Organizations are ditching side books and upping compliance audits while exploring the impact AI, blockchain and augmented reality will have on their enterprise resource planning systems.
ERP systems are essential to enterprise operations. Yet this core organizational workhorse may not get as much attention as your other systems. That’s a mistake, as significant opportunities to improve cash flow and reduce risk await those who attend to the health of their enterprise resource planning systems.
Here’s a look at how organizations are revamping their use of ERP systems to improve organizational outcomes.
ERP takes aim at accounts payable
Manually processing payments to suppliers and other stakeholders can be a significant burden. Add in the rise of fraud, and you can see why there is an increasing desire to centralize accounts payable in ERP. And the rise of AI in ERP tools is helping to fuel this trend.
“We are seeing more AI and machine learning be used to make decisions on payments in the enterprise. For example, deciding when to take an early payment discount on an invoice payment is area where AI impacts ERP,” explains Mickey North Rizza, program vice president for IDC’s enterprise applications and digital commerce research practice
“We are also focusing on the universe of payments; increasingly we see companies wanting to approach payments in a centralized way so that they can make sure they are paying and receiving the right amounts,” explains Brian Shannon, chief strategy officer at Dolphin Enterprise Solutions. “While many CFOs focus on the inbound cash and cash application process, outbound payments are where cash leaves the business and provides CFOs with the greatest degree of control over corporate cash. The ability to control payments is an even greater concern for CFOs when you consider that 75 percent of all companies experienced attempted payment fraud in 2017.”