Home >> News >>

Why AI And ML Will Be The Driving Factor Behind 2020 ERP Trends

Wednesday, 29 April 2020, 12:56 Hrs

Why AI and ML will be the Driving Factor behind 2020 ERP TrendsArtificial intelligence and machine learning have been having a major impact on almost all of the industry verticals. Both AI and ML have not only been impacting the performance of companies but it has also influenced how businesses carry on with their day to day operations. One sector that has seen a massive boost with the introduction of AI and ML is the ERP domain. The sector is clocking an impressive growth rate and the global value of the domain is set to be valued at 42 billion US dollars by 2020. The increasing penetration of AI has been an important factor that is fuelling the growth of the sector. This inclusion of AI into ERP systems will massively increase the versatility of the ERP software. Another statistic also shows that the AI domain will be valued at 16.06 billion US dollars by 2022 with an annual CAGR of 62.9 percent. ERP developers have also started incorporating AI into the software to make the system more effective and fool-proof. While there are various trends happening in the world ERP, not many come close to having an impact on the entire industry as the inclusion of AI and ML in ERP software.

Now let’s look at some reasons why AI and ML will be the driving factor behind the growth of the ERP industry in the coming years.

  • Improved Data Analytics: The amount of data current businesses has to deal with on a daily basis is massive when compared to the situation that was prevailing a couple of decades ago. Business data has also become much more important and even the minutest of detail can nowadays have a massive impact on the performance of companies. With the complexity of business data consistently increasing, AI powered ERP systems will be able to deal with these huge amounts of data much more efficiently and effectively. With AI, ERP can help businesses to identify things such as the purchasing behaviour of customers which will help organizations to custom create their products and services according to the taste and preference of their consumer base.
  • Creating Better Forecasting Models: Having a clear understanding of what will happen in the market in the future is key toachieving sustained growth in the modern competitive business environment. With ERP, companies will be able to store historical business data and using AI, organizations will be able to successfully create future business models and forecast the trends that are going to happen in the market to a certain extent.
  • Ensuring Smooth Flow of Operations: As mentioned before, modern businesses deal with huge amounts of complex business data. AI powered ERP will allow businesses to not only deal with this information but also share the data with the relevant departments at the right time.  By being a centralized location for storing all the business data ERP will also ensure that no data is lost. AI will also be able to increase the performance of ERP systems multifold by analysing massive amounts of business information in a small amount of time.
  • Improved Customer Service: Customer is the king of business and organizations that have failed to cater to the needs of their customers have perished. With AI, companies will be able to not only analyse the customer data but also address their grievances much more effectively. This will help the company to offer better customer service and also analyse the responses of their customers regarding the services they provide. Later, this will help organizations to tweak their products and services to align with the requirements of their customers.

ERP systems have always had the ability to integrate various business operations and by incorporating ERP with AI or ML, businesses will be able to successfully boost the performance of their operations and consistently improve themselves.