To analyze the future trends of Enterprise Resource Planning, it is first important to look at the current state of ERP software industry. ERP software was originally developed from MRP, MRP II and used for manufacturing. But it is now being used for CRM (customer relationship management), and SCM (supply chain management). Presently ERP companies are trying to expand the capacity of their product that is why many of them are catering to SMEs (small and medium enterprises) instead of large organizations.
Internet and e-commerce has played an important role in the evolution of Enterprise Resource Planning. Companies are trying to combine their supply chain management functions with the internet so that suppliers can also have easy access to the information from anywhere in the world. ERP software is integrating the business processes within a company, vendors are working to merge the collaboration of suppliers, customers, and employees that work with them.
Future of ERP will be focused on SME segment, because nearly all large company are now using integrated software system, it means that the market for ERP will decreasing for large companies. Once a company has implemented an integrated system there is little they need from the vendor. This is the most important reason for growth of ERP will be in SME segment only.
Number of ERP companies are started to focus on SME. They are providing tailor made products and services vertical wise by reducing the cost and complexity of implementation. Vendor will have to understand the need of the SME, like they want superior quality product at very decent cost, software especially made for their vertical etc. If companies do these things successfully, they can survive in the future ERP market. The technologies continue to change, and companies must be able to adapt new technologies if they wish to remain competitive.