“If you don’t innovate fast, disrupt your industry, disrupt yourself, you will be left behind.” – John Chambers
Without a doubt, artificial intelligence (AI) will have a profound impact on the footprint of enterprise resource planning (ERP) solutions in the foreseeable future in UAE. AI will enable organizations to further optimize their operating model made up of business processes, software applications, governance structures and technology infrastructure.
To have this transformation, organizations must revamp their IT strategies and roadmaps and ingest the value of artificial intelligence and enterprise resource planning (ERP) integration. These technologies go hand in hand because they cover the same spectrum.
With the evolution of ERP solutions over the last two decades, organizations have gained access to a wealth of structured data. Nonetheless, they continue to struggle with transforming data in meaningful information, decisions and actions. The last five years, this situation got further challenged with the explosive growth of unstructured data that organizations capture without a clear approach on how to properly use it
Artificial Intelligence Within ERP Systems
AI allows ERP vendors to improve ERP systems using machine learning and natural-language interfaces. The AI in ERP systems provides actionable data insights enabling companies to improve their operational efficiency.
A good example of an AI-driven ERP solution is SAP Business One, which includes a number of microservices integrated with a cloud platform. Sage 300c also has introduced a number of AI-based tools for its ERP solutions, including digital assistants, advanced access and financial controls, and smart supply management.
SAP Business One is gradually moving into the AI space. SAP B1 has a cloud-based predictive maintenance solution that is based on prediction models and machine learning algorithms. The service technician has access to dashboards with key performance-indicators and ad hoc reporting capabilities. It helps the service technician to understand the real-time performance of the technical infrastructure and intervene when required.
The ingredients to solve this situation are available and becoming more and more mature every day:
- ERP solutions that enable organizations to run cost-efficient and effective operations.
- Big data solutions that can manage structured and unstructured data.
- Business analytics solutions that can provide information with a user-friendly experience.
- Cloud infrastructure that can make enterprise solutions widely accessible.
- Computing power that allow enterprise solutions to manage large data sets and complex algorithms.
- In-memory database technologies to explore large data sets in real-time.
- AI solutions that can learn, speak, read, respond, predict and execute transactions.
- Internet of Things (IoT) technology to capture real-time performance information.
9 Ways AI Improves ERP Software
1. Advanced Analytics
AI’s ability to work with massive amounts of data enables real-time, accurate data insights.
For example, AI can analyze the buying behavior of different categories of customers, enabling you to tailor your products or services to the needs of a certain audience.
2. Warehouse Management
Artificial intelligence can test countless demand forecasting models with precision, adjusting to different types of variables, including changes in demand, supply chain disruptions and new product introductions.
For instance, BMW uses learning algorithms to track an item from the manufacturing stage until the moment it’s sold, monitoring 31 assembly lines in different countries.
AI-driven solutions can process historical data and make predictions for the future. These tools identify seasonal patterns in your business, offering suggestions on whether you should decrease or increase production.
Not only does AI reduce the costs of forecasting, but it also makes forecasting much more accurate. You can significantly reduce the risk of underproduction or overproduction, when you manufacture the right amount of inventory.
4. Financial Management
AI can automate quarterly and monthly processes and closing operations by verifying reports for accuracy and comparing account balances between independent systems.
For example, AI can categorize invoice data into different accounts and discern the difference between a phone purchase and a monthly phone bill.
5. Interdepartmental Processes
Connecting sales, inventory and accounting is not an easy task. However, AI is not afraid of massive amounts and various types of data, making it the perfect solution for creating a centralized platform.
6. Customer Service
If your company does field service, AI can use information about performance evaluations and employee qualifications to schedule service calls and assist with planning.
7. Production Processes
When integrated with an ERP system, AI can detect inefficient processes and suggest a solution that will cut costs.
AI also can identify processes that use too much energy. It enables predictive diagnostics, minimizing the waste of resources.
8. Human Resources
Another advantage of AI-enabled ERP software is that it can be proactive. For example, it can detect what employees need a raise. In addition, it can analyze data on the skills and experience of applicants, expediating the recruiting process.
9. Sales Automation
Chatbots powered by AI not only help customers but also conduct the whole sales triangle. Now, bots can cope with segmentation and provide responses in real time.
Should You Select an ERP System With AI Capabilities?
While ERP systems have always been able to integrate various functions within an organization, AI takes this integration to the next level. It does this by analyzing large amounts of data, making predictions and suggesting next steps.
The potential of AI-enabled ERP solutions is immense. There are a number of steps to take before you can embark on a project implementation. The formulation of a digital strategy is one of them.