LLMs complement ERP systems: The future of enterprise resource planning

LLMs complement ERP systems: The future of enterprise resource planning

ERP systems can be deployed in various industries and business sizes and are often particularly useful for complex organizations with many departments and high transaction volumes.

In the world of e-commerce and business management, continuous innovations are taking place, paving the way for advanced ways of working. The integration of Large Language Models (LLMs) into Enterprise Resource Planning (ERP) systems represents such a leap forward. In this post, CEOs and professors will learn how LLMs enrich ERP systems and what potential they hold for future applications.

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What is an ERP System (Enterprise Resource Planning)

ERP stands for Enterprise Resource Planning. An ERP system is a software solution that helps companies efficiently plan, manage, and control their resources. These resources typically include finances, personnel, materials management, production, sales, and customer relationships.

An ERP system integrates various business areas and functions into a single platform, allowing companies to seamlessly share data and improve information flow. Typical modules of an ERP system include accounting, human resources, purchasing, inventory management, production, sales, and CRM (Customer Relationship Management).

The main goals of an ERP system are to optimize business processes, increase efficiency, reduce operating costs, improve customer service, and support data-driven decisions at the management level.

The most well-known ERP systems

Those are often those widely used in large companies or specific industries. Here are some of the most well-known ERP systems:

SAP ERP: SAP is one of the world’s leading companies in enterprise software. SAP ERP offers a wide range of modules for various business areas such as finance, procurement, production, sales, and human resources.
Oracle ERP Cloud: Oracle offers a cloud-based ERP solution that helps companies manage their finances, supply chains, projects, and more. It is particularly popular among large enterprises and offers high flexibility and scalability.
Microsoft Dynamics 365: Microsoft Dynamics 365 is a suite of cloud-based business applications covering various functions including finance, sales, customer service, and operations. It is particularly popular among medium-sized enterprises and offers seamless integration with other Microsoft products such as Office 365.
Infor ERP: Infor offers a range of ERP solutions tailored to various industries including manufacturing, healthcare, retail, and more. Infor ERP is known for its user-friendly interface and industry-specific features.
NetSuite: NetSuite is a cloud-based ERP solution by Oracle covering various business areas including finance, e-commerce, sales, and marketing. It is particularly popular among small and medium-sized enterprises and offers a comprehensive suite of applications in an integrated platform.
IFS: IFS offers ERP solutions for various industries including manufacturing, defense, energy, and more. IFS ERP is characterized by its flexibility, modularity, and industry-specific features.
This list is not exhaustive as there are many other ERP systems widely used in different industries and regions. Selecting a suitable ERP system depends on the specific requirements and budget of a company.

The Relationship between AI and LLLMs

AI (Artificial Intelligence) and LLMs (Large Language Models) are closely related as LLMs are an important subset of AI. LLMs are advanced AI models trained to understand and generate human-like language. They use complex neural network architectures and are trained on massive amounts of text data.

LLMs like GPT (Generative Pre-trained Transformer) have made tremendous advances in language understanding and text generation. They can be deployed for a variety of tasks including translation, summarization, chatbots, text generation, and more. A well-known example of an LLM is OpenAI’s GPT (e.g., GPT-3), on which I as ChatGPT am based.

The AI algorithms used in LLMs include techniques like deep learning, especially the Transformer architecture, which enables modeling complex relationships between words and sentences. These models are trained on large datasets and can then be fine-tuned for various language processing tasks.

Overall, LLMs play a crucial role in advancing and applying AI in the field of natural language processing and have the potential to transform numerous areas including customer service, education, healthcare, research, and more.

The Evolution of Language Assistants and their Integration into ERP Technology

Over a decade ago, Apple’s Siri emerged as a groundbreaking innovation, but its use remained largely confined to consumer applications. In November 2022, this landscape was fundamentally altered by ChatGPT 3.5 – an LLM capable of understanding natural language and generating it at a quality approaching human standards.

The Significance of AI for ERP Systems

AI in business is not a new phenomenon, especially in the context of ERP systems. Such systems already utilize AI for forecasting and data analysis. However, LLMs, as a specialized form of artificial intelligence, offer the opportunity to enhance these systems with even more capability.

Core functions such as grammar and spell checks, as well as style enhancements, are just the beginning. With a deeper understanding of context and the ability to process information comprehensively, LLMs could achieve the next major breakthrough in the future of ERP systems.

Challenges and Hurdles

The integration of LLMs into ERP systems is still in its infancy. Early applications demonstrate the potential of the technology but also highlight challenges – for example, the issue of “hallucinating,” where LLMs generate answers to questions they do not know. This is unacceptable in a business context.

Practical Applications Already Today

Despite being in the early stages of development, there are use cases where LLMs are already proving their worth today. Processing input information such as emails or receipts works excellently. LLMs understand and process information in context, laying the foundation for various automation scenarios.

Optimization and Efficiency Improvement through ERP Systems

The adoption of ERP systems enables a variety of positive effects for e-commerce companies:

Efficiency Improvement: Better internal processes, faster orders, and inventory management are just some of the benefits.

Real-time Data and Analysis: Decisions are made based on current data on customer behavior and inventory levels.

Improved Inventory Management: Coordination of inventory across various sales channels.

All these points contribute to an enhanced customer experience and promote revenue growth.

Scalability of ERP Systems

One of the strengths of ERP systems is their scalability, allowing companies to grow with increasing demands.

Cost Savings through Process Automation

Automated processes within ERP systems can result in significant cost savings, affecting labor, inventory, and other operating costs.

Outlook into the Future

It’s only a matter of time before further use cases for LLMs in ERP systems become a reality. One of the potential areas is the use of speech-based AI assistants for business intelligence. Such systems could respond to complex queries and, for example, create sales forecasts or lists of orders.


The integration of LLMs into ERP systems is still in its early stages but already offers promising application possibilities. For decision-makers in business and academia, there is a unique opportunity to be at the forefront of this development and harness the benefits for their companies or research institutions.

With this advanced technology by their side, the nature of e-commerce and business management could fundamentally change, characterized by efficiency, precision, and a redefined user experience.

About the Author

My name is Oleg Korob, and I am an expert in digital transformation. With a variety of certifications such as Scrum Master, Prince2, and DevOps, along with years of experience in ITIL 4, I am well-equipped to be part of a high-performing team. My background in multidisciplinary project management has sharpened my ability to understand business requirements and strategically find the best solutions, which I believe is my greatest strength. As a specialist in digital consulting services, I have expertise in automation, optimization, and the transformation of analog and digital business models. Collaborating with clients from various industries such as manufacturing, automotive, retail, logistics, and the public sector has given me a comprehensive understanding of the latest trends and technologies at the forefront of digitization. In addition to my professional work, I also share my knowledge as a university lecturer on topics ranging from digitalization to agile project management.

With my extensive experience in the B2B sector, including areas such as management consulting, project management, and change management, I have found my passion in the digital realm. From development to transformation, from automation to optimization, I thrive in this fast-paced environment. With my solid foundation and continual pursuit of improvement and growth in all aspects of digitalization, I aim to have a positive impact on every team or company seeking innovative solutions for their business requirements.

You can visit my website.

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