Machine learning and Artificial Intelligence has been slowly making its impact on our lives over the past couple of years. Such is the impact that areas such as transportation, education, banking, fashion, etc have already come under its area of influence. In the corporate sector, organizations are slowly turning to use AI and Machine learning in order to improve ERP tools. The reason being that conventional ERP models have not been able to leverage the best out of their capabilities, so AI, Machine learning, when combined with Cloud ERP, delivers the best possible combination in order to extract the best of the ERP system.
Maybe you have an idea about Intelligent ERP yet we are going to define it here so that we can cover all the areas in this blog. And it will also be helpful for a person who is reading this topic for the first time.
In just two words, we can say that Intelligent ERP is all about Connectivity and Access. According to IDC, Intelligent ERP refers to those ERP suites that use advanced analytics and machine learning. These are created on a large as well as curated data set for the perfect forecast, learn, track, route, analyze, report, predict and manage enterprise resources and business processes.
According to experts, Intelligent ERP is now the backbone of today’s and tomorrow’s digital transformation. Digitalization transformation can let you be an intelligent player in the industry. But what are the great elements that this Intelligent ERP has! Or how Intelligent ERP has become so powerful today. So, let’s take a quick look at the digital technologies and enablers that have made Intelligent ERP this much powerful-
Cloud computing- Nowadays, cloud computing has become a general term for a lot of people. It stands for the proper delivery of hosted services over the internet. With the help of cloud computing, enterprises can easily consume a computing resource (virtual machine), storage of an application. Cloud computing perfectly satisfies the needs but for that, a company does not need to maintain entire in-house computing infrastructure. Based on the requirement, cloud computing can be of three types such as-
Private- virtual machines for in-house needs
Public- third-party services can be delivered over the internet
Hybrid- this is a perfect blend of cloud and on-premise automation
Mobile technologies- we all know that mobile technology is widely used for cellular communication. Mobile technologies have just changed the way we used to communicate over the mobile. The smartphone entry and embedded devices can properly communicate through the cellular network to your ERP system. Today, a business can grow only when responsible people can access the required data from any place on the earth. Being remote is the main aim here. And these technologies have made it easy that now in a business system, operators, as well as technicians, will be able to access data at any time from anywhere and any device with full-on security.apart from this, we will mention another fact here and that is here one will get portable terminals. Portable terminals are easier to operate and come with a shorter boot time in comparison with locally installed user interfaces.
Big data- Big data refers to any kind of bulk amount of data. The data can be structured, semi-structured, and unstructured. Generally, companies store data as information to access in future time or for regular usage. Generally, big data has three types of characteristics such as volume, variety, and velocity. Volume means data can range from terabytes to exabytes, variety follows the structure forms and velocity refers to the speed at which the data is going to be processed. When the data amount is very big, companies take the help of this kind of storage.
Data Analytics- drawing conclusions of the contained information is important for a business organization. If you have a similar kind of need, you can take the help of data analytics. But it comes with intelligent ERP, so your requirements are going to be satisfied fully. In order to make better rather well-informed business decisions, big commercial companies use data analytics technologies as well as techniques nowadays. And as a part of Intelligent ERP, now we get data analytics that simply adds super ease to modern workforces.
IoT (Internet of Things)- Experts say that IoT is a network of physical objects such as machines, vehicles, equipment, home appliances, and so on. These objects use sensors and APIs in order to connect as well as exchange data with the help of the internet. We can say that the Internet of Things depends on a host of technologies. Apart from this, other important IoT technologies are predictive analytics, big data management tools, machine learning and AI, RFID- Radio-frequency Identification, and the cloud.
IoT just enables a smarter way of living. When it comes to business organization, you can have the entire control over your every business operation. It will also help the businesses to know actually how the business process is going, and deliver insights to the logistic operations. Apart from these, we can say that IoT enables companies to properly automate the business process and effectively reduce the labor cost. It will also help
Machine Learning- you may have some ideas about machine learning. It simply allows software solutions to become more accurate in predicting outcomes but for that programming is not needed. With the help of algorithms and statistical analysis, machine learning becomes able to predict something. Machine Learning helps a business organization from various angles such as predictive maintenance, just eliminates the manual data entry pain, detects spam faster than anything, creates product recommendations, does financial analysis, image recognition and so many other things that directly help a business process.
