Traditional ERP Systems vs LanternBRP™

The Problem ERP Was Built to Solve

The modern ERP space, in some ways, is a new solution to a problem created by internet services and applications. When there is an app for everything, the largest problem created for a business is data siloing. Payroll, HR, CRM, supply chain, sales, and investment often run independently of each other. ERP systems are designed to unify disparate data. By integrating the platforms or applications of the various sides of a business into one accessible portal, executives can see their business from a more well-rounded perspective and make more informed decisions.

The Fundamental ERP Tradeoff

Unifying separate data streams is not without its consequences. ERP systems suffer from a fundamental tradeoff: applicability to the business and ease of installation and use. In other words, the more form-fitted an ERP system is, the larger the data burden and installation costs. Conversely, accessibility comes at the cost of accuracy. Consider the dilemma from the ERP provider’s perspective—selling the same product to multiple customers in different industries allows you to scale your business. However, it also means your product is worse than an industry-specific ERP system from your competitors. A retail chain has a very different supply chain than an ecommerce platform, even though both might be selling comparable products.

You, the ERP provider, are now caught in a bind. You can create a simple, bare bones ERP system that both a retail chain and ecommerce business can use. Alternatively, you could create separate products, but with higher development costs, you now have to charge a premium to the client which harms your ability to scale your sales. The typical fix in the ERP space is to offer a limited range of ERP products: a kind of balancing act between applicability and accessibility.

How LanternBRP™ Disrupts the Model

Here is where LanternBRP™ will disrupt the ERP space. Through AI-native systems, tailoring the product to the business’ needs is much easier. AI-native architecture simply means that AI is foundational to a given software system, rather than overlaid on top of existing architecture. Most of the ERP space offers “AI enhanced” or “AI integrated” products, but these are chatbot overlays on the existing software. Lantern’s AI-native BRP solution can solve the existing tradeoff in the ERP space. The software can be tailored to the customer with far less human input from the provider, because the AI tailors itself to the data provided.

Key Insight: Most ERP sales are to companies generating between $50M and $500M in annualized revenue. By offering self-training, self-correcting AI-native software, LanternBRP™ opens the previously underdeveloped market of smaller companies—businesses that could never afford enterprise ERP before.

The market result of an AI-native solution is that high quality software can be sold for much cheaper, because the software is capable of self-correcting to a higher degree than before. The ERP space will be disrupted by two applications of this, working in tandem. First, ERP providers will see direct customer loss to high quality competitors who can offer the same service—if not better—for a fraction of the cost. The second effect is slower, but ultimately the larger shift of the two: by offering cheaper solutions, mid- and low-market companies can afford what was previously a premium product.

Putting the “Main” Back in Main Street

The opening of a small business market for ERP sales perfectly fits with LanternBRP™’s company values. Founder and CEO Craig Powell often calls it “putting the ‘main’ back in ‘Main Street.’” LanternBRP™’s potential is not just to make large sales figures, but also to help struggling businesses avoid the recent trend of bankruptcy. By providing analytics and management capabilities previously reserved for their larger competitors, LanternBRP™ will rebalance the playing field for many sectors.