The Changing ERP Landscape

In the past five years, options for ERP vendors have become overwhelming. Systems that were originally designed for completely different purposes have added scope and are now formidable alternatives to HCM, Finance and Supply-Chain Management systems usually found in ERP systems. They give access to even more functionality, but with increased flexibility. Some common crossovers include:

• Ticketing Systems: Ticketing systems were originally designed to help businesses track and manage customer support tickets. However, many ticketing systems have since added scope features such as project management, asset management, and CRM.
• Workforce Management Systems: Workforce management systems (WFM) were originally designed to help businesses manage their employees' time and schedules. Now, however, many WFM systems have since added HCM and Supply-Chain scope. They offer ERP-like features such as payroll, accounting, and inventory management with the same interfaces as their current systems.
• Industry-Specific ERP Systems: ERP alternatives that are specifically designed for specific industries have grown out of the frustration that the largest ERP providers just create their applications with the greatest number of customers in mind. They rarely think about the nuances each industry requires. For example, a manufacturing ERP system might include features such as line production planning and scheduling, bill of materials management, and quality control, few of which are needed for other industries. A retail ERP system might include features such as inventory management, point-of-sale, and customer relationship management (CRM). Or a healthcare system could have features such as patient management, electronic health records (EHRs), and billing and insurance management.

Here are three popular solutions from each category and where they are headed next year:

Ticketing Systems > ServiceNow

ServiceNow's (SNOW) initial focus, starting in 2012, was on Ticketing and IT Service Management (ITSM). After initial success they moved to the front-side with customer service management (CSM) solutions similar to those in Salesforce. Shortly afterwards, in 2015, IT asset management (ITAM), and Security modules were launched. Then, in 2019 they rolled-out their first set of ERP modules with accounting, budgeting, and forecasting functionality.

These ERP modules were initially extensions of the prior functions but have grown to be stand-alone modules as well. The biggest advantage SNOW has today is its already being used by the world's largest and most successful organizations. They can quickly grow well-received ERP tools based off their ITSM reputation.

Recently SNOW started invading the Human Capital side of ERP with the roll-out of HRSD, a single, unified platform for managing all aspects of HR service delivery. The HRSD platform looks to leverage what they already do best with the pain-points of managing an HR staff:

• Employee self-service: HRSD provides a self-service portal where employees can access information and services without having to contact HR directly. This includes updating personal information, requesting time off, and viewing benefits information. ServiceNow can roll-this out effectively because there are similar tie-ins with an IT ticketing management system.
• Automated workflows: Common HR workflows, such as onboarding new employees, processing offboarding requests, and managing employee performance reviews are integrated the same way that is currently done for troubleshooting. This can free up HR professionals to focus on more strategic and value-added tasks.
• Knowledge management: ServiceNow HRSD can be used to store and organize HR knowledge. This makes it easier for HR professionals to find and share information, and for employees to find the information they need.
• Analytics: SNOW provides reporting and analytic tools that can be used to track and measure HR performance. This information identifies areas for improvement and allows for better decisions on HR programs and initiatives.

2024 - What's Ahead for ServiceNow:

ServiceNow is going to do expand integrations with various 3rd party systems to be more seamless and separate themselves from competitors that don't already use their applications. In addition, AI and machine learning will increate to automate more HR tasks and provide more personalized and proactive services to employees. For example, ServiceNow's Employee Growth and Development application uses AI to recommend personalized training and development opportunities to employees.

ServiceNow is also working on developing new ERP applications for manufacturing, supply chain management, and human capital management (beyond HRSD). Expect the first releases within the first two quarters next year.

Workforce Management Systems > Infor

Infor's WFM solution offers a wide range of features. Time tracking, scheduling, forecasting, and workforce analytics are its core competencies,but it is integrated with other Infor ERP systems, such as Infor CloudSuite. This integration allows businesses to have a single, unified view of their workforce and operations.

Over the past five years, the organization has launched separate products to compete in both the ERP and CRM space. ERP modules include Financial management (General ledger, accounts payable, accounts receivable, fixed assets, budgeting and forecasting, and financial reporting), Supply chain management (Material requirements planning (MRP), production planning, inventory management, order management, and transportation management.) and Human capital management (HCM): Payroll, time and attendance, benefits administration, talent management, and learning and development.

