By Arjan van Beek, Managing Director of Xibis · 25 September 2026
In brief: AI is changing the role of ERP in manufacturing. Rather than simply recording what happens, ERP systems are increasingly helping organisations identify potential issues and take action more quickly. What does this mean for companies using Infor LN? And does it mean you need to move to the cloud straight away? Arjan van Beek, Managing Director of Xibis, shares his perspective on the next step for ERP.
ERP has long provided the reliable foundation for manufacturing companies. From order processing and inventory management to production planning and financial processes, ERP connects the core processes across your organisation.
But the role of ERP is changing. While these systems have traditionally helped us record information and manage processes, new opportunities are emerging to turn that information directly into action.
With artificial intelligence (AI), Process Mining and automation, ERP is evolving from a system of record into a system of action: moving from a system that records what happens to one that helps identify where action is needed and what the most appropriate next step might be.
In conversations with our customers, I have noticed that AI is becoming an increasingly important topic. Not because manufacturing companies simply want to adopt the latest technology, but because they are looking for ways to plan more effectively, improve production efficiency and respond better to change.
At the same time, I regularly hear a very reasonable question: what does this mean for our existing Infor LN environment, in which we have invested so much over the years?
For me, the answer does not start with AI. It starts with understanding your business processes and the opportunities already available to you.
What is the difference between a system of record and a system of action?
A system of record captures transactions and provides a central source of business data. A system of action uses that same data to identify deviations, support decision-making and recommend or, where appropriate, automatically execute the next steps. An example from manufacturing helps illustrate the difference.
Consider a production order that is at risk of being delivered late. Your ERP system already contains much of the information needed to assess the situation: material availability, suppliers, capacity, inventory and production schedules. Traditionally, a planner or buyer would need to gather this information, interpret it and decide what action to take. AI and automation can make this process shorter and more efficient.
Recording → insight → decision → action
Imagine a supplier delivering materials later than planned. Instead of a planner having to review multiple screens and reports, an intelligent application could identify the risk earlier, determine which orders are affected and recommend possible next steps. The planner remains in control but can make a well-informed decision more quickly.
Several technologies play a role in this development:
- Process Mining reveals how processes actually operate and where deviations or bottlenecks occur.
- Generative AI (GenAI) helps employees find, interpret and summarise information more quickly.
- Automation takes over repetitive tasks and helps organisations execute processes more efficiently.
- AI Agents can analyse information, provide recommendations and, depending on how they are configured, support or carry out actions within specific business processes.
Infor brings these capabilities together through solutions including Infor Velocity Suite, which integrates with Infor CloudSuite. This creates new opportunities to improve business processes and turn information into action more quickly. As a result, ERP is evolving from a system primarily used to look back at what has happened into an environment that also helps organisations take proactive action.
Why does AI make a strong ERP foundation even more important?
AI can only deliver meaningful value when the underlying business data is reliable and processes are properly structured. Knowing that you have 8,000 components in stock, for example, is not enough. Are they actually available? Have they been reserved? Are they blocked? Are they stored in the correct location? And which customer orders require them? This business context is essential for generating useful insights and reliable recommendations. Much of this information is held within your ERP system.
A reliable ERP foundation therefore becomes even more important as AI takes on a greater role in identifying issues, providing recommendations and supporting action. Poor master data, fragmented processes and unnecessary customisations limit what you can achieve with new technology. AI will not automatically resolve these issues. In fact, if the underlying information is incorrect, there is a risk of reaching the wrong conclusions more quickly.
My advice is simple: get your data and processes in order first. It will pay off, with or without AI.
What does AI in ERP mean for Infor LN customers?
For many Xibis customers, this is an important question. They operate reliable on-premises Infor LN environments in which they have invested years of effort, building processes, integrations and company-specific expertise. The arrival of AI does not mean that you need to replace that environment tomorrow. However, it is important to look ahead. What capabilities does your current Infor environment offer? Where are the limitations? And what investments will be needed to support continuous improvement in the years ahead?
In practice, we see four possible next steps, which are not necessarily mutually exclusive:
- Optimise: improve your existing Infor LN environment by standardising processes, improving master data quality and reducing unnecessary customisations.
- Make data accessible: combine ERP data with information from other systems to enable better analytics and new AI applications.
- Migrate to the cloud: move to Infor CloudSuite Industrial Enterprise, for example using the Xibis Cloud Accelerator, to benefit from a modern, future-ready ERP environment and access to new innovations.
- Continue developing in the cloud: take advantage of capabilities such as Infor Velocity Suite, Process Mining, automation and Industry AI Agents to further improve your business processes.
There is no single AI roadmap that is right for every Infor customer. The right approach depends on your starting point, your business objectives and your digital ambitions for the coming years. For one organisation, the logical first step may be optimising its existing environment. For another, cloud migration may be the most appropriate way forward.
What matters most is that the decisions you make today support the opportunities you want to pursue tomorrow.
A data platform as the foundation for AI with on-premises Infor LN
For organisations planning to continue using Infor LN on-premises for the time being, a data platform can be a valuable intermediate step. You do not have to wait for a cloud migration to start exploring the possibilities of AI.
A data platform makes information from Infor LN available for reporting, analytics and AI applications. By combining this information with data from other sources, such as MES, PLM, CRM, WMS, machine data and spreadsheets, you can gain a more comprehensive view of your business processes.
This offers three important benefits:
- A more reliable data foundation: information from different systems can be connected, validated and given a consistent meaning. This creates the business context required for reliable analytics and AI applications.
