Strategies for achieving ERP benefits realization

 

Countless organizations adopt enterprise resource planning technology annually. However, not all adopters succeed in meeting their original project goals.

In fact, only 8 percent of the businesses that implemented ERP platforms in 2017 achieved between 81 and 100 percent of the potential improvements expected to materialize in the wake of adoption, according to insights from Panorama Consulting Solutions.

While more than 90 percent managed to see between 31 and 80 percent of the benefits they projected, spending hundreds of thousands of dollars – or perhaps millions – on software that does one-third of what is supposed to do is not the most effective strategy, especially for manufacturing firms already navigating tight margins.

However, potential ERP adopters are not doomed to see the diminished results of their predecessors. By embracing the following implementation best practices, manufacturing firms can achieve optimal benefits realization and experience the production and financial gains:

Develop realistic implementation plans

ERP solutions can facilitate transformation. However, such success hinges on implementation plan design, according to Panorama Consulting Solutions. Adopters in the manufacturing space must develop and deploy realistic strategies with actionable timelines as such initiatives allow implementation teams to thoroughly vet software vendors, train end users and complete myriad other activities that lay the groundwork for ERP success.

Transparent financial forecasting

With all the potential locked inside ERP technology, it is easy for organizations to overestimate its impact and publish aggressive cost-benefit analysis. This kind of over-the-top fiscal strategizing can result in less-than-ideal ERP-related financial outcomes, ZDNet reported.

This is why it is essential for manufacturers implementing ERPs to assign pragmatic budget specialists to implementation teams – individuals who will offer up sensible projections that support benefits realization.

Embrace project management best practices

ERP implementations involve dozens of moving parts and normally unfold over a number of months. Amidst all this activity, major problems that directly affect benefits realization can easily materialize. Many of these errors can go unnoticed due to general disorganization.

Manufacturers can combat such issues by adhering to project management best practices, according to IT Tool Box. These strategies reduce the likelihood of discombobulation and, in the process, facilitate benefits realization.

Here at Accent Software, we help manufacturing firms and other businesses implement ERP technology designed to support operational change. As a certified Microsoft Business Solutions partner, Accent provides vendor-vetted Microsoft Dynamics NAV implementation services, which allow organizations to put into place best-in-class ERP software and see benefits realization.

Connect with us today to learn more about our offerings.

Best practices for securing manufacturing ERP software

Cybercriminals continue to wreak havoc on businesses across numerous industries. In 2017, these nefarious figures orchestrated more than 53,000 attacks against organizations worldwide, according to data security analysts for Verizon Wireless. This figure constitutes a total attack volume increase of almost 20 percent over data the carrier collected in 2016.

In the past two years, manufacturers have managed to avoid major interruptions linked to odious online activity. Businesses in the sector sustained only 536 total strikes in 2017, approximately 71 of which resulted in data loss. For comparison, firms in the public services space absorbed more than 22,000 attacks, with 304 leading to data loss. However, this state of affairs is changing.

Hackers are now beginning to target small and medium-sized businesses at higher rates, according to research from password management solution provider Keeper. This includes manufacturing firms, more than 95 percent of which fall into the SMB category, the National Association of Manufacturers reported.

Factories, in particular, have become targets of choice for the cybercriminals targeting smaller enterprises, CBS News reported. The businesses that operate these facilities maintain thin margins and cannot afford the costs that come with breach-related downtime, which can amount of hundreds of thousands of dollars per hour of stoppage.

With this in mind, manufacturing firms must reassess their existing data security protocols and implement refreshed defenses to protect mission-critical digital infrastructure, starting with enterprise resource planning (ERP) software.

These solutions drive core production activities by facilitating optimal data flow between key internal and external operational stakeholders. Downtime and data loss are likely to occur in the event that hackers infiltrate these platforms. So, how can manufacturers prevent such damaging incidents from unfolding?

Here are four best practices for protecting modern manufacturing ERP software:

Assign an ERP security stakeholder

The rise of cybercrime has forced organizations worldwide to create new executive leadership positions centered on data security. Individuals who take on these roles manage all backend information protection operations and promote safe system usage throughout the organization.

