Recent and Advanced Developments in The Field Of ERP

Varsha P

School of Management Studies

CUSAT, Kochi-22
E-mail: varshap1071995@gmail.com

Abstract: Enterprise resource planning (ERP) is an integrated system, which consists of

various integrated applications. ERP is implemented to collect, store, manage and interpret
data from different business activities, including product planning, expenses, production
and/or service delivery, sales management, inventory planning, shipping and payment. ERP
gives a comprehensive insight of core business processes, based on common databases
retained by a common database management system. ERP systems normally attempt to
track business resources, raw materials, production capacity, orders, purchase orders, etc.
The ERP system is presently essential part of organizations since it gathers all
organizational systems in a comprehensive system Information in large organizations is
often spread across numerous homegrown computer systems, housed in different functions
or organizational units. ERP is a software architecture that facilitates the flow of information
among the different functions within an enterprise. Similarly, ERP facilitates information
sharing across organizational units and geographical locations. It enables decision-makers
to have an enterprise-wide view of the information they need in a timely, reliable and
consistent fashion. Various modules of ERP software have enabled enterprise to optimize
its resources and maximize customer satisfaction. The new trend in ERP has enabled
customization of the products and the services of the firm providing easy implementation
and acceptance of the software.

Key Words: Enterprise Resource Planning Developments, IoT, Cloud, Artificial Intelligence

1.0 INTRODUCTION

Enterprise Resource Planning is a business management system that integrates all facets of the
business, including planning, manufacturing, sales, and marketing. As the ERP methodology has
become more popular, software applications have emerged to help business managers implement
ERP in business activities such as inventory control, order tracking, customer service, finance and
human resources. Enterprise resource planning’s true ambition is to integrate all departments and
functions across a company onto a single computer system that can serve all those different
departments’ particular needs. Thus, ERP attempts to integrate all departments and functions
across a company onto a single computer system that can serve all those different departments’
particular needs. ERP systems are IT systems which are meant to serve all the IT needs of a
manufacturing company. An Enterprise resource planning (ERP) software or system development
helps organizations better manage their resources. The most vital aim to be achieved through ERP
software is to integrate back office business processes and facilitating the information flow within an
organization to take data-driven decisions. So, enterprise resources planning software / system
collects data from various levels of an organization and organizes it for business activities across
departments. With a dedicated enterprise resource planning software / system development, an
organization can standardize and automate its processes to achieve high level of efficiency in its
operations. The ERP system ensures that all employees in an organization are working with the
same data and watching the same key-performance indicators.[11]

1.1 The Key Modules in ERP Software

finance: It collects financial data and generates reports based on it. These reports include ledgers,
trial balance data, overall balance sheets and quarterly financial statements.

HR management: It collects date and generates reports based on it. These reports include
recruitments of employees, performance reviews, training and professional development, mediation
and exit interviews.

Inventory management: This module generates data-based reports about non-capitalized assets
and stock.

supply chain management: This part of an ERP system generates reports about materials, and
finances as they keep moving from supplier to manufacturers to wholesaler to retailer to consumer.
[14]

2.0 RECENT DEVELOPMENTS IN ERP

Businesses today are required to deal with technological advancements occurring at a pace never
experienced before. What’s more, trends like the consumerization of IT have lessened the CIO’s
ability to regulate which technologies are used alongside the corporate network. [9]

As trends like Bring Your Own Device (BYOD) continue to make an impact, it’s important that the IT
department embraces new technologies for a number of reasons. Aside from missing out on any
potential benefits, being too proscriptive regarding the technology employees can use risks the
emergence of shadow IT; when IT solutions are built or adopted without explicit organizational
approval. Enterprise Resource Planning (ERP) in particular has a lot to gain from adopting an open
approach to new innovations. Here are the five technology trends that I believe have the potential
to shape the future of ERP, if implemented correctly:

The Internet of Things: The Internet of Things (IoT) is a concept that provides objects, such as
cars and electrical appliances, with the capacity to transfer data over a network without requiring
human interaction. In the case of ERP, devices are available that can be attached to tools and even
vehicles, feeding data back to applications hosted in the cloud. Information such as location, usage
and performance can then be easily accessed, allowing organizations to identify issues like where
unused assets are, or if maintenance is required.

Wearable technology: This was one of the focal points at this year’s Consumer Electronics Show
(CES 2014) and Gartner has predicted that the wearable technology market will be worth $10
billion by 2016.While much of the attention generated by wearables has focused on consumer
propositions like fitness trackers, there are also a host of applications in the workplace. Augmented
Reality enabled glasses like Google Glass will enable hands free operations which can be of great
benefit for many blue-collar workers. Even smart watches represent a step forward compared to
PDAs and smartphones since they are more easily accessible and are less likely to be misplaced/
dropped, etc. Devices designed to monitor external factors like UV exposure or heat can help
improve management of employee health.

