Enterprise Resource Planning
ERP trends 2019 - this will be important
Many SMEs in Germany, Austria and Switzerland have decided to expand their ERP solution. Which topics should ERP managers have on their radar for 2019? Based on studies and user discussions, seven trends can be identified that ERP managers should address in 2019 and three trends that can (still) be postponed.
Companies are constantly adapting their business processes to meet the rapid changes in the markets. The number of companies that are also expanding their ERP system to do so is also increasing: 62% are planning to add additional functions to their ERP software in the next two years, according to a study by PAC. SMEs from the manufacturing and retail sectors are focusing on seven topics in particular for the coming year. The ERP specialist Pro Alpha has compiled them:
1. play at the top internationally
SMEs are ideally positioned for further expansion abroad: An article in the scientific journal "Journal of Product Innovation Management" recently analyzed the recipe for success: despite scarce resources and high costs, domestic companies score points with product and process innovations, delivery reliability, service orientation, a high level of market expertise and product quality, according to the authors. In order to fully develop these qualities in a new target market, ERP software is required that supports intercompany business by seamlessly exchanging systems, versions and clients. The language and legal requirements are mapped in suitable country versions.
2. link the store floor with the ERP
The networking of technical and commercial processes must not end at the production hall gate. This is why it has long been possible to record and evaluate operating data from production and feed it into subsequent processes. Relatively new, however, are the possibilities to control the machines directly from the order-managing system, the ERP software. A lack of standards or an older machine fleet are no longer an obstacle. In 2019, more and more systems and machines will communicate directly with the ERP system in both directions.
3. exploit mobile application possibilities
Mobility is a key factor driving digitalization, be it in production, distribution, logistics, sales or service. Accordingly, the Trovarit study "ERP in Practice 2018/2019" ranks mobile ERP use among the top 5 ERP trends, as it did last year. For mobile use to be a success story, applications for handheld devices, tablets, etc. must be geared towards consumer apps and also cover complex ERP processes.
4. keeping agility and stability in balance
ERP systems used to be monolithic blocks with long implementation times and complex customizing. Agility is the order of the day. But for all their flexibility, companies need stable backbone systems that handle their business processes reliably and securely. In this area of conflict between agility and stability, ERP systems are developing into platforms with a stable core that can be configured and expanded flexibly and modularly and can be operated on-premise and in the cloud as required. In addition, the adaptation of software to business processes is also becoming increasingly simplified.
5. ensure data quality
Data is the foundation for the optimal use of an ERP system. However, companies are currently only utilizing around half of the value creation potential of their data: One of the main hurdles is likely to be poor quality. However, the completeness, accuracy and clarity of data is becoming increasingly important due to increasing automation. Half-hearted cleansing projects are therefore doomed to failure. Data quality management integrated into the ERP system has a lasting quality-enhancing effect.
6. networking knowledge
Data is increasingly becoming the fourth production factor. 92% of CFOs now see the availability and linking of data as crucial for value creation in their area. The annual CFO study conducted by the consulting firm Horváth & Partners shows an increase of 18 percent compared to the previous year. This is because the seamless flow of information from development and production not only accelerates processes in finance. It also enables new and more precise evaluations, analyses and projections.
7. tackling digitization
The majority of German SMEs have overcome their digitalization scepticism: After an evaluation phase, 71 percent of companies are already in the process of implementing corresponding projects. This was revealed by a recent survey of 102 companies conducted by PAC. For the remaining 29 percent, this means it's high time to get on board if they don't want to miss the train to the future. The workflow options integrated into the ERP system, automated incoming invoice processing and the connection of special applications via a service-oriented architecture offer sufficient potential for a fast ROI.
Blockchain, AI and RPA can wait
The future technologies that received a lot of media attention in 2018 include artificial intelligence (AI), blockchain and robotic process automation (RPA). In contrast, these topics have rarely been on the project radar of companies: according to a survey conducted by Roland Berger and the International Controller Association (ICV), two thirds of companies do see a potential benefit for their core value creation areas. However, less than half of the survey participants are planning to implement RPA or AI in the next three years.
According to the PAC study, one in six companies is switching to a modern ERP system to implement its Industry 4.0 plans. The vast majority are focusing on expanding functionalities. Digitalization and thus the further development of ERP systems in German companies is therefore not taking place as a disruptive upheaval, but rather step by step. The changes in 2019 will be a further step along this path.
According to documents from Pro Alpha / ag












