Published on: May 05, 2020
Cloud-based ERP is here to stay. With so many companies doing business remotely, they are turning to cloud ERP for greater accessibility. The following 2020 trends in the realm of cloud-based ERP point the way to the future of business software.
Three Trends for Cloud-Based ERP
- Widespread Adoption and Use of Artificial Intelligence (AI) and Machine Learning (ML)
Artificial intelligence (AI) and machine learning (ML) are making significant progress in many industries: banking, e-commerce, customer service, and more. As technologies improve, they become more accessible and more skillful at using data and interpreting business needs. The more data received into systems running AI and ML, the better they get at predicting data needs.
The Autonomous NEXT report estimates that financial firms will see nearly 20 percent of their costs reduced through the use of AI. This may also be the case for manufacturing firms, which benefit from automating many processes. AI and ML can help automate repetitive tasks. AI and ML-based ERP systems can also handle routine analysis and forecasts.
If you’ve been hesitant to incorporate software using AI and ML into your company, now may be the time to embrace this technology. In the past, AI and ML were slow to catch on because they lacked the enormous amount of data that helps them work best. Today, however, the volume of data has caught up to the demands of the systems; the more they have, the better they learn, and the more effective they can be.
A recent Forbes article on digital transformation trends for 2020 stated: “Companies that still aren’t investing heavily in analytics by 2020 probably won’t be in business in 2021. There is simply far too much valuable customer data to be collected, processed, and turned into insights for any company to remain competitive without making full use of modern analytics tools.”
As far as trends go, the incorporation of AI and ML are two that will continue to dominate the headlines. They are becoming a standard part of doing business in 2020 and beyond.
- Comprehensive EULA and Data Rights
Cloud-based ERP comes in many versions. With so many options, which true cloud ERP solution works best for your company? Many vendors package systems to look like true cloud ERP but they really aren’t, and they don’t work the same way.
It’s essential to read the fine print in End-User License Agreements (EULAs). These are often worded to give the vendor, not the customer, the advantage. A growing trend today is to push for customer-focused EULAs. These ensure the data contained in the ERP system belongs to the customer, not to the vendor. Customers should have access to their data on-demand. If they wish to download data from the system and move it into another one, they should be able to do so without delay.
Another tricky area of EULAs is the presentation of the agreement itself. Electronic end-user agreements can be modified by the software vendor at any time, often without the knowledge or consent of the end-user. To prevent this from happening, customers now demand printed license agreements that cannot be modified and hold vendors to their part of the bargain. It’s a growing 2020 cloud ERP software trend and one that’s likely to continue.
- The Cloud ERP Software Industry Will Continue to Grow
The innovations in data analytics, artificial intelligence, and machine learning are only the start of a significant change in the world of ERP software. All three have gone from innovation to must-have within the space of a decade. Many companies now view these technologies as necessary to their success in the digital economy.
A recent Forbes article on IDC’s 2020 predictions notes, “IT resources will continue their migration to the cloud (and multi-clouds) and there will be heavy investment in automation and orchestration systems, using artificial intelligence and machine learning.”
IDC also predicted, “By 2020, 70% of enterprises will integrate cloud management—across their public and private clouds—by deploying unified hybrid/multi-cloud management technologies, tools, and processes.”
We predict the demand for cloud ERP software will continue to grow over the next decade, with cloud-based approaches to data management becoming commonplace. Cloud ERP software eliminates the cost of IT infrastructure, as well as the responsibility for hardware and software updates/upgrades. It provides better security than most companies can afford while making data easier to store, manage, and use.
Need Help Choosing Cloud ERP Software?
If you agree that having the right cloud ERP software gives your company a competitive advantage, contact Mindover Software today for a consultation. Mindover Software provides ERP software consulting, training, and implementation. For more information, please, contact us or call 512-990-3994.