Support Get in Touch
Managed Services
Managed Services
Managed Services
Enterprise-level processes, technology and strategy for small and medium businesses. Outsourced services, all supported by members of the Impact team.
See Our Approach
20 Years in the Making
Learn more about Impact Networking, our team and history.
Learn More About Impact
Resources Support Inquiries Get in Touch

ERP Trends: 6 Things to Consider in 2020

There have been several ERP trends shaping digital transformation over the past few years, not least the increased adoption among SMBs as organizations look to bolster their digital capabilities.

Enterprise resource planning, or ERP, is a way of integrating processes across business functions to streamline workflows and information for an entire organization.

Once created, an ERP can touch all areas of a business, giving you benefits like:

  • A more efficient inventory and supply chain
  • Automated reports
  • Streamlined project management
  • Improved human resource functions
  • Dedicated modules for sales and marketing

And as more companies turn to ERP solutions to digitally transform their work processes, there is an increasing emphasis on customized cloud solutions as opposed to the traditional turnkey ERP offerings that tend to operate at a more basic level.

ERP Trends to Watch This Year

With greater interest in ERP as a mechanism for implementing process transformations that create long-term value, more small- and medium-sized businesses (SMBs) are looking for shorter implementation times and strategies for their projects.

There’s no doubt: ERPs are evolving in 2020 and a range of ERP trends are playing into the way they’re developing and being used.

Let’s take a look at some of the biggest trends in ERP in 2020.

1. A Greater Shift to Cloud Adoption

In the past, ERPs have been offered as on-premise solutions, a workable option—but in 2020 legacy systems are proving more of an obstacle for businesses than a benefit.

With the rise of cloud adoption among SMBs—primarily a result of SMBs looking to improve their competitiveness and leverage the flexibility provided by a cloud-based environment—more businesses are discovering the benefits of a cloud-hosted ERP.

The chief benefits of a cloud-based ERP are:

  • Cost control
  • Flexibility
  • Scalability
  • Ease of company-wide updates

51% of CIOs consider a cloud ERP the best way to retain control and meet organizational directives.

2. Continued Industry Growth

The global market for ERP applications is exploding—in 2018, it was $35.81 billion with that figure expected to soar to $78.40 billion by 2026.

Providers are finding new areas of interest in which to deploy the power of ERPs, such as financial planning and employee engagement; businesses are eager to take advantage of the benefits.

The increased simplification and standardization of processes garnered through ERP implementation allows businesses to significantly improve their agility, allowing them to pivot in the face of rapid market changes and consumer trends.

Research giant McKinsey notes that 70% of agile companies are in the top fourth of the healthiest organizations, mainly due to their ability to drive innovation, learning, and knowledge sharing.

ERP market growth, 2017-2023

3. The Influence of AI Integration

In the past, organizations would have to purchase AI technology separately from their predominantly on-premise ERPs.

Today’s solutions include ERPs with AI functionalities built in, providing the ability to use big data to fine-tune all aspects of business, including:

  • Marketing and consumer trends
  • Warehouse management
  • Customer service
  • Human resources
  • Financial management
  • Sales automation

AI infrastructure continues to evolve, enhancing organizations’ ability to leverage the power of real-time data analysis to boost efficiency.

4. The Increase of Mobile ERP Use

SMBs are turning to mobile apps for better functionality, with 55% of small businesses reporting the use of mobile apps to increase sales revenue. With this number in mind, it’s easy to see why mobile ERP trends are on the rise.

Mobile ERP provides a host of advantages for users, including:

  • On-the-go access to necessary data
  • Improved productivity
  • Fast data capture, even in the field
  • More accurate data capture
  • Less staff frustration
  • Increased agility
  • Competitive advantage

Mobile ERP apps provide a simple way to reduce time-consuming processes, saving time and money and freeing staff to concentrate on more critical tasks.

Usage of ERP software by type

5. Spotlight on Security and Compliance

Cyberattacks are on the rise and 43% of them target SMBs.

This trend is causing more companies to migrate their data to the cloud, as cloud solutions have drastically improved their security initiatives in the last decade.

However, as more businesses shift to cloud-based environments, hackers will follow—forcing cloud-based ERPs to stay vigilant. In fact, 89% of experts anticipate increased cyberattacks on ERP systems in the near future.

In 2020, expect to see ERP trends like a closer focus on security features such as stricter authentication procedures, next-generation firewalls, automated alerts and updates, and continuous monitoring options.

6. More Capable Analytics

Analytics capabilities—both predictive and prescriptive—will continue to grow in 2020. Business owners will be able to see story-based data visualizations that allow them to examine data themselves by using customizable report formats.

Machine learning and big data will combine to provide predictive analyses that lead to better business decisions through visualization and targeted “drilling down” for actionable information.

Prescriptive analytics will round out the formula for analytic success by providing the much needed answer to “why” a particular thing occurred, allowing leaders to find the best course of action to set the stage for future successes.

ERP stats among SMBs


  • ERPs touch all areas of a business, including inventory and supply chains, automated reports, project management, human resource functions, and sales and marketing
  • With greater interest in ERP as a mechanism for implementing process transformations that create long-term value, more SMBs are looking for shorter implementation times and more optimized plans
  • Six trends to watch in 2020 include a focus on cloud adoption, continued growth of the ERP industry, AI integration in cloud-based ERPs, mobile ERP apps, a greater focus on security, and greater analytics capabilities.

In light of recent events, many organizations have found themselves playing catchup, trying to implement makeshift cloud solutions to make up lost ground while their workforces see drastic transformations.

To find out more about how the cloud can ensure your business is in good shape for the future, download our eBook, “Which Cloud Option Is Right For Your Business?”