2021 ERP Trends Revisited in 2022
As we end the first quarter of 2022, ERP Advisors Group felt the need to reminisce about the predictions made in 2021, provide insight into how the events of the previous year panned out, and offer business predictions for the year ahead.
Acumatica Over the Past Year
Last year, EAG predicted Acumatica to become more diverse and to work across many industries. Their price point was attractive because it was not as high as other, bigger ERPs. We believe this is still true today. Acumatica has garnered many new partners and users. These partners are betting their business and, often, giving up their NetSuite practice to focus on Acumatica. EAG predicts that Acumatica will continue this growth in the coming year as they acquire more users through industry diversification and affordability.
Diversification of Accounting Software
The original prediction for applications like Xero, Accounting Seed, FreshBooks, or other applications providing an alternative to QuickBooks, was that users would see an increase in use and diversification.
This was a good prediction as customers desire something that is more web-friendly. They want software that is easy to use, especially as many businesses are still making the shift from in-office to hybrid schedules to fully remote.
We are seeing many companies go up a level in the Tier system. These organizations are typically overcompensating for what they need in lieu of options that may be a smaller, better fit. Many Tier 2 and Tier 1 products are reducing their pricing to be more accessible to growing businesses. Plenty of customers want options like QuickBooks, but others need more robust options which can automate more areas of the business, like orders or inventory.
Building Up the Construction Industry
In 2021, we expected to see increased adoption in the construction software industry. Construction is an area that larger vendors do not always serve well, providing an opportunity for alternative vendors to thrive.
ERP companies such as Intacct and Acumatica are providing construction options. Sage 300 Construction at one point was considered by many to be the top application, but now they are investing in their smaller application, Intacct, for small companies. We expect to see construction vendors continue their growth and diversification. We consider Acumatica’s construction solution a solid option for contractors, integrators, and construction firms. We are still waiting to see how Intacct will prove out unique business requirements around job costing to properly take its place as a go-forward replacement for Sage 300.
CPMs During COVID
In the 2021 Corporate Performance Management space, we predicted applications like OneStream would come of age and take on more market share. This held true for OneStream as well as other CPMs, like Anaplan, that have gained more market share and interest. Anaplan was recently purchased by private equity firm, Thoma Bravo. They will use their additional capital to build the strength of their Innovate platform and capitalize on the opportunity for incredible demand in the marketplace. OneStream was recently recognized by CRN in its 2022 Partner Program Guide, which will keep them painted in a good light. Seeing OneStream make a major commitment to their partner program will only help them continue to provide value to customers while offering world-class CPM software.
COVID caused a large need for CPM tools. With things opening back up and employees returning to the office, this activity may slow down, but it will still be useful. Businesses are finding new, creative ways to use these applications, especially with continued supply chain issues.
Predictions for 2022
Moving on from the 2021 predictions, EAG predicts many big changes in 2022. Pent-up demands for ERP systems are causing many businesses, both large and small, to leave their legacy systems for the first time and make real steps to move into a modern packaged solution. A perfect example of this is Microsoft Inc. utilizing SAP’s RISE program and moving to S/4 HANA Cloud, Private Edition.
We hear from companies every day on legacy Microsoft products like SL, GP and NAV, Sage 100, 300, or 500, or custom AS/400 systems who ask, “How do we get off our old legacy systems?” With limited support or end of life in view for products like these and many others, demand for new applications is strong, but the supply to aid these businesses is staying constant. This can make it hard to get good resources who are committed to the project.
An upgrade may be a necessity in an ever-changing business landscape. Benefits of new systems are wide-ranging, including better-automated reporting, dashboards, reduced manual processes that reduce errors, improved user experience, and more. There are plenty of solutions when upgrading your ERP system, and ERP Advisors Group can help you navigate this potentially treacherous landscape.
