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AI, ML Add Value for SMMEs Only if the Basics are in Place

Seidor Africa — Mon, 10 Jul 2023 07:11:13 +0000

There is much chatter around artificial intelligence (AI) and the subfield of machine learning (ML), which can be confusing for SMME owners who may believe that they need to climb on the bandwagon. That’s why it’s time for a reality check.

When �鶹ԭ�� first introduced the concept of the intelligent enterprise, it was defined as: “An intelligent, sustainable enterprise is one that consistently applies advanced technologies and best practices within agile, integrated business processes.”

“ERP systems play a crucial role in enabling the intelligent enterprise,” says Heinrich de Leeuw, Managing Director, SEIDOR in South Africa.

“An intelligent enterprise is one that leverages data, analytics, and digital technologies to optimise its operations, but does this mean that AI is needed in the business?

ERP systems are designed to help SMMEs manage their operations and processes more efficiently by integrating various departments, automating routine tasks, and providing real-time data insights. While AI and ML can enhance these capabilities by analysing large volumes of data and predicting outcomes, their implementation can also be complex and expensive.”

Advanced technologies like AI, ML and Internet of Things (IoT) are powerful tools that can be used to solve a wide range of problems, from predicting consumer behaviour to identifying potential disease outbreaks.

“But to effectively leverage these technologies, it is critical to first have a solid ERP foundation in place to integrate data, infrastructure, and business processes,” says De Leeuw. “Without the basics in place, any business challenges that the organisation is trying to address will not be resolved.”

Before SMME’s think of looking at AI, they need to build the basics which include centralised data, automated tasks, technology integration and real-time insights that enable SMMEs to grow and be profitable.

Here are three reasons why advanced technologies are useful and appropriate only when the basics are in place:

Quality data is essential: AI and ML algorithms rely on large amounts of high-quality data to learn and make accurate predictions. If the data is incomplete, inconsistent, or inaccurate, the results of the AI or ML model will be similarly flawed. That’s why it’s crucial to have a robust data collection, management, and quality assurance process in place to ensure that the data is clean, reliable, and suitable for use in machine learning.
Infrastructure and computational resources: AI and ML require a significant amount of computational power and infrastructure to run efficiently. Without proper infrastructure, including hardware and software, the algorithms will not be able to run quickly or accurately. Moreover, this can result in increased operational costs and decreased accuracy in decision-making.
Business processes: Sophisticated technologies must be integrated into existing business processes to be truly effective. Organisations must have a clear understanding of their business goals, the problems they are trying to solve, and the metrics they use to measure success. Without these foundational elements in place, AI and ML may be unable to provide meaningful insights or actionable recommendations.

“AI and ML are terms that refer to the use of technology to model human intelligence,” De Leeuw adds. “They are the current buzzwords, just as the cloud once was. That’s not to suggest that they are not powerful technologies, but simply to underline that they will not solve business issues if they are not deployed on top of an existing infrastructure that works. Much like ChatGPT, they will not provide all the answers people are looking for if they are not applied correctly, on top of operations that are running optimally, and in harmony with a well-designed ERP system.

He adds that there’s no doubt that businesses across all sectors will continue to embrace AI and ML technology over the coming years, transforming their core processes and business models to take advantage of machine learning for enhanced operations and greater cost efficiencies.

To make the best use of this technology, he suggests beginning by spending time on developing a use case that defines and articulates the problems or challenges that the business would like AI to solve, and then to ensure the processes and systems already in place are capable of capturing and tracking the data needed to derive real value from the technology.

“Without ensuring this, the organisation will gain bragging rights with no value add. If the company does not have the processes and systems to drive efficiencies it will be unable to leverage the promise of the technology to grow the business and that means the project has failed,” De Leeuw cautions.

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Three Reasons Why AI, ML Add Value for SMMEs Only if the Basics are in Place

Seidor Africa — Fri, 09 Jun 2023 07:28:16 +0000

“ERP systems play a crucial role in enabling the intelligent enterprise,” says Heinrich de Leeuw, Managing Director, SEIDOR in South Africa.

“An intelligent enterprise is one that leverages data, analytics, and digital technologies to optimise its operations, but does this mean that AI is needed in the business?