Manufacturing firms should adopt this model when addressing ERP security, according to IT Toolbox. By bringing in ERP stakeholders who are independent from existing information technology teams, firms can build in accountability and ensure that someone is considering the state of system data security protections at all times.

Implement patches as soon as possible

For many outside of the data security space, the word "hacker" brings to mind the image of an anonymous coder who leverages his or her superlative computational skills to tunnel into highly protected systems. There is, of course, some truth to this: Almost half of all attacks involve manual hacking, according to Verizon.

However, most larger data breaches are the result of easy-to-exploit system gaps linked to passive software patching strategies. This was the case with the Equifax breach that unfolded this past fall, Wired reported.

An estimated 143 million consumers lost their information to hackers as a result of the episode, which data security experts attributed to unpatched Java software. Manufacturing firms can easily avoid such an event by patching their ERP software when new data security updates are released.

Control system access

Of all the cyberattacks Verizon recorded in 2017, more than a quarter – 28 percent – involved internal actors who misused their system access to disrupt operations or steal information. Despite this, internal threat protection is a major blind spot for many modern organizations.

Firms often dole out solution credentials with little thought, giving employees at all levels the ability to view and potentially abscond with high-level company, customer or employee information. Manufacturing firms can prevent this kind of activity from unfolding within their ERP solutions by implementing strict system access controls.

This is one of the most effective strategies for protecting enterprise hardware and software, according to research from the SANS Institute. The group surveyed more than 270 IT experts, who collectively ranked access control among the top two data security best practices, second only to encryption. 

Work with a proven solution provider

While independently implemented data security strategies and tools can help repel cyberattacks and prevent breaches, such defensive tactics and implements are only effective when deployed in conjunction with sound software.

Even the most advanced IT best practices cannot protect porous systems built on shaky code. Manufacturers must remember this when developing methodologies for preventing ERP attacks and consider trading obsolete legacy platforms for newer solutions designed to function within today's digital threat environment.

Here at Accent Software, we help manufacturing firms and other businesses execute such swaps. As a certified Microsoft Business Solutions partner, Accent provides vendor-vetted Microsoft Dynamics NAV implementation services which allow organizations to put into place best-in-class ERP software and take advantage of cutting-edge data security protections only Microsoft can provide. Connect with us today to learn more about our offerings.

How ERP software can bolster shop floor safety

American businesses reported more than 2.9 million nonfatal workplace injuries in 2016, the latest year for which data is available, according to the Bureau of Labor Statistics. The manufacturing space saw the highest number of injuries, maintaining an industry-wide injury and illness incidence rate of roughly 4 occurrences per 100 workers. However, safety standards within the sector have improved drastically over the last decade, with employers implementing protocols and engineering solutions that reduced injuries by more than 30 percent. That said, manufacturers can do more to improve safety on shop floors as evidenced by the OSHA workplace fatality injury statistics from 2016, which revealed that 318 employees in the industry lost their lives while performing their duties.

There are, of course, numerous options available. Some manufacturing firms are embracing a remedy that both improved shop floor safety and directly buttresses the bottom line: enterprise resource planning software. These solutions allow firms to develop and deploy data-backed workflows that increase production and produce insights that can be used by maintenance staff and safety stakeholders to enhance workplace conditions. How?

Maintaining safe staffing levels
An estimated 20 percent of the individuals employed in the U.S. are shift workers, according to research from the BLS. These professionals are at the mercy of their employers, working schedules they have little power to change. Sometimes, such employees, especially those working nights, experience Shift Worker Disorder. Symptoms include depression, insomnia and tiredness, researchers for the National Sleep Foundation found. As much as 29 percent of night- and rotating-shift workers may suffer from the condition, the NSF reported.

Employees with this condition compromise shop floor safety, putting themselves and their coworkers at risk for injury. Manufacturing companies that leverage ERP technology to right-size and optimize their operations can reduce the need for physically and mentally staffing practices and thereby lessen the likelihood of injuries or fatalities linked to worker fatigue.

