Machine learning, cognitive computing, artificial intelligence (AI), for the past few years these were some of the most widely discussed buzzwords in high-tech. Tech giants were also quietly devoting resources in developing AI technologies or acquiring smaller companies that specialize in these fields. The idea that AI will increasingly play a bigger role in how businesses function has made many excited about the possibilities of what can be achieved and how to enfold these technologies to be ahead of competitors.
Naturally, AI is also being applied to ERP systems to produce the next wave of innovation. Predictive business intelligence technology has been maturing for the past years and it is quickly being integrated into ERP functionalities. In other words, ERP systems can use past activities and data to predict, calculate, and respond to changes in workflow that can optimize business operations. For instance, whereas an actual person might be in charge of making purchase requests, a “smart” ERP system might automate the process when stock levels fall to a certain level or when a sales prediction technology signals a future growth in demand. This article by Bix Matrix discusses the topic in greater detail.
Furthermore, consulting company, Deloitte, predicts that over 80 of the largest ERP software companies will have integrated cognitive computing technologies into their products by the end of 2016. That number is expected to rise to 95 out of the top 100 by 2020.
In this article by Computer World UK, SAP discusses how they are deploying machine learning capabilities as APIs on its enterprise cloud and embeds them into existing applications. Since the start of their machine learning journey, SAP has “screened over 180 machine learning use cases. The first wave prioritized horizontal apps near [their] core and [they] are currently prioritizing a second layer and all spaces that are of value to [their] customers, such as the Internet of Things (IoT) and analytics, [such as ]predictive capabilities”.
It seems that the AI in the ERP world is well underway, it would be interesting to see where ERP would go in the coming years!