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Artificial Intelligence and Digital Assistance Integration into ERP Systems

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171204​ ​MBA9318.​ ​Artificial​ ​Intelligence​ ​and​ ​Digital​ ​Assistance​ ​Integration​ ​into​ ​ERP​ ​Systems,​ ​ERP​ ​Research​ ​Paper.
Fatima​ ​W.​ ​Awad,​ ​Rizky​ ​D.​ ​Meidina​ ​&​ ​Ahmed​ ​A.​ ​Al-Anesi

Artificial​ ​Intelligence​ ​and​ ​Digital​ ​Assistance​ ​Integration

into​ ​ERP​ ​Systems

Hanyang​ ​University​ ​School​ ​of​ ​Business,​ ​South​ ​Korea

Organizations​ ​in​ ​the​ ​Digital​ ​Age,​ ​Professor​ ​Sean​ ​Watts

Fatima​ ​W.​ ​Awad,​ ​Rizky​ ​D.​ ​Meidina​ ​&​ ​Ahmed​ ​A.​ ​Al-Anesi
fatima.wafic@gmail.com​​ ​/​ ​rizkydharana@yahoo.com​​ ​/​ ​aanesi@gmail.com

Abstract. ​This paper provides an insight about how artificial intelligence (AI) can be
useful for managers when it’s integrated with enterprise resource planning (ERP)
system. Chatbots are one of digital assistance applications that are widely used in
different areas. This paper is a literature-based research and is conducted by analyzing
both theories as well as secondary data. The findings of this paper suggest that
AI-based ERP system in a form of chatbots can save managers’ time because AI-based
ERP can do automation, thus the managers can devote more on the things only human
can do. Another finding is that AI and chatbots will improve the ERP system and
make the system as well as the usability easier to manage. Finally, we address some
potential biases related to integrating Chatbots into AI-based ERP systems and discuss
implications​ ​for​ ​future​ ​research.

Keywords. Enterprise resource planning; artificial intelligence; chatbot; decision support system;
digital​ ​assistance

1. Introduction how human brain works (Sharma and

The purpose of this study is to explain how
artificial intelligence (AI), digital assistance
(DA), and enterprise resource planning (ERP)
systems can be integrated and how it can be
useful for managers. Artificial intelligence’s
goal is to make software works like human
brain and therefore can do deep analysis like
Srivastava, 2017). Chatbot is one of digital
assistance applications that are widely used in
different purposes such as commercial,
entertainment system, and business purposes,
and it’s getting attention because it’s believed
to save time on customer service (Reshmi and
Balakrishnan, 2016). It works using natural

