COVID-19 pandemic, which affects the whole world, continues to deeply affect the business world and the economy. It’s been certainly demonstrated how critical technology is to businesses. Although most of the office workers are working from home due to social distancing regulations of the governments, cloud-based applications are supporting them effectively.
End of On-Premise ERP Era
COVID-19 is not only affecting people’s health around the world, but it is also having a significant impact on businesses and the economy. To help industry and frontline workers control the outbreak, companies have faced severe supply chain disruptions because the business software they used was not capable of handling such disruption.
- In these challenging times where the business world is suffering from a slowdown, a modern ERP supports manufacturers by maintaining a list of approved supplier relationships, and detailed vendor information. ERP helps them document accurate vendor information to assure quality & consistency standards.
- To meet the demand of the healthcare industry, there are some manufacturing companies such as Tesla, Volkswagen, GM, L’Oreal, etc. that have made a transition in their production lines. Companies are retrofitting their plants to level up the production of ventilators and hand sanitizers to aid the medical sector.
Manufacturers have to adhere to strict compliance regulations to produce quality medical goods. During this transition period, ERP supports them by tracking the Bill of Material (BOM), listing quantities required to manufacture the finished goods, and the requirement of alternative ingredients.
- Detailed vendor information empowers manufacturers to meet quality standards assuring that harmful chemicals, impure ingredients, and undeclared substances are unable to enter the supply chain.
ERP supports automation, the Internet of Things, Robotics, and other technologies that ensure up and running production by refilling store shelves.
With COVID, we are seeing a tale of two sides:
- Certainly, smaller companies that were planning on purchasing a
new ERP system…. many of them have put their ERP selection and projects on hold
because of the uncertainty and adverse impacts on their business. Some are
holding off on their IT investments
- However, a good number are moving forward because:
I. They have seen an increase in their sales (medical devices, equipment, etc.)
II. Many are looking to adapt to new revenue streams and business models. For example, this has accelerated companies to adopt eCommerce sites because traditional ways of selling like brick and mortar have slowed. Companies are quickly moving to eCommerce, even B2B, and B2C companies. And are able to launch an eCommerce business because of software like Shopify and of course ERP to manage the back end of orders, sales, inventory, etc.
III. In both scenarios, companies are looking for an ERP system to manage this growth and backend functions to manage increased sales, orders, inventory movement, shipping, logistics, and fulfillment. ERP is needed for these crucial functions and to manage growth.
The 3rd scenario is that companies have more time now to research and select an ERP so they are accelerating their ERP projects.
So, in sum, we are seeing some companies, mostly smaller companies, pause on their project because of uncertainty. But we foresee these companies moving forward once there are more certainty and lock-downs end. But many are moving forward because of the above.
But overall, COVID-19 will result in a boom for the ERP industry because many companies will adapt to new business models and see the importance of having business management software that can help them navigate disruptive times, help them be more resilient, and help them adapt more quickly. More companies will see the importance of having a strong technology foundation to navigate disruptive times. And these disruptive times will not end. Disruption in the digital economy is constant, maybe not to this degree, but it is constant. Companies with stronger technology will fare better than the rest. So this will be a boon for the ERP industry now and once the COVID situation settles.
Also, because of COVID-19, cloud solutions and cloud ERP solutions will be solidified. This might be the end, or close to the end, of on-premise ERP solutions. Companies will want cloud ERP so that their employees can work remotely, they don’t have the risk of housing their data in physical locations, and for the reasons mentioned above – to be more resilient and able to adapt to changes.
COVID-19 has disrupted the supply chain in the world. ERP is the silver lining that will help businesses recover from losses by building resilient supply chains. Let’s conclude it, COVID-19 pandemic will positively take up the ERP industry. Those who are using ERP will upgrade it to the next version and those who’ve never invested in ERP or those who are relying on multiple software for managing HR, accounts, inventory, eCommerce, etc. will shift to a single ERP system for assured growth.
