Focus Question: How is Enterprise Resource Planning integrating cloud-based technologies to support business outcomes?

Enterprise resource planning (ERP) is constantly evolving to meet the needs of businesses and the advancement of technology. In Faith et al., “Enterprise resource planning applications have historically missed the mark in multiple ways” (Faith et al., 2020). Historically, businesses were at the mercy of ERP applications where the company adapted to the ERP application rather than the application being adapted to the business. While there has been some customization within the ERP vendor’s proprietary technology, there has been a lack of alignment with growing demands and the ability to integrate with other business systems.

One trend is the increased business desire for cloud-based and mobile ERP. In part, increasing hybrid and remote work would allow for easier access and data sharing by system users. For organizational leaders moving to a cloud and mobile-based ERP would allow for faster real-time data reports on business operations. Additionally, it improves customer services for the end-user of an organization’s services. Most recently, I had a company provide a quote for custom closets and built-in desks. The designer discussed the company’s switch from computer-aided design (CAD) software to cloud-based. In this switch, the business can quickly provide customers with accurate real-time quotes on their desired projects. Real-time pricing improves customer satisfaction and can allow organizations to utilize sales tactics to obtain a signed contract.

In the shift towards mobile and cloud-based ERP, there was an increased desire for user-centric designs to improve usability and enhance user experience. In the example I mentioned earlier, CAD can be a complex system for users to learn. Businesses want to cut training costs and improve retention, so an ERP system needs to focus on user experience. Additionally, companies seek to make an external component of their systems for their customers. An example is software for property management companies that allows an internal interface for them but an external one for homeowners to see real-time data on their property.

Cloud-based systems are trending towards a more composable architecture or at least adopting composable principles. Organizations can implement modules such as inventory management, customer relationship management, human resources, etc. into one standard interface through a composable cloud-based system. This would allow the cloud-based software to be tailored to unique business processes while maintaining the benefits of cloud-based ERP applications. ERP providers must continue to embrace composable architecture principles in the growing demand. They must also provide standardized application programming interfaces and integration capabilities to integrate different modules and external applications seamlessly.

References

Faith, T., Tori, D., Schenck, P. (2020). The Future of ERP Is Composable. Gartner. ID G00723613

Guay, M., et. al. (2020). 2020 ERP Predicts: Unprecedented Changes In ERP Enable Transformation. Gartner. G00451351