It is necessary to contend that Artificial Intelligence is by far the most impactful field when it comes to the way we do business. The promises and possibilities of automation are something that have attracted every small and large-scale organization to give this a thought. Not only that, but according to the study by PwC, over 54% of executives have said that adaptation directly related to the increase in efficiency in their business operations. The Enterprise Resource Planning (ERP) system is one of the systems included in these more efficient business operations.
Enterprise Resource Planning System
ERP can be simply defined by its name. It involves every resource required to run a company or business. From financials to inventory and services, every core process can be maintained well with the use of an ERP system. There are many benefits to having an ERP system. Increased productivity, gaining insights, lowering the risk, and accelerating reporting.
But when it comes to ERP systems, companies are not only looking for speeding up the processes involved but according to Forbes.com, 63% of businesses need to adapt AI to keep the business running efficiently, with a limited budget. Because having a good ERP system running is an expensive task. The inventory of people required is huge. Here is when Artificial Intelligence comes to play.
Here is how Artificial Intelligence can transform the way we use and maintain an ERP system:
- In any business, it is crucial to know what exactly is going on in the company. Here, when it comes to big organizations, it is very difficult to do so with manual labour. The reason is the sheer amount of data flowing on a day-to-day basis. It will be very tough for anyone to comb through it and see what insights can be delivered through that data.
- Artificial Intelligence can help deliver these insights without much human intervention. There are architectures in place, like statistical analysis, language processing, and generation, to help deliver the insights faster and even accurately. The best thing about AI systems is scalability. From small-scale to the biggest corporations can easily adapt the architecture suitable for them.
2. Simplifying the operations
- Many processes in business operations involve repetitive and mundane tasks. Some of these processes include logistics and inventory. Employees are not only wasting too much time doing the same thing over and over again,but also it limits the growth of an individual. Companies are hence looking for a solution to automate these processes. And the decision is valid when we look at the statistics provided by business-standard.com. The logistics industry looked at the growth of over a 10.5% increase, taking the industry to over 215 billion dollars.
- Artificial intelligence is best at utilizing the power of data and automating the processes that typically will require additional human power. When it comes to logistics, AI can provide architectures like data integration pipelines to increase the speed at which the logistics operations work on software.
3. Faster reporting
- There are businesses that rely on data analysis and decision making on a nearly instantaneous basis. Especially when it comes to the financial market or the operations involving finances. It is obvious that when the size of the corporation increases, the finances get complicated.
- AI not only helps reporting any abnormality in the finances or almost any kind of data way faster than human analysis, but it also makes the forecasting better. With the advanced implementations, companies can know what may get wrong and what steps to take.
- ERP systems are something that a company cares about deeply. It won’t be an exaggeration to say that it, in its essence, drives every decision of the company when integrated well. But this deep integration of the ERP system requires tremendous work and a huge number of tweaks. An ERP system is an ever-adapting system in any business. It takes time for a system to adapt to the way the user requires it to be. It may be anything, from the reports generated to the speed of research.
- AI can help define this for you. The one thing AI is great at is dynamic adaptation. Some algorithms can constantly learn while the system is in use. Due to that, the user of the system gets that highly personalized system that may take a lot of time to set up manually.
The ERP system in itself is a great asset to the company but it has its own limitations. AI can help address those limitations. We do not know what exactly the future holds, but there is a strong possibility of AI assisting businesses to not only sustain but help grow even further.