Industry 4.0 has forced enterprises to transform their Enterprise Resource Planning strategies and technology stack to get a competitive advantage in the market.
The entire globe is witnessing the fourth era of (Enterprise Resource Planning) ERP, and businesses are tremendously transforming their workflows with the ERP evolution. Enterprises are exploring immense opportunities in finance by embracing touchless transactions, predictive analytics, and strategic data-driven planning. A seamlessly integrated suite of robust enterprise-grade applications in the technology stack will accelerate the digital transformation for the enterprises.
ERP solutions today have become more evolved and offer enterprises an ecosystem that is much wider than resources, planning, or enterprise. Businesses can make the most out of ERP’s new ecosystem, which includes consumers, suppliers, partners, competitors, and stakeholders. Here are a few factors that are acting as a catalyst in ERP Evolution:
Fluctuations in the supply chain
Since the start of the pandemic, the world has witnessed supply disruption at various levels. The pandemic highlighted the need for better visibility, accurate, predictable lead times, different supply sources, and a quick and efficient response to disruptions. Organizations earlier concentrated their efforts on enhancing the supply chain to ensure just-in-time supply. Businesses that considered their suppliers capable of delivering based on pre-set contract schedules faced significant disruption. Enterprises today need in-depth visibility, accurate real-time predictions, and efficient response during disruptions are a few factors forcing ERP evolution.
A paradigm shift in the workforce
Cloud-based ERP has become an integral part of enterprises of all sizes. Organizations globally are embracing hybrid work culture to ensure business continuity during unprecedented times. Moreover, the workforce is witnessing a huge paradigm shift with employees embracing the gig economy. HR ERP tools are expected to be more agile and efficient in monitoring the entire employee lifecycle and their productivity. The paradigm shift in the work culture is one of the reasons for ERP evolution.
More Efficient use of data
With the advent of industry 4.0, there has been a surge in the amount of unstructured data generated. Legacy ERP tools lack robust reporting capabilities, which becomes a challenge for enterprises. Decision-makers need to have easy access to their data and robust tools to analyze it to make data-driven decisions. Organizations are looking for customized ERP dashboards and reporting capabilities to get more insights from the generated data.
The competition surged due to industry 4.0 forces enterprises to have accurate real-time visibility into their sales, inventory, production, and financial health. Robust data analytic solutions are a robust way to ensure businesses are making strategic decisions to enhance supply chain resilience.
Organizations need real-time visibility of their supply chain from production to distribution.
ERP solutions that seamlessly integrate IoT devices into the supply chain will add to a centralized database. Unified databases between warehouses, procurement, and production units will provide the agility that businesses need in industry 4.0. The increase in the adoption of IoT across all industries also plays a role in the need for the ERP evolution.