The industrial internet of things continues to expand at an accelerated pace. Organizations worldwide invested $800 billion in enterprise connected technologies, with $104 billion of this spend going toward industrial deployments in the manufacturing space, according to research from the International Data Group. Notably, this amount was spread across 86 percent of manufacturing firms, meaning overall IIoT adoption is immensely healthy, analysts for the software provider Bsquare found. However, modern manufacturers are not implementing cutting-edge connected tools in isolation. Backend software solutions are critical to IIoT infrastructure, acting as data storage, analysis and distribution centers for all of the information flowing through shop-floor sensors and other web-enabled fixtures. 

Enterprise resource planning systems are among the most important software supporting IIoT-infused workflows. These mission-critical platforms facilitate optimal data flow from the shop floor to the back office, while also cultivating valuable communication channels between key vendors. How exactly do ERP systems bolster IIoT installations?

ERP-IIoT integration
Innovators in the manufacturing space have, in recent years, developed and deployed early ERP-IIoT integration frameworks to great success. Most of these approaches center on three primary points of operational contact between ERP solutions and connected shop floor tools, according to ERP Focus. The first intersection unfolds on the production floor, where devices built on near-field communication or radio-frequency identification technology monitor manufacturing activities and collect actionable data that is transported to an ERP for storage and review. Usually, users who log into ERP portals filled with production data can view key metrics such as machine usage, materials handling and time-to-completion. Here, the ERP makes data from dozens of disparate devices accessible and ultimately empowers operational stakeholders to derive actionable insights from IIoT equipment.

The second and third points of integration materialize in the warehouse. Manufacturing firms exploring ERP-IIoT integration have deployed the two tools within shipping and receiving areas to track key distribution activities. Normally, this involves installing RFID items that monitor product movement and report this data back to warehousing leaders via ERP platforms. This use case also has partner- and customer-facing components made possible by NFC technology, which allows external users to feed data into ERP solutions via merchant and point-of-sale terminals. The third and final point of connection involves the development of enterprise revenue management matrices, which allow manufacturing stakeholders to maintain responsive bookkeeping and materials management strategies that bolster their bottom lines. How? Various IIoT sensors within the warehouse feed data measuring inventory bin calculations, dispatch-to-load times, delivery-to-customer estimates and other key performance metrics into the ERP solution, giving operational authorities the power to closely monitor holistic organizational performance and plan for improvements. Once again, the ERP makes this sort of workflow possible, bringing the data directly to the decision-makers.

A symbiotic connection
The relationship between these two mission-critical manufacturing technologies is not one-sided. IIoT devices expand the reach of ERP platforms, according to Industry Week. Prior to the emergence of connected enterprise devices, manufacturers could only derive value from their systems via internal activities. The arrival of IIoT technology has catalyzed a paradigm shift, giving firms the ability to collect new data from web-enabled fixtures used by customer service personnel. This creates direct communication channels between the business and the end user, resulting in the creation of truly accurate product usage data that can be used for continuous improvement. In the end, this could lead to the end of forecasting and drastically reduce production inaccuracy – two developments that would drastically reshape the manufacturing space.

Embracing the ERP-IIoT trend
With copious benefits in play, an increasingly significant number of manufacturers have begun rolling out IIoT frameworks with ERP platforms at their cores, according to research from analysts at IFS published by the Internet of Things Institute. IFS spoke with 200 manufacturing leaders and found that 16 percent were using such production models. This figure is, of course, likely to rise as the use cases mentioned above solidify and IIoT technology becomes more accessible.

Businesses in the manufacturing space that are on the outside of this trend looking in would be wise to look to the innovators pioneering ERP-IIoT integration and begin implementation planning. When it comes time to launch ERP-driven connected shop initiatives, consider partnering with Accent ERP. We deploy top-of-the-line manufacturing ERP solutions that work seamlessly with the latest production technologies, including IIoT devices. And, as a certified Microsoft Business Solutions partner, we provide vendor-vetted Microsoft Dynamics NAV implementation services, giving manufacturing businesses the power to streamline their backend systems, boost productivity and bolster their bottom lines.

Connect with us today to learn more about how our offerings can spur innovation in your manufacturing enterprise.