Today, staying competitive means having the right tools to manage your business. One such tool is an ERP (Enterprise Resource Planning) system, which helps handle everything from finances to customer relationships in one place.
While ERP software has been around for years, it has evolved significantly. Older versions are now called legacy systems, and modern ERP solutions offer much more powerful capabilities. Both large and small businesses are now benefiting from ERP systems as they continue to modernize.
However, legacy ERP systems have many limitations, such as heavy reliance on spreadsheets, siloed data, and security vulnerabilities. These challenges made older systems less appealing for modern businesses, despite the benefits they provided.
Luckily, modern technology has transformed ERP systems, bringing smarter features that improve efficiency and decision-making. Innovations like AI, IoT, and cloud flexibility are transforming how businesses operate.
In this blog, we’ll explore what are some newly developed features of ERP systems that are shaping the future. Some are already making a big impact, while others are just getting started. Let’s dive in!
An ERP (Enterprise Resource Planning) system is a suite of integrated applications designed to manage and automate essential business processes. These processes include functions such as finance, human resources (HR), supply chain management, procurement, and customer relationship management (CRM).
Originally, ERP systems were basic tools used to track data. However, as technology has advanced, they’ve evolved into powerful platforms that help drive business strategy. Modern ERP systems now offer a wide range of advanced features to meet the growing needs of businesses, especially small and medium-sized enterprises (SMEs) like yours.
If you’re looking to scale your SME, modern ERP systems are a must-have. Nearly 66% of organizations reported improved operational efficiency due to their ERP systems. By 2027, businesses will rely on ERP systems to remain competitive and efficient in an increasingly digital world. These systems streamline operations, enhance decision-making with real-time data, and promote collaboration across teams.
Here’s how ERP systems can benefit your business:
Now that we've established the importance of ERP systems, let’s take a closer look at the core features that define today’s ERP solutions.
Modern ERP systems are evolving with new technologies to meet the growing demands of businesses. Below are the core features that make these systems indispensable for companies looking to streamline operations and improve performance.
Financial management is a fundamental feature of modern ERP systems, helping businesses stay financially healthy and compliant with regulations by centralizing financial processes. With ERP, you can track revenue, expenses, profits, and more, all in real-time.
Modern ERP systems automate tasks such as financial reporting and forecasting, which reduces errors and improves accuracy. They also simplify accounting tasks, such as managing cash flow and invoices.
Key Functions:
Example: With HAL ERP, your financial data is consolidated across departments, simplifying the reporting process and improving cash flow management.
For manufacturing businesses, an MES connects, monitors, and controls manufacturing systems and data flows, ensuring production runs smoothly and meets quality standards. MES also helps reduce waste, optimize resources, and prevent equipment breakdowns by scheduling preventive maintenance.
Key Benefits:
Order processing is a crucial feature of ERP systems that track orders from start to finish, ensuring both accuracy and efficiency. This feature is particularly beneficial for businesses in eCommerce, manufacturing, and services, where speed and accuracy are vital. For example, as soon as an order is placed, inventory levels are automatically updated, and shipping details are validated.
Modern ERP systems often come with project management tools that help businesses plan, execute, and track projects from start to finish. These tools assist CFOs and project managers with resource allocation, progress monitoring, and budget management.
With ERP systems, teams can collaborate easily, ensuring everyone stays on track. For example, ERP software provides real-time updates on project timelines, costs, and milestones, helping businesses meet deadlines and stay within budget.
Automation is one of the main strengths of modern ERP systems. It eliminates the need for manual work in tasks like payroll, invoicing, and inventory management, reducing errors and improving efficiency.
AI and Machine Learning (ML) are making ERP systems smarter and more proactive. AI helps predict trends, forecast sales, and identify issues in financial data before they become major problems. ML improves predictions over time by learning from historical data, enabling better decision-making. Together, AI and ML act as intelligent advisors, guiding businesses toward more informed choices.
Gartner predicts that businesses could cut costs by up to 30% over the next three years by using AI, machine learning, and robotic process automation (RPA) to automate tasks that were previously not automatable.
One of the most powerful features of modern ERP systems is their ability to integrate with third-party applications such as payment systems and eCommerce platforms. This integration ensures smooth data flow across all systems, providing real-time access to consistent and up-to-date information.
For example, integrating your ERP system with your CRM automatically updates sales data, customer interactions, and orders. This reduces manual data entry, improving accuracy and efficiency.
The Internet of Things (IoT) has taken data collection and analysis to new heights. Modern ERP systems can connect with IoT devices to gather data from sensors, machines, and other connected devices. This provides real-time insights into production, supply chain operations, and inventory levels, helping businesses make smarter, more informed decisions.
