Friday, February 26, 2021
  • Setup menu at Appearance » Menus and assign menu to Top Bar Navigation
Advertisement
  • AI Development
    • Artificial Intelligence
    • Machine Learning
    • Neural Networks
    • Learn to Code
  • Data
    • Blockchain
    • Big Data
    • Data Science
  • IT Security
    • Internet Privacy
    • Internet Security
  • Marketing
    • Digital Marketing
    • Marketing Technology
  • Technology Companies
  • Crypto News
No Result
View All Result
NikolaNews
  • AI Development
    • Artificial Intelligence
    • Machine Learning
    • Neural Networks
    • Learn to Code
  • Data
    • Blockchain
    • Big Data
    • Data Science
  • IT Security
    • Internet Privacy
    • Internet Security
  • Marketing
    • Digital Marketing
    • Marketing Technology
  • Technology Companies
  • Crypto News
No Result
View All Result
NikolaNews
No Result
View All Result
Home Data Science

Turn your ERP failures into optimization success

September 13, 2019
in Data Science
Discover how machine learning can solve finance industry challenges by Jannes Klaas
586
SHARES
3.3k
VIEWS
Share on FacebookShare on Twitter

ERP. No other three letters can strike such fear into the heart of a CFO. But why is this the case? And what can leaders do to solve this problem?

What is an ERP?

You might also like

How Machine Learning Discretely Assists Data Scientists

A Plethora of Machine Learning Articles: Part 1

AI Chatbot Platforms: The Best in the Market and Why to Consider

First a quick primer. The term Enterprise Resource Planning, or ERP, was first coined by Gartner in the 1990s. It describes software that evolved out of maintenance resource planning and manufacturing resource planning tools developed in the 1960s. By integrating new features like finance and accounting into these tools, companies were able to get a much more integrated view or their operations.

Who uses ERPs? 

The primary users of ERP are accounting, finance, logistics and production, but it’s hard to find anyone not affected by ERP implementations.

What are the main benefits of ERPs?

It’s important to understand that there are things that ERPs can do quite well, and that there are things that ERPs struggle with. ERPs have were traditionally designed to record activities against a work order, i.e. to process business transactions efficiently. Consequently, the benefits of ERP include:

  • Providing a central repository for most of your company’s data and business processes
  • Reduction of manual paperwork
  • Inventory management & expiration tracking
  • Automatic creation of accounts payable and accounts receivable
  • Traceability
  • Quality management 
  • Standardization of information and processes
     

(D)ERP

All sounds great so far, doesn’t it? Now for the bad news:

  • ERP failures are common. According to Gartner most ERP implementations fail
  • ERP implementations are expensive
  • ERPs take a long time to implement, generally measured on the scale of years
  • New ERPs may require business process changes
  • Organizational changes that occur mid-implementation could affect business processes
While cloud-based ERPs remove the IT burden of managing infrastructure, they still suffer from ERP integration issues. Furthermore, cloud-based ERP systems lack the customizability of their on-site predecessors.

ERPs are great at collecting data, not so good at interpreting

Despite the cost and long implementation time, ERPs are critical in helping organizations record data and business processes. They force departments to follow process and ensure that everything is properly tracked. And they are powerful tools for managing customer orders, purchase orders, manufacturing orders, field service requests, shipments and returns.

Where companies tend to face ERP disappointment is when they try to access this data (outside of a standard work order). Business reporting, analytics, predictive modeling – these are all very important use cases that are not easily handled by an ERP.

Perhaps it’s an issue of perspective. ERPs are good at outlining and policing business process. These work flows get coded into the ERP at implementation, becoming a static snapshot of the company’s process. Just like physical equipment however, over time these processes wear down and become inefficient. In contrast, businesses are dynamic, complex systems that change over time due to changing conditions.

 

How can you tell when your ERP is not working for you?

There are a few signs that your ERP implementation is getting a bit stale:

  • A proliferation of spreadsheets and manual workarounds are required to make things work
  • Significant effort is required to close financials, build forecasts and develop basic reporting 
  • You’ve experienced a lot of employee churn since the original ERP implementation or most recent upgrade
  • You and your team have a sneaky suspicion that the data you’re looking at isn’t accurate

Do you need an ERP upgrade?

Not necessarily. Many companies choose to manage reporting and analytics separately by extracting data from the ERP into a separate data repository (known as a data warehouse or data lake). The advantage to this approach is that companies can now take advantage of other modern reporting, dashboarding and analytics tools without the need for expensive changes to the ERP. Furthermore, data from other systems can be stored in a data warehouse, opening the possibility for even richer analysis.

Closing the loop and optimizing your business

Accurate reporting is critical for an organization, allowing employees to make informed decisions and avoid shooting from the gut. But reporting alone is not enough, as it generally involves an underlying assumption that business processes are static.

