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SAP Distribution Blog

Trends in Information Systems for Distributors

Posted by Gary Feldman on May 10, 2017

Technology continues to follow Moore’s Law, which said that computing power would double every year. This principle has held true for over 50 years now, but what does that mean to you?  Outside of your business, the technology is being applied to many different devices such as smart TVs, refrigerators, package tracking using RFID chips and all those smart sensors in your car which will dictate the future of self-driving cars.  But how does this technology growth apply to you?

An Ever-growing Need for Computing Power Leads to the Rise of the Cloud

The systems and technology built today require more computing power and more complex algorithms to crunch ever-increasing amounts of data. For the first time in years, the cost of server computers isn't falling in comparison to the power required for the new technologies. So more complex computers using more complex operating systems with more complex databases means that people outsource technology more. Outsourced technology can still be on premise with a managed service provider, but the cloud has become more cost effective and carries a much lower hassle factor when done correctly.

Big Data and Analytics Has Led to an Increase of Storage Requirements Which Also Spurs on the Growth of Cloud Computing.

Hand with marker writing the word Trends.jpegBig data and analytics mean different things to different people, and most distributors aren't dealing with the Internet of Things (IoT) yet. In distribution, the closest we see to the IoT is RFID tracking technology; what's becoming more prevalent is a better prediction of demand. Real-time analysis using advanced statistical formulas and displayed in graphical formats with supporting data are replacing traditional planning methods.

Mobile Computing and Data Anywhere

Partially driven by the ease of access to the cloud and partially driven by the rise of a generation that grew up with mobile devices, access to business information systems in the field is becoming standard. Not only do your salespeople have directions to the customer or prospect, they can see real-time inventory balances, place orders, and even capture signatures for delivery – all in real-time and fully integrated, eliminating duplicate entry and keeping inventory counts more accurate than ever before.

Speed, Speed, and More Speed

Just as a stock out can lead to a customer going to a competitor, the speed of your customer service, website, or delivery time can significantly affect customer and employee satisfaction. People have grown to expect immediate gratification and technology is rising to the challenge. The growth of new in-memory computing means that data doesn't need to be retrieved from the database, analyzed, and crunched to give you answers – instead, the data is stored in memory in all combinations necessary to answer questions as fast as you can ask them!

Webinar Solving the Top Problems in Distribution SAP Business One

Businesses are quickly adopting these trends in technology, so those that fail to follow suit won't survive. To learn how these advances are available for the small to midsize distributors, contact us today.

Topics: Small Business Growth

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