The rapid technological advances and changes in business practices have significantly changed the way Enterprise Resource Planning (ERP) systems, especially cloud-based solutions, have evolved. Industry research estimates that the global ERP market will nearly double in the next five years, from $64.7 billion in 2022 to $130 billion in 2027, driven by greater scalability, flexibility, and cost-effectiveness offered by the platform, as well as to accommodate talent shortages, the Great Resignation, and remote workforce forces.
The next decade promises a technological revolution in ERP. Artificial Intelligence (AI) and Machine Learning (ML) will be central, automating routine tasks, optimizing processes, and predicting outcomes with unprecedented accuracy. Blockchain technology, with its inherent security and transparency, will revolutionize supply chain management, ensuring end-to-end visibility and traceability. Augmented Reality (AR) and Virtual Reality (VR) will transform training, maintenance, and remote collaboration, enhancing operational efficiency.
The dominance of the cloud is undeniable. ERP systems will increasingly migrate to the cloud, offering scalability, flexibility, and reduced IT overhead. This change will accelerate the adoption of Software-as-a-Service (SaaS) models, enabling companies to focus on core competencies while leaving IT infrastructure management to specialists.
Customized solutions
The one-size-fits-all approach to ERP is diminishing. Industries, from manufacturing to healthcare, require customized solutions that address their unique challenges. Customization will become paramount, with ERP systems evolving to incorporate industry-specific functionalities and comply with strict regulations.
For example, in manufacturing, ERP systems will seamlessly integrate with IoT devices to optimize production processes and predictive maintenance. In the healthcare sector, the ERP will play a key role in managing patient data, ensuring compliance with Privacy Rule and Security Rule regulations (HIPAA), and streamlining revenue cycle management.
Dynamic scenario
The future of ERP is exciting but full of challenges. Companies should embrace change, invest in talent development, and promote a culture of innovation. The collaboration between IT and business departments will be crucial for successful ERP implementations.
By staying up to date on emerging trends and harnessing the power of technology, organizations will be able to discover new opportunities, increase operational efficiency and gain a competitive advantage.
Main opportunities in the sector
Based on the analysis of current trends and future projections, three main opportunities stand out in this scenario for ERP companies:
– Data-driven decision making:Harnessing the power of AI and ML to extract valuable insights from ERP data will enable data-driven decision making, leading to improved operational efficiency and strategic advantage.
– Supply chain resilience:Implementing blockchain technology and advanced analytics can improve supply chain visibility, mitigate risk, and build resilience against disruptions.
– Customer experience:Leveraging ERP data to better understand customer preferences and behavior will enable personalized experiences, increasing customer satisfaction and loyalty.
Trends driving innovation
Looking ahead to the next few years, we can highlight 10 key trends that will shape the global adoption of cloud ERP across a variety of industries:
1. Composable ERP
The concept of composable ERP has been gaining prominence, allowing companies to select and integrate components from different suppliers for greater flexibility. According to Gartner, this modular approach makes it easier to adapt to changes and offers customization according to business needs.
2. Cloud Solutions
The adoption of cloud ERPs is on the rise due to their advantages, such as scalability, accessibility, and lower operational costs. EY highlights that cloud migration will continue to grow as companies seek automatic updates and greater security.
3. Integrated Artificial Intelligence
The incorporation of AI into ERPs helps automate processes and generate strategic insights. Gartner reports indicate that AI will play a vital role in 2025, enhancing operational efficiency and decision-making.
4. Total Experience (TX)
The overall experience combines the customer experience with that of employees to improve ERP adoption. According to Gartner, this approach aims to create intuitive interfaces and more efficient processes, benefiting the entire user chain.
5. Robotic Process Automation (RPA)
The use of RPA integrated with ERPs will be essential to automate repetitive tasks. Deloitte points out that this technology will reduce errors and increase productivity, helping companies optimize their operations.
6. Advanced Predictive Analytics
Predictive analysis, powered by AI, will enable these systems to provide detailed forecasts about the market and internal operations. Gartner predicts that this capability will help companies better manage inventories and the supply chain.
7. Integration with IoT
The Internet of Things (IoT) will be more integrated with ERPs, providing real-time data from connected devices for better decision-making. McKinsey reports that IoT applied to ERPs will mainly benefit the manufacturing and logistics sectors.
8. Sustainability and Social Responsibility
With the growing pressure for more sustainable practices, by 2025 technology is expected to offer functionalities that enable monitoring and reporting of environmental impacts. EY highlights that this will help companies comply with regulations and adopt responsible practices.
9. Enhanced Data Governance and Security
With the increase in processed data volume, security will be a priority. Gartner indicates that ERPs will need robust security policies, ensuring compliance with regulations such as LGPD and GDPR.
10. Customization and Low-Code/No-Code Capabilities
The use of low-code/no-code platforms will allow companies to customize their ERPs more quickly, without the need for extensive programming. Forrester indicates that this trend will facilitate internal innovation and rapid adaptation to changes.
Evolution of ERPs
The accelerated adoption of cloud solutions, integration of AI and ML, enhanced personalization, focus on user experience, increased cybersecurity, growth of industry-specific solutions, and seamless integration with emerging technologies are set to transform the ERP landscape.
The evolution of ERP systems reflects the dynamic changes in the global business landscape. As we approach a new decade, it is essential to look to the future and anticipate the ERP trends that will shape the coming years. Companies that adopt these trends will be well-positioned to thrive in the ever-evolving digital economy.
