ERP

Evolution of ERP

"If you want to be on the winning side in 2018, you have to digitize your business model before the competition's business model passes you by." The ERP experts from godesys in Mainz give this tip to all companies that want to make their business processes more efficient in the coming months.

In this context, ERP manufacturers are required to establish themselves as a platform for business process management. Godelef Kühl, founder and CEO of godesys AG, summarizes the most important ERP challenges: "Topics such as robotics and artificial intelligence are becoming increasingly important. Good ERP becomes invisible in this context: processes run automatically, and with the Internet of Things, machine-to-machine communication is becoming increasingly established."

These are the most important ERP trends in 2018 and beyond:

Artificial intelligence trend: Automated processes in the background
Artificial intelligence (AI) and AI-based applications will become increasingly important for SMEs, particularly in the area of goods procurement in 2018 and beyond. "Automated replenishment processes that use stochastic trends to identify future sales and align orders accordingly are in demand," explains Kühl. ERP systems provide essential data that can be used to predict customer behavior and steer processes in the right direction. The godesys open business framework, for example, enables users to create, modify and use algorithms independently. If companies rely on the right tools for storing, evaluating and managing large volumes of data, including using AI, they can assert themselves as digital pioneers on the market.

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Voice control trend: strategic planning for digital disruption
The past few years have been dedicated to front-end systems. However, digitalization goes far beyond the front end. Integration and networking take place at the back end. If you really want to focus on your customers, you need commercially sensible data aggregation in order to be able to offer real added value. Process automation works best with the familiar ERP. The integration of new functions and input options such as chatbots is not a problem. Increasing computing power means that ever more extensive databases can be accessed faster and faster, which also enables intelligent dialogs with the user. Systems such as Alexa, Siri, Hello Google and Watson will be able to establish real communication between humans and machines in the near future. "When the time is right, it will happen quickly. Companies must therefore monitor new developments very closely and react to them quickly. Digital disruption can be planned with the help of flexible ERP," explains Kühl.

Internet of Things trend: fueling business models and service concepts
There is also no way around the Internet of Things in 2018: It is not human interaction via browsers or smartphones, but communication between machines and devices (MtoM) that will account for the majority of data volume in the future. This opens up completely new possibilities for ERP users, but also for industry and commercial applications. IoT services interact with web servers that are connected to the IoT objects via the internet. These services are usually controlled via apps that are provided for the end user's mobile devices. The operational benefits of these digital services are obvious: business models can be automated, service concepts and the sharing economy will continue to grow. Consumer loyalty from such applications will completely change markets. Kühl explains: "Whether smart home, smart city, remote maintenance, energy management or replenishment control and Industry 4.0: at the latest with the nationwide 5G mobile communications standard and the further growth of pilot applications, even the last analog decision-maker will realize that we are facing one of the biggest paradigm shifts in economic history."

Digital normality trend: from hype to everyday life
There is no question that smartphones are an integral part of everyday life. Self-driving cars and smart data glasses have also long been part of everyday life. And yet many companies are still struggling and running through the world of incredibly diverse digital possibilities with blinkers on. "This must finally change in 2018," says godesys. Digital normality should become the mantra in companies this year. The ERP expert wants to ensure a better understanding of the trending topic of "digitalization". Kühl: "The exchange of relevant information is promoted through networking and clear processes. Whether digital expert, user or software developer, everyone has already had experience with digitalization - from different perspectives - and shares this knowledge. Digitalization affects us all. We will be driving this topic, its challenges and courses of action forward in the coming months."

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