As we wave goodbye to the first month of the new year, I find myself contemplating what the future holds for enterprise technology. With predictions echoing from every corner, I’ve been thinking about the prospects for 2024 as well. The more I think about it, the more strongly I believe that 2024 is the year of Cloud ERP, powered by Business AI, and it’s about to reshape the business landscape.
Gartner predicts by 2028, cloud computing will shift from being disruptive to essential for business competitiveness, amplifying Cloud ERP’s crucial role in today’s dynamic landscape.
Looking ahead to 2024, the strategic adoption of advanced Business AI-powered analytics within Cloud ERP will be crucial for proactive planning and informed decision-making, as well as driving improved efficiency. With citizen developers automating processes, real-time forecasting and co-pilot driven efficiency, businesses are undergoing a revolution with cloud ERP.
Cloud Computing Continues to Expand
Cloud ERP adoption experienced a substantial surge in the past 24 months, and this trend will not slow down anytime soon. The global market is projected to nearly double, increasing from $64.7 billion in 2022 to an estimated $130 billion by 2027.
The need for innovative business models and revenue streams, coupled with the ability to pivot swiftly according to business needs, has intensified. Cloud ERP emerges as the fastest route to a complete digital transformation and the cultivation of advanced business capabilities, touching every facet of a company.
AI-Powered ERP and Automation
The pandemic led to a wave of automation, freeing up employees’ capacity to an extent and allowing them to focus on more strategic initiatives. Citizen developers, armed with tools like SAP Build, are reshaping processes effortlessly. Take Mahindra & Mahindra, where 100 citizen developers automated 250 processes in 3 months, saving 900 workdays and 400 development days annually. This illustrates how automation and empowered workforces are crucial for ERP’s future.
2024 promises to be the year of Business AI-infused Cloud ERP. Scott Russell, member of the Executive Board of SAP writes that with AI, we can now imagine real-time inventory optimized by predictions, automated purchases triggered by demand forecasts, and self-healing systems that fix bottlenecks before they become problems.
Yet, it’s not just about efficiency. McKinsey highlights generative AI reducing migration time and costs by 40%. A double win for businesses that reap savings during migration and, ongoing efficiencies post-transition.
More Powerful ERP Analytics
ERP analytics are no longer just about looking at the past; they’re also about understanding the present and shaping the future.
Just as I now access real-time reports answering, “what if” and “what can” questions, companies like American Sugar Refining can predict freight costs with embedded AI and conversational, message-based analytics, and retailers can personalize customer service based on data analysis.
The possibilities are far-reaching, encompassing everything from streamlining production processes to forecasting energy consumption. As ERP analytics continues to evolve, its role in shaping a responsible and resilient future for businesses will only grow.
ERP Drives More Sustainable Operations
An Oxford Economics study connects supply chain leaders to sustainability, emphasizing the considerable impact of these operational choices. The spotlight is now on sustainability as cloud ERP and AI join forces to promote eco-friendly business practices.
The integration of Cloud ERPs with generative AI is fast-tracking sustainability goals by providing a practical “Green Ledger” for tracking emissions, optimizing the supply chain, and ensuring regulatory compliance for a more environmentally conscious future.
Sovereign Cloud Market on the Ascent
Geopolitical shifts are fueling a surge in sovereign cloud services, especially in sensitive sectors like government, finance, healthcare, and energy. Deloitte predicts the global sovereign cloud market will hit $41 billion in 2024, a 16% jump from 2023, driven by government cloud initiatives offering compliance-first solutions. It’s a compelling blend that ensures more secure, localized data management, while preserving the flexibility and scalability that customers value in today’s dynamic business environment.
On the Horizon of 2024
In 2024, businesses embrace a transformative surge with Cloud ERP, AI automation, and a focus on sustainability. The integration of AI and Cloud ERP not only streamlines business processes but also empowers organizations to address complex challenges with great efficiency.
Our commitment to innovation and sustainability is reflected in the success stories of our customers, who are setting new benchmarks in their respective industries. Together, let’s continue to build a legacy of progress and resilience that will inspire generations to come.