Addressing problematic equipment
Contact with equipment was among the most common injury causes within the manufacturing space in 2016, the BLS found. Why are so many production workers sustaining injuries from the tools they use to do their work? An industry-wide lack of investment in shop floor machinery, according to Industry Week. While manufacturers may not have the capital to replace mission-critical equipment, they are able to implement software that reduces injury occurrences related to faulty machinery. 

ERP solutions are the ideal answer as they can monitor production assets and help manufacturing leaders pinpoint underperforming equipment that might require maintenance and could prove hazardous to shop floor staff. Additionally, modern ERP software can integrate with enterprise asset management tools that further bolster this capability and support advanced maintenance approaches that cut down on machinery issues.

Is your manufacturing firm interested in boosting worker safety via cutting-edge ERP technology? Connect with Accent Software today. As a certified Microsoft Business Solutions partner, we provide vendor-vetted Microsoft Dynamics NAV implementation services, helping producers of all sizes stabilize their staffing strategies and improve asset performance.

How manufacturing ERP software improves quality assurance practices

The ascendance of automated production technology has transformed manufacturing, allowing producers to roll out more material goods at an accelerated pace with fewer resources. However, these tools have complicated the quality assurance equation. As the supply chain churns faster, the risk of error rises. Consequently, modern manufacturing firms invest significant amounts in quality assurance, placing great importance in these activities in the Industry 4.0 era. In fact, almost 60 percent of producers believe quality assurance has increased in significance over the last year, according to the researchers at Quality Magazine. With the inevitable forward movement of automated technology and the expansion of the enterprise internet of things, quality will continue to move up the list of operational priorities. 

Stakeholders in the manufacturing space must seek out solutions that allow them to roll out top-caliber product while maintaining competitive time-to-market metrics. Enterprise resource planning technology is one of these tools. Such platforms give producers the power to systematize quality control practices, which is the key to finding success within today's fast-moving marketplace, according to analysts for McKinsey and Company. Exactly how does ERP technology facilitate this integrated approach to quality control and facilitate the production of top-notch goods? Here are some of the many ways:

Streamlining workflows
Product quality is directly related to process continuity. Manufacturers with strong shop-floor workflows roll out durable, marketable goods, while those reliant on deficient workflows often encounter quality issues. This correlation necessitates the implementation of data-backed process monitoring programs. ERP systems can support such initiatives, leveraging on-the-ground information and easy-to-access dashboard features to put mission-critical workflow insights into the hands of decision-makers, according to IT Toolbox. With this data in play, operational stakeholders can determine workflow quality and pinpoint potential process improvements that might lead to the production of higher level goods.

Additionally, ERP platforms can facilitate transparency across other portions of the supply chain, including sections controlled by third-party collaborators. This can lead to even more transformative process improvement, reducing the likelihood of product damage that can occur when goods leave production facilities.

Bolstering compliance
Compliance is an essential issue for manufacturers responsible for producing food, medical devices, motor vehicles and other highly-regulated goods. For instance, the U.S. Food and Drug Administration has the power to prosecute businesses whose lax processes result in products that harm consumers in criminal court. Companies ensnared in such proceedings can incur financial penalties as large as $500,000 per misdemeanor or felony. This is, of course, only part of the noncompliance equation. Manufacturers that bring to market harmful products often experience mass customer attrition, with formerly loyal patrons departing for competitors.

ERP technology prevents such unfortunate events from unfolding through various quality-based platform features, ERP Focus reported. For instance, an ERP system can support raw ingredient testing procedures and leverage automated alerts to remind shop-floor leaders when government-mandated audits and inspections are required. On top of this, ERP technology facilitates top-notch traceability, allowing manufacturers to view historical production data in the event that suboptimal product slips through the cracks and requires immediate quality control action. Finally, these systems simplify the compliance review process by offering up automated reports, which streamline otherwise tedious work that even the most dedicated production leaders are enticed to put off.

Improving customer service
Customer feedback is critical for manufacturers interested in producing goods that truly meet the needs of end users and see success in the market. However, many operational leaders cannot access such responses in real time, despite the prevalence of social media platforms and other web-based tools that connect businesses and consumers. There is no time to monitor the internet when there are production targets to meet. 