Here are three reasons why advanced technologies are useful and appropriate only when the basics are in place:

1. Quality data is essential

AI and ML algorithms rely on large amounts of high-quality data to learn and make accurate predictions. If the data is incomplete, inconsistent, or inaccurate, the results of the AI or ML model will be similarly flawed.

That’s why it’s crucial to have a robust data collection, management, and quality assurance process in place to ensure that the data is clean, reliable, and suitable for use in machine learning.

2. Infrastructure and computational resources

AI and ML require a significant amount of computational power and infrastructure to run efficiently. Without proper infrastructure, including hardware and software, the algorithms will not be able to run quickly or accurately. Moreover, this can result in increased operational costs and decreased accuracy in decision-making.

3. Business processes

Sophisticated technologies must be integrated into existing business processes to be truly effective. Organisations must have a clear understanding of their business goals, the problems they are trying to solve, and the metrics they use to measure success.

Without these foundational elements in place, AI and ML may be unable to provide meaningful insights or actionable recommendations.

“Much like ChatGPT, they will not provide all the answers people are looking for if they are not applied correctly, on top of operations that are running optimally, and in harmony with a well-designed ERP system.”

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From Spreadsheets to ERP – Five Reasons to Make the Switch

Seidor Africa — Wed, 07 Jun 2023 07:38:15 +0000

In an increasingly digital world, it may come as a shock to some that spreadsheets and accounting software are still popular tools for businesses looking to document their financial data.

“The reality is that SMME’s continue to underestimate their need for more comprehensive business management software,” says Heinrich de Leeuw, Managing Director, SEIDOR in South Africa..

“Accurate information allows team leaders and executives to make accurate decisions at the right time, without having to wait for some form of back-capturing or reconciliation,” says de Leeuw.

With an integrated, ERP system, SMME’s can easily track real-time information without the need for manual spreadsheets. They can automatically search for relevant, reliable data and share that data with other departments and using customised dashboards, ERP tools provide companies with complete visibility into all their business processes.

“For SMME’s especially, ERP gives business owners the systems they need to drive optimisation and efficiency, and the information they need to unlock business growth,” says de Leeuw

As one example, a Seidor Africa client in the beverage industry requested the implementation of �鶹ԭ�� Business One to automate business processes as well as pro-active scheduling after users were constantly having to switch between standalone systems to get their work done.

“Post implementation, the company reported its satisfaction with a number of value-driven results and efficiencies, including task automation, time and energy savings, reduced costs and overall improved business efficiency,” says De Leeuw.

“The customer told us the change was incredible and that they would no longer be able to run the business without an ERP system because of the value add. That’s the result we want our clients to experience.”

ERP software offers SMMEs several advantages over accounting software:

1. Integrated business processes

All business processes and departments, including finance, supply chain, inventory management, human resources, and customer relationship management are integrated. The result is streamlined operations, improved collaboration, and increased efficiency.

2. Real-time notifications

Real-time data and analytics, enables SMMEs to make informed decisions quickly. The software generates reports and dashboards on business metrics, including sales, inventory levels, and cash flow, to provide a comprehensive view of the business.

3. Scalability

ERP software is highly scalable and can grow with the business. As an SMME expands, the software can be customised to meet changing business needs and accommodate more users, departments, and locations.

4. Improved customer service and customer loyalty

By providing access to customer data, history, and preferences, the software enables the business to personalise interactions, offer better customer support, and enhance customer satisfaction.

5. Regulatory compliance

An ERP solution easily complies with regulatory requirements, including tax reporting, financial reporting, and labour laws. Automated compliance tasks reduce the risk of errors and penalties.

“SMME’s are still opting for accounting software over an ERP solution because they perceive it to be less expensive, easier to implement, and simpler to use,” De Leeuw says.

“However, ERP provides valuable insights into other areas of the business beyond finance. In addition, as a business grows, its needs become more complex, and it will require an integrated solution that can manage multiple business functions.”

Ultimately, the decision to make the switch from financial software to an ERP system should be based on the specific needs of the business and its future requirements.

“An SMME still relying on spreadsheets for daily tasks runs the risk of falling behind competitors because of inefficient manual processes, high operational costs, greater risk of errors, and limitations to growth potential,” he adds. “Switching to an ERP system such as �鶹ԭ�� Business One offers greater control, integration, and reliability.”

