The Future of HCM and ERP Systems – Technologies on the Cusp of Change
What does the future hold for HCM and ERP systems?
Throughout the pandemic many IT decision-makers have realised they need to better connect and integrate different departments and functions within their business. Our latest research shows that more than half (57%) expect their HCM and ERP budgets to ramp up over the next year.
And that investment is very much needed. Over the recent months it has become clear how under-funded some critical areas of businesses actually are. Ninety-one percent of our survey respondents say they devote 25% or less of their IT budgets to HCM technology. With companies planning to evolve their not fit-for-purpose systems, what does the future hold for HCM and ERP?
Consumed by admin
First, let’s dig deeper into some of the challenges IT decision-makers are facing today. The biggest one brought to light by our research is the enormous volume of admin-heavy tasks that comes from managing their current HCM and ERP systems. In fact:
- Nearly one in four (24%) IT decision-makers rank ‘staff consumed by admin tasks’ as a major problem
- 20% cite ‘lack of skilled support and resources’
- 19% say ‘a lack of workforce/performance management technology’
All these challenges negatively impact business’ operational efficiency and employee engagement. Whilst difficult to measure, productivity and engagement are seen as the most appropriate metrics to evaluate the value of HCM and ERP systems. The need for enhanced productivity is now driving widespread change in approach to back-office systems management.
Benefit from the cloud
HCM and ERP cloud solutions can bring many benefits to the business, from greater resilience and efficiency to flexibility and the ability to scale up. They provide IT decision-makers with complete functionality without the need for on-site expertise. With 42% of IT professionals saying they struggle with a lack of in-house skills to implement HCM/ERP systems in the cloud, turning to third-party partners can be the perfect solution.
Nearly half (43%) of IT decision-makers highlight a ‘future-proof solution that continually benefits from updates’ as a main driver of moving their HCM/ERP systems to the cloud. However, we frequently come across businesses who aren’t satisfied with their providers and have failed to achieve any value from their cloud implementations. That’s because they initially feel happy about the cost and the speed of delivery, but fail to route a map forward, a route that aligns with their changing business objectives.
At Symatrix we ensure full transparency throughout the whole process so that our clients understand the true cost of delivery, what they are receiving for their investment and how to bring on more capability down the line. We expect that to be a key feature of the ongoing migration to the cloud.
A look ahead
To ensure the success of ERP/HCM implementations, businesses should ensure it forms a part of their broader digital strategy. Integrating HCM platforms with other systems and aligning them with business goals will bring higher satisfaction and allow IT decision-makers to see the tangible benefits, such as higher employee productivity and greater operational efficiency.
As we look to the future of HCM and ERP systems, their likely evolution is becoming ever clearer. We are seeing organisations move away from legacy infrastructures and processes, and instead migrate to the cloud, turning to third-party partners for guidance as they do. We can expect more IT decision-makers to outsource their HCM services in the next year, embracing the benefits of the cloud and the ongoing development of rich new functionalities.
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