Big data analytics: Organizations have become more dependent on IT and, as a result, they have
accumulated a wealth of data that has been traditionally underutilized. As the IoT connects tools
and employees to the internet, this data generation is set to grow exponentially. By employing
analytical tools, organizations can begin to use this data to make accurate predictions that form the
basis of a more intelligent approach to business strategy.

The age of context: With businesses increasingly operating in a multichannel world, using
technology that understands the situation you’re in, what information you would like to see, and
how you would like to see it, will begin to have a real impact on performance. PCs and mobile apps
will increasingly integrate context aware functionality to anticipate user needs and improve the
efficiency of day to day tasks. For example, a field service engineer will automatically receive all the
asset data, job instructions, customer relationship history as soon as they arrive at the repair site.

Opening business to innovation: Over the next few years, technology like wearables, the IoT and
big data analytics stand to reinvent business processes across many different industry sectors.
Organizations need to keep an eye on technological advances, even those that may seem to be
irrelevant.
Recent developments have shown that solutions which first appeared to be designed for
consumers are increasingly finding profitable applications within businesses. By taking an
innovative approach to the adoption of technology, businesses stand to save time and increase
productivity; results that will be reflected in the bottom line of enterprises that choose to embrace
new technologies.
As ERP systems continue to evolve, vendors like PeopleSoft (Conway, 2001) and Oracle (Green,
2003) are moving to an Internet-based architecture, in large part because of the ever-increasing
importance of E-commerce and the globalization of business. Beyond that, perhaps the most
salient trend in the continuing evolution of ERP is the focus on front-office applications and inter-
organizational business processes. ERP is creeping out of the back office into the front and beyond
the enterprise to customers, suppliers, and more in order to meet changing business needs. Front-
office applications involve interaction with external constituents like customers, suppliers, partners,
and more—hence the name front office because they are visible to “outsiders.” Key players like
Baal, Oracle, PeopleSoft, and SAP have incorporated advanced planning and scheduling (APS),
sales force automation (SFA), customer relationship management (CRM), supply chain
management (SCM), and e-commerce modules/capabilities into their systems, or repositioned their
ERP systems as part of broader enterprise suites incorporating these and other
modules/capabilities. ERP vendor products reflect the evolving business needs of clients and the
capabilities of IT, perhaps most notably Internet-related technologies. While some companies are
expanding their ERP system capabilities (adding modules) and still calling them ERP systems,
others have started to use catchy names like enterprise suite, E-commerce suite, and enterprise
solutions to describe their solution clusters that include ERP among other modules/capabilities.

Having a properly implemented ERP system to support your business is no doubt essential to
running it correctly. A properly implemented ERP system can provide your organization with the
ability to analyze costs and revenues on a timely basis. Since business is always changing, your
ERP System must also involve the flexibility to respond to changing business requirements.

The ability to provide up-to-date and accurate reports for more informed management decision
making is another important role that your ERP should have. Lastly, a properly implemented ERP
system should always provide better internal controls and processes. As your business grows,
there can be difficulty in getting timely and accurate financial data. This is a major hurdle that many
businesses face, especially in their accounting department. SAP Business One is a great example
of a tool for crossing these hurdles and providing the required growth.[1]

In order to appropriately manage your financials, SAP Business One is a company-wide ERP
solution that works as an integrated system, covering all functional areas including Sales, AR,
Purchasing, Banking, Inventory, Manufacturing, Financial Accounting, and Asset Management.
When properly implemented, the system becomes a hub for efficient processes. It ensures that the
internal controls, CRM, and checks and balances are consistently maintained, all while making sure
that the provisions of Income tax or other fiscal laws are not ignored. It also ensures that the
Accounting Standards are consistently followed across the company. Overall, it improves the
quality of the reporting. To be more specific, a modern ERP system like SAP Business One allows
the introduction of latest technologies like Electronic Fund Transfer (EFT), Electronic Data
Interchange (EDI), and E-Commerce to improve your organization’s ability to interact with your
trading partners. ERP systems also provide business intelligence tools like Crystal Reporting, Data
Mining, and Early Warning Systems for enabling people to make better decisions and for providing
internal controls.

