Farhan Hassan*
Artificial intelligence and ERP

Nowadays, technology is a must in modern business corporations are continuously eyeing for innovative technologies for better MIS (Management Information System) and user-friendly applications software that help businesses stay competitive in the domestic and global markets as well. 


Artificial intelligence (AI) is the part of computer science that affirm the creation of intelligent machines that work and response like humans.

As (AI) integrated of the ERP system this will reflect on the essence of daily operations and process activities. 

In this approach, modern technology is focused on reducing business operating costs by supporting the organization's operations as a whole which driven us to applying and implementing artificial intelligence if  we want to stay efficient and competitive in the market.


ERP systems integrated with artificial intelligence (AI) automate processes, and predictive analytics in order to support real-time decision making.

The concept of ERP is to integrate the processes of finance, HR, manufacturing, supply chain services, procurement, and others into a single system.

By eliminating information silos, giving everyone access for communicating quickly and turn into action in real time, automate core processes, systematizing the fundamental aspects, increasing operational efficiencies and reduce errors, facilitate the flow of real-time information across departments and making data-driven business decisions for better it is the one of the main aims of automated process that offered by the ERP system.


ERP (Enterprise Resource Planning) and MIS (Management Information System) required to find out the difference between them: 

• ERP is automating the process and workflow. 

• MIS is an information collection and organizing system (database building+ report generating)

That is, in brief.


Main functions:

• Accounting: Manage receivable and payable accounts, payroll, tax reports, and working time tracking. 

• Manufacturing: a single interface for handling, manufacturing processes like planning, production, budgeting, procurement, and forecasting. (In this function mainly IA is utilized in order to enhance and develop the capabilities of the system which reflect on the quality and cost-effectiveness on the processes).

• Clients Relationship Management. Eases customer interface and manages relations with suppliers and vendors.

• Business intelligence: Supports administrative activities, capture and analyze data progressions


Main functions 

• Data & Information capture, storage, transforming, processing, and data distribution. 

• Generating and providing the Reports. 

• Forecasting and Prediction. 

• Tracking and observing operations against organizational plans.


Recently, a variety of ERP software offered by different software vendors in the market, the most famous ERP's vendors is SAP, Oracle, Microsoft, and NetERP.


Primary Influences  of ERPcost are:

1. Web hosting.

2. The number of users.

3. Customization of the levels.

4. Software and Applications that required.

For example, as per some vendor's website pricing may look in these ways:

Large businesses with more than 500 employees and with incomings of around $200 million should be cut out more than $1 million for earning such ERP system

Small-to-mid-sized businesses can expect the price of software and services combined range from $75,000 to $750,000

In addition to that the required licenses and annual renewal cost as well in some cases to be added, however, it is a significant investment, Certainly, ERP system will pay for itself quickly by well managing of utilizing of this essential resource efficiently. 


Artificial intelligence in ERP is a new approach raising up rapidly in all fields, and there is no doubt that it is an effective technology when it comes to improving the ERP system's abilities. Now we come to say the efficient system should or must merge or unified of the MIS (management information system), ERP (enterprise resource planning)  and (AI)  Artificial intelligence in order to manage data, track the objectives and targets of the business and helps executives make correct decisions or at least minimize as much as possible the errors or mistakes in some way.


Farhan Hassan: ‏fhshasn@gmail.com

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