Digital transformation has now become a necessity for organizations. ERP software, which we can describe as the first step of digital transformation, takes a critical role throughout the process. abas explains the important role of ERP software in Digital Transformation:
The ERP solution is an integral part of the company – It is here that all business data converges. Every new solution or process changes or expands the functionality of the ERP software.
In a networked world, an ERP solution must not only guarantee the security of processes and process results, but also the security of the data. Today, this aspect is often not the focus of software manufacturers and user companies, as many companies operate their ERP solutions in-house behind the supposedly secure firewall. An external access is usually only possible via a cumbersome VPN tunnel. Opening up however also increases the potential for attack by hackers, industrial spies or criminal organizations. The highest security standards, e.g. in terms of authentication, rights management and encryption are therefore a must in the digital world. By contrast, the ERP solution of the future is open to the outside world and ensures the security of data and processes. It does not matter if the application runs on site, hybrid or completely in the Cloud.
The ERP solution prepares decisions
In a networked world, enormous amounts of data accumulate. These can be analysed and interpreted in the cloud using statistical methods, machine-learning algorithms or AI algorithms (e.g. deep learning). This results in models that allow the ERP solution to independently decide or at least prepare decisions. The results and effects of these decisions are compared with the expectations and thus flow back into the model. This creates an adaptive control loop, through which the models continuously improve themselves. But there are also new data-driven services, such as the pre-parameterization of machines by the manufacturer of a machine or the triggering of goods movements based on expected orders in the logistics center.
The requirements for a future-proof ERP solution
Flexibility and Hyper-connectivity New business models often result in new software. Data that converges in the ERP of different systems must be readable, evaluable and processable. An ERP that is a silo and does not have the ability to integrate new data models or new software is a useless ERP. Permanent access and mobility An ERP solution “in your pocket”. It is only a matter of time until you also want to use a smartphone to retrieve ERP data and create complex analyses. To be able to access the data at any time, you need a mobile Cloud solution that is always up to date. Big data & the right IT architecture Anything that can be stored is also analysed.
Your ERP solution must be able to handle an infinite amount of data. For this purpose, a corresponding architecture must be available in the background in order to be able to process and utilize the growing data sources. It is a given that digitization increases the complexity of your business processes. The ERP solution being a central application plays a significant role. A company that wants to efficiently implement its digital strategy and avoid complexity traps therefore needs a flexible and scalable IT architecture. And that is the case regardless of the underlying platform be they always available via cloud, hybrid solutions, traditional on-premise systems or mobile solutions.