FAQs
What is a “monolithic” ERP system?
A “monolithic” ERP system is the traditional ERP model where the various core ERP functions are performed by a single piece of software with broad functionality. It continues to serve as a reliable but static System of Record, preserving transactional integrity, providing fast transactional throughput and supporting regulatory compliance. All applications share one central database and modules are typically interdependent, meaning that updating one component results in all components being updated.
What are the limitations of monolithic ERP systems?
Monolithic ERP systems are approaching their technological, functional and flexibility limitations while related costs continue to increase due to unending vendor upgrades, migrations and evolving license fee models. Unlike Agentic AI ERP, monolithic ERP systems are unable to orchestrate real-time business actions across diverse systems, which is misaligned with the dynamic needs of modern enterprises. As a result, enterprises are increasingly shifting away from monolithic ERP towards a more flexible, responsive and composable ERP strategy.
What is Agentic AI ERP?
Agentic AI ERP reinvents the way ERP processes are executed. It transforms the concept of ERP from a linear, transactional System of Record to a System of Action with Agentic AI capabilities. The ERP becomes an important contributor to a federated enterprise data fabric, but a sole source. Agentic AI deploys intelligent electronic “agents” with the ability to “think like humans” and autonomously set goals, make decisions and take action in pursuit of those goals. This can be done without limitation to where data or application logic resides. Benefits of Agentic AI ERP include faster and more accurate transactions, better decision making and automation of processes previously performed by human labor.
What are the benefits of adopting Agentic AI ERP?
- Faster time-to-value: With greater flexibility enabled by decoupling innovation agility from the constraints of the core transaction system, enterprises can deploy modular AI-powered agents that operate alongside and in collaboration with existing ERP and other enterprise software. Modern low-code and no-code platforms accelerate value realization with deployed Agents delivering results in weeks, no upgrades or migrations required.
- Increased innovation within IT budget: Shifting from broad, upfront capital expenditures to targeted, outcome-driven deployments, Agentic AI ERP delivers value in cost-effective sprints. This allows enterprises to reinvest realized value into further innovation without waiting for budget cycles or vendor upgrades.
- Enhanced productivity: With Agentic AI ERP, machines can serve human goals, freeing talent for strategic work. AI agents continuously learn, adapt and act, reducing manual effort and operational overhead, and further driving cost efficiency.
- Freedom to innovate: No longer beholden to a single monolithic system or pricing model, enterprises can orchestrate their own future, choosing best-fit tools, deploying AI agents where needed and evolving at their own pace.
What are some use cases for Agentic AI in ERP?
Organizations can leverage Agentic AI in ERP systems across core ERP modules and business areas to automate key processes using AI agents. Here are some examples:
- Supply chain optimization: AI agents can monitor supply chain disruptions, reroute shipments, notify customers of order changes and update inventory records in real-time.
- HR and workforce management: AI agents can automate onboarding, workforce scheduling and payroll. AI agents can also analyze workforce data to optimize staffing and predict attrition.
- Predictive maintenance: In manufacturing, AI agents can analyze equipment data to predict failures, schedule maintenance and facilitate repairs before breakdowns occur.
- Security and compliance: AI agents can extract, validate and route information from invoices and regulatory documents to ensure accuracy and compliance.
- IT operations: AI agents can help IT service desks by automating ticket triage, resolution and escalation. AI agents can also monitor key IT systems, apply fixes and proactively prevent outages and downtime.
- Procurement management: AI agents can handle many procurement-related tasks such as emailing vendors, updating orders, approving invoices and validating vendor compliance.
- Fraud detection and risk management: AI agents continuously scan financial transactions and operational data for anomalies, flagging suspicious activity and automating fraud investigations.
- Vendor management: AI Agents provide guidance and insight into the ability to manage vendors, from onboarding to requesting quotes for products and services.
