ERP System and Big Data: What Does the Future Holds?

Every company requires a system which is capable of precise and quick decision-making. It refers to the capability of organizations to handle huge amount of information. This capability of theirs will not only boost their business outcomes but also enhance their market presence to a great extent. The large amount of data or information is needed to be collected by companies to attain their organizational goals. This phenomenon is termed as Big Data.

Big Data casts impacts on all us either directly or indirectly. It is not possible to store and process every single piece of data. It doesn’t matter how technologically advanced and powerful computing an enterprise has. In fact, handling such an ample amount of data will create several issues in an enterprise. These issues can range from pointless to deceptive connections among different information ends. It can worsen business decisions with increased inaccuracy problems.

WAYS OF IMPACTING ERP’S FUTURE THROUGH BIG DATA

1. Managing structured and unstructured data:

Organizations must be capable enough to handle an onsought of information which is collected both in structured and unstructured forms by ERP systems of businesses. This information is sourced from social networking sites and communication that occurs between machines.

2. Knowing customers’ preferences:

Factors that largely affect phenomenon of Big Data and functioning of ERP together in future include social sites, sensor networks and mobility. At present, a large number of organizations are utilizing the benefits of social networking sites for engaging customers directly.

Hence, it allows them to get a gist of what actually their customers require in the services and products proffered by them. But, they are not capable to handle huge amount of data. Resultantly, services and products cannot be tailored as per the customers’ demands and preferences readily in short time.

3. Exceeded data storage:

A large majority of people now use mobiles and other gadgets in order to perform various activities. Activities such as shopping, chatting, and official tasks are now performed on the go with the help of mobile devices, social Media and internet of things.

Though, a huge number of important and non-insignificant things are being done online, yet the information provided by users converts into critical data for organizations. They collect this critical data for understanding behavior of their online customer. Ultimately, it exceeds the storage of data in ERP systems and affects capacities of processing data.

4. Getting business processes’ insights:

This is the most significant point which needs attention. Currently, businesses use sensor networks that help to collect data of semi-structured type. This helps them to receive insights of processes that are going in a business. These processes are inclusive of inventory, production, and SCM (Supply Chain Management). Through these insights of particular enterprises processes enable leaders to take better and precise decisions that are beneficial for business.

These were the impacts and influences of big Data over future of ERP. Big data is all about development of new and innovative technologies that make enterprises capable enough in collection, processing and analysis of massive amount of data comprising unstructured and structured information.

Phenomenon of Big Data has not altered the methods used by ERP systems in companies, but it is definitely going to alter the same of demands to tapinto massive quantity of information continues to grow. Conventionally, collecting data and processing all the activities are defined as the functions of ERP systems.

Still, companies should find new methods so the collected information can be processed easily in no time. It will undoubtedly cast a huge and positive impact on ERP system’s future. ERP systems require IT professionals for transforming ERP systems. Basic tools developed into BI (business intelligence) software solutions also need transformation.

COMPLEXITY OF BIG DATA WITH BUSINESS

It is extremely essential for a business to view project of Big Data as important as any other process and tasks inside business. Since, it is a little bit complex enterprise endeavor; therefore, businesses mustn’t take it lightly. It must not be considered as easy as an IT task.

But at the same time, it brings all IT leaders and businesses on one platform and they all get involved in single Big Data project. This helps to outline key points and business-relevant facts and figures. Also, performance indicators get highlighted in this way. Finally, one can take most appropriate decisions related to one’s Big Data project and select perfectly suitable ERP system for one’s business.

i. Once best decisions are made for Big Data project and perfect ERP system is chosen, an enterprise will be competent to aim at particular information points influencing processes of business openly. Thus, it helps an enterprise achieve better and desirable outcomes.

ii. Certainly, Big Data is going to alter ERP’s systems, changing the ways through which companies they shapes company’s future meeting its objectives at the same time. Capable business leaders are completely aware about collecting right info instead of any kind of data because it is a critically important factor that ensures success of business. And all this can be acquired only by selecting most suitable technologies of Big Data for business.

BIG DATA AND ERP: AN INPUT FOR EACH OTHER

Since for 3 decades now, ERP has continued to be the most crucial and significant part of large enterprises. But at present scenario, not all business information and data flows through ERP systems. Managing Big Data and information collected by ERP systems is not an easy task.

It creates complexity in manipulation of data. That is why, tools of Big Data are designed in such a way that they distinct sources of data and manipulate the same. After manipulating this data, it is converted into a user-friendly form to use it together. From perspective of Big Data, ERP is a data bank like other data sources.

