Top 7 ERP Trends in 2022 — Part 3

Also Read: Top 7 ERP Trends in 2022 — Part 1

Also Read: Top 7 ERP Trends in 2022 — Part 2

6. Smart Factories & Services

Until late 2019, before covid-19 was declared a pandemic by WHO, companies were skeptical about implementing new manufacturing technologies. But since the onslaught of the virus, things have changed. Companies are implementing cutting-edge technologies rapidly because it has become a necessity. From noodle manufacturers to semiconductor giants, every industry embraces technology with open hands. 

Industry 4.0 solutions and the introduction of new technology equipment have enabled a revolution in manufacturing, allowing organizations to replace manual processes with automated systems and increase the efficiency and productivity of supply chains. 

The foundation of smart factories depends on:

• Building digital factories

A digital factory replicates the activities and processes of its physical counterpart. It includes a broad spectrum of tools and methods, including 3D visualization and simulation, handled through integrated data management systems. The primary goal of a digital factory is continuous evaluation, comprehensive planning, and improvement & enhancement of the real factory that manufactures the product.

A digital factory manufactures improved products, provides enhanced services, and offers newer experiences with each iteration. This is achieved by focusing extensively on deep learning analytics, agile technology, top-notch cybersecurity standards, and efficient coding practices. In addition, an operating committee oversees the functioning of a digital factory to eliminate obstacles, monitor work processes, and provide the required funding whenever necessary. 

• Expansion of Industrial Internet Of Things (IIOT)

The Industrial Internet of Things (IIOT) refers to the use of actuators and smart sensors to improve & enhance industrial processes and manufacturing. IIOT takes advantage of real-time analytics and smart machines to capture, analyze, and communicate crucial information to make business decisions faster and more efficiently.

Actuators and sensors allow companies to identify problems and inefficiencies faster, helping save time and resources while generating accurate business intelligence reports within a fraction of a second. IIOT  holds massive potential in manufacturing for supply chain traceability, sustainable green practices, and quality control. Moreover, IIOT plays an essential role in facilitating manufacturing operations like enhanced field service, predictive maintenance, asset tracking, and energy management. 

The IIOT ecosystem consists of :

1. Interconnected intelligent devices that monitor, collect, analyze, and exchange information across each business department.
2. Applications and advanced analytics that produce critical business information from raw data — structured and unstructured.
3. Private and public communications infrastructure.
4. Relevant business stakeholders that brainstorm how to improve the ecosystem further.

• Implementing a service-oriented model

Equipment-as-a-service is a business model where manufacturing companies provide repair and maintenance services after purchasing the equipment. Customers pay a monthly/annual charge to use it for an extended period and get their equipment repaired if it breaks down.

• Increase in the availability of data from multiple sources

The most significant challenge with data is that it can remain unused in silos for a long time. On the other hand, ERP applications provide the necessary framework/architecture for consolidating data to make it more useful. Data plays a vital role in a smart factory because it helps optimize business processes, derive hidden insights, and enhance decision making. 

Unfortunately, many organizations haven’t monetized their data yet. Monetizing data means using data for earning revenue by digitizing products and services and sharing it throughout the manufacturing ecosystem. This way, companies can convert data into a valuable asset. Moreover, they can boost the team’s data literacy to start new business models, create better services, or develop new cross-selling and up-selling opportunities. 

7. Enhanced human experiences

Businesses that provide the best customer experiences attract a larger audience. The best part is that customers remain loyal to the company and stick for a longer time, constituting a more significant Customer Lifetime Value (CLV). 

The following points explain how companies can use new & improved technology to provide excellent customer experiences in 2022 and beyond:

a. Context-based task shortcuts

Context-based task shortcuts allow employees to finish complex tasks in a short duration. For example, users can define hotkeys that help perform specific functions such as opening a field, displaying the pop-up option menu, refreshing a list, showing the last read list, and revealing object properties in the ERP software with the click of a button. This way, companies can significantly increase their UI experience and enhance the software’s user-friendliness.

b. Simplification of complex tasks and business workflows

The right ERP application allows simplifying the complicated business process in the following ways:

• Extended control

ERP software provides a 360-degree view of all business activities on a single dashboard. This way, companies get a clear picture of where and how the company’s resources are being utilized. It also allows the senior management to have crucial data at their fingertips, which helps make better decisions. Other benefits of the extended control ability of the ERP software include a reduction in human errors, an increase in transparency and automation, and most importantly, that business processes are executed in a faster and simpler way.

• Increase in employee productivity

ERP software destroys information silos by providing a single source of truth to employees working in each business department. Traditional companies use disparate information systems to store business data that restrict teams from collaborating and making decisions unanimously. But modern ERP software links disparate systems and creates a unified data source. This way, employees working across diverse teams can access, create, edit, and share crucial data in real-time. As a result, employee productivity has increased exponentially.

• Scalability

The most significant drawback of manual business management systems was that they weren’t scalable. But companies in 2022 and beyond will search for business management systems that can integrate new functionalities and grow with the business. In addition, modern ERP software supports strategic planning and helps companies quickly adapt to changing market trends and customer preferences. 

c. Machine Learning and Artificial Intelligence

Gartner reports that 37% of organizations use AI in some form or the other. AI and ML algorithms have entirely changed the way a business runs. The following points explain this in detail:

• They identify patterns in unstructured data that are oblivious to the human eye.
• They streamline production models based on real-time data.
• They have predictive maintenance modules that predict problems with a higher probability of occurring in the near future.
• They automate manual and repetitive tasks allowing employees to focus on meaningful tasks.
• They collect tons of relevant customer data across geographic, demographic, psychographic, and behavioral parameters that help brainstorm effective marketing strategies. 

d. In-product guides and walkthrough with extensibility

Extensibility in ERP software favors enhancement and customization. It’s a measure of determining how easy it’s to improve the ERP system’s current features and integrate with third-party software.

e. Mobile dashboards and reporting

Modern ERP software allows sales reps to access critical reports and data through their smartphones from anywhere, anytime, and any place. The best part about modern ERP software is that it supports straightforward implementation, easy customization, and inexpensive deployment. A modern ERP software provides the following capabilities:

• Viewing and writing capabilities
• Alerts, notifications, and emails
• Native mobile apps for devices
• Cloud and On-Premise implementation
• Drag & Drop tools to customize