The demand for mobile access to ERP systems has surged, especially for businesses with remote teams or employees who are often on the move. Modern mobile ERP apps allow CFOs and business owners to view reports, track performance, and even approve transactions from their smartphones or tablets.
What was once a nice-to-have feature is now an essential. With cloud technology, ERP solutions are no longer confined to a single machine. Mobile support has become a standard feature of modern ERP systems.
Modern ERP systems now include Customer Relationship Management (CRM) and Human Resource Management Systems (HRMS). This makes it easier for businesses to manage both customers and employees in one place.
Key Benefits:
These systems provide the essential features businesses need to grow without the high costs typically associated with traditional ERP solutions. This makes modern ERP a perfect option for growing businesses in Saudi Arabia and beyond.
Apart from these, many new technologies are making their way into ERP systems, helping businesses stay competitive and adapt to changing needs. Let’s explore them.
Looking ahead, the future of ERP systems is filled with exciting potential. As businesses adapt to new challenges, these advancements will help them meet evolving needs and stay ahead of the competition:
Additive manufacturing, or 3D printing, is gaining momentum across industries like healthcare and automotive. Modern ERP systems are evolving to support this trend by helping businesses manage the unique workflows associated with 3D printing. This includes tracking inventory, managing materials, and analyzing costs—critical factors for optimizing the 3D printing process.
As digital marketing becomes an essential component of business growth, modern ERP systems are now integrating marketing modules that connect with social media platforms and other marketing tools. This integration allows businesses to track campaigns, measure return on investment (ROI), and optimize marketing strategies using real-time data.
Sustainability is becoming an increasing priority for businesses worldwide. Modern ERP systems now help track resource usage, reduce waste, and ensure compliance with environmental regulations. These systems will play a key role in monitoring and reporting environmental performance, helping businesses meet sustainability goals.
Features that help monitor carbon footprints, manage waste, and align with corporate social responsibility (CSR) goals will be central to future ERP solutions.
As businesses continue to adapt to changing market demands, several key trends are shaping the future of ERP systems. These trends are driving innovation and helping companies meet their evolving needs.
Every business is unique, and modern ERP systems offer the flexibility to meet your specific needs. These systems can be tailored to fit your business, whether it’s adjusting workflows, adding industry-specific features, or creating custom dashboards.
Modern ERP systems are highly flexible, allowing businesses to adapt the software to their unique requirements and workflows.
User experience has become a top priority for ERP developers. With more employees and decision-makers using ERP systems, ease of use is critical. Modern ERP systems are designed with intuitive user interfaces, making it easier for non-technical users to navigate and utilize the system.
Improved UX/UI design leads to better adoption rates and smoother transitions during implementation, especially for SMEs that may lack extensive technical expertise.
The shift from on-premise to cloud-based ERP systems has been one of the most significant trends in recent years. As of 2024, about 70% of businesses are using cloud-based ERP solutions, up from 45% in 2020, reflecting a strong trend toward cloud adoption.
Cloud ERP gives businesses the flexibility to access their systems from anywhere and offers greater scalability. It’s more cost-effective by eliminating the need for expensive IT infrastructure and maintenance.
Business intelligence BI) tools integrated into ERP systems help businesses analyze large amounts of data and gain valuable insights. These tools offer advanced analytics, data visualization, and predictive modeling features.
For example, a retailer can use BI to understand customer buying habits, predict demand, and manage inventory more effectively. BI helps businesses make data-driven decisions that improve efficiency and drive growth.
ERP systems have always been good at collecting data, but modern ERP systems now come with powerful analytics tools that make reporting and analysis much easier. With the rise of big data, cloud ERP solutions are now using advanced analytics to help businesses make smarter decisions. Research shows that companies using analytics perform better financially, make faster decisions, and execute them more effectively.
Modern ERP systems offer built-in reporting, analytics, and data visualization, giving real-time access to critical information.
We’ve explored some newly developed features of ERP systems, including AI integration and cloud flexibility, all of which can help take your business to the next level.
The ERP industry is evolving, and today’s systems are no longer just for large enterprises. Thanks to advancements in cloud computing and modular systems, even small businesses can benefit from ERP. As more companies adopt ERP, the industry continues to grow and improve.
If you’re still unsure about whether ERP is right for your business, we understand. While it might not be necessary for every business, it’s definitely worth considering. The right ERP system can optimize operations, reduce inefficiencies, and drive long-term growth.
With HAL ERP, you get more than just a standard system:
Ready to get started? Book a Demo to try it out for yourself!
