Top 5 ERP trends for 2022 and their impact on IT leaders

It is not far-fetched to call ERP the brain of enterprise IT infrastructure. After all, ERP systems simplify, standardize and integrate important business processes across a variety of different business functions.

Implementing an ERP solution is one of the most capital-intensive projects any IT leader will undertake. In addition to significant investment, the solution has the potential to impact all strategic business units of an enterprise. Therefore, CIOs must follow best practices for deploying ERP solutions and then keep a close eye on their trends.

Here’s how ERP is evolving into an enterprise-wide solution, and how these trends in ERP will impact IT leaders.

1. Customization gives way to standardization

The traditional practice of enterprise technology leaders customizing ERP solutions to meet their specific enterprise or business needs is being replaced by standardized solutions. A key driver for this is that adopting customized solutions to keep pace with the latest capabilities requires more resources and is costly, with many CIOs opting for standardized solutions.

Abhishek Mundra, practice director of enterprise platform services at research firm Everest Group, said, "ERP is updated regularly and may be pushed to the live environment in the form of features and functions. If there is a high level of customization, CIOs will Having to adjust updates in customized scenarios. This is tedious and leads to additional costs. By adopting a standardized ERP solution, IT leaders can avoid these problems, and most are following suit."

Implications for CIOs: In addition to avoiding additional cost and complexity, deploying an off-the-shelf ERP solution can help speed time to market and make the business more agile. Mudra said, "Earlier, the implementation life cycle of ERP solutions used to take 4 to 5 years due to customization. With standardized solutions, it now takes only 6 months to a year." He added that with standardized solutions Solutions IT leaders can better spend their time modernizing processes.

2. The best solutions transcend enterprise-wide approaches

Some CIOs are accustomed to deploying ERP solutions and gradually extending them to various strategic business units of the enterprise. The rapid digitalization and SaaS revolution are driving IT decision-makers to take a different approach.

Mundra said: “Enterprise technology leaders are actively pursuing digital initiatives such as marketing automation, customer experience, social media marketing and human resources transformation. However, in these areas, cloud computing ERP solutions are functionally equivalent to on-premises still lags behind when it comes to deploying ERP solutions. So for core functions like finance, CIOs look for cloud ERP solutions from top vendors that fit their requirements, but in other areas they go with the best solution Solution."

Implications for CIOs: When leveraging the best SaaS solutions, IT leaders must shift their focus from implementation to integration. Can combine the advantages of cloud ERP and on-premises ERP solutions to provide ERP for core functions and a large number of targeted solutions for key business needs, such as Workday for HR or Salesforce for CRM, Chief Information Officers must modernize processes and become coordinators.

3. Integration takes center stage

With the emergence of new generation technologies such as the Internet of Things, data analysis, and artificial intelligence, enterprises are seeking to gain business advantages from these technologies. Major ERP vendors are embracing this trend by integrating their solutions with these emerging technologies, and IT leaders are following suit.

Achin Sharma, vice president of IT at logistics vendor Movin India, said: “With the increased availability of web services and JSON, integrating ERP solutions with other applications has become easy.”

## Abhay Bapna, chief information officer at #FMCG provider Adani Wilmar, agrees. He said, "We have thousands of sensors in our factory, and each sensor sends data every 15 seconds. As ERP moves to the cloud and is integrated with technologies such as real-time analytics, massive amounts of data can now be processed dynamically."

Implications for CIOs: The integration of ERP with other technologies has alleviated CIOs’ worries to a great extent. For example, the financial module is a key component of an ERP solution. Without real-time data, it takes several days at the end of each month to process the data and ultimately execute management reporting. Now with near real-time replication, CIOs can do in a day what previously took days, making the entire process seamless and efficient. Similarly, in the healthcare sector, electronic medical records are being integrated with ERP solutions to provide better insights to healthcare practitioners.

4. The rise of industry-specific solutions

Given the different needs of each vertical, a one-size-fits-all approach cannot meet the expectations of business and technology leaders. This has led to the rise of ERP platforms that offer functionality catering to specific business verticals.

Everest Group’s Mundra said: “Industry ERP solutions are increasingly favored by CIOs. There are some emerging vendors that have found their own niche. For example, Infor has adopted a vertical manufacturing ERP solutions; Salesforce offers ERP for healthcare, banking and financial verticals; ServiceNow ERP solutions are strong in telecom and public sector sectors."

Implications for CIOs: Industry Cloud ERP Solutions Programs enable CIOs to gain insight into the best practices followed by their peers. Additionally, with a broad customer base, solution providers are more likely to invest in product development and innovation.

5. Migrate to the cloud platform

Enterprise technology leaders are replacing their traditional on-premises ERP solutions by migrating their operations to the cloud platform. People have already recognized the benefits of leveraging cloud computing, and COVID-19 has further highlighted its value as it allows employees to work from anywhere.

Sheetanshu Upadhyay, corporate research director at Strategic Market Research, a global market research organization, said, "Currently, about 60% to 65% of the ERP market in India is still an on-premises solution. This situation will change in the next three to four years. Changes will occur within the year, when cloud computing ERP will exceed on-premises ERP, and the deployment rate will reach 55% to 50%. This trend is quickly catching up."

Technology research and consulting firm Gartner defines the cloud ERP market For the application technology market. According to data released by the company, in targetable market segments, enterprise IT spending on public cloud will exceed traditional IT spending in 2025. The company predicts that by 2025, nearly two-thirds (65.9%) of application software spending will be on cloud computing technology, up from 57.7% in 2022.

Implications for CIOs: By migrating an enterprise’s ERP solution to the cloud, CIOs can benefit from lower costs, new capabilities, mobility, easier deployment, elasticity, and Fewer demands on in-house IT resources, and the ability to easily add users and functionality to accommodate business growth.

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