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A Robust ERP Is the Essential Building Block of Your Industry 4.0 Initiatives

Modern businesses are digitally driven. From the use of digital devices to cloud-technologies, a location-independent workforce, to the use of futuristic technologies to drive operations, digital transformation has practically taken over the conventional means of doing business.

And for these modern businesses, ERP is a major game-changer. ERP helps in driving the digital transformation of businesses and practically revolutionizes the traditional processes, organizational culture, and inevitably the outcomes of the business.

Read more: 10 Things You Should Consider While Implementing an ERP For Your Business.

And while we stress about the importance of ERP in practically every industry, it is also important to consider how impactful (and critical) ERP is for implementing Industry 4.0. The fourth industrial revolution is not just limited to industries and manufacturing but has also touched base in establishing smart cities and forming the core of several modern businesses.

Rise of Industry 4.0

Industry 4.0, or the fourth industrial revolution, has now arrived. Industry 4.0 makes use of digital technologies like IoT, AI, ML, and cloud technologies to create tailor-made products, revamp the manufacturing processes, and derive improved production quality with precision. As the manufacturing world embraces Industry 4.0, the importance of agile methodologies and data analytics and management, is highlighted. And this also brings forth the crucial role of ERP as a fundamental driver of Industry 4.0, by coalescing interconnected administrative, logistic and commercial processes, the production, distribution, and marketing chain.

Further reading: The Essential ERP Modules for Manufacturing Industry

ERP helps industries to reduce costs, optimize processes, improve visibility and enhance customer experiences. It is one of the precursors to drive Industry 4.0, since just like ERP, Industry 4.0 demands a change in the perception of the entire organization and requires the acceptance of digital technologies to overhaul the existing processes.

Implementing a robust ERP can essentially serve as a stepping-stone towards a successful intervention by Industry 4.0. A robust ERP system enables streamlined connectivity across various machines and devices, helps machines and humans communicate more effectively, and provides insightful data to the decision-makers.

But that’s not all, here’s why you need a robust ERP to kick-start your Industry 4.0 initiatives.

Why a robust ERP is a building block of Industry 4.0

Data interpretation and utilization

IoT or Internet of things adoption is one of the core Industry 4.0 initiatives. One of the major hurdles in IoT adoption is the lack of connected platforms, diverse data collection metrics, and a singular database that is programmed and used across the entire enterprise. With an ERP system, however, enterprises have access to ‘un-siloed’ data, which serves as the perfect base to implement data-driven initiatives, including IoT. Modern ERP systems facilitate the interpretation of the vast amount of data and decentralize the decision-making to drive AI and deep analytics.


Adopting Industry 4.0 is not a one-time decision, but an on-going process that enterprises have to embrace. Flexibility is important for successful initiatives of Industry 4.0, and a robust ERP system is flexible. It helps in adopting new business opportunities, switching processes, workflows, and data networks via cloud-based services in order to maintain business agility, continuity, and enhanced collaboration.


Security concerns around the adoption of Industry 4.0 are real. Many IoT service providers lack native security systems, in turn impacting the speed and performance of various Industry 4.0 initiatives. A robust ERP system with a stable security system in place can effectively manage the flow of data, finance operations, and functions across all teams. ERP enables role-based access to systems and processes, improves data accuracy across integrated systems, and guards against cyber-attacks by maintaining an effective firewall, data encryption, and being extra vigilant about internal threats and frauds.

Quality Control and Management

The key objective of Industry 4.0 is to drive faster, improved, efficient, and customer-centric manufacturing. Clearly, quality management and control are extremely important for successful Industry 4.0. A robust ERP system has powerful tools for ensuring quality control and management across procurement, production, inventory, sales dispatch, and customer support.

Change Management

Industry 4.0 affects the entire organization as it introduces new systems and processes to increase manufacturing outputs, driving sustainability, and generating new revenue streams. Identifying key internal as well as external stakeholders to manage the change at an organizational level is hence important to achieve the desired business goals. If the company has already implemented an ERP, they are well-versed with the efforts it takes to implement such a huge change at an organizational level and have a change management team in place, including the company management.

Also read: How Company Leadership Must Change with ERP Implementation

In fact, a robust ERP implementation partner can serve as an external stakeholder in this change, offering relevant technologies and support for successfully implementing Industry 4.0.

Closing lines...

Industry 4.0 is here, so much so that the modern industries and experts are now gearing up for an Industry 5.0. For revolutionizing your organization’s manufacturing with Industry 4.0 offerings, a robust ERP is a trusted partner in your journey. This can help in monumentally adding to your revenue while keeping customers happy and processes secure.

Let’s connect, and we can help you modernize your manufacturing operations with a world-class ERP.

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