Potsdam-based software manufacturer FACTON GmbH has published a white paper on the use of artificial intelligence (AI) in product cost management. Alongside prerequisites for AI in cost management and current obstacles, the white paper sheds light on two future application scenarios: early intelligent cost estimates and the "outlier" analysis in real time.
Technological advancements in the field of artificial intelligence will fundamentally change business models in the manufacturing industry in the future because they are speeding up the digitization of processes – and cost management is no exception. “We are convinced that Predictive Costing will enable early, data-driven decisions with the help of artificial intelligence in the future,” says Alexander M. Swoboda, CEO of FACTON. “Predictive Costing will allow us to respond to changes in costs before they arise.”
Users must meet certain requirements and overcome some obstacles before they can use artificial intelligence in product costing. What this means is outlined in FACTON’s latest white paper “Predictive Costing.”
The white paper describes:
- AI: from science fiction to product costing
- Predictive Costing: two (future) use cases
- Standardization and digitization of product costing as a prerequisite for predicitve costing
- The demands on product costing are rising and becoming more structurally complex
- Efficient product costing often still fails due to major obstacles
- The path to artificial intelligence leads through Cloud computing
- Legal and regulatory barriers: pitfalls ahead
- The final steps to predicitve costing: data, data, data and ideas
The free white paper can be downloaded here.