Eight ERP trends for small and medium-sized enterprises in 2017

The topics of "Industry 4.0" and "digitalization of business processes" will continue to occupy manufacturing SMEs on a massive scale in 2017: Companies are increasingly starting to analyze large volumes of data with the help of business intelligence, are relying on the Internet of Things and are using cloud solutions as well as mobile apps. A key role in SME manufacturing companies is played by the ERP system as the backbone of the digital transformation. Based on the results of expert forecasts, studies and trend assessments, the software company proALPHA sees eight decisive ERP trends in German SMEs for 2017, which can, however, also be transferred to Switzerland overall:

1. Cloud solutions are changing the IT landscape for good. The cloud is being used more and more frequently by medium-sized companies. According to a trend survey by the German industry association VDMA, more than 80 percent of the companies surveyed now attach important significance to this topic. With ERP from the business cloud, medium-sized companies gain scalability. For example, when IT resources are not keeping pace with growth or smaller foreign branches need to be connected quickly. The cloud not only helps to keep IT investments low. It also offers a higher level of security than most smaller SMEs can guarantee today in their own data center. More flexibility and customizability are made possible by offers with ERP hosting or rental models, also in addition to the ERP system in the company's own data center.
2. ERP is the backbone for digital transformation. According to a Bitkom survey, one in three German companies is already using ERP solutions, and a further 21 percent are planning to introduce them. proALPHA sees ERP software as the new integration hub for Industry 4.0. This is evident in a number of successful Industrie 4.0 projects of customers, in which the ERP system forms the backbone. Industry 4.0 is not just a production issue. Logistics, assembly, development, maintenance and service benefit equally from the networking of systems and the automation of processes.
3. Mobile applications are playing a more important role in the industrial environment. Greater mobility increases productivity in sales, warehousing, service and manufacturing. It enables flexible working, regardless of location. However, for processes to function optimally, mobile technology must adapt to the processes and not vice versa. Adaptable web applications that are directly networked with the ERP system ensure greater flexibility and investment security while at the same time reducing maintenance and servicing costs.
4. Document management becomes an integrated part of ERP solutions. When relevant documents are available to all employees involved in the shortest possible time, business processes run particularly quickly and smoothly. Therefore, a document management (DMS) module should always be an integrated part of an ERP solution. All e-mails, receipts, invoices, drawings and other documents can be assigned to a business case via drag & drop and archived with it. The DMS module ensures audit-proof archiving of documents in accordance with the GoBD (principles for the proper keeping and storage of books, records and documents in electronic form and for data access).
5. Analyze even large amounts of data with business intelligence in ERP. According to the above-mentioned VDMA survey, the topic of business intelligence (BI) is already of medium to very high importance for every second machine manufacturer. Service and maintenance are leading the way with an application share of 10 percent. Production (8 percent) and logistics (4 percent) follow in the next places. "The application share, which is still comparatively low today, will increase significantly in the next two years, with around a quarter of respondents planning corresponding implementations by 2018," the study states. Since managers or administrators need complete and up-to-date data to make quick and correct decisions, an ERP system needs BI tools that can be operated intuitively. From monthly reports with key business figures to complex ad-hoc evaluations of large quantities of machine data, this provides well-founded answers for every decision-making situation in medium-sized companies.
6. The integration of CRM and ERP continues to progress. Around one third of the SMEs in Germany surveyed for an international study by the market researchers at IDC now use systems for both ERP and customer relationship management (CRM). There are advantages to linking them - from the consistent and more efficient design of processes to the avoidance of redundancies due to duplicate data maintenance. An integrated CRM module enables a 360-degree view of customers and prospects and supports their individual support from the offer to after-sales service. As a central platform, the ERP system provides all departments with consistent information in real time for systematic customer relationship management. Comprehensive CRM functionalities, including marketing campaigns or contact and sales opportunity management, bring efficiency to the processes. Based on competitive information, forecasts and sales controlling, all customer relationships can be managed with foresight.
7. The Internet of Things places new demands on ERP. The Internet of Things (IoT) is an integral part of many Industrie 4.0 projects. According to the study "Competitive Factor Analytics in the Internet of Things" by the University of Potsdam, 15 percent of the companies surveyed have already integrated IoT applications into their existing processes to increase efficiency. The main area of application is process monitoring, where 39 percent of the companies already have concrete projects underway. The hardware required for implementation, such as barcodes, sensors and RFID chips, has long since ceased to be a cost factor. The big challenge, however, lies in the correct collection and analysis of the data generated so that it can be used productively in supply chain and manufacturing processes.
8. Connection of suppliers and customers via a web portal. Industry 4.0 does not stop at the company's own boundaries, but also networks partners, suppliers and customers in addition to the processes in the company's own factory, according to the current study "Digital Transformation of the Manufacturing Industry" by the consulting firm KPMG. Here, too, the ERP system plays a key role. For example, customers, suppliers, representatives and the company's own employees can be easily connected via a web browser. With web portals that are fully integrated into the ERP system, this is possible regardless of end device, platform and location. Every authorized user can access data from the complete ERP solution in real time and only receive the information they need for their work.

Source: proALPHA