The Benefits of Centralizing Your Business with an ERP System: Part II

The Benefits of Centralizing Your Business with an ERP System: Part II

We return here to flesh out a Part II for our article, The Benefits of Centralizing Your Business with an ERP System. So far, we’ve explored how centralizing ERP functionality has become critical in today’s commerce space. Rather than launching multiple applications and burning through valuable company resources on human error and mistakes, a single elegant ERP solution saves both time and money. 

We’ve now seen this at play in business analytics, Key Performance Indicator (KPI) tracking, project management, resource management and other metrics, and gaining operations visibility across the organization. An effective ERP solution puts all of these items in one central location.

ERP Solution Features

There are other important features that a centralized ERP solution should offer. In addition to business metrics, KPIs, and project and resource management, executives will want to have a clear grasp of profitability and a firm’s bottom line through revenue recognition tools along with utilities for billing and time and expense management. Other tools include features such as work-in-progress (WiP) management and estimate management.

One of the key benefits of centralizing these operations with a single solution is that executives and project managers no longer need to waste time toggling between multiple applications while risking data integrity. Another benefit concerns the streamlining of operations. Without an integrated ERP system, obtaining useful business data such as profitability can be a lengthy and convoluted process—drawing from expenses, billing, revenue, and other sources—that ultimately puts a strain on your company’s bottom line.

Effects on Today’s Companies

Such strains can be more than trivial in today’s commerce landscape where even the slightest inefficiency is magnified as your organization scales. What may seem like a small compromise, even at the executive level, once multiplied across your business this can become a significant detriment to your profitability and, in the end, your company’s success. Centralizing your firm’s ERP solution anticipates growth and changes in operations, especially as they concern the rapid pace of today’s commerce landscape.

One of the key terms introduced in our first article on the benefits of centralizing your business via ERP was the Agility Era, a phrase that describes the advertising industry’s recent turn toward flexibility and streamlined production over stable client of record relationships. 1

Here, as in our previous discussion, this term acquires significance because of the fact that an integrated ERP solution will help to navigate this commerce landscape in crucial ways. As opposed to stringing together multiple applications to handle key tasks, an integrated approach saves valuable time and resources that are crucial in adapting to the Agility Era.

Recognizing revenue—and driving profitability through the smart management of resources—is a key part of the success of companies in today’s fast-paced and flexible environment. Here we’ll look first at how an integrated ERP solution can help drive profitability by staying on top of expenses, billing, and revenue. Clean and clear access to this data is a must for executives and reap the rewards of doing it all one place.

Tracking Your Bottom Line: Revenue Recognition, Expense Management, and Billing

One of the most important challenges facing executives and managers today is the ability to track your bottom line. Revenue recognition is one art of this important puzzle, while expense management and billing play important roles as well. 

Prior to comprehensive integrated ERP solutions like Oracle’s NetSuite, firms typically monitored revenue through manual spreadsheet entries characterized as “manual, error-prone, and a time-consuming process.” An integrated ERP solution automates this process, leaving little room for human error.

Revenue Recognition

Using manual practices, alternatively, leaves companies vulnerable to calculation lapses and misinterpretation of important revenue data points. Furthermore, with the introduction of ASC 606, which addresses the recording of revenue garnered from customer contracts while governing how businesses report specific details of those customer contracts, standards compatibility is a chief concern.

As the importance of such standards increases, companies will need to remain more vigilant than ever to ensure the accuracy and diligence of their revenue recognition processes. So, how can an integrated ERP solution overcome shortcomings and pitfalls introduced by human error to provide full visibility into and recognition of revenue?

The key to rigorous revenue tracking lies in a combination of flexibility and robustness. Ultimately, a comprehensive revenue recognition engine like the one included in NetSuite provides a fully automated revenue recognition process while ensuring that firms meet important requirements such as ASC 606. 

This engine spans from simplistic revenue recognition to more complex rules defining how and when revenue should be reported. Specific events such as milestone completion or billing can be used to trigger revenue recognition in an advanced integrated ERP solution. Rules such as these can be defined at the Statement of Work (SOW) level or the project level. 

One important feature of more advanced and integrated ERP solutions, like NetSuite, lies in the ability to decouple such rules from billing. For instance, an executive may want to know revenue data based on the percentage of completion of all projects, taking into account numbers beyond those generated through billing and expenses. 

