ERP has developed from a simple accounting system to automation of complete enterprise where the data is maintained at a central location and each and every module is interlinked. It has developed from supply chain management system to web based products which not only suit the needs of enterprises but also government agencies, healthcare agencies, educational institutions, retail and defence sector.
After the global recession the concept of ERP has changed and now it is viewed as a system which should be implemented at a low cost and provide better efficiency to directly enable a better ROI. Many large organizations that have been advocating the use of ERP for automating every single procedure of the office are now preferring to invest in systems which are work oriented- which means automation of single work process, department or unit accurately in less time - that is preferred over automation of every single work.
ERP Evolves From Back Office to Front Office
The functionalities of the automated system enable the system to expand to suit the need of the various industrial sectors and serve many organization commercial sectors. The job has been moved from back office to front office where the business plans to expand its branches taking the management tips from software. The inter office communications are now converted to intra office communication.
The New Future Trends
1. The future of ERP is have a non-centralized system instead of centralized database, that will have a number of databases which are maintained separately by the departments of the organizations and the companies can employ people instead of using automated machines to keep only the relevant data at one centralized location. This will prevent expense on management of huge data backup and this will speed up the system.
2. The new trends includes the software on demand in which the automation of certain business procedures can be done by the vendor in limited time and resources, and every month's subscription is paid to the provider of the system to get the service. This method was considered an alternative to expensive implementations but it is not the best option to prevent implementation cost and time because the company going for the software does not get anything to own even after paying for the ERPs.
3. The automated systems have been used in past for making market forecasts but recession has changed a lot of perception about the forecasting done by the software. The new ERPs are mature software which can provide a better forecasting based on the negative market conditions and also based on the real time data.
4. ERPs are now not concentrated to big organizations but even shops and retails stores prefer to use the system to conduct everyday transactions with the customers which has raised the demand for customized solutions for small and midsized companies which are not operating globally.
5. The future ERP will be a compact solution which can be bought at a low cost and can be implemented easily in less time - which will enable the companies not to merge up all procedures in one, instead it will get clear solutions from each and every packet of automation - which will integrated through common interface and it will have a low implementation and maintenance cost.