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171204​ ​MBA9318.​ ​Artificial​ ​Intelligence​ ​and​ ​Digital​ ​Assistance​ ​Integration​ ​into​ ​ERP​ ​Systems,​ ​ERP​ ​Research​ ​Paper.
Fatima​ ​W.​ ​Awad,​ ​Rizky​ ​D.​ ​Meidina​ ​&​ ​Ahmed​ ​A.​ ​Al-Anesi
languages, as it’s defined as interaction
between human users and software (Han,
2017). A ERP system, on the other hand, is a
system which an organization can use to see
integrated business at the same time
(Sudhaman and Thangavel, 2014). ERP
systems are able to collect wide range of data
about organizations, however, in its early
editions, it lacked the ability to analyze the
data and generate more useful support and
insight for the decision-making process.
Therefore, the need of AI integration into
ERP systems increases in order for it to
enhance its functionality enough to be able to
analyse and generate decisions/actions
suggestions. Finally, this paper will also
discuss the feasibility of integrating the DA as
a communication medium with the ERP and
value it can add to the overall offering of ERP
systems. Nevertheless, overviewing the
limitations of the technology and areas of
improvements and recommendations for
future​ ​research.
2. Literature​ ​Review
2.1​ ​Enterprise​ ​Resource​ ​Planning
Around 1990s a new software system known
as enterprise resources planning (ERP)
emerged (Rashid et al., 2002; Hong and Kim,
2001). This new software system was a new
development and quite different from the
conventional IT systems. The ERP systems
were designed ​“to integrate all core functions
of an enterprise regardless of the business
type or charter” (Sudhaman and Thangavel,
2014). In other words, ERP system were
viewed as vehicles which organisations could
use to achieve a state where everyone in an
organization could see what everyone else
was doing in the business all over the world at
the same time (Ibid.). According to Lujic et
al. (2005) ERP ​“is a systematic method of
dynamically balancing and optimizing the
resources of a company”​. When they are used
correctly they enable an organization to
achieve great results in growth, profitability
as well as product and service development
(Ibid.). ERP systems are modular in design
which means that they are flexible and can be
customizable to offer the best business
practices (Rashid et al., 2002). The modules
work in real time and can either work as
stand-alone units or combined as several
modules to form an integrated system
(Gargeya​ ​and​ ​Brady,​ ​2005;​ ​Lujic​ ​et​ ​al.,​ ​2005).
The aim of ERP systems is to integrate
systems not only across the departments but
also across the whole enterprise (Lujic et al.,
2005) Thus, when implemented in an
organization ERP system has both advantages
and disadvantages (Appendix 1). Looking at
the former ERP systems provide reliable
information access, better information
management, better control of information,
increase productivity, more effective
decision-making, etc. (Jagoda and
Samaranayake, 2016; Zughoul et al., 2016).
On the other hand, implementing ERP
systems are very time consuming and
expensive which is also very costly for an
organization.
Companies also need to consider that ERP
systems have many features and modules
which may be difficult to understand and
work with (Rashid et al., 2002). In this regard,
there are problems that ERP systems faces
such as the compatibility with the
development of hardware and software, the
integration as well as the development of the
data between the modules (Zughoul et al.,
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171204​ ​MBA9318.​ ​Artificial​ ​Intelligence​ ​and​ ​Digital​ ​Assistance​ ​Integration​ ​into​ ​ERP​ ​Systems,​ ​ERP​ ​Research​ ​Paper.
Fatima​ ​W.​ ​Awad,​ ​Rizky​ ​D.​ ​Meidina​ ​&​ ​Ahmed​ ​A.​ ​Al-Anesi
2016). One of the most significant challenge
that ERP systems face are the drastically
changing business environment, this is
time-consuming and expensive (Ali and
Miller, 2017; Zughoul et al., 2016). The
constant challenge of expanding market that
companies face consist of increasing
competition, business requirements as well as
rising customer expectations which puts more
pressure on companies to reduce total costs
with less time (Zughoul et al., 2016). This
means that ERP vendors are constantly
improving and evolving the ERP system in
order to meet the demands of business
changes to allow organizations to adapt faster
to changes in the business environment
(Ibid.).
2.2​ ​Artificial​ ​Intelligence
While ERP systems were a practical tool for
production environment due to the reporting
capabilities. Decision makers and C-Level
executive needed more Business Intelligence
(BI) capable tools that can help them to
analyse the big amount of data that ERP
systems are capable to collect in order assist
them to make better decision (Lin et al., 2017;
Lujic et al., 2005). At that point, the Artificial
intelligence (AI) was that missing tool the
decision makers were looking for. AI is
intelligence shown by machines or software
(Oana et al., 2017). Research in artificial
intelligence’s purpose is to make intelligent
agent that can understand the environment
and then able to take decisions, through
artificial neural network, and the goal of
artificial intelligence is to make software
works like human brain as human brain can
do deep analysis and perceive its environment
and then takes decision based on it (Sharma
and Srivastava, 2017). Artificial intelligence
technologies are believed to be able to find
important facts, patterns, relations, and/or
other types of new knowledge that would not
have been found using standard analysis
techniques (Nemati et al., 2002). Liebowitz
(2001) and Nemati et al., (2002) also argue
that the combination between Decision
Support System, artificial intelligence, and
