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You may have heard about Intelligent ERP (Enterprise Resource Planning), but what is it?
In two words, CONNECTIVITY and ACCESS.
IDC defines Intelligent ERP as ERP applications or suites that use machine learning and advanced analytics built on a large, curated data set to forecast, track, learn, route, analyze, predict, report, and manage these resources and business processes.
Intelligent ERP is the new backbone of digital transformation, and it is running today’s and tomorrow’s businesses in an increasingly digital world.
Intelligent ERP is the new backbone of digital transformation
Digitalization transformation is the process of becoming an intelligent, digital business. Existing business models are changing, and your business needs to be ready. Not just to take advantage of the benefits such a transformation brings, but also because if you are not interconnected, you risk interruptions in the supply chain.
Digital business is built on new computing infrastructure – the enablers are Cloud, Analytics, Big Data, and Mobile Technologies, accelerated by the Internet of Things (IoT), advances in Machine Learning, and innovations like Blockchain. These technologies give your company the ability to change your business model and create new products and services in the digital economy. In the manufacturing environment, this leads to Smart Factories and smart products.
These digital technologies and enablers are impacting all aspects of business and the workplace, society, and culture, and our everyday life. They exist and are in use right now.
These technologies are also transforming ERP applications and suites – platforms that businesses run on. ERP systems have transformed from decades-old, brittle, and cobbled together systems built in the pre-digital era to lighter, flexible, and smarter applications that are driving today’s digital businesses. Businesses ready for tomorrow are seeing and taking advantage of what Intelligent ERP can do.
Digital technologies and enablers of Intelligent ERP
Here’s a quick look at some of the digital technologies and enablers that are transforming and are now native to ERP solutions:
How does ERP relate to Intelligent ERP?
Intelligent ERP or iERP is a term coined by IDC to cover ERP solutions that utilize data along with predictive analytics to help businesses compete in the digital age.
iERP differs from legacy solutions because they’re specifically designed to automate and optimize business processes through machine learning and advanced analytics.
– Mickey North Rizza, IDC
Intelligent ERP is characterized by:
All of these characteristics of Intelligent ERP are driven and supported by the above digital technologies and enablers.
Businesses are already moving towards Intelligent ERP
Intelligent ERP is not new. However, the full progress, potential, and impact of Intelligent ERP are yet to be realized from the vendor and user perspective. From the vendor perspective, very few vendors and ERP solutions out there are future-ready or intelligent. Most ERP solutions were built in the pre-digital era. The vendors that don’t adapt will continue to face a growing threat from new emerging vendors and a growing risk of becoming old and obsolete and being replaced by innovative solutions. This is already happening. From the business user perspective, the ERP marketplace is already seeing businesses move towards smarter, flexible, and future-ready ERP solutions.
Trade Arabia contributor Monzer Tohme noted that ERP vendors are moving away from pre-built interfaces to develop highly connected systems that will fully integrate with other core systems. This compatibility will help organizations cope with managing multiple locations and better track the transformation of raw materials through to finished goods.
The ERP system will become the backbone of the network; connecting smart machines, logistics systems, production facilities, sensors, and devices, as products and machines communicate with each other and exchange commands as products move through the production line.
– Monzer Tohme, Trade Arabia
Is Intelligent ERP right for you?
All of these new ERP technologies have the potential to transform your business, however, you may ask “How will my staff access these, where will they see the information, how will they manage it all?” The obvious answer is “Right where they work now, within your ERP system.” So the big question is “Is my current ERP system capable of being a full part of my digital transformation?” Chances are, it isn’t. Few ERP systems currently in use are capable and fall short of what an Intelligent ERP can do. Most organizations are either asking themselves if they are ready for Intelligent ERP or are taking steps to ready themselves for intelligent ERP, whether actively or passively. Whether it is by adopting a cloud ERP deployment, mobility, e-commerce, or a greater focus on the customer experience, these are all steps towards adopting Intelligent ERP and specialties of Intelligent ERP solutions.
Did you learn what you needed to about intelligent ERP? What other questions do you have?
You can email us at optiproinfo@optiproerp.com, or find us on social media. In the meantime, here are more resources on Artificial Intelligence ERP or new intelligent technologies.
General FAQ
What is intelligent ERP?
Intelligent ERP is ERP applications or suites that use machine learning and advanced analytics built on a large, curated data set to forecast, track, learn, route, analyze, predict, report, and manage these resources and business processes. iERP in the manufacturing industry utilizes Predictive Analytics, Big Data, IoT, mobile technology, and AI Machine Learning (ML).
How does ERP relate to Intelligent ERP?
Intelligent ERP connects to devices with information from those devices appearing in the ERP interface. Intelligent ERP provides analysis of big data using built-in algorithms, leveraging machine learning on those massive datasets, utilizing cloud deployment to cope with the amount of data, and delivering a more intuitive user experience.
What are the benefits of using Intelligent ERP?
Driven by analytics tools and machine learning algorithms, Intelligent ERP can benefit organizations with resource optimization, real-time analysis, better decision making, an enhanced user experience, and lower operating costs.
According to IDC research, 40% of large organizations will have ERP software hosted in the public cloud by 2020. Transforming business processes by using iERP in the cloud helps manufacturers meet the requirements of modern customers while accelerating product delivery and services.
What is a smart factory?
A smart factory is a highly flexible and automated shop floor that connects operations and production systems to adapt to new technology demands. Smart factories can self-optimize resources and performance and learn to self-adapt in real-time while solely running the production process.
From meeting customer demand, expanding according to market needs, forecasting and predicting maintenance operations to incorporating new processes on the shop floor, smart factories represent a leap forward in digital transformation.
The post What is Intelligent ERP? appeared first on ERP for Manufacturers | Manufacturing Software | OptiProERP.
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