The ERP market is being heavily disrupted by artificial intelligence (AI) and machine learning. Read how AIML can render ERP systems a new character for higher business gains.
Enterprise Resource Planning (ERP) solutions continue to remain in demand by enterprises. The promise of ERP is so great that enterprises are keen on investing to embrace it. As per Apps run the World report, by 2024, the global ERP software market is projected to reach 97.15 billion US dollars.
Manufacturing, IT, BFSI, Logistics and Transportation, Public Sector, and Healthcare are some notable industries where ERPs have been aggressively implemented. Especially, in manufacturing, ERP has played a vital role in building a highly coordinated system where businesses have operations at geographically dispersed locations across the globe. ERP has been a key enabler in facilitating the management of field activities through a software system.
One of the greatest success stories of how ERP adoption can fetch innumerable benefits is that of Asian Paints, the Indian paint MNC. Acting ahead of time, it began its ERP journey more than a decade back. The paint giant then could successfully transform itself into a click-and-mortar business from a traditional brick-and-mortar business. From Adopting SAP Hana to making timely upgrades, it has been a value-adding journey for Asian paints, who have derived remarkable results through ERP.
As ERP adoption became widespread, AI began hitting the business landscape. It has now surpassed all technological concepts, as enterprises are trying to reinvent the wheel by infusing AI into every facet of the business. ERP is no exception to this, as AI-integrated ERPs have become a new way of driving decision-making and executing operations with speed and accuracy.
The idea of AI-enabled ERP is already on the cards of CXOs, as the following statistics speak.
As per Gartner, 65% of CIOs predict that ERP systems will be enabled with artificial intelligence (AI) capabilities.
About 58% of healthcare providers are already integrating artificial intelligence (AI) in the ERP they were implementing.
In the United Kingdom (UK), 53% of CIOs want to have intelligent ERP systems enabled with advanced technologies like machine learning, artificial intelligence, and automation.
Where is the promise of Artificial intelligence (AI) in ERP?
By lowering costs and eliminating human error, AI in ERP systems can substantially impact daily business operations. AI and Machine learning will help ERP become more proficient, and thus boost organizational efficiency. Let's understand how AI-enabled ERP can bring turnaround across various functions.
Inventory Management
ERP with AI capabilities helps you to produce the optimal quantity of goods, thereby minimizing the chances of inventory shortages and overstocking. So, AI in ERP optimizes inventory management costs and helps maintain accurate safety stock. With these capabilities, supply chain managers can confidently stock quantities for raw materials, work-in-progress (WIP) inventory, and finished goods.
Sales and Marketing
AI-powered ERP systems assist sales and marketing teams in discovering fresh prospects. By tracking purchase patterns, it can understand consumer behavior. A company might be able to locate a workable target market that they had overlooked in their marketing plans. They can target a specific segment and tailor marketing strategies accordingly, improving their market share and thus boosting their financial position.
Customer Relationship Management (CRM)
Client service can be improved by using the chatbots in an AI-enabled ERP system to respond to customer questions and comments whenever they arise, regardless of business hours. Machine learning and AI capabilities in ERP software continuously apply algorithms on real-time data and analyze customer history, both of which contribute to useful insights that lead to better decision-making.
Smart Analytics
Business data may be easily gathered and analyzed with AI-enabled ERP software. Machine learning can offer insights and specialized analyses for key KPIs. Although ERP systems can extract data without AI as well, a thorough analysis might not be possible without AI. In industries such as e-commerce, where dealing with massive amounts of client data is a need, ERP with AI capabilities can fetch exceptional results.
Impact of AI implementation in ERP
Embedding artificial intelligence (AI) and machine learning capabilities in enterprise resource planning (ERP) has already begun showing results. Let’s get a glimpse of the key benefits that businesses can reap through AI-enabled ERP systems.
Higher Business Agility
The adoption of AI-enabled ERP improves business agility and streamlines operational procedures. AI integration in ERP automates routine tasks that earlier wasted a lot of your employees' productive time and led to inefficiencies.
Enhanced Predictive Analytics
AI can allow your ERP systems to analyze tons of data volumes that might be beyond the scope of traditional ERP systems. So, an AI-driven ERP system comes with a far greater predictive analytics capability. This can assist enterprises in building accurate work plans by closing gaps between predicted and actual business requirements.
Greater Operational Efficiency
Incorporating AI into your ERP system improves business processes even more. This state-of-the-art ERP solution looks at your data to help you have the most effective processes and workflows. Business productivity is boosted as operational accuracy is improved remarkably.
Intelligent Data handling and processing
You can access real-time data from all functions and analyze it for accurate and successful planning by using an AI-integrated ERP system. So, assisted by the power of machine learning and AI, you can produce thorough reports at a breakneck speed.
Streamlined Automation
AI capabilities can significantly optimize your workflows by automating them. Thus, your team members will have more time to focus on strategic activities. Common but important tasks like capturing data that may require human intervention will be handled by AI systems.
Implement a next-gen ERP with AI
Trends are shaping in the direction of AI being the next game changer in the ERP industry. This is a lethal combination that you can implement for your business as it will help you make real-time data-based decisions, thereby keeping your strategies on track.
The day is nearer when non-AI ERP systems become extinct. In order to build an ecosystem of next-level decision-making, it’s high time for enterprises to upgrade to this next version of ERP. Evaluate where do you stand in the race, as companies are surging ahead by embracing this latest innovation for being ahead of the curve.