Enterprise resource planning has already established a good place in the business markets in order to manage the various aspects of a particular business whether it may be the marketing, finance or operations. But responding to the coming events was still an issue for legacy systems as they were only set to perform a certain task not to improvise the ways of doing so.
Here comes the need of Machine learning which allows software to become more efficient by feeding them the data on which they will develop predictive analysis and become more accurate in estimating the future events. With it the work time which used to be weeks will now be a few minutes only.
AI backed ERP is as of now performing in a better way for the companies but is it enough? The answer is the digital world around us, is changing rapidly with the blink of an eye. Which means there is still a need for evolution. That’s where the need for machine learning arises.
Machine learning is a study of algorithms and programs that machines use to perform a specific task without using explicit instructions.
So how exactly does Machine Learning benefit ERP:
There is no hiding of the fact that ERP needs to be updated occasionally. It has to be so as to avert the hazards and keep performing. But wouldn’t it be great if techies were able to know in advance the potential threats that could hamper the working and workflow.
Various other data are analyzed for this particular function. Data is collected from IIoT sensors, control system data and plant data. Machine learning processes this data and thus helps in making corrective analysis.
ERP has already proved that it is good enough in giving an organization an estimation of predictions that might turn true in nearby future. Let’s take an example of inventory. Based on the previously available data ERP can alarm us about as to when the inventories can dry up.
Though ERP here predicts well but with Machine learning it will be able to do so with much more accuracy. Machine learning uses some models to give accuracy. These are properly tested with cross validations which then help in reducing the leakages ultimately resulting in accuracy.
ERP with machine learning can help the organizations in improving their production as well as optimize their efficiency. ERP along with machine learning organizations have the tendency to reach the root problems of productions.
In it the machine learning algorithms deviates the odd data and tests the correlations with other data available in order to reduce the factors that could hamper quality. This may include data from quality departments and product lifecycle data.
ERP backed with the machine learning can place an organization a step ahead of their competitors by providing them detailed status of their old data by giving them insights about it.
If a company is exploring opportunities in a particular department then such things can be handled well with the help of the machine learning backed ERP as they will be provided with a detailed information on their previous data and help them being a step ahead and alarming them about the opportunities that they can explore.
This is done so because machine learning process looks thoroughly through the previous records as well the present ones too in order to alert the organization of possible opportunities. It involves a lot of data mining and churning.
Big organizations need to keep a track of their productions and equipments as well as the costs related to it. Even after the employment of the best of the talents, sometimes thing are not sorted or well-presented or get ignored. With the application of machine learning, the errors related to it can be reduced and better predicted as well as presented.
It will properly keep track of the previous data and give an efficient suggestion to the company within a few minutes. For reducing costs in productions, remodelling of units is done and best algorithm programs are inserted which are not required for tracking purpose but also alarms about the quality produced thereby helping in reducing cost burdens.
Since the beginning of any business, inventory management has been a key issue with the business giants. A lot of the time it happens that supply is not equal to that of the demands. Despite a proper action being taken, the problem still prevails. For a human mind going through tons of previous year’s data and finding the possible solution, a positive outcome won’t be possible.
A better solution to this would be machine learning. What product is in high demand, in what section of time or season can be understood well if there is a forecast of such things and it’s only possible if there has been a process which has been evaluating or studying previous data. This is why machine learning is an important step in handling inventory.
In order to be well prepared with the market attitude, it is well understood that a business person or an organization will go through a lot of brainstorming sessions, discussions, and data reviewing but still an accurate map will be possible only if prioritising of certain critical factors is done (like prioritising the need of customers in off seasons). This will be possible only with an efficient system of machine learning which in such situations will analyse the data and give results on the same.
With the machine learning in front, the banking processes have become much more predictive in analysing the frauds as well as analysing the behaviour of their customers.
Algorithms are installed for machines to help humans do certain tasks which needs to be followed to decide about whether an action is fraudulent or legitimate. After this a model is submitted to company which helps them in fraud detection.
Data as we all know is the new oil. Being a step ahead in the business world is the key to success today and for that a proper planning is required, a detail study of previous data is required.
Decision making management of companies would surely expect that they be informed well ahead of time about a certain future happening and that is only possible if machines and software systems are intelligent enough to predict events. Thereby, bringing the importance of the concept of machine learning in ERP to the forefront.
Oracle Corp. have deployed Machine learning enabled digital assistants across their enterprise resource planning based tasks. Application of voice based assistants in ERP is only on the rise.
A machine learning set up of bots or systems can carry out a variety of tasks such as doing some of the redundant task like maintenance of logs, adapting to behaviour of different users and keeping the interaction of humans with machines to a bare minimum.
Acumatica’s cloud based ERP system consists of all the pre-requisites of a basic ERP system but in addition to that it comes with services of AI & ML. Herein, not only can you have real time generated reports but along with this you can also gather all the essential data to forecast events in near future and make business oriented decisions accordingly.
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10 Ways to Improve Cloud ERP with AI and Machine Learning
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