Billing and Expense Management

Nevertheless, billing and expense management are also important dimensions of managing your company’s bottom line. One of the important features of an integrated ERP solution is the ability to combine these metrics into revenue recognition and project planning. As with revenue recognition, billing and expenses should be automated and included as core functionality in an effective ERP solution.

The same kinds of pain points found in manual revenue recognition processes rear their heads in haphazard billing systems that are not automated or include error-prone, human-executed steps toward receiving visibility into billing.

Another difficulty lies in systems that are too rigid and allow only one billing method for all clients. Instead, an integrated and robust ERP solution provides a single system with multiple billing methods, along with an ability to define and combine billing rules at the project level. Such an approach—which, as we’ll see, is similar for Work-in-Progress and estimate management—is crucial for project managers across the eCommerce industry.

ERP for Work-in-Progress (WiP) and Estimate Management

Two important components of an effective ERP system involve the management of WiP projects and the generation and delivery of project estimates. WiP management, which will be of interest to controllers, project managers, and A/R, concerns the ability to monitor and regulate current projects that are somewhere between project launch and completion. Estimate management, which is mostly a concern for project managers and accounting, allows a company to manage estimate versions, send working estimates to clients, and for accounting to track approvals and ongoing work.

WiP Management

WiP management can be segmented into three main areas of engagement: visibility, enforcement and control, and automation. As for visibility, with an effective ERP solution, project managers should be able to receive an informative overview with data on each WiP. This includes, for instance, a “WiP aging report,” which shows how long each work-in-progress has been in such a state along with anticipated releases. Auto-releasing and a portfolio-based display of WiPs are two other important forms of visibility included in an integrated ERP solution.

Another level of WiP management concerns enforcement and control, in which compliance and hierarchy come into play. How is the workflow and approval process handled for a project? Real-time integrated reports are important for knowing the exact status of WiP projects. 

As many project managers know, it would be disastrous to isolate this data in proprietary spreadsheets, especially if such platforms remain on local or unshared repositories. An integrated ERP solution ensures that WiP enforcement and control are shared laterally across your firm. Finally, automation ties back into release management, revenue recognition, and other tasks.

Estimate Management

Prior to releasing a WiP—in fact, before a project is even underway—an effective ERP solution will allow project managers to control all of the different versions of an estimate to be presented to a client. The key areas of interest for estimate management include pitch visibility, version control, and forecasting and reporting. 

As for pitch visibility and version control, an integrated ERP solution provides insight into pre-sales costs, while different versions of an estimate are shared and updated in real-time across your company. Finally, forecasting can allow collaboration between creative directors, account directors, and project managers to ensure an accurate understanding of revenue and profitability.

Conclusion: Putting the Puzzle Together

As many executives and project managers can attest, the individual tasks required to run a commerce solution can feel like a complicated set of puzzle pieces. When considering elements like revenue recognition, profitability tracking, expenses, and billing, these elements can seem like an unwieldy set of incongruous elements that don’t seem to fit any pattern or ruleset.

Furthermore, executives often sense that even when one department gets a piece in the right place, it takes a while for the rest of the firm to follow suite. This “a while” is no small concern. In fact, with poor management, such disconnects can cause crucial losses and drops in profitability.

Integrated ERP: The Right Fit

This is where an effective and integrated ERP solution becomes one of the most important decisions that a firm will make. There are of course many dimensions that figure into such a decision. But as we’ve seen throughout this two-part article series, one of the principal concerns should be the centralization of functionality into a single ERP solution. 

Whether concerned with billing, expense management, WiP management, estimate management, business analytics, KPI tracking, resource management, or profitability and bottom lines, the key to an effective ERP solution is that this information is shared and updated in real-time. Only with a truly integrated solution can your company put all of the puzzle pieces together and excel in the fast-paced and competitive commerce landscape of today.

For more information surrounding BORN Group’s ERP practice, please visit here.

