ERP Catching on with Solutions Designed for Process Industries

Industry Trends

ARC Advisory Group has just published a comprehensive updated market research study on Enterprise Resource Planning (ERP) in Manufacturing. This ARC market study discusses current and historical market performance and related technology and business trends, profiles leading technology suppliers, and provides five-year global forecasts for the manufacturing ERP market.  Like all ARC market outlook studies, this report is based on ARC’s industry-leading market research database, extensive primary and secondary research, and proprietary economic modeling techniques. ERP solutions have historically been aimed almost exclusively at the discrete industries, because they were built around physical widgets, and were not designed to deal with the complex process issues of recipes, by-products, and a wide diversity of industry regulations.  However, in 2015, while the top four manufacturing verticals were automotive, electronics & electrical, machinery manufacturing, and aerospace & defense, revenues from the process verticals were about equal to the discrete. There are a number of trends within the ERP marketplace, and there are two that are having a more dramatic impact on the market. Cloud computing has been around for some time, but it is only starting to catch the attention of small or start-up manufacturing organizations that have different needs than more established companies.  The more established manufacturers are also benefitting from cloud ERP as they adopt the two-tiered model using both their existing on-premise solution while adding cloud deployments at subsidiaries and smaller facilities. The second is mobile computing.  The most straightforward benefit mobile devices bring to manufacturing is more data.  The more data that manufacturers have available, the more effective they can be, provided that the data is organized and accurate.  Just as ERP enables an automated, collaborative environment inside the plant, it can integrate with mobile devices in the field to ensure that data collection, transmission, and analysis are fully optimized. The Industrial Internet of Things (IIoT) is just beginning to slowly gain traction in the ERP environment.  ERP is more of a business system than an automation system, and the suppliers and manufacturers still need to determine the best way to utilize all the data generated by smart devices and the IIoT in an ERP environment. For more information, please visit /market-studies/erp-in-manufacturing Blog by Steve Cloutier, ARC Advisory Group

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