Moderated by Niyati Chhaya, Co-Founder at Hyperbots
Niyati: Hi everyone, good morning, good afternoon, and good evening. I’m Niyati, Co-founder and AI Lead at Hyperbots Inc. Today, we have Mike Vaishnav with us, a CFO, consultant, and strategic advisor to many privately owned organizations.
Before we delve into our discussion on how AI complements ERP systems, Mike, could you introduce yourself?
Mike Vaishnav: Thank you, Niyati. I’ve worked in Silicon Valley for almost 30 years across diversified industries in various roles, including controllership, FP&A, treasury, tax, investor relations, and operational roles. In my last two CFO positions, I managed fund, IT, legal, HR, and procurement functions. I’ve covered all aspects of finance and operations in different industries.
Niyati: Wow, that’s a broad range. Today, we’ll address our topic in three broad categories: the efficacy of ERP systems, how AI and ERP work together, and the actual integration of AI into ERP systems.
Niyati: You have been part of several large and medium-sized organizations. What kind of ERPs and business processes have you worked with?
Mike Vaishnav: I’ve used both small ERPs and large ERPs like Oracle and SAP. I’ve been involved in every module for ERP, including procure-to-pay, accounting, sales, and inventory processing. I’ve implemented ERP systems globally over the past 20 years.
Niyati: What gains do you see in companies through effective ERP implementation?
Mike Vaishnav: Key gains include process automation, process improvement, audit trails, and data security. ERPs provide detailed analysis and streamline financial information, moving away from manual processes.
Niyati: What are the challenges despite effective implementations?
Mike Vaishnav: Challenges often arise during data migration and integration with old systems. Proper testing and documentation are crucial to ensure successful ERP implementation. Companies should conduct parallel test runs in a test environment for about two to three months to ensure data accuracy before going live.
Niyati: Let’s now discuss how AI and ERP systems complement each other.
Mike Vaishnav: AI is complementary to ERP. It provides add-on solutions that make data analysis more effective. While ERP systems collect and process data, AI enhances the ability to make timely and informed decisions, especially in mid-size or small ERPs that may lack advanced data analytics capabilities.
Niyati: Can you give an example, like invoice processing?
Mike Vaishnav: Sure. In large ERPs, the entire procure-to-pay process is automated. However, mid-size or small ERPs might lack such automation. AI can automate processes like opening and approving POs, providing real-time answers to specific queries, and creating customized dashboards for different departments. This enhances efficiency and privacy.
Niyati: Why is it better to use AI to complement an existing ERP rather than upgrading to a bigger ERP?
Mike Vaishnav: Upgrading to a bigger ERP is a complex and costly process. AI add-ons can enhance the existing ERP’s capabilities without the need for a complete overhaul. This approach is more efficient and less disruptive.
Niyati: Where will the budget for AI come from?
Mike Vaishnav: Companies need to work smartly, balancing their budgets. AI can help automate high-volume transactions, improving accuracy and timeliness. In the long run, AI provides better return on investment by enhancing process and operational efficiency, ultimately adding to the bottom line.
Niyati: How should a company assess the need for AI in its various use cases?
Mike Vaishnav: It’s case-by-case. AI is customizable, so companies need to evaluate their specific requirements, budget, and departmental needs. SMBs, in particular, can benefit from AI add-ons to enhance their existing ERP systems.
Niyati: Do you see ERP vendors integrating AI modules themselves?
Mike Vaishnav: Some top-tier ERP vendors are incorporating AI solutions, but mid-tier and lower-tier ERPs are slower to adopt these technologies. AI can help enhance these existing systems, especially for SMBs.
Niyati: When does it not make sense for organizations to adopt AI?
Mike Vaishnav: For companies with low transaction volumes or extremely small operations, AI may be unnecessary. In such cases, manual processing by a single person might suffice.
Niyati: To summarize, AI is a good friend to finance professionals, complementing ERP systems. While AI will not replace ERP, it enhances the capabilities of ERP systems, especially for SMBs and mid-tier ERPs.