Footnotes

1. https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/onmarketing/2014/08/27/how-a-creative-cfo-will-save-advertising/&refURL=&referrer=#2607740412ea

2. https://view.pointdrive.linkedin.com/presentations5e7289ae-cbb3-4f8c-9581-1c7af9e58433/preview/cab338b3-acc9-4c8d-a3ed-d32fec84dee0?auth=48e9df2d-f52b-4b02-af8c-93c80239e39f

3. http://ww2.cfo.com/revenue-recognition-accounting-tax/2018/03/asc-606-whats-impact-far/

4. https://view.pointdrive.linkedin.com/presentations/5e7289ae-cbb3-4f8c-9581-1c7af9e58433/preview/cab338b3-acc9-4c8d-a3ed-d32fec84dee0?auth=48e9df2d-f52b-4b02-af8c-93c80239e39f

5. https://view.pointdrive.linkedin.com/presentations/5e7289ae-cbb3-4f8c-9581-1c7af9e58433/preview/b68b1261-573b-41bb-b4e6-1934726d7b85?auth=48e9df2d-f52b-4b02-af8c-93c80239e39f

6. https://view.pointdrive.linkedin.com/presentations/5e7289ae-cbb3-4f8c-9581-1c7af9e58433/preview/b68b1261-573b-41bb-b4e6-1934726d7b85?auth=48e9df2d-f52b-4b02-af8c-93c80239e39f

7. https://view.pointdrive.linkedin.com/presentations/5e7289ae-cbb3-4f8c-9581-1c7af9e58433/preview/1ebef84d-f911-4108-af84-54b1ddd6c47f?auth=48e9df2d-f52b-4b02-af8c-93c80239e39f

The Benefits of Centralizing Your Business with an ERP System

The Benefits of Centralizing Your Business with an ERP System

In today’s digital world, no other decision is perhaps as all-encompassing and essential as choosing an effective Enterprise Resource Planning (ERP) system. One of the questions confronting executives is understanding and implementing the appropriate system to fit their current and future needs. Does a firm go with several individual applications for business analytics, Key Performance Indicator (KPI) tracking, project management, resource management, and other metrics? Or does an executive seek a range of features in a single ERP solution that addresses each of these needs together?

There are other concerns, such as company-level organizational goals, that executives and resource/project managers take into account when considering an ERP solution. These goals include gaining better visibility across the organization in order to achieve insight into the operations of disparate areas of the firm. Another key component that comes in making the decision of an ERP solution is the ability to streamline operations. Rather than hold on to difficult and convoluted processes, an executive will prioritize solutions that allow for better workflow and tighter integration. Upgrading legacy systems with a more current solution positions an organization for growth and overall company improvement.

Specific areas of growth include the ability to scale operations in an efficient manner. Executives want to see concrete productivity improvements along with increased profitability. Today, firms must adapt to many kinds of changes, especially those demanded by the industry. Firms require technological solutions that adapt to what Forbes had dubbed the fast-paced Agility Era—a phrase that refers to the industry’s preference for flexibility and streamlined production over stable and unshakable client relationships1. These are goals that an effective ERP solution will help bring to life. Such an ERP solution gains its effectiveness by integrating multiple interrelated parts into a single application, providing a centralized hub for all creative projects. There are several reasons that a single solution with multiple functionalities is preferable over using several separate applications. 

To begin, the need to switch between more than one application to perform a single task introduces the potential for human error, which increases as the task becomes more complicated. Along with that human error, such a human-led process introduces significant room for error that multiplies over time. Furthermore, using more than one application can have a significant decline in visibility into performance2. Many of the metrics available to an effective ERP solution will simply not be viewable through separate apps.

We’ve broken this article into two components that together provide a comprehensive guide to centralizing business operations leveraging a single ERP solution. In the first section, ‘Roles in an Integrated ERP Solution,’ we’ll look at the ability to switch between different user profiles in order to take advantage of the different ERP features such as the dashboard display and custom KPI metrics. Here we’ll explore some of the advantages of cloud-based systems such as the ability to log on via a web browser using any device from any location. We’ll also look briefly at analytics and time-based metric displays.

In the second section, ‘Integrated ERP Solutions and Resource/Project Management,’ we’ll outline how an ERP solution allows for effective resource allocation with team calendars and availability updated in real-time, along with automatic reminders and notifications once a team member is allocated to a project. We’ll also cover, in the cases where an internal resource is not available, the ability to consult outside talent through freelance resources—all through the same interface accessed through a consolidated ERP solution.

Roles and Metrics in an Integrated ERP Solution

The key to centralizing projects within a single ERP solution lies in the use of clearly defined and separated roles. Oracle’s NetSuite ERP solution, for instance, allows users that fit different profiles to log in accordingly. In one scenario, a user can log in as an executive and receive full access to KPIs, employee data, transaction logs, and other important and potentially sensitive data. In another case, one can log in as a project manager and be greeted by a different but related dashboard, replete with issue tracking, task management, budgetary numbers, and team member status. Still another profile, such as a resource manager, can be accessed with its own set of tools and settings. This profile might focus on resource allocation, timesheets, and financial data.

