Key Trends in ERP for 2024: Cloud Adoption, Generative AI, and Integration of Applications

The year 2024 is shaping up to be a crucial one for Enterprise Resource Planning (ERP) systems as businesses face persistent challenges and the need to adapt to new conditions. ERP, traditionally a back-office environment, is undergoing significant changes with the rise of cloud migrations and the integration of technologies like generative AI.

Industry analysts and veterans predict several key trends for ERP in 2024, including the continued adoption of cloud, the incorporation of useful generative AI capabilities, and the integration of applications such as enterprise application management and field service management.

Cloud ERP momentum is expected to continue in 2024, driven by the desire for cutting-edge features like AI and the necessity to modernize business processes. Vendors like SAP and Microsoft are offering programs to facilitate cloud migration, with a focus on developing new functionality for cloud versions of their products.

Generative AI is also set to play a significant role in ERP systems in 2024, with vendors rolling out functionality to enhance productivity and streamline tasks. While transformational applications may still be a few years away, generative AI chatbots are expected to provide valuable tools for users.

ERP platforms are expanding to include more functionality, with vendors acquiring or developing features like field service management, e-commerce, and time and attendance applications. The integration of connected workforce solutions is also on the rise, aiming to improve frontline worker productivity and efficiency.

Despite these advancements, challenges remain for companies looking to transition to cloud ERP, including data readiness, integration issues, and the need to transform or eliminate customizations. However, the benefits of moving to the cloud, such as access to new functionality and modern technology, are driving the shift.

In 2024, ERP will be a battleground between innovation and the need for a standardized core, where companies must balance edge innovation with maintaining a clean core. Issues around costs, data, personnel, business processes, and risk management will continue to be top of mind for businesses as they navigate the evolving ERP landscape.

Overall, the year ahead promises to be a transformative one for ERP, with advancements in cloud technology, generative AI, and expanded functionality shaping the future of business operations.