Companies Are Facing a Tough Time
The rapid outbreak of COVID-19 has covered the entire world with an alarming health crisis. As this crisis mounts, every business owner urges to protect their employee’s health and build their companies’ resilience.
Talking about the enterprises, they’ve embraced virtual payment methods for vendors and suppliers. Companies are active on social media platforms to retain their customers, they are promoting virtual campaigns, and webinars that can help them guide their staff members.
The pandemic has increased the demand for healthcare equipment such as ventilators, masks, respirators, sanitizers, etc. for helping the frontline workers. Therefore, many manufacturers took the initiative to repurpose their production lines to produce standard healthcare equipment.
- Some of the leading organizations such as GM, Volkswagen, L’Oreal, LVHM, etc. have changed track and retrofitted their plants to meet the demand of the medical industry.
- Companies are repurposing their production lines by manufacturing required medical equipment to join the force to combat COVID-19.
- Instead of shutdowns, manufacturers aim to serve their country by supplying products that they need.
- These companies have never made such a big transition before. Yes, they are facing supply chain disruptions but a reliable Enterprise Resource Planning solution can help them manage the change.
Companies are facing a tough time. With the cancellation of events, travel restrictions, fluctuating demand, and work disruptions, enterprises across the globe are impacted by COVID-19. Some of the positive impacts of COVID-19 on enterprises are streamlined coordination and work from home practices among employees via online platforms, events, and conferences are going virtual, and more.
Essentials of the New World; Ai, Machine Learning, Digitized ERP
COVID-19 pandemic has crashed the global economy, broken health care systems, and disrupted modern societies. No living person on this planet has witnessed this earlier.
Without technology, none of us could save lives in this world. High-end healthcare equipment, ventilators, medicines, and best-in-class hospital infrastructure play a great role in fighting the pandemic.
Amid this global crisis, it is the technology that is helping the world to fight this crisis. The world has started new ways of connecting with their co-workers and dear ones. Thanks to the technology, that has made self-isolating a not-much-difficult to do the task. Cloud technology has enabled remote management of the business, a flexible workforce. The dire need to address COVID-19 has triggered innovations in vaccine development, biotech, and regulatory regimes.
The pandemic is already changing the definition of innovation. A new emergency ventilator, hands-free door pull (which can be 3D printed) and a virus-killing snood are the new inventions in Wales that aim to help the victims of COVID-19.
The obvious demand for tech-driven tools will facilitate digital performance in the world. Companies will embrace AI, machine learning, digitized ERP and supply chains, and other shores of industry 4.0 to meet the customer demand easily and perform faster operations.
Silver Lining in COVID-19
COVID-19 has indeed created ruckus in every sector of the world and it will have a long-lasting impression for humanity. But when we talk about finding the silver lining in it, organizations are going digital and embracing industry 4.0 like never before. From the IT sector to manufacturing and banking, technology is playing a great role in surviving amid this outbreak.
- Many businesses that didn’t support remote working are now inspiring their employees to work from home.
- Cloud technology is promoting flexible workforces, virtual payments, and social media marketing.
- Lesser physical human interaction is one of the key things to keep in mind during these challenging times of COVID-19. And we don’t know how long will it take for us to reconvene in normal lives. Till then, offering easy to use digital tools to your employees is the only way businesses can continue their operations in the future.
- Manufacturing sectors are adopting intelligent ERP solutions that can help them create a resilient supply chain that can promote accuracy, quality, and quick deliveries.
- Technologies like 3D printing, Artificial Intelligence, IoT will be used on a large scale on shop floors to reduce manual intervention
We’ve never seen such pandemic ever in our lives. So, it is difficult to tell its aftermaths with accuracy. All we can say is – yes, we are thankful for technology and inventions that are helping us continue the way we work. Many companies have been slowed down and are in an idled state. But once this virus vanishes from the world, the business will get back to normal with digital transformation.