The paradigm outlined here is known as a role-based platform. The ERP defines exactly what one can see and do within the system and this role-based system is based on a set of defined permissions and access levels. As NetSuite describes it, “roles are based on a robust set of permissions and are the means by which we manage our segregation of duties.”3 These permissions are correlated to different respective user profiles that contain specific levels of access. While not every scenario is contained within the existing user profile sets, the profiles can be modified and tailored to suit the interests of any user. This role-based functionality is essential to centralizing your projects within a single ERP solution by enabling everyone on the team to have a one-stop portal.

Metrics, analytics, and KPIs are valuable as they provide useful insights, especially for executive users and managers. Using an executive role login, a user can select a KPI (or set of KPIs) to display as a graph over time. This will show fluctuations in performance during the selected time window. For instance, an executive may want to view a utilization summary—which shows hours tracked to billable services against project actuals4—over the course of a single quarter. Other KPIs may include timesheet summaries, jobs by company, and a full jobs summary, all data that benefit project managers and other users5.

Beyond the view of graph data displaying a longer period of time, a user can also drill down into specific numbers included in KPI and data views such as revenue reports. When viewing revenue from an income statement, for instance, an executive can choose between different time periods—monthly, quarterly, yearly, etc.—and compare the results. The same executive user can drill further down into the number to reveal details at the transaction level. From there, information pertaining to the client, along with associated brands (or other parent/child information), is available for the user to peruse. 

An effective ERP solution gains its traction by centralizing these kinds of metrics in one single location across multiple user profiles. Rather than requiring several different applications, all of the necessary information is displayed in one convenient location. KPIs, metrics, and analytics provide invaluable visibility across the performance of a business, all viewable from a single dashboard. This strength is extended further through the advantage of multiple user profiles wherein views are customized and duties are segregated and related to user permissions.

Integrated ERP Solutions and Resource/Project Management

Another challenge for today’s businesses is the ability for resource and project managers to have clear visibility into the availability of those in their resource pools. Determining availability and forecasting for new hires and freelancers can be difficult, especially when relevant data is inaccurate or not up-to-date. With such unreliable information, resources can easily become double-booked and can often fail to keep track of regular assignments6. Attempting to cobble together this data from multiple sources may only add further confusion to an already challenging situation. This is why a single integrated ERP solution for resource and project management is imperative.

Using an integrated ERP solution for resource allocation allows a resource/project manager full visibility into the calendars and availability across the entire resource pool. The resource manager user profile, for instance, contains a home dashboard with metrics and query results that provide insight into the status of the team’s various projects7. Resource managers need to be kept up to date on this information through reminders, report links, and portlets that relate to hourly burn reports and overdue task and milestone indicators. Only a comprehensive and cross-functional ERP solution will allow such visibility for resource managers while displaying imperative data for other user profiles as well.

An effective ERP solution such as Oracle NetSuite will provide a resource manager a full view of each project which they are currently assigned. Such a view provides a full work breakdown structure with a display of tasks that remain to be completed, the resources required to complete them, how much work has already been executed, and the amount the agency expects to collect when complete8. The view will also display scheduling requirements along with standard billing rates for each resource9. From there, each task can be assigned to a specific resource such as a designer. The replacement will then appear throughout the project displays.

Another important tool included in an effective ERP system is a calendar that shows individual resources and their respective utilization. What is the current utilization of team members throughout your resource pool? Who, among your designers, is available for a two-week period starting one month from today? A resource allocation chart tool allows a resource manager detailed insight into these variables. It allows a resource manager the ability to assign resources without overworking team members, causing burnout, or neglecting important talent. Upon selecting a team member, with an integrated ERP solution, the calendar of that resource will be updated automatically.

Conclusion

Executives and project managers face important decisions on a daily basis. Choosing the right ERP solution is one of those decisions that has a deep and lasting impact on a firm’s success. A number of concerns figure into this decision. At the top of this list of concerns should be the centralization of functionality into a single solution. 

Does the ERP solution require numerous third-party applications to work? Or does it truly scale with your business as you grow? Does it work to streamline your business’s mission-critical processes10? Does the solution provide better visibility across the organization overall in order to achieve insight into the operations of disparate areas of the firm?