information technology can enhance
knowledge​ ​management.
Artificial intelligence is not new in business
environment. Keenoy (1958) findings talk
about development in automations and their
possible effects on accounting, because there
has been need for more analytical information
on sales, inventory and usage, and
manufacturing and distribution cost. Kokina
and Davenport (2017) stated how artificial
intelligence is changing auditing, especially in
structured and repetitive task performed
throughout​ ​the​ ​audit.
According to Kokina and Davenport (2017),
artificial intelligence can detect relevant
information, extract it from document, and
make it usable for human auditor and thus can
devote more time to areas that require more
human judgement. This is consistent with
Kolbjørnsrud et al (2016) who stated that
managers’ time are mostly used for
administrative works, while it should have
been devoted to more important things that
machines cannot do like human judgement.
So, the managers should leave the
administrative works to artificial intelligence
since it will save managers a lot of time to do
the​ ​things​ ​that​ ​only​ ​human​ ​can​ ​do.
Despite the advantages of artificial
intelligence, it also has limitation. For
example, Hammond (2016) points out the
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171204​ ​MBA9318.​ ​Artificial​ ​Intelligence​ ​and​ ​Digital​ ​Assistance​ ​Integration​ ​into​ ​ERP​ ​Systems,​ ​ERP​ ​Research​ ​Paper.
Fatima​ ​W.​ ​Awad,​ ​Rizky​ ​D.​ ​Meidina​ ​&​ ​Ahmed​ ​A.​ ​Al-Anesi
lack of objectivity and cautions of artificial
intelligence, they tend to reflect the biases of
human who creates it. Kokina and Davenport
(2017) also points out that there is data-driven
bias, which makes biased outcome because
the flaws of the data itself, bias that occurs
when the machine learn the biases of the
people who train them, emergent bias which
happen when machine shield human from
conflicting point of view while providing
them with information that confirms their
preferences, also conflicting-goal bias which
is an unforeseen bias that occurs as a result of
stereotype-driven human interaction with the
system.
One of artificial intelligence comes with a
form of chatbots. Chatbot is an artificial
intelligence program that interact with users
using natural languages (Madhu et al., 2017).
Chatbots are said to be considered as classical
media for natural language interaction
between human and machine. It’s also
becoming more important as it has many wide
range of application such as virtual assistance,
e-commerce, social networking (Reshmi and
Balakrishnan,​ ​2016).
2.3​ ​Chatbots
According to Han (2017) ​“A chatbot is an
automated, yet personalized, conversation
between software and human users”​.
Chatbots are programmed to simulate human
natural language responses. Due to its
unbiased and balanced reactions, regardless
how tense is the situation, many companies
tend to use it for customers interaction
mediums. Chatbots currently are able to use
the most current relevant communications
such as email, live chat, etc. to communicate
with users. Moreover, Chatbots are becoming
increasingly important for scientific,
commercial, and entertainment systems as
well. They have a wide range of applications
such as virtual assistance, artificial tutoring,
e-commerce, and social networking and have
the potential to renovate the way the
human–computer interactions take place.
Currently, chatbots are used by hundreds of
thousands of web and mobile users to
facilitate access to data, knowledge or service
bases and to carry out generic conversations
based​ ​on​ ​that.
Companies invest thousands and millions of
dollars into their ERP systems and into
making it more efficient and productive
enterprise tool. For that aim, AI has highly
contributed into expanding the usability of
ERP into the BI and Decision Support
Systems (DSS) level. However, the user
interface (aka User Experience) has not
changed much, and the user still have to deal
with two or more applications or reporting
engine during the decision-making process.
To simplify the user’s experience and
consolidate all the interaction into one
channel, ERP system vendors are considering
adding AI-based chatbot to their existing ERP
to improve the productivity and efficiency of
the​ ​ERP​ ​system,​ ​aka​ ​DA.
3. Research​ ​Methods
This paper is conducted by using a
literature-based approach. The analysis is
compiled from literature which reflect our
observations. This method has been used by
previous authors (Thang et al., 2007) and thus
it is a good way to conduct research because
it ​“allows for more subtle insight and
understanding of reality that is difficult to
capture by quantitative approaches alone”
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171204​ ​MBA9318.​ ​Artificial​ ​Intelligence​ ​and​ ​Digital​ ​Assistance​ ​Integration​ ​into​ ​ERP​ ​Systems,​ ​ERP​ ​Research​ ​Paper.
Fatima​ ​W.​ ​Awad,​ ​Rizky​ ​D.​ ​Meidina​ ​&​ ​Ahmed​ ​A.​ ​Al-Anesi
(Thang et al., 2007). Furthermore, this paper
will also include secondary data and theories
to establish an understanding of AI and
chatbots and how they are useful for ERP
systems. Hence this paper will be based on
previous findings of academic journals and
former​ ​studies​ ​regarding​ ​our​ ​subject.
Because of a limited timeframe this paper
will be based on qualitative research only.
Thus, it is important to take note of the
disadvantages of only using qualitative data.
Qualitative methods lack the statistical
validity and reliability that quantitative
research contribute with (Bjørner, 2015).
Therefore, qualitative research ​“cannot be
used to test hypotheses” (Ibid). Consequently,
limitations will occur. If more time was at
hand quantitative data and triangulating
