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The traditional role of ERP in planning and operations is rapidly evolving with the advent of AI technologies. Application leaders must now rethink their strategies to leverage AI, driving smarter and more automated ERP systems.
Key Points:
- AI Adoption: Generative AI is gaining traction among ERP vendors, but its integration is still in early stages. This technology promises significant potential for enhancing ERP capabilities.
- Automation Demand: Enterprises are shifting from using ERP solely for planning to seeking systems that can autonomously execute those plans, increasing the demand for automation.
- Investment Focus: Although ERP remains a top investment, many organizations still view it as a technology expenditure rather than a driver of business outcomes, limiting its full potential.
Recommendations:
- Rethink ERP Architectures: Move away from static, outdated ERP models and embrace strategies that support automation and agility in business operations.
- Invest Smartly: Balance AI innovation with essential investments to create future-proof ERP systems.
- Enhance Automation: Use ERP upgrades as an opportunity to integrate automation and business process orchestration, making systems more responsive and efficient.
Strategic Insights:
- By 2027, less than 30% of customers that adopted the new solutions from ERP megavendors will have proven their original adoption business case.
- By 2027, at least 50% of the AI-enabled features within ERP applications will be enabled through generative AI capabilities.
- By 2027, 60% of customers replacing ERP applications will select software for the platform and business process orchestrating capabilities rather than transactional planning capabilities.
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Gartner, Predicts 2024: ERP Evolves Planning with Automation and AI. Denis Torii, 5 April 2024
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