Connect Cloud ERP, Business Process Automation and AI for MSP growth

Cloud ERP. Business Process Automation and AI.  A recent study of small to medium sized businesses (SMBs) across the Asia Pacific region suggests partners in the channel should be paying close attention to the connection between these three things.

The  Future of Operations  study, conducted by Forrester Consulting and commissioned by Crayon, shows the vast majority of SMBs with growth revenue results over the past two financial years were those that continued to invest in cloud solutions during the pandemic.  Nearly 70% of those had deployed Business Process Automation (BPA) via a Cloud ERP solution.

In an exclusive interview with Foundry, Crayon Director of Business Applications, John Hall-Watson discussed how AI will shape the future of Business Process Automation, Cloud ERP, and increase the pace of the cloud services revenue race for channel partners.

The Productivity Imperative

“If we’re so busy, why isn’t anything getting done?” This  provocative headline  from a McKinsey report last year underlies a reality that more and more of us feel: For all the meetings, late nights, sprints and productivity applications, we’re struggling to get everything done that we want to. A full 64% of employees find themselves without enough time to complete their tasks efficiently.

What is causing this? The McKinsey article posits that collaboration has become so convenient and advanced that it’s now causing problems. “The problem? Interacting is easier than ever, but true, productive, value-creating collaboration is not. And what’s more, where engagement is occurring, its quality is deteriorating. This wastes valuable resources, because every minute spent on a low-value interaction eats into time that could be used for important, creative, and powerful activities,” the McKinsey article notes.

So, will it be AI to the rescue?  There are high expectations and the appetite for this new technology frontier is exploding. John Hall-Watson points to recent research that projects worldwide spending on AI-centric systems will  surpass $300 billion by 2026.

“That’s double what is being spent currently. The potential applications are unlimited, the interest is real, and for many, the need to get started is pressing,” said Hall-Watson. He concedes that the capability uplift required to deliver services that connect AI, BPA, and the systems they support will be challenging for the channel. However, it’s also going to be a major opportunity.

AI offers an unprecedented opportunity to build even greater operational efficiency and agility into SMB operations, when combined with Cloud ERP solutions. According to Hall-Watson, recent developments on this front include AI-driven cash forecasting. In this scenario, the AI analyses data to identify true variables in accounts receivable, offering deep insights into cash flow that would be a lengthy investigative process were humans to crunch the numbers.

Add to this new natural language search capabilities, and it becomes very simple for business units to simply ask “who are my fastest payers?” and receive instant insight to support more accurate and true forecasting.

“Knowing which customers typically pay in advance or on time, or which accounts are settled a few days or a few weeks past due provides businesses with ‘reality forecasting’.  This is significantly different to projections built around the expectation that customers will pay according to agreed business terms,” explains Hall-Watson.

Moreover, AI’s influence extends to low-code and no-code platforms, democratising app development. This means that all lines of business can quickly build their own apps without needing to wait for time in the DevOps schedule. Over-collaboration turns into meaningful action taking.

AI is no longer confined to the domain of IT experts but is a tool accessible to everyone. While humans focus on adding value to their businesses, AI helps them better navigate the increasingly complex collaboration environment, guide meaningful action taking and reduces the ‘busy work’ to support continued productivity.

Where the channel comes in

AI is a transformative opportunity for customers, and partners alike. Combined with the proven value of Business Process Automation and Cloud ERP, it’s incredibly powerful. But it’s not a silver bullet. As with any new technology set, strategy, planning, and change management are critical if organisations are to extract the value expected from investment and adoption.

Any business wanting to harness the power of AI needs to modernise its infrastructure and embrace cloud platform technology. Real-time cash forecasting, for example, relies on AI’s access to deep pools of data and its ability to analyse it swiftly. Without carefully architected modern cloud infrastructure and well governed data structures, businesses risk their AI applications failing to deliver value, or even producing errors. In the rush to sell the new, partners need to be very cognisant to not create unintended risk consequences for their customers.

With this in context, MSPs can place themselves right into the heart of the AI discussion, by evolving their role from traditional infrastructure providers to trusted business advisors. Customers no longer seek piecemeal solutions and products; rather, they seek partners who can develop holistic cloud strategies, and increase their chances of realising the full value of investment.

This transition may be daunting for MSPs, deeply entrenched in their established business models. However, embarking on this journey is not about reinventing the wheel with the business, but rather expanding their offerings. MSPs can become catalysts for their clients’ growth by embracing AI and offering advisory, enablement, and resourcing services. That, in turn, greatly benefits the MSP, as they’ll be stickier and more strategic and, ultimately, more profitable.

If you want to learn more about emerging ERP opportunities, download Crayon’s eBook, The Size of the Cloud ERP Prize.

Crayon was the winner of the 2023 ARN Innovation award in the Software category.