In Denmark, the weather is notoriously unpredictable, with sunny skies giving way to torrential rain within moments. Morten Rye Christensen, CIO of Semler IT, likens this volatile climate to the ongoing journey of digital transformation within the company. Semler, a robust $6 billion automotive powerhouse that imports, sells, services, and finances vehicles across Denmark and the Baltic region, is embarking on one of Europe’s most ambitious ERP transformations. The company is set to overhaul its dealer management system using Microsoft Dynamics 365, infused with capabilities from Azure and generative AI, marking a decisive step toward future-proofing itself amid rapid industry changes.
Semler’s legacy systems, some of which date back 45 years, relied on mainframe technologies and custom-coded solutions. While these systems were dependable, they significantly constrained the organisation’s agility and scalability. “The system worked, but our customers demanded more,” Christensen states, emphasising that Volkswagen Group, a crucial partner, expects continued digital innovation. The pressure for more intelligent workflows and immediate access to data necessitated this ambitious transition.
The forthcoming shift to a cloud-based ERP infrastructure is not merely a technological upgrade; it’s a strategic reimagining of Semler’s operations, involving not just a straightforward data migration but a complete transformation of internal processes. The migration is planned for a “big bang” approach, launching across 4,000 users simultaneously—a complex task demanding intensive retraining and the establishment of a new operational model.
As Semler moves forward, its technological ambitions extend beyond Dynamics 365. The company has integrated Azure OpenAI into its operations, developing a bespoke language model known as “Semler GPT.” Initially launched as a proof-of-concept, this tool has evolved into a vital enterprise AI companion, assisting used-car sales advisors by generating tailored listings and optimal pricing strategies based on comprehensive market analyses. Christensen insists that this initiative isn’t about workforce reductions but rather about enriching job roles. “It’s about quality. Freeing up people’s time for more meaningful tasks,” he articulates, underscoring a commitment to enhancing employee fulfilment rather than cutting jobs.
For Semler, successful digital transformation hinges on adoption as much as deployment. Christensen references the J-curve phenomenon during go-live phases, where productivity often dips before climbing back to and exceeding pre-transformation levels. To combat this challenge, Semler has integrated Whatfix, a digital adoption platform, with Semler GPT to offer contextual assistance, guiding users through tasks directly within the interface. This strategy aims to ease the transition for employees, allowing them to navigate new processes intuitively instead of being overwhelmed by documentation.
Data readiness remains a critical pillar in Semler’s transformation journey. The company faced necessary changes in customer data management spurred by GDPR regulations in 2018, prompting a rigorous focus on data governance that has shaped every subsequent automation initiative. Although Semler has achieved significant internal applications of AI—like call centre assistance—Christensen acknowledges that broader implementation, particularly in customer-facing roles, is still forthcoming until data quality improves significantly.
For Semler, the decision to partner with Microsoft stemmed from the need for a comprehensive platform that integrates ERP, cloud, AI, and productivity tools seamlessly. Moreover, the collaborative development of features with Anetta, an ISV building tailored automotive solutions on Dynamics, allows Semler to influence the software directly to meet specific requirements, as Christensen disclosed, “It’s a co-build, not just an implementation.”
The future is marked by aspirations for more integrated, intelligent solutions, including in-car commerce capabilities where customers can purchase directly through their vehicles, necessitating further integration with Semler’s ERP systems. As Christensen looks ahead, he foresees advancements in predictive analytics and demand forecasting as essential for optimizing inventory and capital—elements critical for maintaining operational efficiency in an evolving market landscape.
Semler’s extensive ERP transformation serves as a microcosm of broader industry trends where ERP is evolving into a dynamic ecosystem rather than a static system. With Microsoft’s platform strategy synthesising Dynamics 365 with Azure, Power Platform, and AI, companies can engineer modular solutions that amplify value across operational processes. Yet, as the journey to technological sophistication progresses, many ERP customers still grapple with data unpreparedness, potentially undermining their efforts to harness AI effectively.
Ultimately, Semler’s alliance with Whatfix and the implementation of AI-driven technologies may provide a template for other companies seeking to kickstart user adoption and mitigate the productivity dips associated with new system rollouts. As organisations continue to navigate the complexities of digital transformation, prioritising user empowerment and effective data governance will be instrumental in unlocking the full potential of ERP capabilities.
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Source: Noah Wire Services
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