Smart Factories- Another benefit of Intelligent ERP is that it offers smart factory options. Smart factories are nothing but a purely digitized and connected production set up and it depends on smart manufacturing. Smart manufacturing can be called as a technology-driven approach that mainly uses internet-connected machinery in order to properly monitor the entire production process. The sole intention of smart factories is to search for new opportunities for automation operations. It also suggests using data analytics so that a business can properly improve its manufacturing performance. Lowering the human labor in critical or time-consuming work areas are the main goals of most companies nowadays. Machine learning, smart factory, IoT rather the entire intelligent ERP help companies to do that easily.
Digital Twin- it is a virtual representation of a product. Businesses can use it in order to perfectly design a product. It can be also used for monitoring, simulation, serving, and optimization. It supports the industrial internet of things to a great extent. It uses the same technology or follows the same process that developers use as well as follow during the very early stage of product development. The digital twin can be retained to satisfy future needs such as inspection and maintenance.
Blockchain technology- we can say that the blockchain technology is an increasing list of records. Here records are referred to as blocks. These blocks are properly linked with the help of cryptography. Each block generally contains a cryptographic link of the previous block along with data and timestamp. So, changing a single block’s data is not possible without changing the entire chain. This process helps business organizations to a great extent when it comes to record transactions between a lot of parties. So, in order to make a change, one needs to have permission from all the parties. So, you can understand that maintaining business processes in a fair way is possible with this blockchain technology.
These are the best digital technologies as well as enablers that make Intelligent ERP this much effective for a business organization nowadays. There are some other technologies such as Augmented reality, virtual reality, and so on, that Intelligent ERP comes with.
Now we are going to concentrate on the future of Intelligent ERP or how it is going to change the entire scenario. If businesses properly take the help of Intelligent ERP, how the scenario will be, we can get an idea from the below points. Below 10 points will help you to understand how it is going to change the work process of the businesses. The new work process will be fast, easy, smooth, and cost-effective. So, without more ado, let’s check how Intelligent ERP is going to help the business organization in the future days-
It is necessary for cloud platforms to have an information system that has a self-learning capability that involves the usage of machine learning and artificial intelligence throughout the entire network. A cloud ERP system when fully integrated with machine learning and artificial intelligence systems creates a repository of machine learning and artificial intelligence algorithms by which employees can be trained over the entire system.
Machine learning algorithms can find patterns in the large voluminous data sets using constraint-based algorithms. These algorithms can easily predict many parameters like say supplier demands, etc. This can be further scaled up to find the riskiest of suppliers, thereby minimizing the possible risk.
With the help of the predictive models of machine learning and the use of Big data, one can get better information from suppliers. Also, Cloud ERP helps to improve data literacy by creating reports on huge data sets. These reports, when combined with AI, provide valuable insights that are not visible otherwise.
Future ERP will have inbuilt machine learning algorithms to help in the overall improvement of the product as they can analyze, learn from customer behavior, failures of product and then come up with insights that help in improving the quality of the product.
Intelligent ERP will have a better scope of forecasting demand and ensuring better collaboration with suppliers which happens after machine learning algorithms have been implemented on accurate data.
Providers of Cloud ERP systems can capture machine-level data and implement machine learning techniques in order to find patterns that concern performance on the production floor. This, in turn, can be used to predict when parts of a machine need to be replaced.
Cloud ERP can reduce the configuration gap which exists between PLM, CAD, ERP, and CRM systems by the proper usage of AI and machine learning algorithms. This, in turn, can process in the operating cycle.
Future Cloud ERP which is equipped with machine learning algorithms can very efficiently get to the root cause of a particular problem based on the earlier history of similar problems.
One of the best uses of Cloud ERP coupled with machine learning and AI is the scope of the algorithms being used on the datasets being generated by the ERP systems in order to identify new opportunities with the data. This can be used in devising new objectives and goals for processes say manufacturing, sales, service, etc.
Intelligent ERP can impact huge data. One can reduce the intelligence gap which most companies face today, as they go forward to adopt new business models by providing IoT based data to AI and machine learning apps on a regular basis.
It has been brief on the way AI coupled with machine learning can help Cloud ERP optimize performance for an organization. We, at Vyrazu Labs, have been proficient in the development of ERP applications, so if you do have any requirement on this ground please get in touch with us for a FREE CONSULTATION.
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