Manufacturing implemented almost 50 percent of all the enterprise resource planning solutions installed worldwide in 2017, according to research from Panorama Consulting Solutions. This figure is likely to increase over this year as producers of all sizes optimize their operations to meet modern marketplace demands. However, the organizations testing the ERP market in 2018 will most certainly navigate new terrain due to a number of novel software configuration and deployment trends.

Here are some of the developments shaping manufacturing ERP implementation:

The cloud decision
Businesses have not embraced cloud-based ERP platforms in the same manner they have latched onto other cloud technologies. Adoption has risen in recent years, though, and is expected to pick up pace over the forthcoming months, analysts for Panorama reported.

Why? A number of large vendors have released formalized cloud ERP offerings that are sure to entice latecomers that want innovative production software but are unsure of partnering with unfamiliar solutions providers. Microsoft is perhaps the most notable among the enterprise software giants testing the cloud ERP waters.

The Redwood, Oregon-based solutions provider released Dynamics 365 Business Central in April, ZDNet reported. The cloud offering is essentially an extensively reconfigured version of the Dynamics NAV platform. However, the product offers lots of new functionality centered on an integration component that allows the software to connect with Microsoft’s Cognitive Services, Flow, Power BI and Sales products.

An estimated 21 percent of the organizations that completed ERP projects in 2017 implemented cloud-based solutions, according to Panorama. With software such as Dynamics 365 Business Central on the market, this figure could shoot upwards as a significant number of enterprises, including those in the manufacturing space, may finally embrace cloud ERP systems.

Of course, there is also a chance that cloud ERP adoption may stall entirely, an outcome that would force technical specialists to rethink the long-term viability of the technology. Having said that, the data seems to suggest that cloud ERP solutions will finally find a foothold in the marketplace by the end of the year.

The mobile conundrum
Enterprises across numerous industries continue to implement mobile workflows centered on next-generation connected technology. The number of active Internet of Things devices associated with internal and external commercial deployments worldwide surpassed 3 billion in 2017, according to research from Gartner. That figure is likely to increase by more than a billion by the end of this year, as the global pool of enterprise IoT adopters grows.

While these tools have proven transformational for some firms, others have struggled to meld them with existing backend infrastructure – namely, ERP systems. Many available ERP platforms do not integrate well with enterprise IoT solutions, ZDNet reported.

This foundational technical tension has put forward-looking businesses in a tough place. However, some adopters are questioning whether this divide between IoT and ERP technology has any basis in reality, according to IT Toolbox. After all, manufacturing firms and other companies have been linking their shop floor assets to IT platforms for years. Why couldn’t they do the same with connected devices?

Producers looking into ERP software over the coming months will have to ask this question, as IoT solutions are quickly evolving from the nice-to-haves into must-haves. Luckily, most may find that they can indeed integrate ERP technology with IoT systems via incremental rollouts.

Companies that pursue this strategy often see immediate success with small IoT-ERP trials. These test implementations can form the basis for more comprehensive projects that bolster the bottom line and lay the groundwork for sustained success.

The end of legacy
A substantial number of innovative ERP solutions have come on the market in recent years. Simultaneously, legacy providers have bolstered their existing offerings to meet the needs of modern businesses. Despite these developments, many companies continue to maintain antiquated systems.

However, this is very likely to change over the coming months, as solutions providers discontinue support for older offerings and reroute those resources to new products, according to Panorama. This will essentially force businesses with legacy systems to implement new ERP technology. In fact, this situation has already begun to unfold to some extent. Almost 40 percent of the enterprises that completed ERP adoption efforts in 2017 did so in order to leave aging software behind, analysts for Panorama found.

Manufacturing firms with legacy solutions in place may find themselves dealing with similar situations as 2018 drags on. In these moments, upgrading to a new system is the only option. Producers that continue forward with legacy software risk losing support, which would inevitably lead to immediate productivity declines. Modern manufacturers simply cannot afford to suffer such losses.

Simply put, firms looking into ERP implementation must take into account this development and the others mentioned above when mapping out potential adoption activities.

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 designed to facilitate organizational growth.

Connect with us today to learn more about our offerings.