4 ERP trends to watch in 2016

As 2015 comes to a close, now is a good time to look to the future and consider what it may bring for enterprise resource planning. Since forecasting is an important function of ERP solutions, it only makes sense to make predictions for 2016. 

More SMBs will adopt ERP systems

Eric Kimberling of Panorama Consulting Solutions predicts that 2016 will bring more small to medium businesses using ERP software. As software has become more modular and thus more adaptable to smaller companies' needs, large enterprises are no longer hoarding all of the technological advantages. Services are becoming more cost-effective to suit growing needs, so tools such as ERP and CRM are more accessible for companies that want to work smarter and more efficiently. 

The emergence of manufacturing as a service

Tom Miller of ERP Focus and Kevin Roberts of FinancialForce predict that we will see manufacturers offering subscription services for their products or components. Sales orders driving ERP systems may require monthly releases. Since orders will remain open throughout multiple fiscal years, manufacturers will need to develop new rules for revenue recognition. 

More ERP systems will migrate to the cloud in 2016. More ERP systems will migrate to the cloud in 2016.

Cloud ERP will be widely accepted

Cloud ERP has been a popular topic for some time, but Kimberling believes that in 2016 we will see the buzz die down. As most ERP vendors are providing cloud-based functionality, cloud storage will be a normal feature for ERP software. Soon the talk will be more about which providers don't allow cloud migration, since most of them will by next year. 

Multi-language systems will grow

Miller cites immigration to North America and Europe as a factor that will change many manufacturing ERP systems. As user demographics change, more ERP systems will need to adapt to suit non-English speaking users, creating a new opportunity for some providers to set themselves apart. Many of these new users will come from less technologically-advanced manufacturing backgrounds, which will require additional training to get them up to speed on newer tools.