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ERP or enterprise resource planning, is a software capable of integrating with different financial tools and software solutions, and making them accessible via a single platform. It consists of tools that can replace the standalone software created for CRM (customer relationship management), customer web portal, purchasing, finance, dashboard, and so on.
Many businesses across the world have already started revamping their traditional ERP systems and are implementing industry best practices to gain a competitive edge. According to a report by Allied Market Research, the ERP software market accounted for $35.81 billion in 2018 and is anticipated to reach $78.41 billion by 2026.
When it comes to ERP automation it can often be referred to as two separate scenarios—automating businesses using ERP systems and automating the feature-functionality of the ERP system itself. In this blog, we will be talking about the latter—automating the features and functions of ERP systems.
ERP automation refers to the increased features and functions of the ERP software involving the integration of new technologies such as artificial intelligence (AI) and other smart features like the internet of things (IoT).
Let’s consider ERP as a toddler, who is old enough to work independently but requires constant monitoring and instructions. As a parent, you would want that toddler to grow into a person who doesn’t require any monitoring or instructions and can do everything independently. Thus, analogically, for an ERP to do basic things automatically it needs an extra feature that can make decisions on its own—artificial intelligence or AI. Today, all the major ERP providers are working on creating AI and machine learning (ML) enabled ERP solutions to achieve the same goal.
By using new-age technologies such as artificial intelligence, IoT(internet of things), and machine learning, businesses can create a smarter ERP system that is much more efficient and less dependent on humans for storing and segregating the data it processes.
A major feature of ERP systems is the shared database that all the departments use within an organization For example, accounts and sales teams can rely on the same information shared through the central database created by an ERP system. This new and smart ERP is much more accurate in making predictions and assists in critical decision-making.
|Traditional ERP||Automated ERP|
|It requires human intervention for tasks such as data entry into the ERP system and workflow approvals||The AI features help to significantly decrease the human intervention required in the processes|
|Traditional ERP doesn’t always use a cloud-based storage system, thus increasing cyber security risks||Automated ERPs use a professionally managed cloud-based storage system|
|Traditional ERPs are expensive as they require constant maintenance||The automated ERPs are cost-effective, as they are based on the SaaS model|
|Traditional ERP system requires frequent updates to ensure data security and business scalability||The AI and machine learning-enabled ERP systems are smart and can complete the updates on their own, without hampering business productivity|
Automating your ERP solution helps reduce your carbon footprint and overhead expenses. It also increases process efficiency and enables proactive decision making.
Switching from manual to automated ERPs result in all data being processed digitally. Hence, the need to maintain data on paper is reduced, which in turn cuts the cost of stationary as well as the manpower required to complete the process. Tons of paper are saved every quarter because companies are adopting the automated ERP system.
With automation, employees will no longer have to perform tedious tasks such as data aggregation, data entry, etc. manually. Automated ERP systems help improve visibility and transparency into all business workflows.
AI-enabled ERP solutions can automate the entire data analysis process and predict the outcomes under varied market conditions. These predictions are very helpful in making critical business decisions. AI also helps in resource allocation and management by providing the optimal mix of assets and investments required. It can predict which unit of the resource will be better utilized in what section of the business. Many companies use this function to promote their workers to their best abilities. Out of 85% of companies having project timelines for ROI, 82% of them could achieve it with automated ERP.
During the pandemic, automated ERP solutions saved many businesses across the world by supporting remote work. Despite lockdowns and remote working conditions, employees were able to go about their tasks by signing into the ERP systems using online browsers. These ERP systems allow employees to remotely access and update their data located in cloud-based digital repositories.
Many companies were able to maintain complete business visibility and interact with customers and suppliers because the front-office team were able to access the company’s ERP system remotely from their home locations.
HighRadius cloud-based AI-enabled Automated Solutions allows businesses to revamp their accounts receivables and treasury processes. HighRadius works on the most critical aspect of ERP, i.e. the finance module. Using the HighRadius add-ons, you can send invoices and dunning emails with a click of a button, track receivables, and generate credit risk reports.
The finance module is designed to automate billing, vendor payments, and account reconciliation tasks to close your books promptly and comply with current revenue recognition standards. It also helps provide the data required by your financial planning and analysis teams to prepare reports, run scenario plans, and improve corporate performance.
The software seamlessly integrates with your ERP, bridges the gap, and helps you overcome traditional ERP challenges. HighRadius’s Autonomous Solutions are designed to manage data from multiple sources without you having to pull out fragmented data from various sources manually. The solution also ensures data security so that your company does not fall victim to malicious attacks.
According to Gartner, the global ERP software market size was valued at $39 billion in 2019.
Enterprise resource planning (ERP) is a type of software system that helps organizations to automate and manage core business processes for optimal performance.
Some of the top ERP system providers are Microsoft, SAP, Deltek, Sage, Oracle, and so on.
Acumatica Cloud ERP, Aptean ERP, Deltek, and HighRadius are some of the leading software as service providers in the AR management business now.
The HighRadius automated solutions are quick to deploy and ready to integrate with ERPs like Oracle NetSuite, Sage Intacct, MS Dynamics, and scales to meet the needs of the order-to-cash process.Talk to our experts today