Modern Enterprise Resource Planning and Manufacturing Execution System – they are connected by the cloud
ERP software has undergone an impressive evolution. From a rather specialised tool used primarily for the management of available resources (mostly assets used for production), through including manufacturing planning elements, to rigs integrating an enormous number of components, allowing for the insight into the work of each aspect of the functioning of even large enterprises and the analysis of data acquired in such a manner.
Agile ERP adaptation
The evolution clearly demonstrates, how efficiently the ERP is evolving and adapting in accordance with changes in not one, but two areas. It is obvious, that the software meant to constitute a complex tool allowing to peek into every aspect of operations must meet the current economic needs: the birth of new industries and the forms of enterprise organisation. However, ERP is also doing well with adapting technical innovations, which is particularly clear during the second decade of the 21st century, an era, when the cloud-first concept is not just a dream or a buzzword, but a fact and an everyday reality for an increasing number of enterprises.
Obviously, it would be unfair to say that cloud data migration is always conducted flawlessly. There are cases of failures resulting from factors such as the inappropriate selection of partners or particular tools for the individual client needs. However, it is a fact, that time has verified the way of infrastructure as cloud-first positively, and we are currently witnessing another phase of transposition. Therefore, it will not be a surprise, that this tendency meets with the software class key to an increasing number of enterprises, including smaller ones, i.e. ERP.
Cloud – the common denominator of modern ERP and MES
In pair with this evolution (and saying that it will be a response to it will not be an exaggeration) a development of production management is commencing. Previously, in the most primitive form, they served the purpose of solely analysing the state of the particular production elements on a daily basis, mostly in order to detect malfunctions swiftly. However, MES today is transferring to the cloud, and the edge devices are filled with detectors able to analyse every aspect of devices that operate within production. Due to deep learning and data processed in the cloud, the MES does not simply allow us to identify malfunctions, but to prevent them.
Obviously, it is just a vivid example of the synergy between the current ERP software and MES systems, for which the cloud had become the common denominator. It is confirmed both by the statistics, as well as, industry forecasts, for the years to come. One should mention at least the „Wordwide Enterprise Software Forecast 2019-2023”, prepared by IDC, according to which the enterprise application market (obviously including the ERP) will grow by 8% yearly, and in two years will amount to more than 300 billion dollars of worth. Importantly, the growth will be a result of the cloud infrastructure software which grows by 16% yearly.
The next phase has already begun
The ERP software development trends, particularly in combination with the MES, is demonstrated by the digital twin concept. The principle is, that each device that is a component of the production process, has its own virtual counterpart. In result, process analysts may test innovations without disrupting production, introduce changes without creating the danger of the production to be postponed, and in result, financial losses. Therefore, one may realise entire complex production lines, gather data, and measure the efficiency of implemented modifications, and, following implement them in actual, physical hardware, with a significant decrease of risk. Importantly, due to the use of digital twin, one may analyse far-fetched results and the impact of particular changes even on various departments of an enterprise.
The state of ERP is best demonstrated by the decisions of the leading company in the industry worldwide, i.e. SAP. Its representatives are clearly declaring that the support for ERP on-premise software will be accomplished, which is currently used in corporate data bases. The aforementioned is to occur not later than 2025, when all the clients will be transferred to cloud solutions. There is no basis to claim, that the leader will not be followed by others. The next phase in ERP software development along with its integrated MES systems, will be the external infrastructure and its powerful analytic capabilities.