2.1 The Latest Trends in Enterprise Resource Planning

The Internet of Things (IoT)

The IoT is defined as the interconnection of data from devices that normally would remain
disconnected from the Internet. Companies can gain valuable insights into how the ERP system
performs with the IoT, like how and where the system is used. IoT technology can improve
accuracy and expand data availability, which gives rise to intelligent and much more flexible ERP
systems as well.

What’s more, blending IoT data with ERP systems can add valuable information to bigger picture
within an enterprise, for instance with the IoT, product shipments can be tagged with devices that
report transportation time and current location information. As a result, manufacturers can use this
information to better plan production schedules and plant locations.[4]

Cloud

Cloud solutions are increasingly gaining attention of business leaders and quickly replacing legacy,
on-premise solutions. In 2017, global cloud computing revenue topped $250 billion, and according
to Gartner, by 2020, 80 percent of CTOs in leading organizations will facilitate the identification and
analysis of emerging technologies to support their companies’ digital transformations.

A cloud-based ERP system – which is offered to businesses via a subscription model by cloud
vendors, is a great cost-effective alternative to on-premise systems (no hardware to purchase, etc.)
On a cloud server, the capabilities of ERP software are easily accessible from any device that
connects to the Internet, making it easier to maintain because there is no on-premise upkeep
required. In today’s digital environment where business teams and employees can collaborate on
important documents, spreadsheets, etc. and enter important data from remote locations – ERP
software is most efficient when it’s utilized via the cloud.[2]
Mobile

Mobile ERP applications allow companies to benefit from improved quality of service, deeper
business relationships and more accurate data capture – not to mention access to important data
from any location at any time. For instance, an employee from the sales department can check
inventory levels or even close a sale from home or while on the road traveling. This convenience of
accessing ERP data from your phone, laptop, tablet, etc. allows for employee productivity to
increase while giving them the tools and information they need to conduct business.[10]

Mobile ERP applications can improve the efficiency of separate business processes too. For
instance, a manufacturing business may often run into risks of production delay because of delivery
issues. Mobile ERP can dramatically shorten such risks by sending notifications about delivery
troubles. In turn, employees will be quickly informed in order to search for the best solution to avoid
losses of time and money.

Artificial Intelligence

AI-enabled ERP (iERP) systems can create an environment where a company’s data is
conversational and actionable. Not only that, but iERP systems can learn from the data sources,
create workflows, and reduce the time it takes to load data and reduce errors in the inserted data.
Since AI technology learns the different ways in which an organization and individual users interact
with the ERP software on a daily basis, AI-enabled ERP systems can suggest different ways to
optimize the system for individual users. Active Business Solutions writes, “The combination of
artificial intelligence and ERP can also improve the business processes. By analyzing historical
data, the systems will be able to suggest the most effective internal work processes.”

2.2 ERP as SaaS

SaaS is probably the most significant non-ERP trend to look forward to. There isn’t much growth for
ERP in regards to cloud computing but there is anticipated growth in application hosting. In fact,
application hosting for ERP growth was almost 100% last year, and I anticipate this trend to
continue.[8]

In fact, application hosting has shown growth in every functional area and SaaS in particular has
shown tremendous growth in HCM and CRM. What is also surprising is that on-premise
deployment of software for any given functional area does not exceed 80% which means the
majority of firms are using some form of SaaS or Application hosting to deploy one or more of their
business functions. The chart below provides the relative percentages for each category.
Table 2.1 growth percentages in various categories

ERP HCM CRM Spend PLM Order

Mgmt./SRM Mgmt.
On-Premise 76% 61% 74% 60% 65% 73% 68%
SaaS 3% 13% 13% 9% 5% 3% 4%
Application 11% 15% 13% 15% 13% 14% 18%
Hosting

2.3 Micro-Verticalization will be delivered by channel partners.

In the future we will see increased specialization amongst channel partners providing specific
services to a sub-set of a major vertical; this process is known as micro-verticalization.
For example, there are traditionally eight major verticals: Manufacturing, Business Services, Utilities
& Telecom, Transportation, Public Sector, Retail & Wholesale, Media, Entertainment & Leisure, and
Finance & Insurance. Now when we look at the Transportation vertical (NAICS code 48) closer we
see that it consists of 41 micro-verticals such as Scheduled passenger air transportation, Short line
Railroads, Taxi service, Freight transportation, etc. Channel partners deliver micro-vertical value by
addressing the needs of each of these sub-verticals. For example, if we focus on freight
transportation partners, we’ll have the option of developing services and solutions for the following
sub-verticals: Line-haul railroads, Deep sea freight transportation, General freight trucking – local,
Scheduled freight air transportation, etc. This process will essentially allow partners to build an
expertise in a vertical that exists within a larger vertical.[7]

