Changing ERP to meet global, mobile, tech demand

Changing ERP to meet global, mobile, tech demand

According to a 2013 Forrester whitepaper the three factors that are driving changes in enterprise resources planning (ERP) are globalization, industry focus, and emerging technologies.  The overall effect of these three factors is one that has created a business climate that covers the globe with new niche markets in an increasingly mobile technology space.  Here is an infographic displaying some of the data from the Forrester paper.  See below are three ways user expectations are changing ERP.

changing ERP

Business is global, ERP should be too

Firms are expanding across borders with multiple sites in multiple countries.  They need ERP systems with the power to cover their global business.  ERP now supports more currencies, languages and legislation than ever.  A global network of partners that can provide services and 3rd party products will be more important as this trend increases to deliver local results.

ERP models like “two-tier ERP”, which might looking something like the corporate quarters deploying on-premise, while its various locations use a SaaS ERP.  This is an increasingly attractive solution for firms that are expanding, setting up new business in new geography as the cloud hosted ERP solution is scalable and flexible.

Closing the functionality gap in Industry solutions

While the surge of niche markets has recently created a need for more industry focused ERP solutions, expect to see more demand for scalability, flexibility and agility to support growth.  As companies grow they may want to open new lines of business or acquire others.  A beer brewing company may want to expand into beverage distribution.  A solution that is not able to unify all of those lines of business is less attractive than one that can.

Technology innovation that keeps pace with new requirements

The increasing popularity of SaaS ERP and mobility have created an environment of increased competition among ERP vendors to stay on top of the ever changing technology landscape and keep pace with customer needs.  The Forrester research shows that the key aspects that attract users to hosted enterprise software are lower cost of ownership,  reduced spending on traditional application and increased innovation outside of the IT department.

The rapid adoption of mobile devices created a lag early on in delivering mobile ERP

“ERP vendors have been forced to reinvent their user experience for mobile devices and are starting to apply the lessons they’ve learned to their traditional ERP applications. The SaaS and mobile trends also act together to disrupt traditional ERP architectures, as the cloud speeds the move toward exposing back-end services through APIs, which are then consumed by both mobile and web apps.  Ultimately, this trend means that the largest potential for mobile apps lies outside of traditional ERP users.” –Forrester, Global, Industry, And Technology Forces Shape The ERP Landscape

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