Emerging ERP Software Trends in 2021



Senior editor

Parul Saxena

Chief editor

Last updated: July 8, 2021

Life is about evolution. For businesses, it is the system solutions transforming the sector. With digitalization on the rise, every company is in search of technology that will support its path to the digital revolution.

Looking for ERP Software? Check out SoftwareSuggest’s list of the best ERP system solutions.

ERP software system is one such innovation impacting digital transformation. It is an investment that will influence all aspects of a company, including human resources, accounting, production, marketing, and more. Its widespread impact makes it one of the most significant financial decisions you have to make.

So, to help you stay on top of your game, here are a few trends for the ERP software industry that you should be aware of in 2020.

Trends for ERP Software Industry

  • Two-Tier Model

Back in the day, companies employed a single ERP system to handle the backend operations of all their offices. It led to costly failures that drove the businesses to the ground. Like a phoenix rising from the ashes, the new generation of entrepreneurs learned from their predecessors and devised a two-tier ERP software.

The companies using the two-tier system are those with offices in different parts of the world or several subsidiaries. The two tiers are interconnected with the first one handling operations at the corporate level and the second one under the subsidiaries.

The first tier is termed as the ‘Legacy Application,’ and the second tier provides customization options to the subsidiaries. They can optimize regional operations to suit their needs. 

Businesses are adopting the two-tier system in the case,

  • A small subsidiary has grown enough to need ERP software.
  • The acquired company’s ERP is insufficient for your needs.
  • The business does not feature the subsidiary as required.

However, the two-tier system is not without its faults. Discrepancies can arise if the employees of the second tier omit information in the reports related to the business operations, like orders and financial details. It can negatively impact the corporate records at the headquarters.

  • Increased Adoption in SMEs

ERP ensures end-to-end integration of software under one system. Additionally, with the rise in ERP vendors offering ERP software solutions at competitive pricing, it makes the system more alluring for SMEs to invest.

  • Agile System

For businesses, it is imperative to be flexible enough to change and evolve with the times. Agile ERP can help in that endeavor. With a flexible ERP system, companies would need to rethink their strategies for improved long-term results. 

Alternatively, if you were to try and think of workarounds to maintain the traditional processes, it would provide short-term solutions, but create difficulties in the long run. For example, any new hires would have to understand the system and how you use them. Additionally, the workarounds may become void in the light of the changing tides of the business world. 

A compliant ERP system will ensure the company can adopt any changes in the processes.

  • More Customer-Oriented ERP

ERP software is primarily for the management of company operations. It is limited to accounts, audits, supply chains, and warehouses. In 2020, however, we’ll see ERP turning more customer-centric. The business world will witness a significant change as startups like Applify Labs or enterprises like Toshiba, understand the importance of customer satisfaction. 

Traditional ERP function will be switched for a system that is more user-oriented, complementing the company’s strategies to improve customer lifetime value across all channels.

  • ERP and AI

Part of going more customer-centric is the use of AI with ERP software to offer more personalization for customers. In 2020, AI will be integrated with the ERP systems and equipped to handle massive data like user preferences and company records. 

  • Cloud-Based ERP

Cloud storage is now a standard for companies to secure their files and data. 2020, however, will show the involvement of ERP with cloud storage. Cloud ERP Software ensures better data security, convenient management, and low costs. 

In light of the tremendous advantages of Cloud ERP, companies are transferring their massive ERP data collection into cloud storage. In 2020, you can expect Cloud ERP to expand and diversify, offering more personalization opportunities and features.

  • Augmented Human Intelligence

In 2020, ERP will display advanced human capabilities that can automate repetitive, mundane tasks. It will improve the efficiency of the employees, ultimately increasing the productivity and performance of the company as a whole.

  • User-Friendly UI

ERP trend predictions foresee better UI and intuitive designs of the interface. As employee interaction increases with the ERP system, it will pave the way for a more user-friendly UI. Additionally, it will be beneficial for the new generation accustomed to touchscreens and voice-optimized systems.

  • Functionality, Personalization, and Ease of Use

An ERP system that makes the interface more customer-friendly will increase its usability, making it a preferred option despite the numerous vendors in the market. A straightforward UI will also make training new employees use the software simple. 

Additionally, with the ease of use, businesses will value functionality over the price. It means if a specific ERP system cannot provide features that a customer requires, companies will readily replace it with software that meets the requirements. 

Furthermore, in the coming years, the ERP system will be more personalized for every industry’s needs. Companies will opt for solutions tailor-made to fit their needs to stay on top of trends, instead of modifying pre-made systems. 

  • Real-Time Analytics

ERP systems will also provide analysis of the product development processes, productivity, marketing, and operational efficiencies of the company. They will generate reports from the collected data and offer responses in real-time. 

The new ERP-enabled systems will empower businesses to predict market trends based on the collected data and plan strategies accordingly. 

ERP Trends will Revolutionize Business World!

2020 will see the emergence of various new ERP trends that will change the way companies conduct their businesses. While the evolution of the software will bring complications and hurdles, the benefits will overshadow the limitations.  

For small and mid-sized businesses, ERP software will boost growth. So, stay up-to-date with the trends and apply the latest technologies to your operations and gain a competitive advantage.

SoftwareSuggest empowers businesses to discover top business software and service partners. Our software experts list, review, compare and offer a free consultation to help businesses find the right software and service solutions as per their requirement. We have helped 500,000+ businesses get the right software and services globally. Get a free consultation today!

Recent Posts

No posts found.


Please enter your comment!
Please enter your name here

Captcha loading...