We’ve seen here how multiple user profiles—from executive to project manager to resource manager—allows multi-functional ERP within a single elegant solution. We’ve also explored how KPIs, metrics, and analytics can be used to monitor performance to ensure the health and viability of an organization. Then we turned to resource management and saw how an integrated ERP solution can keep resources organized and ultimately help to streamline operations. 

Centralizing all of this functionality into one single location is critical for an effective ERP solution. As opposed to launching multiple applications and using up valuable resources on human error and mistakes, a single elegant ERP solution saves both time and money. By using a flexible dashboard that adapts to different profiles, users can see what’s genuinely important to them on a project. When one considers these benefits, a multi-use ERP solution will greatly benefit companies in both the short and long run. 

For more information surrounding BORN Group’s ERP practice, please visit here.

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Footnotes

1. https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/onmarketing/2014/08/27/how-a-creative-cfo-will-save-advertising/&refURL=&referrer=#2607740412ea

2. https://view.pointdrive.linkedin.com/presentations/5e7289ae-cbb3-4f8c-9581-1c7af9e58433/preview/34cf1b5b-c90d-4c76-8f7e-8a0ecaacf931?auth=48e9df2d-f52b-4b02-af8c-93c80239e39f

3. https://view.pointdrive.linkedin.com/presentations/5e7289ae-cbb3-4f8c-9581-1c7af9e58433/preview/34cf1b5b-c90d-4c76-8f7e-8a0ecaacf931?auth=48e9df2d-f52b-4b02-af8c-93c80239e39f

4. https://functionpoint.com/4-important-kpis-to-measure-in-your-ad-agency/

5. https://functionpoint.com/4-important-kpis-to-measure-in-your-ad-agency/

6. https://view.pointdrive.linkedin.com/presentations/5e7289ae-cbb3-4f8c-9581-1c7af9e58433/preview/c57918a7-ae28-47f7-87a1-dd19c39db461?auth=48e9df2d-f52b-4b02-af8c-93c80239e39f

7. https://view.pointdrive.linkedin.com/presentations/5e7289ae-cbb3-4f8c-9581-1c7af9e58433/preview/c57918a7-ae28-47f7-87a1-dd19c39db461?auth=48e9df2d-f52b-4b02-af8c-93c80239e39f

8. https://view.pointdrive.linkedin.com/presentations/5e7289ae-cbb3-4f8c-9581-1c7af9e58433/preview/c57918a7-ae28-47f7-87a1-dd19c39db461?auth=48e9df2d-f52b-4b02-af8c-93c80239e39f

9. https://view.pointdrive.linkedin.com/presentations/5e7289ae-cbb3-4f8c-9581-1c7af9e58433/preview/c57918a7-ae28-47f7-87a1-dd19c39db461?auth=48e9df2d-f52b-4b02-af8c-93c80239e39f

10. http://www.netsuite.com/portal/products/erp.shtml

Best Practices: 10 Trends in ERP Implementation

Best Practices: 10 Trends in ERP Implementation

Enterprise Resource Planning (ERP) software has undergone significant changes since its earliest incarnations. ERP has historically consisted of monolithic standalone systems dedicated to specific business processes found, for instance, in early Manufacturing Resource Management (MRM) systems1. These implementations were limited in scope and restricted to local instances unlike the distributed systems in use more recently. That sort of system did not last in the fast-paced world of today’s digital agencies.

Current ERP solutions are more flexible and configurable than ever, with many ERP vendors moving to cloud-based solutions. These systems can be upgraded and configured on the fly with little to no need for on-site support. Alongside this shift toward configurability and flexibility afforded by cloud solutions, we’ve also seen a broader movement to integrate a range of innovative contemporary technological paradigms. For instance, with the use of the cloud, many vendors have begun to conceive of ERP as a SaaS rather than a traditional licensing model. Other offerings include increased integration of data and analytics, which can help improve productivity, more tiered ERP services, security features, support for mobile devices, the Internet of Things, and the use of Artificial Intelligence.

Overall, many of these trends can be attributed to a significant change in the landscape of the ERP vendor industry. Particularly, we’ve seen a movement away from yesterday’s monolithic ERP behemoths and toward the possibilities introduced by smaller industry players and startups. It is because of these “disruptors” to traditional ERP solution models that we’ve seen ERP integrate many of the advances that erupt in other areas of the tech industry while also offering novel innovations that stand on their own. Here we outline ten of the top trends occurring in the ERP landscape today, especially as they apply to digital agencies.

