A recent survey showed that 70% of businesses are actively working towards digital transformation – so it's no surprise that ERP remains one of the most important technologies for businesses to have a role in them.ERP enables businesses to organize, analyze, and utilize data that is quickly becoming the lifeblood of their organization.With technology evolving in impressive and unexpected ways, ERP is now more important than ever.
No matter which camp you're in, here are some trends to understand and make changes to ensure you maintain a competitive edge in the ERP industry this year.
1. The rise of additive manufacturing
Additive manufacturing-also known as 3D printing-is changing the way we make large-scale, large-scale and complex products. Larger, faster printers can reduce costs and increase efficiency. The challenge for manufacturers is managing the data avalanche that 3D printing brings.
ERP systems that increase the amount of data at each step of the manufacturing process must be able to keep up. As the manufacturing industry implements 3D printers in 2019, ERP vendors will have to integrate this functionality into their products to reap the rewards of this trend.
2. Built-in analytics
Older ERP systems may be good at collecting and organizing data, but are more limited in terms of real-time analysis and reporting. Now that data-driven decision-making has become a top priority for every customer, ERP vendors' solutions must improve their analysis capabilities to meet customer needs. Modern ERP solutions allow users to analyze reports, access data visualization, or embed analysis tools in their existing applications in real time. This provides leaders with real-time information that can be used to make key decisions quickly.
By 2019 and beyond, ERP will increasingly become an end-to-end data tool to inform decision-making at all levels-from the execution unit to the factory. For modern manufacturers, this means that investing in modern ERP solutions is critical to keeping up with data-driven competitors.
3. Cloud advantages
Cloud ERP is nothing new, but it soon became the industry standard for many manufacturing industries. As more companies abandon local solutions, the cloud ERP market is expected to grow from $18.5 billion in 2016 to $29.8 billion in 2021. Given the advantages of the cloud, the projected growth makes sense, including lower costs, wider access, easier administration, and better security. Off-site ERP solutions will become particularly advantageous as many manufacturers continue to expand their business globally.
4. Direct machine integration
As we enter the new year -- and beyond -- the Internet of things (IoT) is improving manufacturing efficiency and Industry 4.0 transparency. Internet-connected sensors establish a direct link between the operating machine and the ERP system. ERP systems automatically collect real-time data about machine performance, so that production can be accurately tracked and accurately improved, with fewer manual technicians and fewer manual inputs.
This data can help manufacturers schedule routine maintenance to avoid sudden mechanical failures and costly downtime.Using IoT devices in conjunction with ERP facilitates communication between all systems and improves visibility into the supply chain, keeping the entire organization on the same dimension.
5. ERP as part of a broader strategy
Although ERP plays a key role in the digital transformation, it is not the only factor that can play a role. Digital transformation also requires developing your corporate culture to embrace digital change, training or hiring new skills, and adapting your workflow to new technologies.
In the past, most ERP implementations happened in isolation, but this will become rare in 2019.Most implementations are just one part of a broader change management strategy, and new ERP solutions will be implemented alongside other technology upgrades.This means that having an ERP system designed for the unique needs and goals of your manufacturing company is essential.