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Tue, 12 September 2023

Intelligent ERP: The New Paradigm Driving Businesses into the Future

Intelligent ERP (Enterprise Resource Planning) systems are a key factor in driving digital transformation in a business environment characterized by dynamic change. Forty percent of companies in Latin America have already adopted an ERP system or are in the process of implementing their own. This data is encouraging and challenging, as it shows how far organizations in the region have progressed and are committed to embracing innovation. At the same time, it reveals that 60% have not yet implemented such systems. For many Latin American companies, the modernization of business processes is still a pending challenge.

Traditional ERPs have been the backbone of many organizations for many years. Even during the pandemic, many companies relied on its robustness. They focused their transformation efforts on critical aspects, such as the e-commerce platform, the supply chain, or remote workstation enablement.

The picture is different today. Two out of five Latin American organizations are already planning a migration, and 50% plan to incorporate intelligent functionalities in under three years. Thanks to the arrival of Intelligent ERP, leaders increasingly understand that it is the key to making more informed decisions, improving their agility, and accelerating their speed to market. It's not just about automation but also about optimizing internal processes and unleashing the potential value of emerging technologies.

The alignment of business, digital strategy, and new digital consumerization models becomes seamless and natural. Mobile applications interact directly with ERP, digitization of the value chain, real-time embedded data analytics, and interoperability with hyperscaler collaboration tools... There are multiple ways for organizations to capitalize on the latest technological innovations to become more agile, improve efficiency and collaboration, accelerate speed to market, and ensure compliance in systems audits.

Change of mindset and strategic approach

The cloud world and new software licensing models are essential enablers. The cloud provides a scalable and flexible infrastructure in which ERP investment no longer significantly impacts the overall IT budget. It can even have a positive effect on the TCO (Total Cost of Ownership), as it can eliminate errors that have been dragging on for years at the process or implementation level - in many cases, because the business changed along the way and the system did not reflect these changes - and can enable new revenue opportunities, thanks to the innovative technology integration previously described.

The real benefits of an intelligent ERP are reached when the adopting organization achieves a mindset change and a strategic approach. We still see cases in which the migration is performed when there is no other solution, such as high maintenance costs, a supplier stops providing support, or problems due to technological obsolescence. Getting to this point means not understanding the value of an intelligent ERP in depth.

We are not discussing a simple IT upgrade but a fundamental paradigm change. Organizations must understand how this initiative impacts technology, processes, and people and supports their long-term vision and strategic objectives.  They also need to be willing to invest in the talent to drive this transformation forward.

Intelligent ERP revolutionizes the way Latin American organizations operate and evolve in the market. Companies that adopt it will make more informed decisions and will be better positioned to face an increasingly digitized and competitive scenario. It's time to leave the tools of the past behind to lead and be at the forefront of the future.

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