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Six Ways Digitalisation is Enabling SMMEs to Reimagine HR

Adam Kruger — Tue, 04 Apr 2023 04:25:41 +0000

Savvy SMME owners are transforming HR processes by embracing the latest ERP technology tools and trends and unearthing a world of benefits for HR in the process.

“That’s because the growing importance of technology and digitalisation has changed the nature of competition,” says Heinrich de Leeuw, Managing Director, SEIDOR in South Africa.

“This has made it clear that competitive advantage depends on innovation to leverage human resources more efficiently and effectively.”

“In this environment, SMMEs that transform their human resource capabilities and functions in that direction are set to outpace the competition,” he says.

HR digitalisation has the power to revolutionise HR functions and processes such as recruitment, employee management, payroll, and training.

By automating repetitive tasks and, most importantly, yielding analytics that enable companies to make data-driven decisions, it can significantly boost business performance.

Digitalisation improves efficiency, reduces errors, and saves time and costs for HR departments.

For example, HR management software can automate tasks such as payroll processing, performance evaluations, and benefit enrolment.

Recruitment platforms can use artificial intelligence to screen resumes and identify top candidates.

Together, these benefits improve the HR experience for both employees and HR professionals, enabling everyone in the SMME to focus on more strategic and engaging activities.

According to HR consultancy McLean & Company’s 2023 HR Trends Report, organisations across the globe are experiencing “significant lags” in their adoption of cutting-edge digitisation for HR functions.

With digitalisation in place, organisations can begin to create new value chains and experiences that are collaborative, interactive, sustainable, and profitable.

Here are six ways that HR digitalisation with ERP provides competitive advantages for SMMEs

1. Streamlining HR processes

HR digitalisation and automation can simplify and automate time-consuming HR processes such as hiring and onboarding, payroll, benefits administration, and performance reviews.

This not only saves time and money, but also reduces the risk of costly errors and compliance issues.

Digitising these processes makes HR more efficient and reduces administrative burdens on HR staff, freeing up time and resources for HR teams to focus on strategic initiatives rather than mundane tasks.

2. Improved employee engagement

HR digitalisation enhances employee engagement by giving employees access to tools and resources that allow them to better manage their work-life balance, view their performance metrics, and provide real-time feedback to their managers.

Ensuring that employees have a more positive and engaging experience helps to improve retention and attract top talent.

Millennials and generation Z in particular are a demanding generation of workers who are glued to their screens.

Companies that use these digital technologies in combination with social media platforms for HR purposes – have a significant competitive advantage when it comes to attracting these workers.

3. Better data analytics

Digitalisation provides SMMEs with real-time, accurate data analytics that can be used to make better-informed decisions about hiring, performance management, and employee engagement.

For example, it can help a business to identify the areas where it is seeing the highest employee turnover and develop strategies to address this issue.

SMMEs make better-informed decisions about hiring, performance management, and employee engagement.

4. Integration and Automation

Seamless integration to operational and control systems such as biometrics as well as time-an-attendance enables automated performance management and assists in efficiency in payroll.

5. Cost savings

HR digitalisation significantly reduces administrative costs associated with HR processes, such as printing and mailing employee documents, and can also help reduce errors and compliance issues that can be costly for SMMEs.

6. Improved collaboration and communication

Digital HR platforms facilitate better communication and collaboration among employees, making it easier for them to work together, share information, and collaborate more effectively.

“In an increasingly volatile, uncertain, and complex environment, HR’s role and scope has become larger, more important, and more challenging than ever, as have the demands on HR staff,” says de Leeuw.

Now is the time for SMMEs to focus on taking a proactive, long-term, and innovative approach.

The digital transformation of HR will ensure greater business resilience as a result of flexible and more agile ways of working.

Even small companies need to operate on an increased efficiency level and eliminate work silos.

With superb scalability, �鶹ԭ�� Business One ERP grows with a business, providing a platform that unifies and automates processes across various functions, including HR.

It enables the business to access data that will drive growth, as well as the functionality to improve employee engagement and drive customer satisfaction.

This article first appeared here:

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