Machine learning and ERP systems

Machine learning i ERP sustavi


ERP systems are key to the integration and management of a company's business processes. Combined with Machine learning, they can do wonders for improving the efficiency of business processes. To ensure the complete transformation of your business, ERP and Machine learning identify, predict and solve problems. Also, they provide you, among other things, assistance in production, a better relationship between departments, access to advanced analytics, marketing proposals, while recognizing fraud. ERP systems with the application of machine learning are becoming necessary for modern companies that want to achieve successful business. The implementation of these advanced solutions brings numerous advantages, which you can read about in more detail below.


ERP systems they often play a central role in the company's operations. Using only one software, they enable the management of all business activities – including production, procurement, accounting and many other sectors. In this way, the entire business is in one place because your activities are interconnected. That increases your productivity and guarantees fewer errors. Among other things, all of the above is possible thanks to machine learning.

Machine learning is a subset of artificial intelligence (AI) that allows computers to learn and perform tasks without being programmed to do so. This technology is especially important when we talk about legacy ERP systems. These systems are based on old technologies and are no longer updated. Their initial purpose included performing tasks in a certain way, without the possibility of adaptation. This is why they are not very useful today. However, by applying Machine learning to such systems, you can significantly improve your ERP solution, making it more efficient and accurate in predicting future events. Thanks to machine learning, the existing legacy systems remain relatively competitive, but we would not advise sticking to them anyway. If you have such a system, you might want to consider changing the ERP solution.

But machine learning is not only used in the above example. This modern technology is extremely powerful and ubiquitous in modern ERP solutions. It easily contributes to improving the quality and efficiency of the program. Below we present several examples of how machine learning can really improve your ERP.

Advantages of using Machine learning in your ERP system

1. Identification and resolution of problems

Regular updating of the ERP system is essential for continuous and correct operation. Machine learning can help technicians predict and solve problems. Thus, ERP collects various data that it successfully processes thanks to Machine learning, enabling a precise analysis of the state and the steps necessary to solve the problem. In the future, a similar problem can be prevented because the system will recognize it in time and notify users. This gives you the ability to react proactively, instead of being forced to react to a problem the moment it arises. And anyone who has worked in slightly larger systems knows how valuable that is.

2. Help in production

Modern ERP system is crucial in production, but becomes indispensable when combined with Machine learning. Such a system can recognize processes that slow down production and offer a solution to increase production efficiency. It can also identify potential problems before they occur and prevent unnecessary downtime. The application of Machine learning can improve the precision of machines and reduce downtime. ERP system which is connected to the warehouse and procurement can determine when it is necessary to order the raw material, so that the production runs without interruption. Thanks to Machine learning, production becomes faster and more efficient, and the product itself is of better quality. Machine learning can perform its analysis much better and faster than humans. He bases all his knowledge on concrete data, and it cannot happen that he overlooks something.

3. Better relations between departments

ERP systems are often integrated with all departments within a company, creating a centralized system that connects all aspects of the business and simplifies daily activities. As we have already mentioned, the application of Machine learning enables the connection of warehouses, procurement and production, due to the determination of the optimal moment for ordering raw materials. Analyzing previous trends, the system can predict periods of highest and lowest demand and determine what is needed and in which period. Data will be available to all departments and employees at the same time, thus contributing to the improvement of their relationship and communication. Working in larger systems can be complicated due to the large number of different departments and sectors. Establishing regular and accurate communication is not necessarily easy. ERP and machine learning help develop better business processes and ensure that the same data is not kept in multiple places in the company.

4. Advanced analytics

The amount of data that needs to be analyzed in order to get a picture of the state of a particular company is becoming more and more massive over the years, especially when it comes to large companies. For this reason, this task cannot be done efficiently by employees because it requires a huge amount of time and brings a high percentage of errors. Therefore, ERP systems are responsible for this, with the help of Machine learning. Your ERP solution will thus simultaneously have an insight into the current state, past of the company and be able to predict future trends. For example, if you are engaged in sales, you can monitor the behavior of a specific group of customers on your site and adjust the offer to them in order to ensure a better percentage of conversions.

5. Marketing

Machine learning can help companies find new sales and marketing opportunities. Namely, companies have concrete insight into who buys certain products. Such analyzes are crucial because they allow companies to identify neglected market segments in their operations. By focusing marketing activities on this segment, the company can attract new customers and significantly increase its revenues. Machine learning can recognize opportunities where others don't see them and thus additionally help the company's progress. 

6. Recognition of fraud

ERP systems analyze the behavior of customers of a particular company in the long term. Thanks to machine learning, these systems can over time recognize patterns of behavior that are considered fraud. This is of utmost importance, especially in an age when banking and shopping are mostly done online. Nowadays, frauds are becoming more and more sophisticated and serious. But with the advancement of technology and software, they become more precise and faster in detecting fraud and errors, thus ensuring the safety of your customers and company.


Running a company is a challenging job regardless of its size. Keeping the entire business under control so that the company achieves the best results and profits requires a lot of effort. Monitoring business through dozens of reports from various departments is impractical, complicated and prone to errors that can have serious consequences. You have to take advantage all tools which are at your disposal in order to be successful and maintain a comparative advantage over others.

Fortunately, today's business is much easier for companies that use ERPs, especially in combination with Machine learning. Everything you need is in one place. Machine learning independently generates reports, monitors business and predicts trends. You can finally focus on the key aspects of your business and thereby increase your company's productivity.

Modern companies cannot survive on the market without implementing an ERP system that uses Machine learning. If you are interested in getting a comprehensive solution, feel free to contact us please contact with trust. Our NavBiz team is at your disposal!


Share on linkedin
Share on email