Although AI (Artificial Intelligence) is still in its early stages for ERP software, the demand for the technology is rising each day.
What is next?
During the 1990s, ERP was the emerging trend and companies were
looking to utilize the new functionality and opportunities this trend brought.
Many customers moved from manual systems and spreadsheets to ERP software with
the main aim of improving efficiency. Today, ERP is a very common term within
the industry and most companies who have adopted ERP software in their
organizations are asking the question ‘what is next?’
AI is an emerging trend but understanding terms like Big Data and
the Internet of Things (IoT) which are causing digital disruption can create a
misperception in the market. Today, more than before, companies need to
understand how AI fits into ERP software as well as the benefits it can
AI in ERP software
To understand AI in ERP software, it is important to touch on some
aspects which can lead to improved efficiency. Moving from a paper-based system
to an ERP system can help organizations streamline their business processes.
Once business processes are streamlined, and the data is ready, incorporating
AI can lead to truly optimized efficiency levels.
Repetitive tasks which are still required by the ERP system can
now be done by AI, allowing employees to focus on value added tasks as well as
tasks which involve creative thinking.
Companies have also looked toward their ERP systems to optimize
the time employees spend on analyzing data and decision making. By bringing AI
into the ERP system, the ERP system can assist with analyzing financial
figures, picking up discrepancies and helping with quicker month-end routines.
AI can also assist by suggesting sales items for customers based on historical
purchases or customer behaviour, therefore, increasing revenue.
Many companies are beginning to use AI with their ERP system to
assist with scheduling – a task which takes managers many hours within the
service industry. For example, an ERP user might have multiple resources
working on various projects and if an employee (or two) is off sick,
rescheduling can be a very time-consuming task. By having AI make suggestions
relating to resource scheduling, the managers can focus on other aspects of
these projects with no loss of productivity.
AI for SME’s
Gartner predicts that 80% of emerging technologies will have AI
components by 2021. Therefore, companies of all sizes should be ready for new
Although AI has had a very big drive within large organizations,
the value it brings to SME’s (small and medium enterprises) should not be
overlooked. For larger enterprises, having an AI price suggestion can lead to
increased sales and a slightly higher profitability, however, for an SME, this
type of information can be the difference between surviving in the market and
having a competitor take over the sector.
For AI to be most effective it is essential to have the necessary
data or infrastructure available and established through business processes.
Companies can often take on an AI approach without fully
understanding their business processes, therefore, missing opportunities to
fully utilize the advantages that AI can provide. Understanding the bottlenecks
or problem areas where managers spend a lot of time is very hard when there is
no ERP system providing transparency to management. Companies of all sizes
should be keeping track of the market and seeing what ERP software companies
are doing with AI.
HansaWorld’s Standard ERP recently received an International
Silver Stevie Award in the 2019 category
for Artificial Intelligence/Machine Learning Solution.
Standard ERP’s AI Virtual Assistant Anna is not only able to perform system operations with voice commands such as running reports, performing searches and assisting with informed decision making, but is also able to answer questions asked by customers such as ‘has this invoice been paid?’, or, ‘has my order been shipped?’. Anna is also able to provide customers with stock level updates based on orders received.
Where is the market now?
Although early adoption of an ERP system does have significant
advantages for companies looking to benefit from AI, it is not too late if you
have not yet made the move. ERP software and AI will continue to move from
strength to strength and looking for an ERP vendor who has a future safe
approach should be the main priority on any companies agenda.
HansaWorld is a multinational software development company specializing in accounting software, ERP and CRM solutions. Founded in 1988, HansaWorld offers a range of versatile business management software solutions in 110 countries and translated to over 25 international languages. With HansaWorld’s innovative technology, servers can be hosted in the cloud or on-premises; this allows for a hybrid cloud environment as well.
https://erpnews.com/v2/wp-content/uploads/2019/09/ERP-Software.jpg369600katiehttps://erpnews.com/v2/wp-content/uploads/2018/10/[email protected]katie2019-09-13 09:08:402019-09-13 17:30:21How AI is Shaping the Future of ERP Software
Do You Know How ERP Systems Have Evolved Up Until 2019?