On the other hand, ERP systems collect data from different applications. Then, the collected data is managed by the system along with access and security. Unlike Big data, design of ERP system is no capable of handling Big Data. While building an ERP system to above Big Data source, the cost involved in this will enhance the benefit for a product of mid market.

Output of Big Data consumed by ERP systems will be fine. Businesses can get benefit from both ERP and Big Data separately and from their integration too. Nowadays, Big Data is becoming more and more maturing day by day with creation of tools by companies allowing steady business managers to utilize Big Data. And this utilization can happen without any extra burden and there is no need of highly advanced technical expertise too.

BIG DATA AND ERP NURTURING EACH OTHER

The conventional thought of considering ERP systems a backbone of businesses will continue to prevail. But there is an exception with Big Data. This exception proves the ERP system centrality’s rule. Inappropriate data results into less value of ERP system.

Whereas, with right and appropriate kind of data, two-sided information feed enhances values of ERP immensely. Both ERP and Big Data feed each other and continue to run parallel.

BIG DATA: TRANSFORMING BUSINESSES AND IMPACTING ERP SYSTEMS

There is no doubt, that transformation of businesses and positive impact over ERP systems is result of Big Data. Bringing changes, it has enabled companies to improve their business processes, find new roads of success and discover innovative ways to enhance over-all revenue alongside streamlining the internal processes of the company.

Data collected by ERP bears the potential of transforming businesses also with a condition that it is connected adequately.

BIG DATA & ERP BENEFITS

As per the facts provided by Information Week, only 12% of collected data is analyzed by companies. It means that rest of 88% is missing that comprises potential business insights in the data.

ERP platforms are connected with various aspects of a business and information contained in these systems is extremely useful. Additionally, syncing of ERP platform with information sourced from third party is valuable to advance insights of a particular process.

Different benefits that businesses can gain with integration of Big Data and ERP are described as below:

i. Forecasting of sales:

A retailer can get information about demands for a particular product or service with the help of Big Data and ERP system. Having significant data in ERP systems like inventory and supply of different products, large retailers can utilize it for analysis of sales patterns. This is how integration of Big Data and ERP system will become handy.

ii. Scheduling:

The benefits of ERP and Big Data integration are not limited to merely forecasting of sales. In fact, large amount of information in less time, managing projects and scheduling can contribute greatly to improve a business when systems are Big Data get integrated.

With this integration, organizations can freely access information in real time. It gives better and precise insights of all operational areas making companies capable to schedule process of production in an effective manner. It will also save their time and resources as well, that can be implemented more efficiently somewhere else.

iii. Improvement in Supply Chain Management:

It is a big challenge to keep record of all processes in a supply chain management for most of the companies. The flow of products from supplier to manufacturer is extremely hard without getting a precise insight of supply chain management.

Real-time data can help businesses in optimization of routes involved in flow of product and how they move backward and forward. It can also allow them to supervise information regarding traffic rerouting trucks as per the information. Supply chain visibility is improved with big Data and ERP collaboration giving companies an elaborated view of all its assets and processes

iv. Standardized practices of hiring:

Big Data is being used by many businesses for suitably optimum hiring practices. Aiming at recruitment of eligible candidates, they strive to enhance operational efficiencies of business. Assimilating Big Data with ERP systems gives manifold benefits to organizations and enterprises.

Effective use of data improves relationship with customer, quality of products, efficiency of supply chain management and helps recruiters in finding candidates for filling-up the talent gaps. Hence, their integration is highly advantageous in each and every aspect.

vii. Future of ERP with Big Data:

Applications will be used in the following categories like, Health Center's, Hospitals, E- Learning Systems,Internet of things, Social Media, Fashion Industry

CONCLUSION

Summarizing all the facts about ERPs and Big data, it will not be wrong to say the future of ERP will include big data in it. Still, researches are required to undertake for establishing possibilities between them.

Combining ERP systems and big data, following conclusions can be made to form a powerful and accomplished technologically advanced platform:

• The incorporation of the two should make enterprises capable to have advanced and broad best practices.
• Impact of Big Data on IT structure needs to be studied with respect to those supporting ERPs.
• Study and testing of innovative techniques is must for preservation of data.
• To build an inclusive view of diverse MDM factors, big data can be used in the future.

Get Free demo on worlds most Popular ERP system in 2018. Compare software feature, read review and get amazing pricing quotes.