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Michael Dautner
February 20, 2020

AI and New Demands for ERP Industry

artificial

Artificial Intelligence is expected to shift the playing field significantly in the world of ERP entering 2020. We at iNECTA thought it would be prudent to discuss the implications of such a monumental increase in AI. There are some ERP providers that refuse to evolve, leaving a large number of potential customers in their wake. These ERP providers are ignoring the tremendous increase to productivity AI could potentially offer their systems. The sad truth is only 33 percent of all companies have dabbled in artificial intelligence, and that percentage accounts for relatively minimal AI usage. Enterprise Resource Planning systems have long been at the forefront of innovative methodology when it comes to performance optimization. Because of its history to evolve, the expectations of ERP systems have dramatically changed business demands. ERP system partners like iNECTA and their user base must come to a resolution regarding the introduction of more AI participation.

AI lends itself to systems and platforms that have flexible processes in terms of the introduction of new technology. The same is true for ERP. An ERP system is way better off when it is hosted on a system that can seamlessly introduce new tech. Companies generally allow automatic repetitive routine processes in the background. After a while, other functionalities are easily added. These functionalities include machine learning and advanced learning for error detection for numerous operations within the company. Everything from production, analytics for demand planning and forecasts, you name it—it can all benefit from newly introduced functionality.

Intelligent ERP systems demand a significant amount of data in order to meet the standards of typical AI output. Recognizing trends and patterns is key, as well as their ability to find solutions. Once the ERP system has attained this level of learning capability and function, it truly begins to pay dividends on an economic scale. Your company’s IT budget will be soundly intact as this type of intelligent technology is open to companies of all sizes, and adoption is not beholden to any strict budget. Take Microsoft Azure for example; Microsoft Azure makes it incredibly easy to connect a company’s own processes with intelligent cloud services and AI resources.

The pendulum is swinging in the favor of AI. The proof is everywhere, but perhaps no more evident than in a report from Forbes suggesting that about 44 percent of respondents from the automotive industry consider AI as ‘highly important’ to the manufacturing function within the next 5 years or so. Additionally, 49 percent from the industry said that AI is ‘absolutely critical to success.’ ERP has been on the front lines of meeting customer demands. As the years roll on, the demand for AI integration with ERP solutions will increase. This will force ERP system developers to consider what they will lose if they choose to remain stagnant, and let the demand pass them by. AI is the future, whether ERP is prepared and willing or not.

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