Artificial Intelligence : Part one

>> Tuesday, July 26, 2011

Enterprise Resource Planning is domain of software development that relates itself with incorporation of all inbound / outbound sections of an organization. These sections may include Customer Services, Operations, Sales, Administration, Finance and Human Resource. Being researched since 1990s, ERP is one of the most successful software development partitions proved to align businesses to avail high degree of efficiency. The aim of this incorporation is to facilitate seamless flow of useful data across all over the organization to consequence data access by anyone, anytime – all with ease. ERP systems can run on a variety of hardware and network configurations, typically employing a database as a repository for information.

Artificial Intelligence is induced intelligence and sense of understanding in hardware / software that lets them take decisions under certain complex situations. AI includes deduction, reasoning and problem solving to attain critical decisions. For more complex and mission specific problems, certain algorithms are used.

The induction of AI idea in ERP software emerged with increasing importance of both terms. ERP is one of the most expanding techniques used in corporate businesses. AI is another growing idea that can be a fit for any field. AI, generally termed as BI (Business Intelligence) in businesses, can affect company’s efficiency in very positive fashion. ERP modules collect the data from multiple departments of an organization. BI focuses on analysis of the very same data to provide information oriented decision making that can anticipate for every individual of organization – from Personal Assistant to CEO. Another important positive outcome of inducing BI in ERP software is accelerated speed with which a process cycle is completed. More informed and more focused reporting tools correspond to a quicker decision when presented to an individual – result is overall increased organizational efficiency. Data control is maintained throughout the cycle and data visibility is ensured to attain the predefined organizational goals.

Competitive Analysis of ERP is often practiced versus purpose specific applications where both are found possessing pros and cons. ERP is found better due to its better integration with business purposes that are generally considered as versatile. The reduced time for taking important decision is another benefit attributed towards ERP. The errors committed by ERP Solution in general are lesser then those committed by purpose specific application. Data and resource visibility is another plus by ERP. These attributes corresponds to the better sales procedure, shrinking extra inventory volume thus endorsing overall organizational efficiency. Sale process is visible to every needed individual that results in quick and speedy cycle. Organization can predict the revenue based on previous tracks with the help of ERP. Since ERP Solution centralizes business cycles, it eliminates the need of data synchronization among various organizational components. There is always single database covering every resource thus removing any possible unnecessary complications. Product nomenclature, versioning and tracking is not a general feature of purpose specific application, unlike ERP. Real-time information can be made available anytime, to anybody using ERP. Information security to specific individuals/departments is more flexibly provided by ERP as compared to other applications.

There are however some negative attributes using ERP. ERP can be proven as complex to handle when it comes to customization. ERP, once deployed is very hard to be re-deployed and in such case, there is large chance of damage to critical activities going on. Cost is another factor that avoids organization to adopt ERP solutions. Equipment used in ERP Solutions can increase organizational expenses. Information sharing across departments and resistance faced while so can deviate attentions as well. Extent of training involve in getting used to with ERP is another negative associated with it.


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