would be applied to strengthen this paper’s
validity​ ​and​ ​reliability.
4. Results​ ​and​ ​discussions
Our findings show that integrating AI and
Chatbots into ERP Systems will help
managers to deliver more effective and
efficient outcomes. In addition, one outcome
is to automate the routine administrative and
coordination tasks for better time utilization.
This means that AI saves time for managers
because they don’t have to use their time for
administrative work because AI will do it for
them. Therefore, managers will only focus on
making​ ​human​ ​judgements.
According to Bas (2016) ​“AI-enabled ERP
solutions will by default impact the heart and
soul of day-to-day operations”​. In addition,
Figure 1 shows that managers spend most of
their time on administrative coordination and
control. By integrating AI and chatbots into
ERP​ ​systems​ ​managers​ ​are​ ​able​ ​to​ ​spend
Figure​ ​1
How​ ​Managers​ ​Spend​ ​Their​ ​Time
Source:​ ​Kolbjørnsrud​ ​(2016)
more time on other things such as solving
problems and collaborating, making strategy
and innovation, as well as developing people
and engaging with stakeholders which (at the
moment) no machine alone can do. Kokina
and Davenport (2017) argues that humans
don’t have the capability to process all the
information that they get in a short time span,
therefore humans only focus on the most
important data to make decisions. Because of
that the traditional human approach to
analytics and decision-making is something
that is hard to do. With AI and chatbots
integrated with ERP system, managers will be
able to devote their time less on
administrative works and focus more one
decision making and the things only humans
can make and thus leave the administrative
works​ ​to​ ​the​ ​improved​ ​ERP​ ​system.
Another outcome of the integration is that AI
and chatbots will improve the ERP system
and make the system as well as the usability
easier to manage. According to Rashid et al.
(2002) ERP systems have too many features
and modules which makes it difficult for the
user to manage as well as use. In many
scenarios, lacking the skills of using the ERP
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171204​ ​MBA9318.​ ​Artificial​ ​Intelligence​ ​and​ ​Digital​ ​Assistance​ ​Integration​ ​into​ ​ERP​ ​Systems,​ ​ERP​ ​Research​ ​Paper.
Fatima​ ​W.​ ​Awad,​ ​Rizky​ ​D.​ ​Meidina​ ​&​ ​Ahmed​ ​A.​ ​Al-Anesi
systems prevents the access to the right
information. ERP market has different major
suppliers and lacks standardization. In other
words, when a manager, who is familiar with
SAP ERP system, moves to another company
that uses Oracle ERP system it will require
some training before being able to fully
utilize it. The learning curve varies from one
ERP system to another, and from a person to
another. But at the end, it is a necessary
procedure in order to fully utilize the ERP
system. However, integrating Chatbots and
AI into the ERP system will make the
interaction with the ERP system more natural
and will reduce the negative effects of the
learning curve. In addition, one of the main
features of AI is the ability to learn
throughout time and being able to suggest
decisions and actions based on the
accumulated knowledge throughout time. By
interpreting this knowledge through a Natural
Language Programing (NLP) fine-tuned
interaction, managers will act more natural
while interacting with chatbot during the
analysis and decision process (Zhuang et al.,
2017). Therefore, they will be more focused
into analysing the data rather than being
distracted on how to get the data from the
ERP​ ​system.
5. Conclusion and Implications for
Future​ ​Research
While relying on DA as interacting medium
with ERP system might sound promising,
however, it is still considered as a
revolutionary User Interface (UI). Legacy
Command Line Interface (CLI) and current
widely used Graphical User Interface (GUI)
share one main similarity which is tangibility.
However, DA is bringing the user experience
into another level where the user doesn’t have
to physically interact with computer to do
their work (Figure 2). However, the new
DA-based interface is still new and the
adaption of the technology is still young to be
trusted​ ​as​ ​user​ ​interface:
“We already have a certain relationship,
whether positive or negative, to technology
that we can touch and see. But when I don’t
see a DA, how can I rely on this entity? It
means that I have to strengthen the trust and
the relationship. The DA has to feel like an
authentic person to me who I can rely on.”
says Prof Krajewski, cited by Waisgluss
(2016)
Figure​ ​2
Relationship​ ​between​ ​ERP,​ ​AI​ ​&​ ​Chatbot
Another important field for future research
would be to examine the ability of engaging
AI in appropriate judgement and decision-
making. AI requires a training and knowledge
transfer period in order to learn about the
environment they are functioning in and how
the decisions are made. Therefore, they tend
to reflect the opinions of the trainer rather
than​ ​being​ ​more​ ​objective.
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171204​ ​MBA9318.​ ​Artificial​ ​Intelligence​ ​and​ ​Digital​ ​Assistance​ ​Integration​ ​into​ ​ERP​ ​Systems,​ ​ERP​ ​Research​ ​Paper.
Fatima​ ​W.​ ​Awad,​ ​Rizky​ ​D.​ ​Meidina​ ​&​ ​Ahmed​ ​A.​ ​Al-Anesi

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Appendix​ ​1.​ ​The​ ​advantages​ ​and​ ​disadvantages​ ​of​ ​ERP​ ​systems

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171204​ ​MBA9318.​ ​Artificial​ ​Intelligence​ ​and​ ​Digital​ ​Assistance​ ​Integration​ ​into​ ​ERP​ ​Systems,​ ​ERP​ ​Research​ ​Paper.
Fatima​ ​W.​ ​Awad,​ ​Rizky​ ​D.​ ​Meidina​ ​&​ ​Ahmed​ ​A.​ ​Al-Anesi

(Source:​ ​Rashid​ ​et​ ​al.,​ ​2002)

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