ERP solutions give shop-floor leaders the ability to see how the goods they produce are received via complex data-gathering features. These tools can collect information from a variety of internal sources, including the customer service and marketing departments. Production stakeholders are able to access these insights via ERP portals and implement changes that can result in products that better meet consumer expectations. Of course, firms with this technology in place are bound to see the increased customer satisfaction that comes along with ERP-driven process improvement.

These are just a handful of the ways that ERP technology can support quality assurance and ultimately facilitate organizational growth. 

Is your manufacturing enterprise interested in increasing product quality using bleeding-edge ERP software? Connect with Accent Software today. As a certified Microsoft Business Solutions partner, we provide vendor-vetted Microsoft Dynamics NAV implementation services, helping producers of all sizes improve their processes and products via supply chain transparency. 

Understanding the Dynamics 365 Business Central

Microsoft has debuted yet another update to its growing Dynamics 365 platform. On March 13, the Redwood, Oregon-based technology giant announced the forthcoming release of the Business Central solution, an end-to-end system that allows businesses to manage customer service, finance, operations and sales activities though a single integrated interface. The offering also eases enterprise resource planning implementation activities by giving organizations the ability to migrate their information into an all-inclusive solution product made for silo-less operational workflows.

The NAV evolution continues
Business Central is the ready-for-market product of the much talked-about Tenerife project, according to ZDNet. During the Directions North America conference this past October, Microsoft officials confirmed that an improved alternative to the Dynamics NAV offering was in the works, telling attendees that an all-in-one solution would replace the aging small business ERP platform.

This secretive solution eventually evolved into Dynamics 365 Business Central, which comes in cloud-based and on-premises iterations and allows businesses to take advantage of Microsoft Power BI, Microsoft Flow Office 365 and the Power Apps suite. Together, these tools give users the power to develop and deploy integrated operational models, jumpstart and sustain data-collection initiatives and grow their backend systems with their respective businesses.

An ever-growing market
Analysts monitoring the SMB ERP market believe Business Central will make a considerable impact as growing small and medium-sized firms continue to search for viable accounting software with modest price tags and advanced capabilities, ZDNet reported.

"The 'what do we do after Quickbooks?' niche has always had a decent volume, and these companies are eager to move to the cloud for all the right reasons – cost, security, modernization, new user experiences," Joshua Greenbaum, an advisor at Enterprise Applications Consulting, told the publication.

Implementing a new solution
Business Central will be available for purchase April 2. Microsoft is offering two service plans: The Essential package, which comes with a per-user-per-month price of $70, and the Premium package which costs $100 per month, per user. Businesses with active NAV 2018 installations considering adoption will be able to deploy their existing plug-ins and customizations on the platform.

Is your small or medium-sized business interested in implementing Dynamics 365 Business Central? Connect with Accent Software today. As a certified Microsoft Business Solutions partner, we provide vendor-vetted Microsoft Dynamics NAV implementation services.   

Is your manufacturing ERP ready for replacement?

Manufacturing enterprise resource planning platforms do not last forever. Despite their industrial-grade components, these mission-critical solutions fade over time. System lifespans vary depending on the vendor, according to IT Toolbox. Some manufacturing ERP products hold up for more than a decade, while others decline within five years of implementation. However, the signs of system degradation are universal. Manufacturing organizations with longstanding legacy solutions must familiarize themselves with these troubling software symptoms. Here are some of those obvious indicators:

Diminished supply chain visibility
ERP solutions, at their core, are meant to facilitate operational visibility, lending stakeholders at all levels insight into the activities that unfold in the back office, out on the shop floor and inside the facilities of key third-party collaborators. When manufacturing ERP systems cease to provide this information or offer inaccurate numbers, change could be necessary. However, users and production leaders rarely recognize this problem when logged into the system.

This symptom of ERP deterioration often comes to light in the boardroom when executives request total product or job costs, according to Panorama Consulting Solutions. In the event that production staff cannot compile this data or uncover potentially flawed figures, it is likely that the software from which they originated is to blame and requires updating or replacement.

