IBM recently launched a new solution aimed at helping small to midsize businesses modernize their operations and prepare for the growing role of artificial intelligence (AI) in their processes. The announcement comes as companies face increasing pressure to enhance efficiency, speed, and competitiveness in today’s fast-paced market.

Among the first to adopt IBM’s “Ready for SAP Solutions” are Volumetric Building Companies (VBC) and Second Nature Brands, both of which have reported significant operational improvements following the integration of SAP Cloud ERP with IBM’s modernization efforts. For VBC, the implementation resulted in a dramatic reduction in operational cycle times by 50% across purchasing, manufacturing, and inventory processes within just three months. Similarly, Second Nature Brands utilized this technology to successfully integrate its recent acquisition, Voortman Bakery, into a unified enterprise platform.

Chris Macies, COO of VBC, emphasized the importance of a modern infrastructure: “As our business continues to grow, we needed technology that could scale with us and give our teams a more connected way of operating. By modernizing our ERP environment with IBM, we now have unified visibility across our supply chain and operations.” This unified visibility can enhance decision-making, expedite processes, and ultimately lead to increased profitability—benefits small business owners cannot overlook.

The transformations seen at VBC and Second Nature Brands highlight a broader trend. Many businesses are recognizing that traditional operational systems can hinder growth and adaptability. Dr. Tom Janoshalmi, Global Managing Partner at IBM Consulting, noted the urgency behind this shift: “Businesses are under increasing pressure to operate with greater speed, efficiency, and predictability, and many are implementing AI to improve.”

AI can serve as a game-changer for businesses, unlocking new opportunities and enabling greater value when combined with robust, well-organized data. However, achieving AI scalability requires an enterprise foundation that connects intelligent technologies with business processes and industry insights. “Businesses can unlock the greatest enterprise-wide value from AI when they connect intelligent technologies with rich data semantics,” added Santina Franchi, from SAP. For small business owners, this underscores the relevance of investing in modern ERP systems that can evolve alongside their companies.

While the benefits of adopting IBM’s solution are clear, small business owners should consider a few practical applications and challenges. Transitioning to a cloud-based ERP system enables businesses to consolidate data across different departments, streamline operations, and improve overall productivity. For instance, a retail business might benefit from the integration of supply chain data, allowing for better inventory management during peak seasons. Similarly, manufacturing firms can enhance production scheduling and reduce waste with real-time data insights.

Yet, challenges remain. For many small businesses, the costs associated with ERP systems can be daunting, along with the complexity of integration and employee training. Transitioning to a new system often necessitates a cultural shift within organizations, requiring adequate change management strategies. Business owners must also be prepared for potential disruptions during the transition period. Therefore, it could be beneficial for small businesses to start with pilot projects or phases rather than attempting a large-scale overhaul at once.

As IBM aims to expand the availability of its “Ready for SAP Solutions” globally, it appears well poised to assist small businesses in navigating this challenging landscape. Those interested in modernizing their operations should be proactive about assessing their current workflows and identifying inefficiencies that a new ERP solution could help rectify.

The shift to AI-ready infrastructures might seem like a Herculean task for some small business owners, but the success stories from VBC and Second Nature Brands demonstrate that it is possible—and profitable. Businesses that modernize their operations are likely to gain a competitive edge, ultimately leading to sustainable growth.

For more information about IBM’s new offerings, you can visit their official site at IBM’s Press Release. This initiative not only addresses current operational challenges but also paves the way for future advancements in AI and automation.

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This article, “IBM Empowers Businesses to Cut Ops Cycles and Embrace AI with SAP Cloud” was first published on Small Business Trends