Practical Magic: Taking a Pragmatic Approach to AI Innovation

Doug Johnson, VP of product management, Acumatica

Technology analysts, pundits, influencers and experts have spent the last several months discussing and debating the adoption of generative AI, as this emerging innovation has dominated technology news this year. In fact, you may be wondering if much of what you read, this post included, is a product of ChatGPT.

This high level of attention underscores a growing curiosity about the potential and limits of artificial intelligence. Organizations across industries are eager to explore the possibilities of AI and ready to invest in the latest innovations and solutions. Some companies are trying to develop tools that compete with generative AI tools, such as ChatGPT and Bing AI.

However, investing in AI is complex, and it’s easy for technology providers to get caught up in use cases that miss the mark for their customers.

Acumatica strives to take a balanced approach. While we continue to push the envelope on what is possible for business management software now and in the future, we focus on practical and pragmatic innovation, prioritizing what makes the most sense for our customers and innovating with their needs top of mind.

The Challenges of AI

A significant challenge today’s companies face when they start looking into AI-based innovation is the necessary investment of resources.

Modern AI-based technology comes at a significant cost, especially for organizations in the small-to-mid market whose revenue is primarily dedicated to business operations and growth. These innovations are complex and require a substantial time investment from research and development teams.

Other complexities of implementing AI include access to sensitive business data, security management and the AI tool’s ability to integrate with existing business infrastructure. If your AI solution isn’t compatible with the existing products needed to run your business, it becomes more of a hassle than a value-add.

Companies must strike a balance between prioritizing the innovations that will move the needle for their users while keeping pace with the rapidly evolving technology landscape. If a company strays too far into AI innovation, it risks developing features that are overly complex and difficult for users to understand. On the other hand, organizations that play it too safe and neglect innovation could see long-term inefficiency and competitive disadvantages.

Practical AI: Minimizing Risks, Maximizing Returns

At Acumatica, we use customer feedback as the foundation for product updates. In fact, our twice-annual updates, R1 and R2, are largely based on input we’ve received directly from our customer base. Feedback from users helps us understand the challenges they’re facing.

  ​Acumatica’s solution offers experimental and controlled release features, enabling customers to test new capabilities and provide feedback so developers can create the most impactful and beneficial features.  

The customer input we receive enables us to identify pain points suited for AI and automation and identify creative and modern solutions that will best support our users. Some examples include data entry and analysis, project and inventory management, and accounting processes. Additionally, Acumatica’s solution offers experimental and controlled release features, enabling customers to test new capabilities and provide feedback so developers can create the most impactful and beneficial features.

As we know, automation using AI has taken the driver’s seat as labor challenges leave organizations in search of ways to streamline time-consuming processes and alleviate workloads for employees. One example of this is automation for efficient workflows and accounts payable document recognition.

AI-enabled enterprise resource planning (ERP) systems are known to automate traditionally manual tasks to reduce tedious repetition and enable staff to focus on high-value work. By leveraging AI for processes such as invoicing, data entry, bank reconciliation, route optimization, and inventory management, staff can more strategically manage their time and workload.

Additionally, intelligent business management systems direct users to retrieve and analyze data to streamline problem-solving and troubleshooting. Features like natural language search, helpdesk self-support, warehouse shipping and receiving, and guided reporting and analytics provide an additional layer of support when addressing the inevitable hurdles that come with running a business. Anomaly detection, special approvals, sales suggestions, product recommendations, and customer churn prediction provide decision-makers with the insight needed to make informed decisions that impact their bottom line.

Prioritizing customer needs over trends in innovation minimizes the risks associated with AI investment and maximizes the return by ensuring that updates positively impact customers and address their feedback. At Acumatica, we recognize how critical it is that the software small and mid-sized companies invest in supports specific needs and enables growth without overcomplicating solutions by chasing the latest and greatest updates they’re seeing from competitors.

Boca Terry, a luxury garment retailer, realized a need for a modern, cloud-based business management solution after their reliance on antiquated and disconnected legacy software programs hindered the company’s operations and growth. Their existing systems led to error-prone processes that bottlenecked staff’s time and prevented visibility into business performance. After their first try at ERP software resulted in increased complexity and was difficult for team members to adapt to, Boca Terry found Acumatica.

After implementing Acumatica’s Retail Edition, Boca Terry leaders saw improved efficiencies and real-time insight into business information that enabled them to make data-driven decisions for their company. Acumatica’s software offered a balance between automation and customer-centric solutions that empowered Boca Terry to refine and streamline operations, putting the customer in the optimal position to support their next phase of growth. Because of Boca Terry’s investment in Acumatica, the company has saved approximately $500 a month in order confirmation automation alone and has taken days off of how long it takes to ship out orders.

The rapidly evolving AI innovation landscape presents both challenges and opportunities for businesses seeking to leverage automation for efficiency gains. Amid an environment of rapid and expensive innovation and automation, Acumatica strives to balance exploring the future of business management software and delivering what businesses need today with a practical and customer-driven approach to innovation.

Acumatica acknowledges that successful AI implementation requires a thorough understanding of customers’ real-world needs. By actively engaging with customer feedback, Acumatica can better align its innovations with practical applications that drive tangible growth and success. This focus on practicality rather than spending resources on marketing solutions that fall short of what they claim to deliver allows Acumatica to thread the needle of reducing AI investment risks and maximizing user returns.

In today’s technology landscape, where AI promises transformative potential, Acumatica is driven to harness this potential for customers in a way that effectively addresses specific business needs. By staying true to its commitment to pragmatic and intentional innovation, Acumatica not only mitigates the challenges associated with AI adoption but also unlocks the true value of automation for its customers’ sustained growth and success.

Doug Johnson

Vice President, Product Management

Doug Johnson has over 30 years of product management and marketing experience and is currently the Vice President of Product Management at Acumatica, where he defines business requirements for flexibly deployed ERP business management software using SaaS and Cloud technologies. Prior to this position, Doug served as the VP of Marketing for Parallels, a leading provider of automation and virtualization software, where he focused on the delivery of technology through service providers in a service model. Doug has extensive business experience in marketing and general management, with a concentration on developing new products and services in global markets. Previous employers include start-ups and established companies such as AT&T. Doug has an undergraduate degree in Electrical Engineering from Duke University and an MBA from the Stern School of Business at New York University.