Key Takeaways
Generative AI can revitalize automation across ERP by bridging the long-standing gap between business domain experts and rigid enterprise software. The post traces Gartner’s predicted shift from traditional ERP platforms toward more agile Enterprise Run-Time Platforms, and notes how the move to cloud and SaaS systems, from Salesforce and Workday to Oracle and SAP’s “cloud first” strategies, has opened core systems via APIs that AI can interact with more naturally and reliably. Because generative AI understands natural-language business domains and can talk to machines directly, companies can train employees in how the business works rather than how the software works, unlocking efficiency, accuracy, and scalability. The takeaway: pairing ERP systems with generative AI automation creates optimized, data-driven workflows and more agile organizations. Kognitos points to work with its client Norco as proof of this vision. Explore related ideas on AI in ERP and the platform.
As businesses continue to enter the digital age, Gartner’s recent blog posts have indicated an impending shift from Enterprise Resource Planning (ERP) Platforms to Enterprise Run-Time Platforms as a necessary piece of agility and scalability. This major change will require companies looking towards ERP strategies they can tailor towards faster & more adaptive models that keep up with their ever changing needs – such as Digital Core/Lean Core/Agile Core options. It is clear this new era in business operations has just gotten underway!
The era of big, expensive on-premise ERP systems has been rapidly replaced by cloud and SaaS solutions. These applications offer businesses access to new types of enterprise software with faster implementation times at minimal cost due to subscription models. In the HCM space, this shift is almost complete with cloud being an industry norm for many companies such as Salesforce and Workday who pioneered the technology; even legacy vendors like Oracle and SAP have adopted a “cloud first” development strategy in order to stay competitive within their field. This architectural shift makes it easier to open their core systems via APIs. AI can then be able to interact with these systems in a much more natural, reliable and robust way.
ERP software has historically had a steep learning curve. Not only that, but the maintenance cost of this software has been a pain for almost all businesses relying on them. This means that new age businesses are increasingly looking to move away from the traditional offerings and adopt a leaner and more agile solution. This is where Generative AI comes in. With its ability to understand natural language based business domains, and its ability to natively talk to machines, it can help bridge the gap between domain experts and software. Businesses would only need to train their employees in how the business works – not how software works.
Thus by utilizing ERP systems and Generative AI automation, businesses can achieve efficiencies that lead to increased profitability. By leveraging the power of technology in this way, companies create an optimized workflow for data management with greater accuracy and scalability – ultimately enabling them to make more informed decisions backed by reliable intelligence! This combination is enabling organizations to become more agile and responsive, allowing them to rapidly adapt as necessary in this ever-changing business climate.
Business users now have access to smarter, more user-friendly enterprise software through the integration of generative AI tools. No longer do they need to spend hours learning a new application – instead, domain knowledge and AI will collaborate in order for businesses to get the most out of their ERP solutions. This opens up an exciting opportunity where Enterprise Generative AI enablers & ERP vendors can join forces and provide cutting edge products that promote success within enterprises all over the world!
At Kognitos, we are already walking the walk for Norco – one of our esteemed clients. We believe in showing results not just talking about them; so let’s explore how this vision could become a reality with concrete examples.
Gartner Article: https://blogs.gartner.com/tonnie-van-der-horst/erp-is-dead-part-1/
How to Extend ERP Automation with Generative AI
- Audit your current ERP automation scope for gaps. Most ERP automation implementations cover structured transaction types but leave exception handling, cross-module workflows, and document-intensive processes manual. Audit current ERP automation and document the manual steps that remain.
- Identify ERP processes where generative AI handles unstructured inputs. Generative AI extends ERP automation to processes that require reading unstructured documents, interpreting natural language instructions, or handling format-variable inputs. Vendor invoice processing, purchase request approval, and expense coding are common targets.
- Deploy AI as a middleware layer between documents and ERP. Configure AI to extract structured data from unstructured documents and post the extracted data directly to ERP via API. This approach does not require modifying ERP configuration and works with SAP, Oracle, NetSuite, and Dynamics.
- Define the exception handling rules for ERP automation. ERP exception handling rules must be explicit: what triggers a hold, what triggers a rejection, what triggers human review. Define rules before deploying AI automation. AI that handles exceptions without defined rules creates audit exposure.
- Measure ERP straight-through processing rate before and after AI deployment. Track the percentage of ERP transactions processed without human intervention before and after AI deployment. This metric is the primary measure of generative AI value in ERP automation.