Information Technology is changing the world at a very fast pace. Businesses are struggling to match this pace with changes, and Enterprise Resource Planning (ERP) is no exception. We observe that the traditional ERP era is over, and new age ERP systems are dramatically influencing how business is conducted. These next-generation ERP systems are composed of various transformational technologies, since the concept of a standalone ERP package has become obsolete.
Blockchain, Artificial Intelligence (AI) and Internet of Things (IoT) together represent an exceptional opportunity for businesses, which need something to streamline and enhance existing processes, create new models, and develop more innovative solutions to help them to build the business of tomorrow.
What is B-A-I?
Blockchain, Artificial Intelligence, and Internet of Things are emerging as the foundation of the new-age ERP ecosystem. An analogy between human cognition and B-A- is commonly drawn.
Blockchain: is said to remember the transactions conducted throughout the ecosystem
Artificial Intelligence (AI): is said to discover patterns among the data and make it workable
Internet of Things (IoT): is said to sense and capture information through various modalities and converts it to valuable data
To understand B-A-I, it helps to think of them as an interconnected ecosystem of transformational technology. While IoT senses using several connected devices around the world and transforming into the world of data, AI does the reasoning. It thinks by analyzing the data and making decisions. IoT, therefore, could serve as the data source for AI enabled ERP solutions. Finally, blockchain creates a secure record of transactions and data exchange.
Here’s an Example:
- Blockchain has enabled organizations to become boundary-less. For instance, in the manufacturing industry, blockchain provides a complete source for each individual component of a product, accessible to all stakeholders involved within the supply chain.
- Artificial Intelligence (AI) can manage a large amount of data, detects a pattern, and use the information to deliver business outcomes. Microsoft Dynamics ERP, for instance, uses Cortana Intelligence for providing quick and accurate business insights, for making intelligent predictions about sales, inventory management and delivery time.
- Sensors and drones are also a common sight in large manufacturing plants where they serve as management tools. They can read various RFID tags and send real-time data to the ERP systems where reports on everything right from inventory stocks to maintenance schedules can be generated with the help of AI tools. IoT helps extract new data, improve existing processes, bring innovative products and solutions to the market and gather new consumer trends and preferences.
Power of B-A-I:
- Centralizes business processes become accessible across multiple organizations
- Acts as source of abundant data
- Automates routine processes
- Digitizes business processes involved in the transfer of goods, services, and other assets
- Offers deeper insights into your business data
- Improves user experience through interaction
It is clear that ERP is all set to change. The existing systems will need to modify themselves and adapt to this fast-changing world and stay relevant for businesses. B-A-I has the potential to drastically transform business models and processes and together these technologies have the capability to revolutionize any line of business for tomorrow.