Infor transitioned to focus on ERP because of the following advantages:

1. Reduced data silos: Infor's WFM application can share data, which reduces data silos and improves the accuracy of reports. Usually an integration is built from Infor to the ERP system with the data conversion activities done on the backend. Acting as the ERP eliminates the risk of error during this shift, but simplifies the admin needed across platforms.
2. Improved process automation: ERP systems and WFM systems can seamlessly automate tasks and processes, such as payroll processing and workforce planning.
3. Increased efficiency: The products can have a common backend database to cut down on data maintenance and administrative costs.
4. Improved decision-making: ERP systems and WFM systems can provide businesses with real-time insights into their workforce performance. This information can help businesses to make better decisions about their workforce operations.

2024 - What's Ahead for Infor:

• Infor will look to segment it's products to Industry-specific solutions based off unique requirements from customers. Scheduling and time-tracking are two areas that Workday or Oracle customers use 3rd party products because they don't believe the ERP providers understand the nuances.

Innovation: Infor is committed to innovation, and it is constantly developing new features and functionality for its WFM solution. Infor is also working on developing new WFM solutions, such as solutions for mobile devices and wearable devices.

Industry-Specific ERP Systems > EPIC

EPIC's software is a completely integrated healthcare clinical system. For the first 25 years the focus was on clinical care and patient administration. It earned a strong reputation in the industry because it was a targeted system that only was designed for healthcare. Organizations would push the limits of the application's functionality because it didn't need to be customized like other platforms not designed for hospital care.

By 2005 they released the first components of an ERP system with Supply Chain, HR and Asset Management software. A key differentiator of EPIC's human resources functionality is full integration with its other software systems to improve the efficiency of human resources operations. Then it added multiple Financial modules as well - Revenue cycle management (RCM) to help clients manage their billing and collections process from start to finish; Denial management to help healthcare organizations identify and appeal denied claims; and Financial reporting to provide healthcare organizations with real-time insights into their financial performance.

In 2015 EPIC increased its visibility by taking the majority of their products, including the ERP modules to the cloud. This was a game-changer for them as it convinced major healthcare organizations to flip from Cerner, their top competitor, because they could do more with one product.

Clients feel more comfortable with EPIC because EPIC ERP offers a comprehensive and integrated solution?that covers most of the functions related to patient care, such as registration, scheduling, clinical systems, lab systems, pharmacy systems, radiology systems, and billing systems. With traditional ERP vendors, clients usually opt to use integrations with best of breed systems for these services.

Due to their background in managing patient data, EPIC ERP has a high level of data security and privacy. Data is stored locally on client’s own servers when requested rather than in a remote location on the cloud.

EPIC ERP has a large and loyal customer base that includes many of the top-ranked hospitals and medical schools in the US and worldwide. Many hospitals have used them in a copy-cat approach rather than spend a ton of time and money on evaluations.

2024 - What's Ahead for EPIC:

The strategy for 2024 is based off creating efficiencies from work in the last three years. In 2022, Epic acquired Cogito Corporation, a leading provider of AI-powered solutions for healthcare. This acquisition will help Epic to accelerate its development of AI-powered ERP solutions.

Epic will expand with new ERP applications for areas such as supply chain management, human capital management, and patient engagement.

In addition, Epic will look to expand its customer base by targeting smaller enterprises. In 2022, Epic launched its Community Edition ERP, which is a free and open-source ERP solution for medium-sized healthcare organizations. This initiative will grow the customer base as these organizations expand as well.

The global ERP software market size was valued at $55 Billion in 2022, and is expected to expand at to $123 billion within six years. The US market alone will be worth over $45 Billion.

These organizations are taking advantage of their industry position to build new revenue streams. Even if they are able to grab a couple percentage points of market share with the new products, they can substantially grow their top lines.

What other systems are missing should be added to this list? Please comment below.

David Apollon?is the Managing Director at?9Nation?Inc., a consulting firm founded to help Fortune 500 companies, as well as high growth organizations, with special technology and strategic projects. Programs include strategic IT initiatives, ERP / CRM upgrades, and cloud-based SaaS implementations. David has worked with more than 150?CIOs, CFOs, and CEOs handle strategic initiatives within a dozen industries. Over 90 corporate programs, projects and PMO initiatives have been delivered.?