When it comes to ERPs, our friends at Epicor have a great term for thinking about the why of AI. They argue that when these software solutions are transformed by AI, they turn into “cognitive ERP.” In this blog, we’ll explain what cognitive ERP is, the benefits of this approach to your ERP, and how you can get started with that approach.

What is Cognitive ERP?

Cognitive ERP isn’t a new type of software: think of it more as a strategy to transform your current ERP system. As long as your ERP software has powerful and useful AI capabilities, any ERP system can become a cognitive ERP system. As Epicor CEO Steve Murphy explains, a cognitive ERP system is not just a system of record—it’s a system of action. Essentially, a cognitive ERP system is an ERP system that is used not just to store data, but instead to transform that data into actionable insights, analyses, and recommendations. These actionable insights produced by AI are sometimes called “contextual intelligence.”

For example, most ERP systems can tell you where a given component or part is in your warehouse and when it may need to be replaced. That’s the “data storage” aspect of ERP. However, cognitive ERP powered by AI can quickly help you determine the best vendor to deliver the replacement part, taking both time and price into consideration. In this case, the stored data feeds into “actionable insights” that save your company time and money.

Benefits of Cognitive ERP

 So, what are some benefits of achieving cognitive ERP through AI? Let’s think about the why. While there are many potential benefits, here are some of the most important:

• Creating people-centric AI: AI should be supporting your employees, not replacing or burdening them. In cognitive ERP, the use of AI tools is maximized—but these tools are solving very specific problems in defined and proven ways. For example, the internal AI search tool in a cognitive ERP system might be customized to have one-click answers to the most common employee searches or questions.
• Making more data-driven decisions: Through AI, cognitive ERP can analyze vast quantities of data and present concise summaries for your employees’ benefit. Research time and effort is no longer a barrier to making data-driven decisions quickly and easily.
• Achieving higher ROI on your software: Storing data is pointless unless it’s used. With cognitive ERP, you can get the most out of your ERP software, therefore truly maximizing your ROI. A cognitive ERP system uses all its capabilities in the service of your company’s most important goals.

Getting Started with Cognitive ERP 

The first step towards a cognitive ERP system is having an AI-powered ERP system in the first place. The next step is strategy. You need to make sure your ERP software has access to all the data it needs. You also need to make sure every AI tool that the ERP software offers is being used to solve real problems. This involves talking to users, extensive testing, and specific metrics of success.

There’s one other consideration worth noting: without AI capabilities and integrated software across your whole company, cognitive ERP is impossible. Here at Laminin, we specialize in document and information management systems that can integrate seamlessly with your ERP. If your ERP needs integration with a document management system to achieve its full potential as a cognitive ERP system, contact us today!