These times are tough for ERP software industry as economy has been soft and changing market needs and trends and lack of willingness to invest huge sums of money on IT infrastructure has enabled ERP vendors to focus on the issues which have been left out till now or ignored. Recent trends in the market suggest that in a short duration ERP software industry will be focusing on such issues aggressively and fresh innovative ideas may surface too.
Continued focus and searching new ways of improving SaaS model is expected. Mid and small market has been increasing though economic slow down may have come down heavily on some small and medium size companies but still SMB is the most promising and lucrative sector for ERP vendors. Companies in this sector does not have ample resources to improve their efficiency and market reach, which they may be able to achieve by ERP and SaaS model makes it possible in their kind of budget. ERP vendors shall continuously strive to work out better and lucrative subscription offers to attract new clients from this sector.
Focus on providing industry specific solutions rather than striving for one application solution to the whole organization will be taken up aggressively to restore trust and ensure successful implementation and operation of ERP software. Oracle has already started its effort in this direction and has provided more than 900 functions for different industries. This trend will not only reduce the size of application and complexity while implementation but also makes it easier to use and to understand. Industry specific function in the form of applications will help in quicker and easy customization according to the need of the buyer.
SOA architecture will also get a lot of focus in recent times as even staunch competitors in ERP software industry have also accepted that it is in everyone's interest if applications of different ERP software's can interact. Even sharing of API's of different ERP applications which was kept very secret previously may become a practice.
It has been proven that best way of improving ROI on ERP is to link ERP functions with business strategy. A more focused approach may be evident in near future in this direction by ERP software developers to justify the heavy investment of time and money on ERP software. This has been a serious drawback with ERP software till today which has stopped it from becoming a productive tool in true sense. Automation of processes is meant for increasing accuracy and speed but this can make it inflexible too. This situation needs different approach so that users get benefits of automation and may be able to bend them according to the needs.
Stepping up the security will also see a more focused approach from ERP software companies as more integrated and automated ERP application becomes prone to hacking. Hackers once penetrate the outside perimeter of security can abuse the system and transfer any vital information and data. New methods and approach needs to be applied for more effective security.