As the demand for Enterprise Resource Planning (ERP) continues to grow, industry experts are highlighting its vital role in helping businesses manage their operations more effectively. With the search term “ERP” seeing a 78% increase in popularity, Simon Langdown, a Microsoft ERP specialist at Essenkay, has provided insight into the future of ERP and why it is becoming an indispensable tool for companies navigating the digital landscape.
Langdown points to the widespread issue of poor data quality as one of the main challenges facing businesses today. “Around 79% of UK businesses struggle with data management,” he explains. “This often stems from handling large volumes of information scattered across multiple systems, or in some cases, not managing it at all. This can lead to poor decision-making and, more critically, a significant loss of profit.”
ERP systems offer a solution by centralising all the necessary business data into one streamlined system, enabling decision-makers to access accurate and timely information. This has made ERP systems a go-to choice for industries such as manufacturing, logistics, construction, and financial services, where digital transformation is essential.
“As businesses become more digitalised, their information systems must evolve with them,” Langdown adds. He notes that ERP systems are particularly relevant in sectors like manufacturing (47% of users), logistics (18%), construction (4%), and financial services (12%), where data management is key to navigating the challenges of today’s business environment.
ERP systems are expected to play a critical role in helping businesses cope with an increasingly volatile, uncertain, complex, and ambiguous (VUCA) world. Langdown suggests that one of the biggest changes in ERP is its move towards the cloud. “Cloud ERP allows for remote working and provides greater flexibility for employees,” he explains. “This is particularly important as businesses deal with price fluctuations, inflation, labour shortages, and supply chain disruptions. Accurate cost information provided by ERP systems will be crucial in helping businesses manage these challenges.”
Looking to the future, Langdown believes that the integration of artificial intelligence (AI) into ERP systems will be a game-changer. “AI will enhance efficiency and agility by automating routine tasks, improving data accuracy, and optimising processes,” he says. “This will allow employees to focus on more strategic, value-added activities, and improve overall decision-making.”
Another emerging trend is the use of predictive analytics, which will provide chief financial officers with enhanced financial insights, allowing them to make more proactive decisions. Additionally, AI-driven process automation will enable businesses to simplify tasks, analyse data more quickly, and ultimately make better decisions.
ERP systems are also expected to contribute to sustainability efforts by tracking energy use and carbon emissions, helping companies make more environmentally friendly decisions. Augmented reality, meanwhile, will enhance worker engagement by providing real-time insights and visual instructions, further increasing operational efficiency.
In an era of tightening profit margins, supply chain disruptions, and the rise of remote and hybrid working, businesses that embrace ERP systems are likely to outperform their competitors. For more insights into the future of ERP, visit Essenkay’s website.
