,”-

Customizations can be avoided when-

• vendors adopt best practices to address the business needs in a much more tailored way
• vendors make configuration processes simpler

In 2024, firms delivering personalized customer experiences will use ERP to address them with highly customizable dashboards. For instance, an AI-based chatbot that helps interpret user voice or text input. It also responds to questions using customer and order information stored within the ERP.

5. Tier-2 ERP

Traditionally, firms implement a single ERP system for the entire organization and its subsidiaries- Tier-1 strategy. However, this is time-consuming, costly, and requires vast resources.

Companies need a flexible and effective approach. This involves incorporating one or more ERP subsystems- called tier-2 strategy. Tier-2 ERP is much more economical and less time-consuming. It is ideal for businesses that need a robust and less complex system to complement their subsidiaries and foreign companies.

Overall, Tier-2 ERP system-

• Saves costs and time
• Adopts new features quickly with little customization
• Offers greater flexibility and control
• Less complex and resource-efficient
• Adheres to the latest compliance guidelines

In 2024, the Tier-2 approach will be implemented by companies-

• with smaller and less complex subsidiaries that need ERP tailored to individual needs
• that want to benefit from two-tier architecture while still having a tier-1 system for other functions or processes.
• that want to modernize and remain true to their existing system landscape.
• that want to integrate the benefits of an on-premise and cloud-based ERP system

Also Read: Top Three ERP Systems in 2023

Future of ERP

The transition to cloud ERP will offer companies the speed and agility they need to compete in the current tech landscape. In 2024, firms investing in cloud ERP will look for ways to use its power.

They will continue to ensure their ERP software is optimized for remote work. This includes providing more mobile ERP functionality, ensuring secure remote access, and increasing automation of workflows.

Moreover, integrating AI and ML will continue to improve business agility. In 2024, firms incorporate their ERP software with the latest tech and tools. They will embed other technologies, like the Internet of Things (IoT), to gain greater visibility and offer a better customer experience.

This will influence how businesses operate and help them consolidate their position in the ERP landscape. More importantly, ERP vendors will continue to adapt to changing market demands and customer expectations, driving innovation and flexibility.

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