How Big ERP Players Are Paving the Way for AI—and What It Means for SMEs
The world of ERP (Enterprise Resource Planning) systems is buzzing with activity as the biggest players, including Infor, Oracle, and SAP, are embracing generative AI (GenAI) to automate complex tasks, enhance decision-making, and streamline processes. But what does this mean for smaller enterprises? Let’s dive into what’s happening at the "big end of town" and speculate on how SME-focused ERP vendors might leverage these innovations. We’ll also explore how SMEs can take advantage of AI in practical ways, even without the robust processes and clean data that GenAI requires to thrive.
The Big Three: GenAI in Action
Alex Woodie’s recent article, “How ERP Giants Are Building GenAI Into Their Products”, offers a fascinating look at the innovations happening in the ERP space. Here’s a brief summary:
Infor: Leading with its "Embedded Experiences" and "GenAI Assistant," Infor is integrating GenAI directly into workflows across procurement, operations, and HR, among others. It leverages Amazon Bedrock and promises hyper-productivity through automatic insights and text-to-SQL translation.
Oracle: Oracle's suite is a GenAI powerhouse. It offers customisable GenAI models, pre-built tools like OCI Speech and Vision, and features like vector search in Oracle Database 23ai. It’s targeting advanced use cases, such as natural language querying and document automation, through its expansive Oracle Fusion Cloud Applications.
SAP: SAP is delivering targeted solutions under "SAP Business AI" and the GenAI co-pilot "Joule." These tools automate tasks like document extraction and job description writing while providing intelligent insights into spending and customer behaviour.
Each of these vendors demonstrates how GenAI can revolutionise ERP systems by automating repetitive tasks, extracting actionable insights, and improving user experiences.
The SME Landscape: Challenges and Opportunities
While the ERP giants are advancing rapidly, the path for SMEs is less straightforward. Many smaller enterprises face hurdles such as inconsistent data quality and less formalised, repeatable processes—key prerequisites for successfully deploying GenAI. Without these foundations, the promise of seamless automation might remain elusive for many SMEs.
However, SMEs can still reap benefits by applying GenAI to targeted aspects of their operations. Consider these areas where GenAI could offer immediate value:
Customer Communication: Generative AI can craft personalised responses to inquiries, proposals, or marketing campaigns, enhancing customer relationships without requiring extensive data setups.
Inventory Management: AI models can predict demand trends, helping to avoid overstocking or shortages, even with smaller datasets.
Production Planning: For manufacturing SMEs, generative AI can optimise schedules and workflows by simulating scenarios and suggesting improvements.
Content Creation: From writing product descriptions to drafting HR policies, generative AI can lighten the administrative burden on small teams.
Looking Ahead: What SME ERP Vendors Might Do
It’s likely that SME-focused ERP vendors will follow in the footsteps of the larger players but with a different emphasis. Instead of sprawling GenAI platforms, we might see:
Simplified AI Features: Tools like natural language queries or basic automation embedded in workflows could democratise AI adoption for SMEs.
Data Cleansing and Enrichment: To address the data-quality gap, vendors might offer AI-powered data preparation tools.
Niche Applications: Focused solutions tailored to industries like manufacturing or retail, where SMEs often operate, could deliver outsised benefits.
An Invitation to Explore AI for Your Business
The road to full-scale AI adoption may seem daunting for SMEs, but incremental steps can yield significant operational efficiencies. To help SMEs unlock these possibilities, I’m inviting you to join "AI for Solo Pros" program. In this hands-on course, you’ll learn practical ways to integrate AI into your business, even if you’re starting from scratch.
Let’s explore how AI can work for you—no hype, just real results.