1. Cloud solutions 

With the fast-paced nature of today’s digital landscape, the ability for your ERP solution to be distributed, scalable, and configurable on-the-fly has become perhaps more important than ever. Recall, for instance, Forbes’s recent description of today’s ad industry as The Agility Era,2 a phrase that poignantly captures the industry’s need for flexibility and on-demand configuration. This designation comes into particularly sharp focus when choosing an ERP solution. You need to be agile and flexible. The cloud helps to facilitate this need in unprecedented ways.

Note, that the shift to cloud-based ERP solutions didn’t fall out of the sky. The trend has been emerging since the mid-1990s wherein, rather than concentrating on enhancing core functionality, ERP companies are moving toward reconfiguring their systems for cloud compatibility. As Frank Scavo, president of management consulting firm Strativa, explains, “Many companies are finding it easier to add in cloud-based point solutions for things like human capital management, CRM [customer relationship management], expense management and other functions.”3 With the cloud, such improvements can be thrown in ad-hoc with minimal to no downtime.

2. SaaS systems

As part and parcel of the move to the cloud, many ERP solutions have begun to operate through a software subscription model or as a Software as a Service, or SaaS. For digital agencies, this adds an important layer of convenience and flexibility over a traditional software licensing model. With ERP delivered as SaaS, many of the time-consuming software pitfalls like site-wide upgrades, security issues, and costly user provisioning, are reduced or eliminated altogether. As Pcmag explains, “Traditional ERP applications are stored on your servers, which means you’re responsible for upfront hardware costs, long-term hardware maintenance and expansion, and data backup and recovery. SaaS-based apps are stored on cloud-based servers, which are much less expensive, much quicker to update and scale, and don’t take up any valuable office space”4. By using a multi-tenant SaaS model, your ERP is fully scalable and grows as your agency increases in size, impact, and productivity.

3. Data Utilization

The move to the cloud has also allowed the broad-level use of data to improve ERP functionality. Imagine a customer relationship management software that is capable of building sophisticated models of your highest performing customer demographics and then integrate this information across your agency’s business operations. Or perhaps you’d like to base a proposed HR investment in business development on analytics that relate BD employee performance with overall profit figures. These are only a few of the applications that become possible with a robust ERP solution that integrates powerful data sources for a competitive advantage.

Such possibilities based on the integration of data in ERP solutions will only continue to expand. As TriCore Solutions CEO Mark Clayman noted, “Having powerful, cloud-based platforms allows companies to use predictive analytics and analyze business operations more closely.” He continues, “Companies are just now skimming the surface of what’s possible when aggregating data from outside their company—pooling information from suppliers, for example—to make real-time operational adjustments”5.The best advice for marketing and ad agencies: start utilizing data in your ERP solution today.

4. More tiered services

As digital agencies grow, some will adopt multi-tiered business structures. If your agency does not already have an HQ and subsidiaries, the prospect may be just around the corner, or it may remain for some time a distant goal. Traditionally, ERPs have not addressed these tiered structures directly; ERP functionality was generally the same regardless of which business hierarchy was using it. Over the years, though, many have asked how an effective ERP solution could better support such a tiered business structure. Thankfully, ERP systems have begun to fully support such tiered structures, for instance, by offering specific services to the top-tier headquarters and others as designated for the operation of subsidiaries6. Regardless of the size of your agency, you’ll want to seriously consider the benefits of future-proofing your operation by choosing an ERP solution that supports tiered services.

5. Security

Alongside the increased dependency on cloud-based connected ERP solutions, the need for intelligent and reliable security has grown exponentially. Importantly, the shift toward cloud-based ERP solutions has occurred alongside a sharp increase in security threats across the board, creating a potentially alarming demand for security as an integral component of an effective ERP solution. Cyber attacks, in general, cause immense irreparable damage. Estimates have put the total global cost of cybercrime at roughly $6 trillion by the end of 20217. A trend that will be increasingly important for agencies is the prevention of such cyber attacks, especially where an ERP system is involved.

6. Artificial Intelligence (AI)

AI has been a driving force of the rapid transformation of technologies across industries, and the ERP landscape is not exempt from these changes. Broadly speaking, AI is a field of computer science that is concerned with the modeling of human cognitive processes for use in any and all computational applications. The implications for ERP systems are innumerable, in that virtually every ERP component can utilize AI for performance enhancements and improvements in integration and productivity.

