Machine learning and artificial intelligence (AI) have the potential to reshape the world as we know it. Due to the exponential advancement in these areas, the world ten years from now could be nearly unrecognizable compared to now. One of the significant impacts with AI and machine learning has been the possible improvements to ERP software.
With machine learning, you can pull tailored data that will provide detailed insights and analytics about the metrics you decide are important. For example, this could be an in-depth look at the buying behaviors of a certain demographic of customers so that you can tailor your offerings for better conversions. If you run an online store, the metrics you pull could pertain to how long a customer spent on a particular product page.
With the right technology, you could use this information to create a tripwire at checkout or send an email reminding customers of the object they desire. Your advanced analytics give you the power to create that will drive your business. It’s one thing to be able to pull data from a system; it’s game-changing to be able to analyze it effectively.
Analytics and algorithms play another significant role in ERP: forecasting capabilities. By searching through the data collected, AI integrations can make predictions that will improve your ability to forecast for upcoming periods. It will be able to detect seasonality in your business, making recommendations about increasing or decreasing production accordingly. If you drill down, it will also be able to look at customer history and identify any behavior patterns, allowing you to predict future order quantities.
Putting an ERP in place that bridges the gap between inventory, sales, and accounting can be a daunting task. Finding one that connects these different aspects of a business without flaws is near impossible. With AI and machine learning, these processes can be simplified, creating a streamlined, centralized platform for customer relationship management, reporting, product lifecycle, and sales. The more efficient a business runs, and the less reconciliation required between the various aspects of that business, the more successful that business will be.
One of the most important considerations in regards to having an ERP with machine learning capabilities is the identification of new opportunities for sales and marketing. AI and machine learning allow a business to not only identify purchasing behavior but also hone in on who is buying what. They may find that there is a viable target market that has been left in branding and marketing schemes. By identifying this group and catering marketing efforts toward them, they may be able to achieve greater market share and vastly improve the business’s revenue.
AI and machine learning help improve the manufacturing portion of a business through integration with an ERP. AI is able to identify any processes or practices that are inefficient, mechanically or otherwise, and help manufacturers come up with a viable solution that will save resources. The ability to predict a problem before it occurs will keep things running smoothly, reducing the risk of increased energy usage or damaged, unusable goods.
Virtual agents are the AI and machine learning tools that were once dreamed about in science fiction. With the proper integrations, they can be used to train employees and guide them through complex processes and even provide customer service.