ERP is dead. Long live ERP?

A lightning-fast evolution is underway from mass production to mass customization. Companies are dealing more and more with an unprecedentedly increasing amount of unique customer requirements that lead to the need for the production of a multitude of unique products.

A threat to industrial production companies? Can classic tools such as ERP and MES successfully lead companies through this revolution? Are we about to enter an era where a completely new approach to operations management is required, making everything that preceded obsolete? How do we deal with legacy choices and make future proof decisions?

Let us unravel this tangle and start by defining the current technological revolution in operations.

• The speed and simplicity of Connectivity and the possibilities of Cloud Technology and Internet of Things (IoT)
• The increasing flow and quantity of Data and analysis options
• The increasing possibilities of Human Machine Interfaces and automation with robotics, wearables, virtual and augmented reality
• Advanced Engineering with ao. 3D technologies, attention to renewable energy and the use of digital twin technology
• Products and production resources that are getting smarter (with software embedded)
• Internet or services, cameras that convert information into data, AI, etc.

Impressive and attractive overview, indeed. But, hold on! A Well-thought-out and large-scale deployment of these technologies has a significant impact: on organization, corporate structure, employee roles, etc.

In this study by the World Economic Forum we learn more. “44 lighthouse companies” are highlighted. These companies use technology to create value in three ways: customer-centricity, seamless connectivity between functions, and connectivity across the wider supply chain, i.e. outside the organization.

The Gartner's 2020 Magic Quadrant for Industrial IoT Platforms outlines a trajectory in which more and more micro-solutions and applications are evolving, away from totalizing solutions. These solutions make smart use of new technologies within an IoT platform. However, there is also an emphasis on continuing to rely on primary business applications such as MES, ERP, APM, APS, PLM,….

And now you think. Fine! But what solution fits best my company? There is of course no standard recipe for success. One need to assume a holistic approach to Business, Technology and Organization. Here is a check-list of aspects you need to consider:

• Determine and formulate clear business goals;
• Select future-proof, compatible technologies, which ensure a scalable, aging-resistant application architecture;
• Pay attention to the human impact and the need for human resources in the digital transformation process