Traditional ERP systems aren’t delivering what modern business landscape needs today to scale and grow. That is why modern businesses are taking a case-based approach to integrating machine learning into their platforms.
In fact, about 35% of businesses in 2018 will be going for ERP systems for optimal utilization of resources and also improve processes. That way, they will excel at production consistency, be flexible and responsive to the customers changing needs.
But the question, how would adoption machine learning powered ERP systems redefine the future of ERP systems?
According to Constellation Research’s 2018 survey of CFO priorities, about 41.9% of respondents revealed that regulatory compliance is the top reason they are going for ERP systems. Today, the compliance world is on the rise. That means all of the fine details must be taken care of. Thanks to AI-driven ERP, it takes them a pretty shorter time and little resources to achieve compliance.
Get to the bottom of the problem
Integrating machine learning with ERP systems helps organizations to get to the bottom of the problem. For example, based on the history of similar problems, a technician can identify any potential problems or hazard. That way, it becomes easier to improve how repairs, maintenance and any other thing with greater accuracy.
Get you better, tailored insights
You don’t want to see the process through your ERP system. You want to gain more insights into customers, processes, and workflows. Machine learning helps bring the insights. That way, it becomes easier to improve the accuracy of its insights and as a result, come up with more targeted management strategies. For example, if you are a mobile phone manufacturer, you can easily identify the purchasing patterns for specific models in specifics areas. You know what all that means.
Better future forecasting
Integrating machine learning with ERP systems makes it easier to create accurate and reliable predictive analysis. Forecasting is one of the reasons why businesses couple their traditional ERP with machine learning. Forecasting is one of the top reasons an organization couples machine learning with their existing ERP.
Using the new system, your organization will know when to increase manufacturing or not depending on the demands. Again, using historical data, it becomes easier to tell exactly the months that require the highest volume of supplies. You will also know the kind of projects that have a likelihood of being big sellers. As a result, it prevents organizations from running out stock. IT also keeps them better prepared in advance.
Identify new opportunities
The good thing about traditional ERP is that it provides loads upon loads of data. But, as much as organizations have the data, most of them find it difficult figuring out how to navigate that data and put it to better use. One of the selling points of ML is the ability to analyze, make sense of the data’ and identify opportunities within the data. Integrating ML within ERP software helps provide patterns that deliver insight into what you need to do or got improve the efficiency of your manufacturing, sales and service.
Increased focus on strategy
Every great business has well thought of goals and strategies for the future. Thanks to the AI in your ERP systems, it will help your users identify “next best actions’” For example, a cloud-based ERP system, might help your business leader tackle the hard question—“Where do we grow next?”, among others.
Now, those are some of the capabilities your CFO might need as their roles transform to become much more strategic. According to Constellation Research, “the job of modern” CFO calls for “a shift from providing static forecasts to providing rolling, agile forecasts and imparting enterprise-wide know-how.” But there is still a go slow when it comes to putting corporate data into the cloud.
The number of businesses that have adopted ‘machine learning in ERP systems’ far outweighs the number that is hesitant about using the technology. The issue of security still hinders many from trusting the cloud infrastructure with their data. But the more the cloud becomes secure, the higher the number of companies adopting machine learning in ERP systems is on the rise.
Automating repetitive tasks
There are a lot of repetitive tasks in your business that eat into the employees’ time.
Some of these tasks can easily be automated to free up more time for your team that can be utilized in different areas. And, that is one of the “many factors” that are driving the adoption of cloud ERP systems. Thanks to machine learning, ERP systems can automate routine financial management tasks.
That way, they help reduce dependence on custom reports. It is through the automation that results in better and timely reporting that frees up more resources. As a result, your employees can spend their time on the data integration required for generating custom reports.
Integrating machine learning with ERP – what does the future hold?
Some experts believe it would be impossible for organizations to use ERPS without machine learning. That would be that those that won’t conform would be left behind. As AI grows at a very rapid rate, so is machine learning.
Every organization would want tailored data that they can use for different purposes. Integrating ML in your ERP will help you look deeper into your business. That way, you will be able to uncover previously identified opportunities that would make your businesses shoot at higher levels.
Summing it up
The demand for machine learning in ERP is growing at a faster rate. Today, more and more business are realizing the potential benefits they can reap from utilizing AI in ERP systems. Today, there are both on-premise or cloud-based systems AI-powered ERP systems. But, the demand for cloud-based systems is poised to grow as the demand for efficient ERP systems increases.
Hitendra Singh Rathore is the Digital Marketing Executive and software analyst at Software Suggest and loves helping people plan, optimize and launch marketing strategies. He has spent the majority of his career in the SaaS industry gaining experiences in areas such as ERP Software, Accounting Software and Asset Management software analysis. While Digital Marketing is his primary job function by day, Hitendra also enjoys spending time with his family and listening to music.