Enterprise resource planning systems are at the core of artificial intelligence and other innovations in business, says iOCO
A major technology and business forecast for 2025 holds that businesses will continue to find use cases for artificial intelligence (AI), improving efficiency and expanding their offerings.
Organisations looking to follow this trend to evolve must understand that enterprise resource planning (ERP) systems with high-quality data serve as the foundation for AI applications in business, says Gary Khan, sales director of iOCO Enterprise.
“ERP is the ‘source system’ that supplies new technologies, such as AI, with data. AI uses the high-quality data to provide businesses with accurate insights, leading to cost savings.”
Khan explains that, similar to how Large Language Model (LLM) ChatGPT interfaces with the internet to provide users with a wealth of information and insights, AI must operate within a robust ERP foundation in a business context to unlock value.
“The ERP system represents the back office of the business, enabling an organisation to operate efficiently and manage data effectively. Key business processes such as human resources, payroll, finance and supply chain management are connected and managed within the ERP system. The ERP acts as a central platform where these functions interact seamlessly to ensure consistency in business data and streamlined operations.”
AI is now embedded into nearly every ERP system, providing businesses with a range of practical applications. iOCO has observed several clients leveraging AI to predict consumer demand and optimise their supply chains, ensuring the right products reach customers at the right time. In manufacturing, AI-driven predictive maintenance has enabled companies to identify optimal maintenance windows, reducing downtime and preventing machinery breakdowns.
“Embedded AI is transforming predictive maintenance by consolidating data from sources like original equipment manufacturers (OEMs), device readings, and maintenance records into one system,” says Khan. “This enables faster and easier decision-making, as AI provides maintenance teams with a complete view of the data, helping them respond more quickly and accurately. The speed and accuracy of AI surpass traditional methods of data collection and analysis, eliminating time-consuming manual work and minimising delays in decision-making.”
The effect of AI is seen across other business functions such as supply chain management, inventory control and sales distribution. It automates routine tasks such as filtering suppliers by payment terms, providing key operational insights much faster than humans can process information. This implementation of AI not only streamlines operations but also ensures that strategic decisions are data-driven and timely.
AI embedded into ERP systems can provide data insights from each department to inform and enhance overall strategic planning. By using AI in this manner, businesses have lifted their revenue and reduced operational costs, enhancing overall efficiency and profitability, says Khan.
Customising AI for ERP
Modern ERPs are highly configurable, allowing businesses to build AI use cases that provide them with a competitive edge. But Khan advises businesses that want to use AI to streamline their operations to start working with the AI already embedded in their ERP system.
“Customisation isn’t always necessary — most of the embedded AI adds value right away. The best course of action is to focus on efficiency and cost-cutting with the standard AI, since this will minimise the initial investment and reduce the need for customisation,” he says.
Choosing your ERP system
The ERP is the heart of a business’s technology ecosystem — every piece of data either originates from or passes through the ERP. When selecting or upgrading an ERP system, companies should prioritise cloud enablement, built-in AI capabilities and alignment with industry best practices.
“ERP systems should also be cost-effective, quick to deploy, scalable, secure, and provide a short time to value,” says Khan. iOCO partners with trusted brands like SAP, Oracle, Infor, Syspro and Acumatica, “all of which meet these requirements across diverse business environments”.
“Modern ERP systems are equipped with powerful capabilities, and businesses can use their full potential by working with an agnostic ERP systems integrator that can expertly guide businesses on the best modern ERP for their context. This partnership ensures that the ERP is fully aligned with the company’s specific needs, optimises workflows, drives greater efficiency and supports growth.”
• iOCO Enterprise is the ERP Cluster within the iOCO Group focused on selling, implementing, upgrading, modernising, supporting and maintaining modern ERP solutions. The iOCO Enterprise portfolio includes SAP, Oracle, Syspro, Infor and Acumatica ERPs deployed both in the Cloud and On-Premises. iOCO Enterprise has assisted many companies, from small businesses to large enterprises, to select the best ERP for their business, all featuring embedded AI that helps unlock their business’s potential.
Written by: Gary Khan, Sales Director of iOCO Enterprise, the ERP Cluster within the iOCO Group.
Originally featured here
