One day, a somewhat unconventional player came on the scene and began making moves no other player could comprehend. The player was artificially intelligent. It was using strategies it developed on its own – completely. It was only programmed with the basic rules of Go, not any human expertise or prior gameplays.
Depending on your perspective, this is either terrifying or exciting. The future of artificial intelligence (AI) is probably a mix of both. However, in the realm of ERP software, AI falls more into the “exciting” category. The AI within ERP systems is becoming increasingly advanced, and organizations are using this AI in conjunction with business intelligence to reveal new ways of improving operational efficiency and increasing customer satisfaction.
AI Functionality in Modern ERP Systems
While ERP software uses data to make basic predictions, AI uses this data to provide real-time recommendations based on multiple sources of data, both internal and external. AI augments the insights from your BI solution by providing what’s known as “prescriptive analytics,” which enables organizations to input hypothetical scenarios as AI calculates possible outcomes and suggests alternative solutions. AI uses machine learning to build its own logic for solving problems. All it needs is access to your data sources – your ERP system, cloud applications, IoT, mobile devices, etc.
Most organizations have so much data that it can be difficult to determine what data matters. If you think in terms of what matters to your different business functions, prioritizing data becomes easier. You can apply AI to any area of your business to gain competitive advantage.
How to Define a Business Intelligence Strategy
1. Determine key stakeholders
2. Assess your current state
SAP vs. Oracle Case Study
SAP and Oracle both invest heavily in cloud technology. However, our client was skeptical about cloud scalability and unsure if the products were mature and proven.
3. Set KPIs
4. Evaluate your options
5. Obtain buy-in
A Note About Artificial Intelligence
Some people will claim that true AI does not yet exist. While a perfect replica of the human mind doesn’t exist, we have designed AI systems that use human reasoning as a model. Definitions may differ, but the concept remains the same: machine intelligence imitates human reasoning to provide immediate insights humans might not conceive after years of contemplation.
Developing a business intelligence strategy can help your organization take advantage of the AI functionality available in many of today’s ERP systems.