Industry 4.0: ERP software and Artificial Intelligence

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industry 4.0

In this post, we are going to discuss how ERP software and artificial intelligence are connected. To understand the difference, it is first important to understand what industry 4.0 is.

Industry 4.0 can be defined as the fourth industrial revolution that focuses on automating and upgrading the traditional methods of manufacture and industry activities with the use of modern technologies and equipment. The main focus of industry 4.0 is over the use of modern technologies such as IoT, AI, and big data, cloud computing, cybersecurity, ERP software, and much more. The major focus of industrialization is over the large machine-to-machine communications as well as IoT integrated hardware that can perform complex tasks and manufacturing activities.

Impact of industry 4.0 over ERP software

The industry 4.0 technologies are mainly crucial for the process of enterprise resource planning i.e. ERP. The major aim of the ERP software is to solve the business issues by reducing the manual activities and by having proper control over the internal and external activities of the business unit. The modern technology in the ERP system helps the business to have automation and better visibility over the manufacturing activities and supply chain management. This combination is useful to manage logistics activities, managing the workforce, inventory tracking, automated resource planning, and much more.

The use of industry 4.0 is crucial to strengthen the CRM and HRM activities of the business. Advanced big data analytics help the units to analyze and process massive changes in the structured or unstructured data of customers as well as businesses. At the same point, the use of AI algorithms helps to understand the hidden patterns of any activity and have a clear insight of the customer data and understand their preferences, likes, dislikes, buying patterns and much more to make better decisions. Also, CRM activities can be improved and managed well to provide better customer services. Along with all these, a few of the businesses also use machine learning concepts and algorithms to automatically manage the website traffic, usability and deliver personalized and customized data to the customers.

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In the same manner, cloud computing is also an inseparable part of modern systems leading to a rise in data security issues. The usage of cloud technology allows businesses to manage their business elements efficiently with an increase in scalability, security, and flexibility. The cloud storage allows easy access and real-time access to the data from any place and through any device having an internet connection and access rights. Other major benefits of using industry 4.0 are quick migration, reduced IT costs, workforce management, easy integration, and much more with the business tools.

Having understood the meaning and usage of industry 4.0, let us now understand a few of the benefits of using it.

Importance of data

As we discussed in the above section, the ERP software is designed to meet the requirements of reporting and visualization within the software. The industry 4.0 standards with software can help to visualize the floor events and improve the same. This visualization helps to understand, analyze and manage historical data and business trends. Also, it becomes easy to take strategic decisions. The automated decision-making with the help of software helps to understand and analyze the collected data as well as the cost associated with the collection procedure. The cloud subscription of the software allows to store, organize and access the data in an efficient manner.

Making data useful

A lot of data is collected through automated systems and all the data is stored at some of the other points. All the data might not be useful and necessary and hence it is important to remove the unnecessary data. The ERP software in the first place helps to understand where the profit lies and how to increase the efficiency and productivity thereof to increase profit and make better decisions. With the help of industry 4.0, the right data can be used in the right amount at the right place and with the right device. The modern dashboards, automated machines, intelligence, rules-based activities and much more are helpful.

Improvement in data and information

The major question that arises every time is how exactly the data is handled within the ERP system and how industry 4.0 will help do so. The days are gone when the data was collected in the traditional forms from the users and was entered into the system for storage and analysis. The modern ERP software can automatically take inputs, convert into an organized format and store them accordingly.


This was a deep explanation of what industry 4.0 is and how the combination of ERP software with industry 4.0 and artificial intelligence can help to achieve better and improved results.

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Akshay Bhimani is a Software Analyst at Techimply, India. With experience in the technology-driven field, he has mastered his knowledge on How(s) and What(s) to be done for a business. Also, he's keen to share his knowledge on a few technology-related topics such as cloud technologies, ERP, CRM, POS software, and data security with readers that can assist any kind of business.

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