Lack of vendor support
Virtually all manufacturing ERP platforms require consistent system updates to remain viable. This necessitates long-term vendor support as software makers are ultimately responsible for coding these improved components. In the case of cloud-based or Software-as-a-Service installations, vendors also install these updates. However, few technology firms support their products in perpetuity, especially today. Enterprises across all sectors continue to demand bleeding-edge backend technology, leading third-party systems providers to reiterate at an accelerated pace and leave older systems behind, The St. Louis Business Journal reported. When this unfolds, IT teams have two choices: adopt new software or continue forward with unsupported technology. 

Sadly, many choose the latter approach to avoid new system implementation and the costs that accompany it. In reality, keeping outdated ERP solutions in place even after vendor support ends often leads to increased costs as system performance drops dramatically without consistent or proper updates and patches. With this in mind, manufacturing organizations that find themselves with unsupported ERP platforms should embrace replacement and get new, fully-functioning solutions.

Missing industry-standard features
The manufacturing industry is one of the most technologically advanced sectors in existence. Companies in the space continue to push their production limits, leveraging advanced software and hardware to streamline workflows, more effectively meet customer needs and increase revenues. The use of business intelligence among manufacturers doubled from 2016 to 2017, according to research from the software provider Plex. Additionally, an increasingly large number of producers embraced connected supply chain technology in 2017. This year, the push for innovation continues as businesses ratchet up internet of things implementations, invest in more automated equipment and look into augmented reality setups, the Association of Equipment Manufacturers found.

With these developments unfolding, manufacturers must at least consider adoption to keep pace with competitors and this requires taking a look at legacy ERP software. Most of these solutions, even those released within the last decade, do not have the core features needed to support the above technology. Some are not even capable of facilitating workflows featuring now-industry-standard technology, ERP Focus reported. Producers maintaining systems without such components or those needed to implement cutting-edge technology that will soon define the manufacturing space must seriously consider replacement.

The presence of extensive workarounds
When everyday users encounter systems that impede them rather than offer assistance, most create workarounds that allow them to complete critical tasks despite technological interference. Ideally, an ERP system should negate the need for such shortcuts, lending users the complement of tools they need to execute without logging off or introducing supporting platforms. When solutions reach the tail-ends of their lifespans, this often ceases to be the case, forcing workers to create and leverage workarounds, according to St. Louis Business Journal. This is not a viable long-term answer to ERP-created workflow problems as these circumvention methods actually transform into standard processes over time, turning ERP platforms into unused money pits.

Manufacturing firms with numerous workarounds in place should definitely consider implementing new ERP technology – all parties involved, including the chief financial officer, will be appreciative.

Embracing ERP renewal
Businesses in the manufacturing industry staring down these problems might be reluctant to launch full-on system reboots due to the cost of implementation. In the end, this upfront expense, which consumed less than 0.5 percent of the annual revenues for almost half of all the companies that completed ERP projects in 2017, according to Panorama, will certainly make less of a budgetary impact than the costs that come with keeping untenable backend technology in place.   

Manufacturing organizations interested in replacing legacy ERP software with a more modern alternative should connect with Accent Software today. As a certified Microsoft Business Solutions partner, we provide vendor-vetted Microsoft Dynamics NAV implementation services, giving manufacturers the power to bolster their operations with one of the most advanced and reliable ERP solutions on the market. 

Contact us today to learn more about our offerings. 

Can ERP technology mitigate the impact of the manufacturing skills gap?

The global manufacturing space has largely recovered in the wake of the Great Recession. The industry continues to grow at an annualized rate of more than 2 percent, according to research from the World Bank Group. American producers are performing particularly well. In 2016, the latest year for which data is available, U.S.-based firms produced goods with a total valuation of approximately $5.8 billion, analysts for the Bureau of Labor Statistics found. That figure is expected to surpass $7 billion by 2026. Despite this seemingly sunny outlook, the manufacturing sector has one significant problem peeking over the horizon: a widespread skills shortage.

Producers are expected to add more than 3.5 million new jobs by 2025, according to projections from Deloitte and the Manufacturing Institute. However, industry experts believe 2 million of these positions may go unfilled due to a lack of candidates with the requisite skills needed to succeed on the shop floor and in the back office. Manufacturing CEOs are already finding it difficult to hire skilled production professionals and advanced research positions, spending an average of 70 days and 94 days searching for qualified employees to fill these respective roles, Deloitte reported. What can manufacturers do to address this growing problem? Innovators in the space have suggested that enterprise resource planning technology could help address the skills gap and prevent widespread marketplace regression, according to Manufacturing and Business Technology.

