Top 10 ERP trends in Africa in 2023

Accelerated digital transformation is making it imperative for businesses to stay up to date with the latest technology trends.
Given ever-increasing customer demands, tight production timelines and limited resources, having insight into the latest ERP trends will help organisations to plan their business strategy more accurately and overcome the challenges that lie ahead.
Here are some of the key trends that SEIDOR in Africa anticipates for the ERP industry in 2023:
1. Security is a major concern
The shift to remote working has resulted in an increase in cyberattacks. The biggest threats to organisations in the next 12 months will be data breaches and data loss, malware and phishing.
ERP systems process vast amounts of data and face significant threats. There will undoubtedly be an upswing in moves to secure ERP systems.
Data privacy laws and myriad data breaches that have happened worldwide make this an imperative.
Closer to home, there appears to be less concern but the African continent as a whole is at risk from bad actors and companies of all sizes will have to pay more attention to cybersecurity.
Cloud-based ERP solutions are safer and more secure as cloud server providers have advanced Firewall protections, multi-level encryption, and various other methods that protect their clients’ data.
2. Remote work is here to stay
ERP allows for remote working and access to all facets of a business, making operations more flexible. This need will continue into 2023 as remote work becomes more of a norm across multiple sectors.
The increased move to this way of working means that businesses need to provide workers with access to information anytime, anywhere.
With ERP embedded into business systems, viewing and taking orders, managing inventory, tracking orders, customising requests, keeping connected with employees, and generating reports of sales activity is possible from anywhere.
3. More cloud-based ERP
The pandemic led to a definite surge in cloud adoption globally, and ERP is moving away from on-premises and into the cloud as well.
A cloud-based ERP system results in a lower cost of ownership, faster implementation, tightened security against data breaches, automated maintenance and updates, real-time analytics and the ability to scale quickly and conveniently.
Although many South African organisations remain circumspect about the security and control aspects of ERP in the cloud, those that do not make the move in 2023 risk falling behind their competitors.
In this day and age, there is no need to buy and own an asset that should be part of operational costs.
4. Improvements in ERP intelligence
South African companies are lagging when it comes to incorporating technologies like artificial intelligence (AI), machine learning (ML), and robotic process automation (RPA).
First, there is the fear that technology will replace people in the workplace. However, the reality is that these types of solutions will replace ‘the robot in the person,’ not the person with robots.
AI, ML and RPA will take over repetitive processes, freeing up workers to focus on more productive tasks and add greater value to the business.
As this becomes more apparent, it is likely that there will be an increase in the uptake of advanced ERP intelligence later in 2023.
In Europe, remarkable progress has been made. One example is Heineken, which has installed AI-powered smart taps in bars across Spain.
These provide distributors with information, such as when a big soccer match is set to take place and consumption will rise, or when a keg is running low, allowing pubs to run smoothly and more efficiently.
5. Increased focus on IoT
Customers everywhere are expecting companies to deliver more tailored, personalised experiences, all of which are dependent on data input.
IoT devices collect data from numerous platforms and channels and are enabling businesses to manage their BI more effectively, and deliver superior, customised customer experiences.
In South Africa, the use case is still being debated, but 2023 will see more and more organisations questioning what their systems can do for them with IoT integration.
6. Demand for industry-specific solutions
Industry-specific ERP will continue to become more available and affordable because there is less need for customisation.
These solutions are also faster to implement and deploy. They will also become increasingly popular as the number of reference sites grows.
SEIDOR in Africa has, for example, developed a unique solution for the transport and logistics sector, taking into account the specific challenges and needs of the sector.
The company has also developed an ERP solution that forms a bridge between ERP ‘freeware’ and solutions that are simply too big and complex for their needs.
This provides organisations with SAP functionality, but at a more affordable rate.
7. Tailored, modular ERP
As businesses continue to evolve, they require greater integration between systems and processes.
There will be a greater focus on how different ERP modules can help businesses and what benefits they can bring, including the ability to share data more effectively throughout, and make more data-driven decisions.
8. Demand for insight and analysis
2022 saw decision makers viewing data interpretation as critical, over and above reporting. This is most likely because reports have moved out of the CIO’s office and onto the desks of executive management.
The demand for in-depth analysis and insights will accelerate going forward.
9. Plug- ‘n-play ERP integration
With the rise in cloud ERP adoption, plug-and-play solutions will become more popular.
However, there is no doubt that organisations require experienced and expert implementation partners to ensure that they obtain the greatest value from their ERP solutions – seamless integration being crucial to success.
10. ERP will continue to evolve
In the past, ERP systems were designed primarily for large manufacturers. The market has evolved significantly, and ERP solutions are being used by a broad range of industries.
Companies today are doubling down on investments in ERP technology as the backbone for their digital transformation strategies.
ERP is unquestionably set to evolve and change to fit the needs of specific industries, and of users and their business goals.
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By: Pedro Lopes, Group Managing Director, SEIDOR in Africa