Enterprise Resource Planning (ERP) systems have come a long way since the 1990s, when they first became popular. The ERP space is seeing rapid transformations, with new capabilities and integrated analytics. The migration of ERP systems to the cloud has been a huge disrupter, and this has resulted in a dramatic increase in applications designed to extend ERP functionality to more and more modules, such as procurement, administration, and sales and marketing, in addition to inventory, financial and customer relationship management, audits, process flows, supply chain and vendor management, and the like.
However, the coming years will see the next big shift in ERP modules. This will entail the customer becoming the focal point of all ERP systems.
New-age characteristics of ERP
The SMAC (Social, Mobility, Analytics and Cloud) concept, that has been driving ERP of late, is expected to take the back seat by 2020. The new-age ERP systems will seek to extend capabilities of core enterprise applications. As organizations undergo digital transformation in a more and more comprehensive manner, ERP software will become the enabler. ERP systems will transform into tools that help companies gain a competitive advantage, rather than just being vehicles to achieve business excellence.
In view of the changing nature of the workforce, which is becoming more and more mobile, thus giving rise to concepts such as work-from-home, ERP systems will have to go beyond the desktop functionality to a mobile devices compatible system. Thanks to the digitization of businesses and changes in the way personnel work, new-age ERP systems will have to be more advanced and agile to enable real-time decision-making.
Post-modern ERP systems will have to incorporate many functionalities – they will have to be neutral to the host infrastructure, allow data retrieval in real time from anywhere, allow scalability and reduce costs for companies. Besides, in view of the advent of Internet of Things (IoT), ERP systems will have to connect unstructured data from devices with structured data in the business.
The ERP module will have to process, analyze and show all the data in real time. In fact, in the days to come, IoT will enable the ERP software to connect people, processes and Big Data intelligently. Moreover, with Artificial Intelligence (AI) and Machine Learning becoming a mainstream reality, ERP software will increasingly incorporate AI capabilities.
We are on the verge of a super advanced ERP system that will be capable of making decisions based on historic data, even as data collection becomes automatic and non-intrusive, with highly reduced levels of human interaction.
In such cases, it is essential that ERP brings in high levels of trust and constantly endeavor to provide high level of security to their customer’s information. ERP security risks will continue to grow & smart business leaders will need to develop better strategies to deal with them.
GST-compliant ERP systems
The ERP landscape in India has to factor in yet another development — the impending rollout of the Goods and Services Tax (GST). Several Indian companies are in the process of upgrading their ERP systems so as to evaluate new tax structures and other cost implications, and accommodate the complexities of calculating the GST, once the new regime comes into force.
Several SME players are working with tax experts to launch GST-compliant versions of ERP software. The upgraded GST-compliant ERP systems will need advanced capabilities that will take into account the peculiarities of the new tax regime.
Taking these factors into consideration, one can opine that the Indian SME sector holds the promise of a billion-dollar business opportunity in view of the requirement of new-age ERP systems.
(The author of the article is Atul Pimple, Co-Founder and Joint MD at EPPS Infotech Pvt Ltd)
Source: The Financial Express
Image Courtesy: Excelanto Technologies
