Forecast 2020: This is what will change in the ERP world
The year 2019 is drawing to a close. What developments in the ERP world will shape 2020? One manufacturer of enterprise software has already given some thought to this.
Claus Jepsen, Deputy CTO of Unit4, gives a forecast of what will move the IT and ERP world in the coming year:
ERP World 2020: The rise of chatbots
Chatbots and digital assistants played a much more significant role in the corporate environment in 2019 than in previous years. From AI-powered HR recruiting services to chatbots in customer service: More and more companies relied on AI to streamline operations and improve the customer experience.
In 2020, this trend will intensify in the ERP world. A growing number of companies will use the analytics capabilities of AI-powered digital assistants. They hope this will provide them with new insights into efficient ways of working. For example, daily tasks that follow certain patterns will be able to be automated through machine learning.
New cloud-based offerings such as Microsoft's Virtual Assistant are accelerating the deployment of digital assistants in combination with enhanced AI capabilities. They also enable companies to use low code/no code tools to develop digital assistants for specific application scenarios. These assistants then support internal business processes, for example, or are used in an innovative way in customer relationship applications.
Cloud storage: Everything is moving in the direction of hybrid
Cloud migration was the focus in 2019. Against this backdrop, many predicted that pure cloud storage models are the future. However, with regulations such as the DSGVO, customers are increasingly concerned about where exactly their data is located. Therefore, in 2020, all indications are that cloud strategies will undergo a major transformation. Hybrid cloud implementations will come into focus.
Companies will increasingly opt for hybrid solutions. This allows them to store data on-site and at the same time use the cloud to ensure the security of their database. In this context, ERP providers of a hybrid solution register clear advantages over manufacturers of legacy ERP systems as well as pure cloud offerings.
The extensibility of the platform is crucial
In 2020, the requirements for a modern ERP solution will also change dramatically. Customers are expected to turn away from vendors that only have ERP functionalities in their portfolio. In terms of their digital transformation efforts, potential buyers are much more interested in solutions that allow them to use data and applications both on premises and in the cloud.
New customer requirements are prompting ERP vendors to think about extensibility. They also need to ensure that their platforms can support hybrid scenarios and multiple requirements within digital strategies. This new starting point will herald the end of ERP mega-suites. They will be replaced by seamlessly distributed and integrated solutions that can run on multiple clouds as well as on premises.
Employee know-how becomes the engine of business
In 2020, employees will remain the most important component in companies, regardless of the industry. Their skills and insights form an important basis for companies to correctly assess the future direction of the business.
This is why companies will take a strategic approach to their human capital management (HCM) solutions in 2020. Data and analysis functions play an important role in this context: they can be used to find out how well trained employees are and whether they have the right skills, where further training is needed, and how employees can be supported in their career planning.
Attracting the talent of tomorrow
Many young people born around the turn of the millennium will be taking their first step into working life next year. Companies need to think about how they can attract this new generation.
Potential new employees have grown up with the Internet and are used to modern technology. Their expectations of their future employers' digital equipment are correspondingly high. A tech downgrade at the workplace - compared to the standard they have been used to in their private lives - is therefore not well received by young talent. In times of a shortage of skilled workers, companies need to be even more aware of this: Outdated technology can not only paralyze business, but also be the reason for a potential employee's rejection. Companies should therefore rethink their entire IT infrastructure.
For providers of ERP solutions and enterprise software, these developments have a strong impact on how functions are offered to users in the future. A transformative change can be seen: away from monolithic systems, which had to be endured for more than 20 years, towards flexible task- or purpose-oriented applications. With them, users can get started right away without having to fight their way through a feature-overloaded single application.
