Automation and Analytics Become Requirements in ERP RFPs: What ERP Strategists Need to Know
The role of enterprise resource planning (ERP) systems has expanded significantly over the years. What was once a system focused primarily on finance and human capital management (HCM) has now become a fully integrated solution that supports business intelligence, automation, and enterprise performance management.
In the past, automation was often implemented as a separate solution through robotic process automation (RPA) or other standalone tools. However, businesses now expect automation to be built into ERP systems. Similarly, analytics have become a must-have feature, with companies demanding real-time insights and data-driven decision-making capabilities.
As a result, modern requests for proposals (RFPs) for ERP solutions now include automation and analytics as core requirements. For an ERP strategist, understanding this shift is crucial in selecting and implementing ERP solutions that meet evolving business needs.
The Growing Importance of Automation in ERP RFPs
Automation has become an essential component of ERP systems, moving beyond traditional finance and HR functions into all areas of business operations. Organizations today require ERP solutions that can automate processes across procurement, supply chain management, customer relationship management (CRM), and other functions.
Businesses Demand Automation in ERP Systems
Several factors have contributed to the increased demand for automation in ERP RFPs:
- Companies need to improve efficiency by reducing manual work and repetitive tasks.
- Robotic process automation (RPA) helps streamline operations, from order processing to invoice approvals.
- Automated workflows enhance accuracy by minimizing human errors and inconsistencies.
- Businesses require intelligent document processing to handle contracts, compliance documents, and reports.
- AI-powered automation enables predictive analytics, helping organizations make data-driven decisions.
Types of Automation Requested in ERP RFPs
As automation becomes a necessity in ERP solutions, businesses typically request the following automation features in RFPs:
- AI-driven workflow automation to streamline operations
- Automated financial close and reconciliation for improved accounting accuracy
- Machine learning-based fraud detection and risk management
- Smart procurement automation to optimize supplier selection and purchase order approvals
- Intelligent customer service automation, including AI-driven chatbots for ERP queries
Analytics as a Critical ERP RFP Requirement
Alongside automation, analytics have become a standard feature in modern ERP systems. Traditionally, organizations relied on external business intelligence (BI) tools to generate reports and analyze data. However, the demand for real-time insights has led to the integration of advanced analytics directly within ERP platforms.
Analytics Are Now a Must-Have in ERP Systems
The growing need for business intelligence has driven the inclusion of analytics in ERP RFPs for several reasons:
- Organizations require real-time dashboards to monitor key performance indicators (KPIs).
- Predictive analytics help businesses forecast demand, manage inventory, and optimize financial planning.
- Embedded analytics allow decision-makers to access insights without relying on external reporting tools.
- AI-powered data visualization simplifies complex data, making it easier to interpret and act upon.
- Companies seek cross-functional reporting that integrates financial, HR, supply chain, and sales data.
Essential Analytics Features Requested in ERP RFPs
ERP strategists need to ensure that their selected solutions meet the growing demand for analytics. Some key analytics capabilities frequently requested in ERP RFPs include:
- Real-time data processing for immediate business insights
- AI-driven predictive and prescriptive analytics for future trend forecasting
- Role-based access controls to ensure the right users can view relevant data
- Integration with external data sources, such as cloud-based data lakes and third-party BI tools
- Interactive dashboards that provide visual representations of key business metrics
How ERP Strategists Can Adapt to These New RFP Expectations
With automation and analytics becoming standard ERP RFP requirements, ERP strategists must shift their approach to ERP selection and implementation. Here are some key strategies to stay ahead.
Prioritize ERP Solutions with Native Automation
ERP strategists should focus on platforms that offer built-in automation rather than requiring additional integrations. A few important automation features to prioritize include:
- AI-powered business process automation
- Pre-configured automation templates for rapid deployment
- Customizable workflow automation for different business functions
- Machine learning-driven data processing for improved decision-making
By selecting ERP solutions with robust automation capabilities, businesses can optimize efficiency and reduce operational costs.
Evaluate the Depth of Embedded Analytics
Not all ERP systems offer the same level of analytics functionality. ERP strategists should assess whether an ERP platform provides:
- Real-time analytics and AI-driven insights
- Customizable dashboards tailored to different business units
- Advanced reporting tools with drill-down capabilities
- Seamless integration with data visualization and BI platforms
Selecting an ERP system with comprehensive analytics capabilities ensures that businesses can make informed decisions using real-time data.
Focus on Scalability and Future-Proofing
As technology continues to evolve, ERP strategists must ensure that selected ERP solutions are scalable and future-proof. Key considerations include:
- Cloud-based deployment for flexibility and remote access
- Modular ERP architecture to allow for easy expansion and feature upgrades
- API-driven connectivity for seamless integration with emerging technologies
A future-ready ERP system ensures long-term adaptability and minimizes the risk of costly replacements.
Align ERP Selection with Business Goals
Automation and analytics should not be viewed in isolation but as tools to achieve broader business objectives. ERP strategists should work closely with stakeholders to ensure ERP capabilities align with strategic priorities, such as:
- Reducing operational costs through process automation
- Enhancing customer experience with real-time insights
- Improving regulatory compliance through automated reporting
- Driving revenue growth through AI-driven forecasting
- Interactive dashboards that provide visual representations of key business metrics
Conclusion
The landscape of ERP systems has changed dramatically, with automation and analytics now essential requirements in ERP RFPs. Organizations no longer view ERP systems as mere data repositories but expect them to deliver efficiency, intelligence, and predictive capabilities.
For ERP strategists, adapting to this shift requires a focus on ERP solutions that offer built-in automation, advanced analytics, and scalability. By understanding the evolving demands in ERP RFPs, strategists can ensure that businesses select and implement ERP systems that drive long-term success.
