Efficient Plant May 2019 - 19

feature | digital transformation

Vinay Nathan
Altizon Systems

ENTERPRISE SYSTEMS ARE supposed
to exchange information and help with decision-making in plants. Beyond increasing some
work efficiencies, though, the fact is such systems rarely work together. This, in turn, creates
difficulties for key stakeholders when it comes
to accessing data, seeing the big picture, and
making critical decisions.

Enterprise resource planning (ERP) software
is among the key systems that host important
data across industry. In most organizations,
management relies on ERP systems for critical planning and operations decisions. In the
manufacturing arena, the Industrial Internet of
Things (IIot) is now helping connect machines
to enterprise systems. This integration, wherein
machine data can be accessed and processed in
real time, is finally starting to make enterprise
systems more intelligent. However, overlap
between the two is still rare. According to a
2017 survey of 200 marketing and contracting
executives, conducted by IFS, Itasca, IL (ifsworld.com), only 16% consume Internet of
Things (IoT) data in their ERP software. As one
researcher concluded, "The ability of ERP and
other software applications to support IoT is still
not robust enough."
It isn't just a matter of two different systems
existing independently. Larger organizations
were more likely to report that ERP impeded
their digital transformation. These were the
same organizations that were more likely than
others to have sensors on their equipment. The
solution for this dilemma is simple: Fuse ERP
with IIoT, which fills many of the gaps that make
ERP a less-than-perfect solution.

HOW ERP FALLS SHORT
ERP is an artery of data within an enterprise,
as platforms such as SAP and Oracle meet the
needs of common processes. On a plant floor,
ERP is for planning, strategizing, and decision
making.
Given ERP's long history, it's not surprising
that some archaic elements persist. For instance,
because data entry may not be automated, an
organization can incur indirect labor costs,
and the system's visibility into inventory will be
delayed, rather than real time. It also means that
data in the system can be inaccurate, thanks to

The IIoT and associated technologies have expanded the
capabilities and reach of ERP systems dramatically.

MAY 2019

EFFICIENTPLANTMAG.COM |

19



http://www.ifsworld.com http://www.EFFICIENTPLANTMAG.COM

Efficient Plant May 2019

Table of Contents for the Digital Edition of Efficient Plant May 2019

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