Embracing a technological solution
ERP platforms are, at their cores, data collection and distribution engines. They give businesses the power to gather accurate operational insights and share such information with multiple parties, from internal stakeholders in the accounting and shipping and receiving departments to external enterprise partners and even customers. These brands of ERP knowledge sharing are well-documented and lie at the center of deployments designed to bolster the bottom line. However, ERP solutions can also support internal information distribution efforts that empower manufacturing workers to reach new heights and overcome knowledge gaps. It is this use case that could prove useful for producers hoping to successfully navigate the expanding skills gap.

Some industry analysts have suggested that manufacturers could address the shortage of qualified technicians by upgrading their legacy ERP systems to newer externally-managed models and moving valuable technical personnel to projects that more directly affect production, Industry Week reported. This strategy allows firms to get the most out of their existing workforce and keeps them from having to enter the increasingly competitive and skill-deficient labor market.

Pinpointing the right partner
Both of these ERP-centered solutions to the growing skills shortage in the manufacturing space require support from a trusted software partner like Accent Software. Whether your organization intends to upskill workers via a reliable ERP solution or swap legacy software for a more modern alternative in hopes of freeing technical talent, Accent Software can help. As a certified Microsoft Business Solutions partner, we provide vendor-vetted Microsoft Dynamics NAV implementation services, giving manufacturers the power to future-proof their operations with cutting-edge ERP software.

Connect with us today to learn more about how our offerings can help your firm address the skills gap. 

Manufacturing ERP technology: The driving force behind the IIoT

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.

How will AI affect manufacturing ERP software?

Organizations across numerous industries are investing in artificial intelligence technology. Last year, worldwide spending on enterprise AI systems surpassed $12.5 billion, constituting an increase of nearly 60 percent over 2016 investment levels, according to research from the International Data Corporation. More significantly, these expenditures were not the result of a few deep-pocketed firms going all in on AI – an estimated 80 percent of enterprises have already begun incorporating the technology into their operations, analysts for Teradata found.

Of course, this group includes manufacturers, many of which are adopting these innovations in hopes of embracing Industry 4.0 and remaining competitive in the marketplace. However, producers might soon encounter AI unintentionally while looking into enterprise resource planning technology. Why? This innovation represents the future of the ERP software and is poised to transform how software firms develop and deploy these systems, CIO reported. Here are a handful of the ways AI is affecting manufacturing ERP technology:

Improved decision-making
Modern ERP platforms give manufacturers the power to make informed, data-backed operational decisions. However, current solutions have limits when it comes to mining historic production data and contextualizing those insights. AI software has the potential to expand these capabilities, allowing ERP users to access larger data sets, along with automatically configured pattern analysis, IT Toolbox reported. The publication offered the developing predictive maintenance movement as an example of the potential of the impact of computer-driven data examination. AI-equipped ERP software could push this and other useful methodologies forward, further streamlining and accelerating manufacturing operations while reducing waste.

More robust data access and input options
While the backend components that drive most ERP solutions are powerful in their own right, they offer few benefits without the addition of accurate production data. The rise of the industrial internet of things has eased information collection activities, allowing manufacturers to mine real-time data funneled into servers via connected shop floor sensors. However, there have been few innovations where manual data input and access is concerned. AI has the power to change that, according to IT Toolbox.

This advanced software forms the basis for intelligent communication tools called chatbots, which leverage machine learning capabilities to actually interact with human users within traditional chat programs. A number of businesses in multiple sectors have begun using these novel programs and ERP vendors could be next. Innovators envision data query and import tools based on chatbot interfaces, allowing users to forego more time-consuming methods.

Better problem solving
When supply chain breakdowns occur, it can be incredibly difficult to diagnose root causes, even when all of the production data is locked inside ERP servers. AI has the potential to ease auditing activities by automatically combing through shop floor information and pinpointing strange data sets that might denote operational dysfunction, according to Gartner. This way, manufacturing leaders do not have to waste time poring over data when errors unfold and can move on to improving workflows so that similar occurrences do not materialize down the line.