By focusing on micro-verticals and sub-verticals many channel partners can maximize revenues by
focusing on a niche portion of the market wherever market segmentation may exist. The
specialization that firms offer when they focus on this micro-vertical approach has been increasing
over time as the industry continues to consolidate. As software vendors become all things to
everybody customers need the specialization that channel partners bring in order to implement the
solutions to the necessary degree of specificity that customers require to meet their business
needs. This is one trend that I definitely see continuing into the future.[13]
2.4 Mobile ERP

Mobile ERP will grow in use and importance. With the emergence and popularity of the i-phone, i-
store, and mobile applications, the next evolution in ERP will be a mobile client interface to ERP
systems. Oracle already has a mobile client and Oracle Lite for disconnected applications but Tom
and I both feel that the next evolution in mobile ERP will be interchangeable and downloadable
mobile interfaces. That is, depending on the business area of interest – HR, Finance, Procurement,
etc – you will be able to select a mobile interface that corresponds to that business area and a
specific business process. In surveys conducted by Forester companies have already implemented
some form of mobile ERP application: Sales Force applications (18%), Field Service applications
(15%), Logistics applications (15%), Inventory Management applications (22%), Customer-facing
applications (15%), and Enterprise Asset management (15%). Moreover, Forrester also found that
these same companies had plans to either implement/expand their use of mobile applications:
Sales Force applications (10%), Field Service applications (10%), Logistics applications (5%),
Inventory Management (5%), Customer-facing applications (15%), and Enterprise Asset
management (5%).This data supports what I have seen in the field, and more importantly, it is
representative of what an ever increasing number of customers have been asking for.[6]

3.0 NEW ERP TRENDS & FORECASTS FOR 2020

Cloud Acceleration

Using cloud-based ERP software isn’t exactly the latest trend, but it’s one of the most game-
changing ones. In the past, ERP applications are only offered as on-premise solutions with startup
fees and hardware costs. As a result, they can be too expensive for smaller businesses.

With the emergence of cloud computing, more vendors are now offering cloud-hosted options that
make ERP solutions more accessible to SMBs. With these systems, users no longer have to worry
about expensive system maintenance and upgrades. Moreover, they can choose to avail only the
modules that they require, giving them more control over their budgets.

Because of the success of cloud adoption, SaaS ERP solutions are now dominating the market.
Many companies who are using on-premises ERP are realizing their limitations, including
inflexibility, costly scaling, and lack of innovation. Thus, more businesses are predicted to invest in
cloud ERP in the foreseeable future. However, ERP’s use of the cloud doesn’t stop there. There’s a
growing number of businesses that are also opting for hybrid ERP solutions. According to
Accenture’s 2019 ERP Trends, while 51% of chief information officers (CIOs) prefer cloud ERP and
35% use on-premise solutions, 10% of companies now use hybrid ERP tools and it’s set to grow in
the coming years. This type of system combines the strengths of on-premises and cloud-based
ERP while covering for each other’s weaknesses. As a result, it has become ideal for businesses
whose main focus lies in products and assets. This includes the companies in digital media and
business service industries, among many others.

Integration of AI and Other Intelligent Tech

Artificial Intelligence (AI) has been the talk in the ERP industry for a few years now. Typically, users
have to install separate add-ons to their systems to enjoy the benefits of automation and
intelligence. However, it is becoming increasingly common these days for ERP solutions to have
such functionalities built-in.ERP with intelligence tech integration is also known as iERP. It provides
companies with a significant edge through innovative data processing. Transforming business data
into actionable insights is just the beginning.

There are more data than ever for companies to collect. It’s not just the amount that spiked but also
their complexity. There’s only so much unstructured data that businesses need to get a rein on.
Therefore, companies need to find new ways of analyzing data if they want to make full use of it.
This is where AI-driven ERP software comes in. Intelligent ERP solutions can also create
workflows, reduce errors, lessen information loading time, and more. It can automate hours’ worth
of routine processes. This frees some of your employees’ time, which they can use on more
valuable work.

Intelligent ERP solutions can also analyze your historical data and combine it with information from
other departments. The system can then suggest more effective ways of executing your internal
processes. Overall, AI and other intelligent techs, when combined with ERP, can improve your
business’ productivity, efficiency, and bottom line.

