- 30 August 2017
Artificial intelligence (AI) is more integrated with enterprise resource planning (ERP) than you might think. According to CIO, AI is transforming ERP solutions. And the impact has been profound.
Already a buzz-word in the world of commerce, ERP refers to the automation of routine tasks which can then be performed at optimum efficiency and at the lowest cost. Not only this, but human capital is diverted to higher level tasks. Computer intelligence has the ability to learn to increase and improve the capabilities and the effectiveness of your whole company.
Read on to learn more about AI and ERP, their effectiveness when combined, and the reasons why your company should consider using both in the future.
AI and ERP Together
The idea of combining AI with ERP might have once been the stuff of science-fiction nightmares: computers and robots take over the world and decide that humanity’s inherent inefficiency can no longer be supported. But the doom-and-gloom outlook need not be our reality. Although AI-enabled ERP will result in the phasing out of some routine jobs, higher level jobs requiring more complex skills will be generated to manage this technology.
Cloud vendors that offer PaaS and IaaS have adopted AI technology due to fierce competition. Ultimately, it allows them to keep costs down, while still offering a wide of range of services. In short, it’s the only way they can remain viable businesses. Merging AI with ERP will enhance well-constructed processes to run business more efficiently and more reliably. This can help almost all companies in one way or another.
Advantages of AI-Enabled ERP
AI-enabled ERP offers a whole host of benefits to businesses, including:
- Improving decision-making capabilities. AI enhances the ability of ERP to streamline routine tasks and processes by analyzing greater data sets. This allows AI to determine patterns of behavior and learn from them. The insights can then be used to anticipate and overcome potential problems.
- Automating data output. ERP can collect data from points-of-sale, website interaction, and other sources, eliminating the need to dedicate expensive and error-prone human resources to the mundane and mind-numbing task of data entry. By recognizing patterns, AI can initiate automatic workflows to indicate when and where action is needed before problems escalate.
- Improve efficiency beyond ERP. ERP itself requires human intervention to identify patterns and exceptions, and interpret the results from that information. AI automates the analysis to identify the most efficient workflow processes, performance benchmarks, and accountabilities. Freedom from routine, time-consuming, and low-skilled work will empower employees to perform higher level tasks. This, of course, benefits the business as a whole.
Worries about the high cost of ERP are disappearing. Although ERP remains a strategy used primarily in the realm of big business, small- and medium-sized businesses are also taking advantage of its value. Smaller companies can particularly benefit from an ERP solution which is integrated with off-the-shelf software applications. This provides many of the great ERP benefits, but with less of a drain on a company’s valuable resources.
AI, too, once occupied the high dollar category with its reliance on top-notch, specialized programmers and vast data sets; however, it’s now becoming more affordable. Businesses of all sizes can integrate data collection software at points-of-sale, customer relations management, and inventory. This also extends to other areas where customer, vendor, and product or service information can be collected, organized, mined, and analyzed. There are just so many opportunities to benefit from its implementation.
AI-enabled ERP could and should be a consideration for any business regardless of its size. Just because you have a small- or medium-sized company, doesn’t mean this solution is out of your reach. With decreasing costs, and lots of options for the extent of its use, it’s worthwhile to keep this solution in mind. Contact an expert to implement an ERP system today and learn more about the future integrations with artificial intelligence.