Embrace the New – Servitisation

To maximise the benefits of ERP as an enabler for servitisation, manufacturers also need to consider how it can be applied in conjunction with other emerging technologies. Today, the proliferation of connected devices that are fuelling the Internet of Things (IoT) is growing in significance, serving to extend the potential for organisations to gather information and use it to realise business benefits.

Connected ERP infrastructure 

An engineering company producing wind turbines, for example, might well deploy a series of sensors on those turbines that detect temperatures and make qualitative measurements of component wear and tear. That information can then be fed back into ERP systems like Microsoft Dynamics AX. Specific parameters related to product lifecycle management, or service and maintenance, can then be set up, alerting businesses to problems, sometimes before they have happened, and proactively trigger maintenance in advance of an incident occurring.       

Organisations can take this a step further by coupling this kind of intelligence with information from third party platforms such as social media with other data that may be sitting in the cloud, to achieve both a relationship and technically-focused real-time view of customers, suppliers and stakeholders. This enables manufacturers to make more informed decisions about enhancing innovation and efficiencies to optimise products for consumption, usage, service and maintenance; and to improve the overall customer experience.

Informed data with IoT

Phil Wood, group IT director of Rotork, claims: “For the last ten years, we have been able to get information on what is going on with our products in the field but what IoT does is increase the quantity and the granularity of that information and the frequency with which you can use it. That adds a huge increase in the decision-making capability of any service organisation.”  

“When you combine it with ERP, there is a huge opportunity to bring engineering, production and service departments together on the same platform; effectively drive business change and redesign the whole future of manufacturing, ultimately making the whole sector stronger and more competitive while enabling servitisation to happen. We are no longer just on the cusp of a manufacturing revolution – today we are actively in its midst.”


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