A more sophisticated approach is to combine reporting with activities targeted at identifying and removing inefficiencies within the organization. Over time a company’s environment changes because of changes in customer needs, competitive actions, aging processes, and organizational restructuring. These changes wear away at a company’s business processes, resulting in inefficiencies. Since these changes are gradual, companies often wait until their net effect is visibly noticeable, with a scattershot approach to identifying and fixing problems.

What if, in combination with your ERP, you could close the loop and continuously optimize business processes, inventory, throughput, and so on? By properly modeling different components of your business and continuously feeding these models with data from your ERP you can not only identify where inefficiencies exist – you can even get recommendations on how to fix these inefficiencies.

Such a system is not science fiction, but it does require accurate modelling of business processes. By building models that extract data from your ERP, identify optimal operating conditions, and then close the loop by feeding this data back into your ERP, your company will not only improve operations, but it will perhaps change ERP from being such a spiteful 3-letter acronym.

Originally posted here.

Credit: Data Science Central By: Matthew Gierc

Previous Post

AI Tool Detects Diabetes-Related Eye Condition Without Human Interpretation

Next Post

NZ to fund NZ$10m to support Pacific cybersecurity strategy

Related Posts

How Machine Learning Discretely Assists Data Scientists
Data Science

How Machine Learning Discretely Assists Data Scientists

February 24, 2021
A Plethora of Machine Learning Articles: Part 1
Data Science

A Plethora of Machine Learning Articles: Part 1

February 24, 2021
What are Data Pipelines ?
Data Science

AI Chatbot Platforms: The Best in the Market and Why to Consider

February 24, 2021
Modernizing Data Dashboards. – Data Science Central
Data Science

Modernizing Data Dashboards. – Data Science Central

February 24, 2021
4 ways Cryptocurrency is Benefiting the Fintech Industry
Data Science

4 ways Cryptocurrency is Benefiting the Fintech Industry

February 23, 2021
Next Post
NZ to fund NZ$10m to support Pacific cybersecurity strategy

NZ to fund NZ$10m to support Pacific cybersecurity strategy

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Plasticity in Deep Learning: Dynamic Adaptations for AI Self-Driving Cars

Plasticity in Deep Learning: Dynamic Adaptations for AI Self-Driving Cars

January 6, 2019
Microsoft, Google Use Artificial Intelligence to Fight Hackers

Microsoft, Google Use Artificial Intelligence to Fight Hackers

January 6, 2019

Categories

  • Artificial Intelligence
  • Big Data
  • Blockchain
  • Crypto News
  • Data Science
  • Digital Marketing
  • Internet Privacy
  • Internet Security
  • Learn to Code
  • Machine Learning
  • Marketing Technology
  • Neural Networks
  • Technology Companies

Don't miss it

Spy agency: Artificial intelligence is already a vital part of our missions
Internet Security

Spy agency: Artificial intelligence is already a vital part of our missions

February 26, 2021
Blockchain lags behind other technologies in finance adoption for now, says Broadridge
Blockchain

Blockchain lags behind other technologies in finance adoption for now, says Broadridge

February 26, 2021
Supercomputer-Powered Machine Learning Supports Fusion Energy Reactor Design
Machine Learning

Supercomputer-Powered Machine Learning Supports Fusion Energy Reactor Design

February 26, 2021
How 3D Cuboid Annotation Service is better than free Tool? | by ANOLYTICS
Neural Networks

How 3D Cuboid Annotation Service is better than free Tool? | by ANOLYTICS

February 26, 2021
21 Must-Know Instagram Facts for 2021
Marketing Technology

21 Must-Know Instagram Facts for 2021

February 26, 2021
Chinese cyberspies targeted Tibetans with a malicious Firefox add-on
Internet Security

Chinese cyberspies targeted Tibetans with a malicious Firefox add-on

February 26, 2021
NikolaNews

NikolaNews.com is an online News Portal which aims to share news about blockchain, AI, Big Data, and Data Privacy and more!

What’s New Here?

  • Spy agency: Artificial intelligence is already a vital part of our missions February 26, 2021
  • Blockchain lags behind other technologies in finance adoption for now, says Broadridge February 26, 2021
  • Supercomputer-Powered Machine Learning Supports Fusion Energy Reactor Design February 26, 2021
  • How 3D Cuboid Annotation Service is better than free Tool? | by ANOLYTICS February 26, 2021

Subscribe to get more!

© 2019 NikolaNews.com - Global Tech Updates

No Result
View All Result
  • AI Development
    • Artificial Intelligence
    • Machine Learning
    • Neural Networks
    • Learn to Code
  • Data
    • Blockchain
    • Big Data
    • Data Science
  • IT Security
    • Internet Privacy
    • Internet Security
  • Marketing
    • Digital Marketing
    • Marketing Technology
  • Technology Companies
  • Crypto News

© 2019 NikolaNews.com - Global Tech Updates