ASCM (aka APICS) professionals say any problem prevented during planning costs only a penny; a problem resolved pre-production will cost a dime; problems not solved until they make their way onto the shop floor costs more than a dollar; and if repairs are needed at the customer’s facility, the lost goodwill and future business loss can cost thousands. Today AI is providing the ability to fix problems proactively and immediately instead of reactively.
Not everyone is AI fluent, however it is not just a future tool anymore. It is becoming mainstream and is transforming how we work and live. Most have played with ChatGPT for creating job descriptions, product specifications, even for editing emails and articles ensuring proper English, etc. Hence expensive staff are able to avoid the routine and can now focus on higher-value activities. If nothing else Co-pilot, Beamer.AI, Ninja.AI, and ChatGPT are catching everyone’s attention.
Consequently, the perception of ERPs that include AI technology is becoming a ‘must have’. (e.g. Microsoft & Copilot and Infor Generative AI, etc.)
As a result, this 2-vowel acronym is now being leveraged to bypass business politics and bureaucracy (see cartoon above). However, the real benefit of AI digital transformations is not just getting approvals funded. It is about the value and the benefits AI provides. However, as with everything in life there are always pros and cons.
AI is not:
- Meant to replace human thoughts or actions.
- Intended to replace soft skills such as relationship building.
AI is:
- Allow you to invest more time in more challenging tasks.
- By simulating human intelligence to rationalize data and logic.
- Help perform mundane tasks such as data entry.
Some AI Use Cases Have Already Seen High Value Returns
One such example is Combilift, an Ireland based forklift manufacturer whom have adopted AI with open arms. Utilizing Infor CloudSuite’s built in Infor AI, Combilift have developed their ‘Infor AI Parts Recommender’. So far, they have achieved 30% faster completion of service jobs and they have the exact parts for any service request available 75% faster. Combilift is now able to provide the best possible customer service experience each and every time.
Software Development
Companies will always expect requirements that all new ERPs may not natively support. Instead of hiring expensive custom programmers to meet their needs, AI can generate code just from conversational business case descriptions. Users can get the answers to verbally ask questions such as “How much of part ABC did customer 123 purchase last year?”
eCommerce
On average consumers spend 50 seconds on any e-commerce landing page. If you cannot catch their attention immediately, they will go to someone else’s landing page. Utilizing AI, your audience can be self-guided ensuring an enjoyable transaction experience. Some sites even combine 3D imaging with system logic to make decisions even easier. Manufacturers are now providing e-commerce capabilities that are easy to navigate and very attractive.
Supporting Quality Control Processes
Predicting part wear trends for proactive and predictive maintenance schedules.
More well-known Case Studies:
- Boeing uses AI to analyze flight data, engine performance, and weather conditions to proactively predict aircraft failures.
- Rolls-Royce uses AI to analyze jet engines sensor data to predict potential faults.
- GE Aviation's Predix Platform uses AI to analyze aircraft engines data, predicting maintenance demands well in advance of critical failures.
Is AI For You?
Validate your business value proposition
Define a clear set of business benefits that justify an AI investment. These two questions are a good start:
- How much waste will be reduced?
- Inversely how much throughput will be increased?
Consider the Risks
To recognize trends, AI relies on large data sets, which raises concerns about how that data was collected, and being used. These large data sets can cause intellectual property privacy breaches, as well as ethical concerns. E.g., search engines can prioritize results based on user preferences and location, however, AI can also impact biases.
As with all software, objective reference checks are recommended
Contact customers using these AI agents already. Ask why they did it, what their original intentions were and if there were any goals the initiatives they were not able to accommodate?
AI projects can result in amazing by-products
An amazing AI by-product has resulted from manufacturers evaluating ERPs these days. They are short-listing ERP vendors that have a compelling AI story (and tend to reject those that don’t). Other companies going up for sale or going public are purchasing AI technologies to portray a leading-edge façade (increasing their value).
Another amazing by-product has been as more tasks are delegated to AI, employees that already own ‘soft skills’ (e.g. rapport building) are becoming far more valuable for customer service.
Yet the most amazing AI by-product I have ever heard has been from my grandchildren. They think that AI is just part of a nursery rhyme called Farmer in the Dell.
Author
Andy Pratico
Business Improvement Advisor & ERP Evaluation Coach
Too many companies purchase ERPs and never get the benefits they expected when they bought. I try to educate manufacturers on how to uncover the truth about ERP systems, before you put pen to paper. If you know the truth about ERP systems, you can easily make their own informed decision. The trick is how to navigate throughout the thick marketing obstacles and get to the see the true core.
