Imagine if your ERP was full of knowledge instead of just data.
That’s quickly becoming a reality as ERP systems incorporate advanced machine learning capabilities. Systems that don’t just store information but think and learn along the way are transforming how we understand ERP, rewriting the rules for manufacturing, and creating an early-mover advantage for those that adapt fast.
How Machine Learning Transforms ERP
Previously, ERP was used to collect, store, secure, and distribute data. Many ERPs offered tools to analyze and organize that information, but these capabilities were limited in their size and strength. They could review existing information and react to lagging indicators. They were much less adept at looking forward to make predictions, build forecasts, and monitor in real-time.
The missing ingredient was machine learning.
Without getting overly technical, machine learning can ingest all the data in the ERP to understand trends, patterns, and past performance with an unparalleled expertise. Then, it can draw on that expertise to make highly informed predictions of what will happen in the future while performing in-depth analysis on data flowing into the ERP.
Just like any learner, the technology improves over time as it understands your company better. And like any good student, it explains the data and logic behind the answers. For decision-makers, machine learning automates the hours and effort they would normally need to manually uncover insights. Even more importantly, predictions are less biased, more accurate, and consistently available, giving decision makers the most valuable asset of all: a view of what’s coming.
In that way, an ERP driven by machine learning centralizes information, as before, but then refines it to make the right choice more apparent in any scenario. Nothing can predict the future or guarantee an outcome. With machine learning, however, your ERP makes you better informed than ever, even in dynamic or disruptive times.
A Roadmap for Manufacturers
Many manufacturers are already experimenting with machine learning and other forms of artificial intelligence. In the future, these will be foundational technologies, for the ERP along with all facets of manufacturing—but getting there comes with challenges.
Even though ERPs, with their vast data stores, and machine learning, with its vast appetite for data, are natural partners, they’re not automatically complementary. Issues with data readiness, integration with legacy systems, cybersecurity, and user adoption can all undermine the potential of machine learning and leave manufacturers behind the curve. That’s why we recommend a simple roadmap.
- Build a Data Strategy – Define the goals of using machine learning, pick metrics to measure success, assign leaders and stakeholders, and start mapping data sources and flows to ensure they’re suitable for machine learning.
- Pick High-Value Use Cases – Pick use cases—improving operational efficiency, elevating quality control, accelerating product development, enabling robot deployment—that will deliver high value, fast ROI, or easy wins, depending on your priority.
- Choose Vendors & Partners – Choose an ERP with robust machine learning intuitively incorporated with manufacturing-specific features, along with a partner who can translate the technology into a solution that meets your specific strategic objectives.
Ready to Get Started With Machine Learning?
Machine learning will drive tomorrow’s manufacturing, but the technology is here today. And it’s already helping real manufacturers gain confidence and clarity in spite of uncertainty.
How could machine learning impact your ERP, and your company outlook? Is your data in good enough shape to get started? What kinds of gains and timelines are realistic? Explore the answers with the manufacturing technology and ERP experts at Guide Technologies.
Contact us to see about your future.
