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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
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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 the same time (Ibid.). According to Lujic et
between human users and software (Han, al. (2005) ERP “is a systematic method of
2017). A ERP system, on the other hand, is a dynamically balancing and optimizing the
system which an organization can use to see resources of a company”. When they are used
integrated business at the same time correctly they enable an organization to
(Sudhaman and Thangavel, 2014). ERP achieve great results in growth, profitability
systems are able to collect wide range of data as well as product and service development
about organizations, however, in its early (Ibid.). ERP systems are modular in design
editions, it lacked the ability to analyze the which means that they are flexible and can be
data and generate more useful support and customizable to offer the best business
insight for the decision-making process. practices (Rashid et al., 2002). The modules
Therefore, the need of AI integration into work in real time and can either work as
ERP systems increases in order for it to stand-alone units or combined as several
enhance its functionality enough to be able to modules to form an integrated system
analyse and generate decisions/actions (Gargeya and Brady, 2005; Lujic et al., 2005).
suggestions. Finally, this paper will also The aim of ERP systems is to integrate
discuss the feasibility of integrating the DA as systems not only across the departments but
a communication medium with the ERP and also across the whole enterprise (Lujic et al.,
value it can add to the overall offering of ERP 2005) Thus, when implemented in an
systems. Nevertheless, overviewing the organization ERP system has both advantages
limitations of the technology and areas of and disadvantages (Appendix 1). Looking at
improvements and recommendations for the former ERP systems provide reliable
future research. information access, better information
management, better control of information,
2. Literature Review increase productivity, more effective
2.1 Enterprise Resource Planning decision-making, etc. (Jagoda and
Around 1990s a new software system known Samaranayake, 2016; Zughoul et al., 2016).
as enterprise resources planning (ERP) On the other hand, implementing ERP
emerged (Rashid et al., 2002; Hong and Kim, systems are very time consuming and
2001). This new software system was a new expensive which is also very costly for an
development and quite different from the organization.
conventional IT systems. The ERP systems Companies also need to consider that ERP
were designed “to integrate all core functions systems have many features and modules
of an enterprise regardless of the business which may be difficult to understand and
type or charter” (Sudhaman and Thangavel, work with (Rashid et al., 2002). In this regard,
2014). In other words, ERP system were there are problems that ERP systems faces
viewed as vehicles which organisations could such as the compatibility with the
use to achieve a state where everyone in an development of hardware and software, the
organization could see what everyone else integration as well as the development of the
was doing in the business all over the world at 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 and Srivastava, 2017). Artificial intelligence
that ERP systems face are the drastically technologies are believed to be able to find
changing business environment, this is important facts, patterns, relations, and/or
time-consuming and expensive (Ali and other types of new knowledge that would not
Miller, 2017; Zughoul et al., 2016). The have been found using standard analysis
constant challenge of expanding market that techniques (Nemati et al., 2002). Liebowitz
companies face consist of increasing (2001) and Nemati et al., (2002) also argue
competition, business requirements as well as that the combination between Decision
rising customer expectations which puts more Support System, artificial intelligence, and
pressure on companies to reduce total costs information technology can enhance
with less time (Zughoul et al., 2016). This knowledge management.
means that ERP vendors are constantly Artificial intelligence is not new in business
improving and evolving the ERP system in environment. Keenoy (1958) findings talk
order to meet the demands of business about development in automations and their
changes to allow organizations to adapt faster possible effects on accounting, because there
to changes in the business environment has been need for more analytical information
(Ibid.). on sales, inventory and usage, and
manufacturing and distribution cost. Kokina
2.2 Artificial Intelligence and Davenport (2017) stated how artificial
While ERP systems were a practical tool for intelligence is changing auditing, especially in
production environment due to the reporting structured and repetitive task performed
capabilities. Decision makers and C-Level throughout the audit.
executive needed more Business Intelligence According to Kokina and Davenport (2017),
(BI) capable tools that can help them to artificial intelligence can detect relevant
analyse the big amount of data that ERP information, extract it from document, and
systems are capable to collect in order assist make it usable for human auditor and thus can
them to make better decision (Lin et al., 2017; devote more time to areas that require more
Lujic et al., 2005). At that point, the Artificial human judgement. This is consistent with
intelligence (AI) was that missing tool the Kolbjørnsrud et al (2016) who stated that
decision makers were looking for. AI is managers’ time are mostly used for
intelligence shown by machines or software administrative works, while it should have
(Oana et al., 2017). Research in artificial been devoted to more important things that
intelligence’s purpose is to make intelligent machines cannot do like human judgement.
agent that can understand the environment So, the managers should leave the
and then able to take decisions, through administrative works to artificial intelligence
artificial neural network, and the goal of since it will save managers a lot of time to do
artificial intelligence is to make software the things that only human can do.
works like human brain as human brain can Despite the advantages of artificial
do deep analysis and perceive its environment intelligence, it also has limitation. For
and then takes decision based on it (Sharma 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
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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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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 However, DA is bringing the user experience
information. ERP market has different major into another level where the user doesn’t have
suppliers and lacks standardization. In other to physically interact with computer to do
words, when a manager, who is familiar with their work (Figure 2). However, the new
SAP ERP system, moves to another company DA-based interface is still new and the
that uses Oracle ERP system it will require adaption of the technology is still young to be
some training before being able to fully trusted as user interface:
utilize it. The learning curve varies from one
ERP system to another, and from a person to “We already have a certain relationship,
another. But at the end, it is a necessary whether positive or negative, to technology
procedure in order to fully utilize the ERP that we can touch and see. But when I don’t
system. However, integrating Chatbots and see a DA, how can I rely on this entity? It
AI into the ERP system will make the means that I have to strengthen the trust and
interaction with the ERP system more natural the relationship. The DA has to feel like an
and will reduce the negative effects of the authentic person to me who I can rely on.”
learning curve. In addition, one of the main says Prof Krajewski, cited by Waisgluss
features of AI is the ability to learn (2016)
throughout time and being able to suggest
decisions and actions based on the Figure 2
accumulated knowledge throughout time. By Relationship between ERP, AI & Chatbot
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 Another important field for future research
Future Research would be to examine the ability of engaging
While relying on DA as interacting medium AI in appropriate judgement and decision-
with ERP system might sound promising, making. AI requires a training and knowledge
however, it is still considered as a transfer period in order to learn about the
revolutionary User Interface (UI). Legacy environment they are functioning in and how
Command Line Interface (CLI) and current the decisions are made. Therefore, they tend
widely used Graphical User Interface (GUI) to reflect the opinions of the trainer rather
share one main similarity which is tangibility. 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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