Technology

The Role of AI in the Development and Use of Modern ERP Systems – Expert Opinion of Mark Karelov

It’s hard to imagine the operation of a modern enterprise in almost any field without a well-written and properly configured ERP system. Decades ago, these programs were created entirely manually. Recently, however, technologies related to artificial intelligence (AI) have been increasingly applied in nearly all areas, even those that are remotely connected to the IT sector. To what extent this applies to enterprise management systems, we discussed with Mark Karelov, a professional in the field of implementation, training, and maintenance of various systems, as well as an IT manager with over 15 years of experience. Mark is also part of The Ventures, a prestigious club for founders and prominent tech leaders, focused on offering valuable venture capital insights and strategic support.

How can artificial intelligence assist in the development of modern ERP systems?

Oh, there are several aspects to consider. First, AI improves the design phase. It can analyze user requirements and suggest optimal architectural solutions, allowing developers to create more efficient and user-friendly systems. Moreover, artificial intelligence can automate part of the coding process, using technologies like automatic code generation and intelligent suggestions. This speeds up development and reduces the likelihood of errors.

Furthermore, AI is incredibly useful during the testing and debugging phase. This can be considered its “natural” environment. AI can automatically perform software testing, identifying bugs and vulnerabilities. The speed increases exponentially, and the overall quality of the final product is significantly improved.

AI can also analyze system performance in real time and propose optimization options, which help enhance the speed and efficiency of the ERP system.

Lastly, AI can play an important role in training and preparing teams. It can provide personalized learning materials for developers, helping them quickly master the new technologies and approaches necessary to create modern ERP systems.

What interesting and useful things can AI offer at the stage of using ready-made enterprise management systems?

Artificial Intelligence (AI) can significantly enhance the functionality of modern Enterprise Resource Planning (ERP) systems through several key capabilities. First, it is very helpful when it comes to process automation. AI can automate routine tasks such as data entry, order processing, and inventory management, allowing employees to focus on more strategic tasks.

Second, AI is capable of processing and analyzing large volumes of data, providing valuable analytical reports and forecasts. This helps in making informed business decisions, for example, in financial planning and inventory management.

The third important point I would highlight is personalization. AI-based systems can adapt to the needs of specific users or departments, offering personalized interfaces and features that enhance the user experience.

Another key benefit is improving customer service: AI-based chatbots and virtual assistants can provide 24/7 customer support, answering questions and helping resolve issues, which increases the level of service.

Additionally, AI can facilitate the integration of ERP systems with other business applications and platforms, promoting more efficient data exchange and improving the overall flow of information.

Finally, AI can be very useful in employee training, offering personalized courses and materials based on their current skills and needs.

To summarize, the use of AI in ERP systems not only increases efficiency and productivity but also fosters a more adaptive and innovative approach to business management.

A bit about your personal experience. You have been involved in several significant IT projects at Innoware. Could you tell us more about them?

We’ve worked on many projects, but two of them were particularly significant. The first was the implementation of an accounting system at the company JSC “Zaporizhtransformator,” one of the largest manufacturers of transformer equipment and electrical reactors in Ukraine. My task was to describe the business processes in the supply chain (SCM) at this enterprise and develop a “to be” model for future automation and implementation of the accounting system. During the project, the key processes were documented, agreed upon with the management, and automated. Based on this documentation and process map, we successfully launched the AXAPTA system into industrial operation.

The second major project was related to the implementation of an accounting system in the AIS Group of Companies, which at that time was the second-largest car and spare parts seller in Ukraine. This project was quite complex as it covered almost all areas of SCM processes: demand planning, procurement logistics, customs procedures, warehouse logistics, distribution across the dealer and retail network, and sales logistics. As a result, the project took several years to complete, and I worked closely with the client’s team. The outcome of my work was the successful launch of the Navision accounting system.

Was AI involved in these projects?

Yes, to some extent. The fact is that Dynamics 365 Business Central (formerly known as Navision) and Dynamics D365FO (formerly known as AXAPTA) are ERP systems designed for managing business processes in medium-sized to large enterprises, developed in the late 1980s and early 1990s. Since their creation, AI technologies have not been as advanced as they are today, so traditional AI wasn’t used in the development process of Navision and Axapta solutions.

However, over time and with technological advancements, Microsoft has developed its artificial intelligence solution called Copilot (https://copilot.microsoft.com). Microsoft began integrating AI elements into its products, including Dynamics D365FO and Dynamics 365 Business Central. 

As a result, customers who have invested time and money in implementing these systems and have kept them updated to the latest versions can use the power of AI within their current Microsoft solutions.

Therefore, we were able to utilize some AI-powered technologies, particularly in automating routine tasks, built-in business analytics, and virtual assistants.

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