These ERP developments could help manufacturers of all sizes modernize their facilities and further embrace the AI revolution. Manufacturers looking to prepare their operations for such innovation should consider connecting with Accent Software. As a certified Microsoft Business Solutions partner, we provide vendor-vetted Microsoft Dynamics NAV implementation services, giving industrial businesses the power to streamline their backend systems, boost productivity, bolster their bottom lines and adopt a flexible solution developed by an AI industry leader. Reach out to learn more about how our offerings can future-proof your enterprise.

3 possible ERP implementation errors manufacturers should address

Manufacturing enterprise resource planning technology possesses immense potential, giving producers the power to develop and deploy automated processes that transform all areas of the operation, from the back office to loading dock. However, these solutions come with some risk. ERP implementation requires considerable financial investment and manpower. When serious complications arise during this stage, these once worthwhile investments devolve into resource drains. More than 70 percent of the businesses that adopted ERP systems in 2017 saw such overruns, according to analysts at Panorama Consulting Solutions. Even more disturbingly, 26 percent of firms saw their efforts crash and burn and end in failure due to implementation problems. 

With these unsavory outcomes in mind, manufacturing companies should familiarize themselves with the common pitfalls that line the road to ERP adoption and tackle these hazards ahead of time. Here are three of those familiar ERP implementation problems and the strategies many producers are using to address them:

1. Ineffective product configurations and features
ERP platforms are, by now, common in numerous industries. For example, well over 200,000 businesses are currently taking advantage of the Microsoft Dynamics suite, according to user data obtained by ERP Software Blog. Implementation leaders understand this and logically assume that most vendors support common operational activities in order to remain competitive within a robust industry. In reality, many software providers offer solutions that do not include key components needed for certain manufacturing scenarios, Panorama Consulting found. Many made-to-order and engineered-to-order firms form relationships with vendors with offerings that either lack product configuration engines or include weak components of this kind. Manufacturers that end up selecting such deficient systems due to pricing or the allure of other features find themselves overseeing ineffective ERP systems that do little to catalyze growth.

Manufacturers can easily avoid this pitfall by developing robust requirement lists and carefully vetting potential vendors, CIO reported. These strategies may seem simple but many businesses in the manufacturing space fail to take them seriously or disregard them altogether in effort to pinpoint the cheapest software available.

2. Inadequate training practices
Employee training programs are absolutely critical to ERP success, as employees must know how to properly navigate such technology before they leverage it in their day-to-day work and ultimately drive return on investment. Unfortunately, a large number of adopters fail to grasp the correlation between training and system efficacy, believing users will simply pick up ERP software on the fly. This is an immensely unrealistic and damaging misconception. ERP platforms transform entire businesses and workers should be prepared to weather this change via instructional resources. Adopters that fail to address change management see organization-wide user attrition and experience complete ERP failure.

Manufacturers must prevent this kind of situation from developing by creating strong training offerings. Ideally, these resources should relate directly to daily business processes, according to researchers at the Aberdeen Group.

3. Failure to communicate
Manufacturing executives and information technology stakeholders eyeing ERP implementation are often tempted to launch headlong into the process in an effort to achieve operational gains as soon as possible. In the rush to revolutionize their shop floors, many forego internal announcements, believing that employee communications can wait until deployment is nearer. However, this kind of top-down implementation strategy often creates internal divides that can lay the groundwork for user resentment, attrition and ERP failure, CIO reported. 

Again, this is an easy-to-prevent outcome. Project leaders should involve employees in the ERP selection process from the very beginning and connect with them often as implementation unfolds. With such communication channels in place, manufacturers pursuing ERP technology can expect to install systems that are user-approved and ultimately effective. 

Is your manufacturing firm in need of ERP software that meets the needs of employees, comes equipped with training resources and includes features designed to support modern production methods? Connect with Accent Software. We deploy top-of-the-line manufacturing ERP solutions that meet all of these requirements. And, as a certified Microsoft Business Solutions partner, we also 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. Reach out to learn more about how our offerings can revolutionize your enterprise, from the back office to the shop floor.