TOWARDS INDUSTRY 4.0: CHALLENGES OF ERP SYSTEMS FOR SMEs | The Adoption of ERP Industry 4.0 technologies in SMEs

TOWARDS INDUSTRY 4.0: CHALLENGES OF ERP SYSTEMS FOR SMEs | The Adoption of ERP Industry 4.0 technologies in SMEs
TOWARDS INDUSTRY 4.0: CHALLENGES OF ERP SYSTEMS FOR SMEs

The transformation of today’s industrial factories into smart factories takes especially the manufacturing industry into the next level of the industrial revolution, which is called Industry 4.0, or the fourth industrial (r)evolution. This transformation offers many opportunities for companies but also addresses several challenges.

The Benefits of Industry 4.0 and ERP for Manufacturing

IR4.0 brings these four benefits to manufacturing

1 – Uninterrupted Connection

Each link in the production chain must communicate with the other links; be it the people manning each station, or the machines that they use and monitor. The sensors in these machines must share uninterrupted data with each other, and this vast volume of data must be available on all devices, presented in a user-friendly platform, in order to promote collaboration and communication.

2 – Information Transparency

Context is key when it comes to information transparency. It is not good enough that data is simply available; the system should also have the ability to present the data in such a way that it is easy to access, analyse, and that improves decision-making. 

3 – Technical Assistance

One of the hallmarks of IR4.0 in manufacturing is the improved safety that robotics and automation are bringing to the shop floor. Along with technology’s ability to help people solve complex problems and support the decision-making processes, Industry 4.0 sees technology replacing tasks that are difficult or unsafe for people to do. 

4 – Decentralised Decision-Making

The joining together of cyber and physical manufacturing can only achieve a revolutionary level of utility by operating without constant monitoring. Industry 4.0 sees the rise of decentralised decision-making.

The new burdens of IR4.0

Innovation brings disruption and challenges, and Industry 4.0 is no exception. The integration of older existing systems with new systems creates process and security vulnerabilities. Rising gaps in people skills for technological know-how, as well as people skills like communication and critical thinking, are widened when new technology is introduced, requiring a greater training burden on the organisation to upskill, or even reskill valuable employees. Convincing decision-makers and staff to embrace new technologies means these concerns will need to be addressed and the benefits of Industry 4.o demonstrated. 

The role of ERP in all of this

Manufacturers who wish to harness the power of Industry 4.0 to propel them towards becoming smart, efficient, and competitive, need a way to deliver the shortest possible product run, improve the speed of delivery, trace the product through every step in the chain, manage that chain, and forecast all of these things with greater accuracy than before.

ERP + IoT = A-OK

The Internet of Things (IoT) sees every device connected to the internet, smart, intuitive, and spewing forth spans of data at an unimaginable rate. ERP is the ideal system to interpret the wealth of information provided by all these IoT devices, and produce results, particularly in manufacturing

While IoT data collection is far from a cutting-edge innovation, it is the combination of that data with ERP’s muscular capabilities to actively improve manufacturing processes that will set manufacturers apart.

The beauty of ERP in manufacturing is that it brings out the benefits of IR4.0, and handles the burdens with ease. 

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