Take, for instance, the use of AI for improving customer relationship management. According to a noteworthy CIO article, “An AI-enabled ERP solution for customer service integrates the customer interaction with the work order management process. The AI solution understands and learns from historical inspection reports and work orders.” The article explains further, “Depending on the nature of the customer inquiry, it gives a proposed answer to the service agent. The AI solution assists with the planning and scheduling of the work by finding the earliest possible date to dispatch a service technician,” which is possible because the AI agent knows the required skill set and availability of the required parts.

7. Mobile device support

For those of us who have used smartphones on a daily basis now for years, it may be somewhat difficult to comprehend why mobile support is considered a new trend for ERP solutions. Why is it that seemingly every other form of computing and communications tech has received a mobile treatment, while ERP mobile support has been scarce to nonexistent? To understand this, one must keep in mind that Enterprise Resource Planning software is, first and foremost, enterprise software. This means that some of the trends found in modern consumer products are applied to a different timeline in the enterprise world. Fortunately, the time for ERP to support mobile devices like smartphones and tablets has now finally arrived.

8. Internet of Things (IoT)

Not unlike artificial intelligence, the Internet of Things has had profound implications for almost every sector of an industry. IoT refers to the proliferation of devices, products, and objects that are connected to the internet. What this means for ERP systems is that your entire infrastructure—including hardware, physical systems, and even employees—can be monitored and tracked. The data produced through this process can then be integrated into the functionality of the ERP system. Want to track how often a workspace is used in your ad agency to help determine future infrastructure plans? A room equipped with sensors and biometric tracking can provide real-time analytics to help with critical resource allocation decisions. Such a scenario represents only the beginning of possibilities that will arise with IoT.

9. Startups

Many of the recent and forthcoming innovations on the ERP landscape’s horizon, as noted above, can be attributed to the dynamism introduced by the increased presence of startups. The push toward cloud-based solutions, for instance, has come to a large extent from smaller ERP startups whose cloud-based features have, in turn, influenced larger vendors to follow suit. This is an example of the phenomenon that occurs when a smaller company is able to use their flexibility to their advantage by fulfilling a unique position in the marketplace.

“The bigger vendors are increasingly trying to be everything to everyone, which creates opportunities for startups to fill unmet needs in specific industries or functions,” Panorama Consulting founder Eric Kimberling has explained. “In other words, they are often able to use their focus to position themselves compared to the larger players uniquely.”[8] Such a situation is doubtless a boon to marketing and ad agencies, who continue to benefit from the kinds of rapid innovation we see regularly from startup disruptors.

10. Empowered users

Enhanced ERP features related to cloud-based services, SaaS systems, data integration, tiered services, security, AI, mobile devices, and IoT all mean that ERP users are more empowered than ever to make smart choices in selecting an ERP solution. With the introduction of new startups to an ERP landscape formerly dominated purely by large-scale vendors, the result is a more rapid turnover of new features and competitive functionality.

An equally valuable shift is the decrease in cost for ERP customers. As Amit Patel, managing director in the enterprise solutions business at Huron, has explained, “ERP vendors are being very aggressive in protecting their core offering and, as a result, pricing models are being updated to ensure they remain competitive9. This means that customers now get not only the best features but also receive comprehensive ERP features at highly competitive prices.

For more information on BORN Group’s service offerings across ERP, please visit here.


[1] http://whatis.techtarget.com/definition/Manufacturing-resource-planning-MRP-II

[2] https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/onmarketing/2014/08/27/how-a-creative-cfo-will-save-advertising/&refURL=&referrer=#2607740412ea

[3] http://searcherp.techtarget.com/feature/The-top-seven-ERP-trends-for-2017-and-beyond

[4] https://www.pcmag.com/article/351807/5-enterprise-resource-planning-erp-trends-to-know-in-2017

[5] http://searcherp.techtarget.com/feature/The-top-seven-ERP-trends-for-2017-and-beyond

[6] http://blogs.ramco.com/10-emerging-trends-erp

[7] https://www.csoonline.com/article/3110467/security/cybercrime-damages-expected-to-cost-the-world-6-trillion-by-2021.html

[8] http://www.enterpriseappstoday.com/erp/7-cloud-erp-startups-to-watch.html

[9] http://searcherp.techtarget.com/feature/The-top-seven-ERP-trends-for-2017-and-beyond