The past few years have brought enormous challenges to organisations forcing them to adapt faster than ever before. The ability to be agile in today’s world depends on several factors, but visibility, interoperability and connectivity are just a few.
Without a modern Enterprise Resource Planning (ERP) system, many of these factors cannot be achieved and will therefore hamper an organisation’s ability to adapt to constant challenges. The ERP industry keeps evolving in line with current and anticipated demands from the marketplace. Advanced tools and technologies are gaining traction and making ERP platforms more sophisticated. Advanced technologies and digital transformation are the way forward for many businesses. While this means more potential change and investment from already stretched businesses, it also presents an opportunity to invest in the future to make business processes and reporting smoother and based on accurate data.
In this article, we share 8 ERP trends for 2023.
1. Cloud ERP on the increase
At the start of 2022, IDC Corporation predicted that by 2026 Cloud-Native architecture and its ability for continuous innovation will be the main selection criteria in over 80% of IT-led enterprise application deployments.
Cloud models offer many benefits, including the ability for smaller companies to ramp up their IT investment. There are pure cloud vendors out there, but with a system like Sage X3 you have the flexibility to implement on the cloud or on-premises, which gives a degree of in-house IT control.
2. Real-time visibility
In their FutureScape: Worldwide Intelligent ERP 2022 Predictions IDC Corporation also predicted that by 2023 40% of Global 2000 companies will be using their ERP system as the data and transactional hub for their industry-based ecosystem.
Access to data and transactions in real-time is crucial to organisations, both on an operational level, as well as a strategic level.
On an operational level, users can see in real-time, for instance, what’s happening on the production floor, where in the supply chain an issue arises, and how much stock is left on which shelves. This in turn helps companies to make smarter, better-informed business decisions – essential in an era of supply chain havoc and labour shortages.
3. Increased ERP intelligence
Visibility of data and transactions is not enough for organisations to get transparency on direction and performance. Intelligent ERP adds a layer to that by crunching and analysing that data to provide actionable insights.
Intelligent ERP solutions can help to streamline business processes, optimise workflows and achieve new levels of efficiency; it can help to reduce errors related to manual data import and processing, as well as freeing up staff to focus on more important and valuable tasks. Automation tools can handle repetitive tasks such as data capture and analysis to enhance business efficiency and give strategic insights based on clean data that can shift the needle on business operations.
4. Focus on managing cashflow
Deloitte’s quarterly CFO survey shows that cost reduction and increasing cash flow are the top two priorities for CFOs for 2023.
Without a robust ERP system cash forecasting and cashflow reporting can be painful, with lots of time wasted on manual data collection and reporting. With the right ERP solution, you can get your real-time cash position and generate a cash forecast. With automated billing and credit control processes, you can streamline cash flow.
5. Anywhere work is here to stay
30% of organisations will ‘meet the workers where they are’ by embedding ERP, finance and business workflows into everyday communication suites. Furthermore, a Forrester survey reveals that two-thirds of European online adults expect to be allowed to work from home more often.
Having remote access just isn’t enough. ERP systems have to meet the needs of a more mobile and remote workforce. Accessing business insights, customer and stock information and processing alerts from a mobile device is part of a mobile-friendly ERP, making your workers more productive beyond their place of work.
6. Supply chain compliance monitoring
Forrester highlights that in 2023, companies with more than 3,000 employees that do business in Germany must monitor their supply chains for specified human rights and environmental risks. Germany isn’t the first European country to require organisations to police their supply chains (the UK’s Modern Slavery Act dates from 2015). This adds another layer of monitoring and management to the supply chain.
An ERP system can provide greater visibility into the supply chain, allowing you to monitor and manage variables such as suppliers, market fluctuations, delayed shipments and much more. With the right ERP system, additional supplier monitoring requirements can be added to the system, giving the ability to always monitor and manage the supply chain.
7. Internet of Things
The Internet of Things (IoT) is a collection of interconnected physical devices that can monitor, report on, send and exchange data. E.g. Machines on a manufacturing production line can provide relevant information through embedded sensors about the production process and maintenance needs. Gartner predicts that 63% of enterprises expect they will achieve financial payback in 3 years for IoT projects.
By integrating data from IoT into the ERP system, you can extend the visibility and real-time information an ERP system provides, as well as reduce manual data entry tasks, which run the risk of wrong information entering the system. Therefore, it becomes much easier to forecast and plan, monitor performance and increase efficiency.
8. Industry-specific solutions
As ERP software continues to evolve and more businesses invest in solutions for streamlining operations, ERP needs to move away from a “one size fits all” approach. Certainly, as solutions become more modular and remote or cloud-based – putting them in reach of smaller organisations – it presents the opportunity for more personalised and vertical solutions, which in turn can help to reduce capital and maintenance costs.
An ERP system such as Sage X3 provides standard functionality for organisations in the manufacturing, distribution, services and finance industries, which can then be modified further to meet the specific needs of the individual company.
Sage X3 ERP solution from Inixion
The world of business is now digital-first, which means organisations need enterprise applications that help them to be more agile and make decisions based on clean, real-time data to improve performance and inform strategy. The old ways and old systems are no longer fit for purpose; 2023 is the year to be bold and leverage the future of ERP.
The Sage X3 ERP system is progressing and changing in line with the way that business trends are changing. More advanced technologies are continuously being added to the functionality of the system, to allow customers to keep agile in a rapidly changing environment.
If you are considering an ERP solution, download our comprehensive ERP selection checklist, which highlights three critical categories for consideration and has been created to help guide you in selecting the right ERP system with the right functionality.