Enterprise resource planning (ERP) systems help you automate and integrate your core business processes across different functional areas, while artificial intelligence (AI) performs tasks that usually require human learning, reasoning, and decision-making abilities.
Combining these technologies allows you to analyze vast amounts of data, gain valuable insights, and make better decisions. AI-enabled ERP systems can also streamline the supply chain, reduce manual errors, and increase business efficiencies—and that’s barely the tip of the iceberg.
If you’re in the market for SAP professional services, here are some of the benefits of integrating AI into your ERP system, as well as an explanation of how an AI-backed ERP system can transform business operations.
Benefits of AI-Enabled ERP Systems
If you’re always on the lookout for innovative technologies that can help your company stay ahead of the competition, AI-enabled ERP systems are worth investigating.
Improved Data Analysis and Decision-Making
AI-powered ERP systems can analyze on-premises, cloud-based, and internet-based data to help you gain a comprehensive understanding of your operations from procurement and manufacturing to all aspects of the supply chain.
You can also identify patterns and trends that might not be immediately obvious. For instance, by using an AI-enabled ERP system, you can analyze customer data to detect patterns in purchasing behavior.
Let’s say you focus on which products are frequently bought together and what time of day customers are most likely to make a purchase. You can use this information to create targeted marketing campaigns or improve product offerings, ensuring that no resources are wasted.
Increased Efficiency and Productivity
The job of an ERP system is to make sure resources are used in the best way possible. When backed by AI, ERP systems can help you automate repetitive tasks and streamline processes, allowing employees to focus on higher-value tasks.
For instance, an AI-powered ERP system can automate routine administrative tasks, such as invoice processing, data entry, appointment setting, and spreadsheet updates, saving time and reducing the likelihood of human errors. Plus, ERP systems using AI can optimize supply chain management by analyzing data on demand, production processes, and inventory levels to help you make more informed decisions and reduce waste.
Enhanced Customer Service
When it comes to customer service—the backbone of business success—AI-powered ERP systems can significantly improve customer satisfaction. For instance, Amazon uses ERP systems backed by AI to personalize the customer experience and provide recommendations based on customer purchase history. So, when a customer visits Amazon, they’re greeted with a personalized product list they’re more likely to be interested in.
Similarly, Lufthansa also uses an ERP system powered by AI to track flights and provide updates to customers in real-time. It makes sure that customers are notified immediately if there is a delay or a change in the flight schedule, reducing frustration levels.
Improved Risk Management
Risk management can help you identify and mitigate threats that could negatively impact your operations or revenue, but risk management processes can be difficult to implement–this is where AI-powered ERP systems come in. For instance, banks could use AI-backed ERP systems to look at data on customer credit scores, loan repayment history, and economic trends to predict which customers are most likely to default on their loans.
The system can help the bank take proactive measures to reduce risk, such as offering loan extensions or adjusting interest rates. Similarly, a manufacturing firm could predict when equipment is likely to fail and schedule maintenance before a breakdown occurs, decreasing downtime, preventing costly repairs, and reducing the risk of production delays.
By automating routine tasks, streamlining processes, and improving efficiencies, AI-powered ERP systems can lead to massive cost savings. For instance, if a business uses an AI-powered ERP system to generate and send invoices to their customers, it can save time and money spent on administrative tasks and reduce human errors that can lead to litigation and potential compliance issues.
Similarly, e-commerce companies like Amazon can make sure they have enough inventory on hand to meet demand by tracking demand and inventory level data. This can reduce inventory-related costs, such as storage fees and depreciation.
If these benefits sound interesting to you, make sure to check out our post on implementing SAP HANA.
AI Married With ERP Is the Wave of the Future
The full power of AI has not been fully established, but it is already proving its worth by supporting processes managed by ERP systems. AI combined with ERP can save money, better manage potential risks, greatly enhance the customer experience, improve efficiencies, and much more.