Mike Vaishnav: Absolutely. AI adds significant value to ERP systems, making processes more efficient and helping companies make timely decisions.
Niyati: Thank you, Mike, for sharing your insights on how AI complements ERP systems.
Choosing the optimal ERP (Enterprise Resource Planning) system for your business hinges on a range of factors including industry type, company size, budget constraints, specific requirements, and scalability considerations. It directly impacts operational efficiency, productivity, and competitiveness.
With a myriad of options available in the market, finding the right ERP solution tailored to your business needs seems like a daunting task. However, with careful consideration and strategic planning, you can navigate through the choices to find the perfect fit. In this comprehensive guide, we’ll explore the essential factors to consider and provide industry-specific mapping to help you choose the optimal ERP for your mid-sized business.
Different industries have distinct operational workflows and regulatory requirements. Here’s how various ERP systems map to specific industries:
For manufacturing enterprises, the leading ERP options encompass NetSuite, Acumatica Cloud, Epicor Kinetic, IFS Cloud, Infor CloudSuite Industrial, Microsoft Dynamics 365 Business Central, SAP S/4HANA, SYSPRO, Global Shop Solutions, and Plex Manufacturing Cloud, offering tailored solutions.
In the realm of mid-sized organizations, the favored choices encompass:
These platforms collectively address the intricate needs of mid-sized enterprises in the manufacturing realm, offering solutions tailored to production planning, inventory management, supply chain optimization, and shop floor control, thus catering to the sector’s unique demands.
Retail enterprises can leverage ERP solutions such as Microsoft Dynamics 365 Business Central, SAP Business One Professional, Oracle Retail Merchandise Operations Cloud, SYSPRO, QT9, Epicor Prophet 21, Oracle NetSuite OneWorld, and Acumatica for optimizing their operations.
The most sought-after selections for mid-sized organizations include:
These platforms equip retailers with functionalities for omnichannel retailing, inventory management, pricing optimization, and customer engagement, enabling them to deliver seamless shopping experiences to their customers.
Healthcare organizations can leverage ERP systems like Acuamatica, Aptean, Infor, Intact Software, S/4HANA, Focus X, Oracle Netsuite, and Infor.
The ERPs best suited for the mid-market segment are:
These solutions offer capabilities for patient management, electronic medical records (EMR), revenue cycle management, and regulatory compliance, enabling healthcare providers to enhance patient care delivery and operational efficiency
Professional services firms can benefit from ERP platforms like Acumatica, SAP S/4 HANA, Workday (Certinia), IFS, Oracle, Infor, Odoo, Sage X3 and Microsoft Dynamics 365 Project Service Automation.
The optimal ERP choice for mid-sized businesses are:
These systems provide features for project management, resource allocation, time tracking, and billing, supporting services organizations in delivering projects on time and within budget.
Within the hospitality sector, ERP solutions such as Infor Hospitality Management Solution (HMS), Tally.ERP 9, TYASuite, Oracle Hospitality OPERA Cloud, AlignBooks, Oracle Netsuite and Microsoft Dynamics 365 offer industry-specific functionalities.
Best-suited ERP for the hospitality industry in the mid-market segments are:
Both Oracle Hospitality OPERA Cloud and Microsoft Dynamics 365 offer industry-specific functionalities, scalability, and integration capabilities, making them ideal choices for mid-market hospitality companies looking for efficient ERP solutions, enabling hospitality businesses to optimize guest experiences and maximize revenue.
Apart from your business requirements, the level of customizations you require, the size of the business, the complexity of operations, and the number of users, are crucial factors that determine the overall ERP cost
Choose an ERP system that offers flexibility and scalability to accommodate your evolving business needs.
By following this roadmap and considering industry-specific mapping, cost, flexibility, and other key factors, mid-sized companies can confidently choose the optimal ERP, laying the groundwork for enhanced efficiency, productivity, and growth.