Personalized ERP Solutions

As discussed above, aside from moving to the cloud, the modular approach brought ERP to smaller
organizations. In 2019, however, the trend took another step forward by providing more
personalized and vertical solutions to businesses. As such, we can expect that by 2020, one-size-
fits-all ERP solutions will become less common. This originated from buyers recognizing the
benefits reaped from letting go of most control over their systems. In return, they’ll get the
configurability of a specialized solution without having to rely on dedicated IT teams. Needless to
say, this will also help their bottom lines by reducing their capital and maintenance expenses.

This doesn’t mean, however, that each ERP system in the market is created from scratch. That’s
both impractical and unrealistic. Instead, what we’ll be getting are industry-ready systems that are
customized to support the unique requirements of various industries. Also, each component would
undergo standardization so that the deployment process’s speed won’t suffer just to accommodate
the increase in flexibility.

In the future, ERP solutions would feature a more extensive user interface. They’ll become more
consumer-centric, flexible, and accessible as well. Also, the tools would be easy to operate not just
for programmers or IT specialist, but for any employee.[12]

More than that, personalization also readies ERP solutions for the explosive growth of IoT, AI, and
other technologies. That’s because customization is the way by which ERP components can
seamlessly integrate with these innovations. This could potentially reshape the ERP landscape by
creating new models and processes by which things can be done.

More powerful Analytics

ERP systems have always been great in terms of collecting and organizing data. Not as good,
however, when it comes to reporting and analysis. But that’s old news because modern ERP
systems are now natively equipped with powerful data analytics features. This is mostly because
companies are prioritizing the ability to make data-driven decisions quickly. Right now, most
businesses are enjoying ERP systems with integrated analytics, ad-hoc reporting, and data
visualization capabilities. This provides them access to relevant information in real-time.
Companies use it then to make essential business decisions regarding finances or other business
aspects. As a result, decision making is now available at all levels, from the manufacturing division
up to the executives.

Going forward, ERP users can be excited about more robust analytics and reporting capabilities.
The future of ERP points to an end-to-end tool that can process both structured and unstructured
data. This signifies that another process that ERP managers will need to focus on is learning
analytics. ERP solutions will have access to all data from various departments. Therefore, they
have every information necessary to predict future trends. This makes predictive analysis a strong
suit of modern ERP platforms.

4.0 MOST POPULAR ERP SOFTWARE

Here are some of the best ERP software in the market today:

• NetSuite ERP is a complete and scalable ERP solution that streamlines business
processes. It provides high-growing, mid-sized businesses, and large enterprises the right
tools to accelerate growth and drive innovation.
 • Sage Intacct is a flexible accounting and financial management software built for
businesses of all sizes. It has powerful automation features, multi-dimensional data
analytics, and other advanced functionalities that drive company acceleration.
• SYSPRO is an industry-built ERP software that simplifies planning, execution, and control
production processes. As an end-to-end platform, it has complete tools for record-keeping,
resource allocation, analysis, planning, and reporting.
• Sage Business Cloud Enterprise Management offers financial, supply chain, and
production management in one flexible business management solution. It provides rich
and integrated functionalities perfect for distribution, manufacturing, and services
industries.
• Oracle ERP is designed to drive innovation, enhance business productivity, and improve
your operational performance. It is a full-suite platform with finance, project management,
procurement, risk management, and other core features.[5]

5.0 CONCLUSION

Enterprise Resource Planning (ERP) integrates core business areas such as manufacturing,
distribution, financials and human resources. ERP is often implemented in companies together with
process-oriented organization or Supply Chain Management (SCM). In order to manage the
information-flow of such structures new IT-systems are generated – known as ERP-Systems. IT-
systems of this kind allow managers from all departments to look vertically and horizontally across
the organization to see what others are accomplishing or not. It attempts to integrate all
departments and functions across a company onto a single computer system that can serve all
those different department's particular needs. ERP-systems also implement and automate business
processes, putting them into a useful format that is standardized across the corporation and
between their suppliers and customers. ERP-systems capture data about historical activity, current
operations and future plans and organize it into information people can use to help develop
business strategies. We’re already past the time when ERP is only accessible to large enterprises.
Due to the rise of cloud computing, modular systems, and other technological innovations, smaller
businesses can now enjoy them too. This also means that as more customers have access to
them, it will gain more attention from both developers and innovators. Thus, trends concerning ERP
will also continue to shift and grow.[15]

For legacy ERP systems, this means that they must keep track of the trends and adapt. They must
innovate with time. They’re on the verge of either keeping up or disappearing. For modern ERP
systems, being complacent in this competitive field is fatal. Some companies are still not sure
whether or not they must invest in an ERP system. We can’t say for sure that you require one, but
we can say with confidence that it’s worth the consideration. Check out our article explaining why
ERP software is useful to help you make a more well-founded decision[3
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