- Limited impact on your core ERP system: by running analytics and AI applications largely outside the ERP core, you can reduce the load on your operational environment. Your existing Infor LN system can continue to play its central role in day-to-day operations.
- An investment that grows with your business: a well-designed data platform and the knowledge you build around your data provide a valuable foundation for further digitalisation and any future cloud migration.
With this data foundation in place, a range of AI applications becomes possible. Examples include demand forecasting based on historical sales data, early identification of delivery risks, analysis of unusual lead times and predictive maintenance using machine data. An AI assistant that answers questions about orders, inventory and deliveries in natural language is another potential application. Which applications are actually feasible will depend on the available data, the chosen technology and how your systems are integrated.
At the same time, a data platform is not a complete substitute for the benefits of a modern cloud environment. Infor continues to develop integrated innovations within Infor CloudSuite and Velocity Suite, bringing ERP, process information and AI closer together. A data platform can therefore be a sensible intermediate step within a broader digital roadmap.
Here too, the advice is to start small. Choose one specific business challenge, make the necessary data available and build from there. With clear agreements on data quality, security and access rights, you can establish a foundation for AI step by step, without having to migrate your entire ERP environment first.
How do you get started with AI in ERP? Start with the business challenge
At Xibis, we do not start by asking: “Where can we use AI?” Instead, we ask: “Which business problem are we trying to solve?” This could mean reducing manual work, shortening lead times, improving on-time delivery performance, managing inventory more effectively or identifying deviations in production, purchasing and finance at an earlier stage.
These are challenges we regularly encounter in manufacturing companies. They are also precisely the areas where the intelligent use of data, automation and AI can create value. Not every improvement requires a major ERP project.
With our Xibis Accelerators, we help companies address clearly defined challenges through a proven approach, clear objectives and a predictable implementation process. We start by looking at the desired outcome. We then determine which combination of Infor technology, Xibis expertise and additional solutions is best suited to achieving it. Sometimes, the greatest benefit comes from optimising existing processes. In other cases, better access to information is needed. And for some organisations, cloud migration provides the strongest foundation for further innovation.
Ultimately, what matters is not how much AI functionality you use, but what measurable improvements you achieve.
The future of ERP starts with your business processes, not with AI
The evolution of ERP towards a system of action creates new opportunities for manufacturing companies. Not only to gain better insights, but above all to respond more quickly and take more informed action. Infor is continuing to develop CloudSuite, Process Mining, generative AI, automation and Industry AI Agents. These innovations provide growing opportunities to make operational processes more intelligent and give employees better support.
However, I do not believe that every organisation needs to take the same technological step at the same time. For one manufacturer, migrating to the cloud may be the logical next step today. For another, the journey may begin with improving master data, optimising processes or making existing information more accessible.
At Xibis, we therefore believe in a step-by-step approach. We start by understanding your business objectives, identify the improvements that will deliver the greatest value and then select the technology best suited to achieving them.
In practice, this means:
- Start with the business challenge. Define the improvement you want to achieve.
- Establish a reliable ERP foundation. Good processes and high-quality data are essential.
- Choose the right technology. Not every challenge requires AI or a major ERP project.
- Make results measurable. Assess the impact on your key business objectives.
- Build on what works. Make continuous improvement part of your long-term strategy.
Because ultimately, success is not measured by how much AI you implement, but by what your organisation achieves with it. For me, that is the real next step for ERP in manufacturing.
Wondering what the next step should be for your Infor environment? Get in touch with Xibis. Together, we can identify where optimisation, cloud technology and AI can deliver tangible value for your organisation.
Frequently asked questions about AI and ERP in manufacturing
What is a system of action in ERP?
A system of action is an ERP environment that does more than record transactions. By using AI, Process Mining and automation, it can also identify deviations, support decision-making and recommend or, where appropriate, automatically execute the next steps.
Do I need to replace Infor LN to use AI?
No, not necessarily. You can also take steps towards AI while continuing to use Infor LN on-premises, for example by making your data accessible through a data platform. The most suitable approach depends on your current ERP environment, data quality and business objectives. For organisations looking to make greater use of integrated AI capabilities, Infor CloudSuite Industrial Enterprise, combined with Infor Velocity Suite, offers additional opportunities.
Can I start using AI with on-premises Infor LN?
Yes. By making data from Infor LN available through a data platform and combining it with other data sources, you can establish a foundation for analytics and AI applications. The possibilities depend on your data, integrations and chosen technology. A full cloud migration is not always necessary.
What is Infor Velocity Suite?
Infor Velocity Suite is Infor’s AI offering, designed to work with Infor CloudSuite. It brings together capabilities including Industry AI Agents, generative AI, Process Mining and Value+ Automations. These technologies help organisations analyse business processes, automate repetitive tasks and take more targeted action.
Where should I start with AI in ERP?
Start with a specific business challenge, such as poor on-time delivery performance, high inventory levels or excessive manual work. Then ensure that your master data is reliable and your processes are properly structured. Choose the technology that fits your situation and establish measurable objectives. This makes AI a means of improving business performance rather than an end in itself.
About the author
Arjan van Beek is Managing Director of Xibis, an Infor specialist for the manufacturing industry. Since 1989, Xibis has been helping manufacturing companies optimise, modernise and manage their ERP environments. With in-depth expertise in Infor LN, Infor CloudSuite and manufacturing processes, Xibis helps organisations turn technological developments into tangible business improvements.