Vision to Value: Adopting Generative AI to Your ERP Strategy

Read Time: 5 minutes

GenAI uses data to generate new content, predictions, and insights, everything from text and code to simulations and visualizations. Within an ERP context, this means creating reports, analysing trends, or even predicting system failures. For a broader look at how AI is transforming industries, especially finance industry, check out our article on AI in Financial Services.

ERP teams must start exploring GenAI for innovation and automation, but it requires a clear understanding of what outcomes are expected to derive business value from novel combinations of content and data.

Figure 1: Definitions from AI to ChatGPT

Current Industry Practices and Maturity

Major ERP vendors are already piloting GenAI use cases within their cloud-based solutions. Here are a few examples: 

• HR: Generate job descriptions or automate performance review narratives. 
• Finance: Draft explanations for reporting variances. 
• Manufacturing: Predict equipment failure and generate maintenance documentation. 
• Supply Chain: Flag potential order issues and auto-generate customer notifications.

Organizations with on-premises ERP might need roadmap to minimize risks like high computing costs, implement proper internal controls, AI governance and ethical usages.

Ensure Alignment with Your ERP Strategy

Given majority usage to legacy and on-premises ERP, leaders must take a pragmatic approach, it is imperative to:

1. Evaluate your ERP technology roadmap to see what’s available, in development, or simply conceptual.
2. Assess scenarios that are relevant to your business and regulatory permitted e.g. data privacy requirements may stop you from getting meaningful insights.
3. Ensure the necessary data is available and reliable to support credible GenAI use cases.
4. Consider cost of licensing, usage, and infrastructure requirements when assessing feasibility.
5. Manage stakeholder expectations until the credible use case reveals the effectiveness and risks of GenAI adoption.

GenAI holds strong potential in future of ERP, but successful adoption requires alignment with your ERP strategy and the overall enterprise objectives.

How Crowe Can Help

At Crowe, we've supported global organizations propels their business transformation by adopting GenAI to power their SAP ERP capabilities. Starting from Zero-Cost Readiness Check, high-impact use cases identification to solution integration, we help our clients spurring the innovation and unlocking business potential of AI and modern ERP.