Why Waiting Until the End of ERP Integration to Connect Your Machines Is a Mistake

In Brief

• Digital transformation in Industry 4.0 requires a strategic approach
• 75% of manufacturing companies delay their machine connectivity projects waiting for the completion of their ERP integration
• This approach represents a significant loss of opportunity for industrial performance
• Both initiatives can be executed in parallel to optimize manufacturing production

ERP and Machine Connectivity in Industry: Two Distinct Projects

Fundamental Differences Between ERP and Machine Connectivity

You may have already noticed that in the manufacturing sector, 75% of companies are looking to sequence their digital transformation projects. This approach, while seeming logical at first glance, can reduce potential productivity gains by 35%.

Complementary but Distinct Roles

• The ERP (Enterprise Resource Planning) acts like an administrative conductor: it manages accounting, orders, inventory, and overall business planning. Its implementation is complex and typically spans 3 to 4 years.
• Machine connectivity, on the other hand, operates like a stethoscope on your equipment: it collects and analyzes production data in real-time to optimize performance. Its deployment takes only a few weeks.

Independent and Immediate Gains

The benefits of machine connectivity are entirely independent of your ERP. The data collected from your equipment allows for direct optimization of production, whether you have an ERP or not. Later on, if desired, this data can enrich your ERP for a more comprehensive view.

The Pitfalls of Waiting in Digital Transformation

The Endless Cycle of ERP Projects

Key Statistics:

• 95% of ERP projects exceed their original timeline of 3-4 years
• 78% exceed their planned budget
• The majority of companies wish to change their ERP as early as 4 years of use

Impact on Industrial Productivity

Delaying machine connectivity while waiting for the ERP project to conclude leads to considerable opportunity costs:

• Average loss of 15% in operational efficiency due to lack of visibility in production
• 24 months of delay in identifying and resolving operational issues
• 45% of critical production data remains unused

The Advantage of Machine Connectivity in Production

Quick and Effective Implementation

Measurable Benefits:

• Deployment in 4-5 weeks
• Success rate of 95%
• Minimal mobilization: approximately 30-40 hours for an internal resource

Accelerated ROI

Productivity gains range between 3% and 20% in the first year, depending on how the data is used:

• Reduction in downtime through rapid anomaly detection
• Optimization of production rates based on performance analysis
• Decrease in non-conformities through precise monitoring of manufacturing parameters

The Winning Strategy: Simultaneous Implementation of ERP and Connectivity

The simultaneous deployment of these two systems creates powerful synergy. The production data collected enhances understanding of your processes, leading to valuable organizational learning. This deep knowledge helps in configuring your ERP more meaningfully and effectively once it is deployed.

The immediate collection of production data establishes a solid foundation of operational knowledge, which will guide the ERP parameter settings when it is finally launched.

FAQ: ERP and Machine Connectivity

Can machines be connected without an ERP?

Yes, absolutely. Machine connectivity is entirely independent of ERP systems and can be implemented at any time.

What is the average implementation time for a connectivity solution?

For an average factory, deployment typically takes 4-5 weeks, while an ERP project can extend from 36 to 48 months.

What initial investment is required?

The investment for machine connectivity represents a significantly smaller fraction than that of a complete ERP project, making it a particularly accessible option for manufacturing companies.

Conclusion

Machine connectivity represents an immediate strategic lever for the manufacturing industry, regardless of the progress of ERP projects. Data shows that parallel implementation optimizes resources and accelerates return on investment. In the current context of Industry 4.0, companies that separate these initiatives deprive themselves of significant gains in productivity and operational efficiency. A pragmatic approach is to deploy machine connectivity without delay, enabling rapid and measurable improvements in industrial performance.