Are ERPs still relevant? It’s an important question to ask. And in order to answer that question, first we have to take a bit of a trip back in time to see how ERP evolved in the first place.

The history of the ERP starts back in the 1960s with Material Requirements Planning (MRP). These computerized systems were used for inventory management and production planning.

Then in the 1990s, the world was introduced to new systems Gartner christened as “enterprise resource planning,” or ERP. On top of the inventory and manufacturing processes that MRPs provided, ERPs brought other teams into the fold with accounting, finance, and sales functions. ERPs quickly outstripped MRPs due to their expanded capabilities to integrate multiple processes and departments into a single system.

ERPs have been around for more than four decades as the established backbone for modernized, integrated business operations. Still, every couple of years as technology makes large jumps, we all begin to wonder: Are ERPs still relevant?

The answer is: Yes.

And here’s why.

The Evolution of ERP Proves Relevancy

The good news is that ERPs have certainly evolved with the times.

• The Cloud Revolution (1998): The first big advancement was the introduction of cloud ERP by NetSuite in 1998. Moving ERP services to the cloud is what made the solution accessible for smaller companies that couldn’t afford expensive on-prem ERP solutions, and it allowed users to access critical business data via the web wherever they were.
• Integration and Holistic View (2000s): Advancements enabled ERPs to start talking to other data sources like CRM, e-commerce, and marketing automation tools. This gave businesses an even more complete and holistic view of the organization.
• The AI and Big Data Era (2020s): Now in the 2020s, ERPs are transforming again with capabilities for big data and AI that make them even more powerful and adaptive. AI allows ERP systems to learn from data patterns, make intelligent predictions, and streamline repetitive tasks.

Careful Consideration is Key: Ensuring ERP Alignment

We’ve established that ERPs are still relevant in the current market. Still, there are things to take into account to uncover how ERP is relevant for your organization. An ERP is a sizable investment, so careful consideration is key to reaping excellent returns.

How to Make Sure Your ERP Stays Relevant:

1. Define Strategic Priorities: Do you know what your strategic priorities are for the next three to five years? This is the first step.
2. Create a Strategic Blueprint: You must map ERP capabilities to those priorities. Otherwise, you risk locking in inefficiencies and wasting budget.
3. Align with Business Objectives (ERP Alignment): Keep those high-level business objectives in front of you at every turn. Any goal left nebulous means technological decisions may not actually support or align with your needs.

That’s the crux of the matter: ERP is still relevant. It has the capability to bring together every aspect of a business, from logistics to finance, sales to marketing. It builds the foundation for leveraging unified data and insights within your organization. But ERP is also only as good as its ability to support your business objectives.

At the end of the day, ERPs in general are not irrelevant or in decline; they are adapting to new technologies and delivery models in order to stay competitive in a constantly changing market.

Keep Your ERP Relevant with CloudExtend

One of the many ways you can help your ERP remain relevant and adapt to changing needs is by adding automation that supports strategic decision-making. Tools like ExtendInsights by CloudExtend help departments automate processes, uncover critical insights, and drive financial success.

• ExtendInsights supports your evolving NetSuite ERP by enabling easy data uploads and edits directly from Excel, and automated reporting using saved search data.
• Adopting this kind of integration helps ensure that your teams stay competitive and your NetSuite ERP remains relevant in the evolving technological landscape, transforming challenges into opportunities for innovation and growth.

Support your evolving NetSuite ERP with easy data uploads and edits directly from Excel, and automated reporting using saved search data. Try it free.