Best Practices: 11 Trends in ERP Systems

Best Practices: 11 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. 

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 reconfigurability 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. Here we outline 11 top trends in ERP systems today, especially as they apply to digital agencies.

Trends in ERP Systems #1: Cloud-based ERP 

Cloud-based ERP solutions are becoming increasingly popular due to their flexibility, scalability, and cost-effectiveness. Traditional ERP systems require businesses to make a significant upfront investment in hardware and software, which can be a major barrier to entry. Businesses pay a subscription fee based on usage, making it a more affordable option for businesses of all sizes. Additionally, cloud ERP offers greater flexibility, allowing businesses to scale their operations up or down as needed.

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.”2 With the cloud, such improvements can be thrown in ad-hoc with minimal to no downtime.

Trends in ERP Systems #2: Mobile Apps & Remote Work

Mobile ERP apps are becoming more popular as remote work becomes the norm. These apps provide employees with access to critical business data and functions from their mobile devices, making it easier for them to stay connected and productive.

Mobile ERP apps allow employees to access the system from anywhere at any time. This is especially important for businesses with remote workers or employees who travel frequently. Mobile apps also allow employees to collaborate more easily, regardless of their physical location.

Trends in ERP Systems #3: 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. This adds an important layer of convenience and flexibility for digital agencies 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”3. By using a multi-tenant SaaS model, your ERP is fully scalable and grows as your agency increases in size, impact, and productivity.

Trends in ERP Systems #4: 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 integrating 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. The best advice for marketing and ad agencies: start utilizing data in your ERP solution today.

Trends in ERP Systems #5: 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 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, 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 designated for the operation of subsidiaries4. 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.

Trends in ERP Systems #6: Security

The need for intelligent and reliable security has grown exponentially alongside the increased dependency on cloud-based connected ERP solutions. 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, can cause immense irreparable damage. Estimates have put the total global cost of cybercrime at over $8 trillion in 20235. A trend that will be increasingly important for agencies is the prevention of such cyber attacks, especially where an ERP system is involved.

Trends in ERP Systems #7: Artificial Intelligence (AI) & Customer Experience

AI has been a driving force in 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. A noteworthy CIO article states, “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.

Trends in ERP Systems #8: Internet of Things (IoT) 

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 the possibilities that will arise with IoT.

Trends in ERP Systems #9: Startups

As noted above, many recent and forthcoming innovations on the ERP landscape’s horizon can be attributed to the dynamism introduced by the increased presence of startups. For instance, the push toward cloud-based solutions 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 its flexibility to its advantage by fulfilling a unique position in the marketplace. Such a situation is doubtless a boon to marketing and ad agencies, who continue to benefit from the rapid innovation we regularly see from startup disruptors.

Trends in ERP Systems #10: Content Management

ERP systems are increasingly being used for content management. By integrating with content management systems (CMS), businesses can manage all their content in a single system. This can improve efficiency and reduce the need for multiple systems.

Content management features include asset management for documents and digital assets and web content management. These features allow businesses to manage all their content in a single system, reducing the time and resources required to manage multiple systems. 

Trends in ERP Systems #11: Empowered Users

Enhanced ERP features related to cloud-based services, SaaS systems, data integration, tiered services, security, AI, mobile devices, and IoT all mean ERP users are more empowered than ever to choose 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 competitive6. This means customers now get the best and most 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] http://searcherp.techtarget.com/feature/The-top-seven-ERP-trends-for-2017-and-beyond

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

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

[5] https://securityintelligence.com/articles/7-reasons-global-attacks-will-soar-2023/

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