Many manufacturers yet to realise return from IoT

Terri Hiskey, Vice President Product Marketing for Manufacturing, Epicor Software

Look around, and the manufacturing industry is brimming with examples of firms that are bringing the latest technological developments to their factory floors. Their goal? To improve processes, increase automation levels, and facilitate future business growth. Like many emerging trends, willingness to adopt and get to grips with IoT varies across geographic regions. Despite the hype, a surprising 44% of global manufacturers have still either never heard of IoT or know little about it. 

This rises to 57% in EMEA, where the pace of adoption is much lower compared to Asia Pacific, where the thirst for new technology is much higher. Just 27% of manufacturers in APAC are unaware or poorly informed about IoT. However, where IoT is put to work—with production robots that can send and receive data, or perhaps the use of RFID technology to connect shipments with factory equipment—not every manufacturer is finding it easy to measure the gains enabled by these technology implementations. 

Research tells us that IoT technology itself can be challenging to implement, and that its impact can be hard to quantify. In fact, around three-quarters 72%, of manufacturers surveyed by Epicor, say they are yet to measure any real return on their IoT investments to date.

This, it seems, is the harsh reality of IoT. Yes, connected technology is putting the spotlight back on manufacturing. Yes, it is making the factories of the future possible, today. And yes, there are outstanding examples of manufacturers transforming their operations as a result. Yet many firms within the manufacturing community are struggling to justify their spend on all of this new technology. 

By default, IoT involves capturing a huge amount of data—from the production line through to the wider supply chain. If IoT is to truly bring value to an organisation, this data needs to be captured and analysed via an effective enterprise resource planning solution. Afterall, a return-on-investment figure cannot be calculated if outcomes cannot be measured. 

Using ERP technology alongside IoT solutions is becoming increasingly accepted among manufacturers as a way of addressing this particular challenge. Many are starting to recognise the importance of placing an ERP system at the heart of their smart factories because it means that centralised monitoring becomes possible, accurate data can be collected, informed decisions can be made, and improvements can be measured. 

To give factories the confidence to take the plunge in full scale IoT adoption and realise the benefits, they need to be reassured about security and stability. Failing to start with a secure foundation, or utilising best practices and platforms is an expensive mistake to make. 


Highlights

  • Using ERP technology alongside IoT solutions is becoming increasingly accepted among manufacturers.
  • Around 72%, of manufacturers surveyed by Epicor, say they are yet to measure any real return on their IoT investments to date.
  • IoT involves capturing a huge amount of data—from the production line through to the wider supply chain
  • Failing to start with a secure foundation, or utilising best practices and platforms is an expensive mistake to make.

By Terri Hiskey, Vice President Product Marketing for Manufacturing, Epicor Software.