Furthermore, we predict that disruptive technologies in ERP will become available soon that will create a shift in needs, deliverables, and everything an organization could need. For example, applications are creating modern toolsets that lower the barrier to accessibility. Employees do not have to be Java developers to customize their applications—it is built right into the software. Employees may simply point and click to create a more user-friendly flow. This means companies can be more comfortable using new ERP applications “right out of the box” rather than spend time negotiating for a customized experience.
Vendor Predictions
Shawn Windle made predictions for major vendors in the year to come.
Acumatica:
Windle said, “We see Acumatica investing in the right areas and doing the right things.” He predicts that Acumatica will continue to grow as they acquire more users through industry diversification and affordability.
Epicor:
“We do expect great things from them,” indicated Windle when asked about 2022 for Epicor. It will be interesting to see what Epicor does this year. With some recent changes on their executive team, it would be prudent to keep an eye on this company.
IFS:
When asked about IFS, Windle said, “They’re growing and they’re expanding, and I love seeing that.” After recently receiving an award from an analyst group, IFS will continue to grow in the spotlight.
Infor:
Windle is particularly excited about the team that is working at Infor, elaborating that, “When I see good people on the software side, that’s important–really important.” We believe that as the company continues to invest in its sales channels, Infor is expected to continue its growth.
Microsoft:
In terms of Microsoft, Windle acknowledges, “They’re changing, but there are a lot of great resources that are still available.” With Microsoft’s new utilization of SAP’s RISE program and move to S/4 HANA Cloud, we predict Microsoft Inc. will continue its growth and diversification in its offerings for Microsoft Dynamics.
NetSuite:
Windle reviewed NetSuite, relaying that, “It’s stable, it’s good, and it’s very reliable.” By all accounts, it appears NetSuite will take more responsibility for its customer base and this passion for customer care will continue its growth.
Oracle:
Encouraged, Windle predicted that for Oracle, “2022 is going to be a big year for them.” Few are positioned for the cloud better than Oracle. Customers will continue to adopt Oracle’s cloud services.
Sage:
“It’s a great product for certain industries still,” Windle reflected on Sage. With Sage’s recent strategic investment in its purchase of Bright Pearl, the company should be watched closely if it can figure out how to bring its many products together.
SAP:
SAP is, “Just pure ERP,” according to Windle. With Microsoft’s new move to S/4 HANA Cloud, SAP has proven its continued growth. As the company offers lower pricing on its solutions and sunsets some of its legacy software, SAP will bring on newer and more diverse users.
Unit4:
According to Windle, "They have great people that are super committed to making things go right." Unit4 continues to experience prosperity in the United Kingdom and its geographical areas of specialization. Unit4's commitment to innovation and expansion to better service clients ensures that it will do big things in the coming years.
Workday:
"Its products are strong, adaptive, and done well," emphasized Windle. Workday has the opportunity to go back to Adaptive customers and really focus on bringing them to the next size of ERP. Workday already attracts a heavy customer base with its HR solutions, but it is currently in a coming-of-age era for its financial offerings. CFOs are beginning to look to Workday for financial feature functionality at a higher level.
Conclusion
ERP systems will be essential for the future success of all organizations. Many trends in 2022 will be geared towards making ERPs accessible to all businesses in all industries, regardless of size. Shawn Windle said, “[We’re] really noticing with clients that good functionality isn’t good enough. Our clients are expecting that the apps support exactly how they want to run their business.” Customization will become more available on a broader scale and companies will have a great range of options, meaning the possibilities will be endless. As businesses continue to continue to support work-from-home staff, application accessibility will be essential for growth without the limitations of remotely logging into on-premise, legacy software.
Furthermore, the next decade will be won with innovation. “We’re going to see innovation at a whole new level. That’s going to be very exciting,” Windle said. Industries are constantly changing, especially following the COVID-19 pandemic and having to implement new practices and protocols. The vendors who create new solutions while being able to satisfy their customers will excel above their competitors. If you find yourself needing help on your next ERP project, reach out to ERP Advisors Group with any questions, comments, or concerns!