Sage X3
Disruptive
Manufacturing is now
a good thing
WORK DIFFERENT
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Sage X3
Contents
3Summary
4 Disruption in the form of the IoT
5 So how can disruption help the manufacturing industry?
5 It’s time for manufacturers to think and act outside
of the box
6 Using next-generation business management solutions to exploit and take advantage of what IoT offers
6 Harness the power of disruption with business management solutions
7 Getting ready for the Internet of Things with Sage X3
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Summary
To say that the global manufacturing industry is
undergoing an era of profound upheaval (or disruption)
would be an understatement.
However, this disruption is not just symptomatic
of the tectonic changes in the world of
manufacturing, in many ways it will also prove to
be its saviour.
Disruption can come in many forms such as
pressure from cheaper Chinese imports or even
currency fluctuations, all of which have impacted
on global manufacturing over the past two
decades.
For its part, Australia’s manufacturing sector has
also suffered from a disruptive economic climate
throughout that time, despite some tinkering
with microeconomic policy initiatives that has
impacted positively on the industry overall,
such as labour market reform, research and
development grants, and the occasional export
drive into a particular market.1
1 http://www.newsweekly.com.au/article.php?id=4919
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Disruption
in the form of the IoT
Across multiple industries the Internet of Things
‘IOT’ is causing a far-reaching form of disruption in
all areas especially in the manufacturing sector.
Quality and speed are the first things that will be
improved in such a hyper-connected environment,
which leads to an improved customer experience.
The IoT is fast becoming one of the most
disruptive forces that Australian and indeed, the
global manufacturing sector has faced.
This same level and depth of visibility won’t
stop when the product leaves the plant. Smart
products will not only interact with the customer
in new ways but will also be able to stay in
contact with the producer for better long-term
performance, maintenance and support.
The modern manufacturing plant floor is a hub
of technology, sensors, electronic controls and
automated equipment. These interconnected
devices drive compliance, efficiency, quality as
well as flexibility.
This is where manufacturers will see the biggest
impact of this disruption.
Quality issues not only get service attention, but
can (and do) influence future product design.
Sensor-connected smart technology via the IoT
brings processes and products together into a
new ecosystem for added customer value2.
Fast, efficient and flexible computerised machines
are provided with instructions for the exact
requirements for each product at each moment of
production. This is a full-scale transformation of
the old-style “economies of scale” approach that
drove mass-produced consumer goods.
And then it comes to the issue of compliance,
a major headache to many manufacturers, IoT
solutions are being used to streamline compliance
with company and government regulations, from
collecting and analysing data remotely to making
sure that machinery is being used effectively.
Connected tools and machines are a key aspect of
these changes. Take an IoT-enabled torque wrench
in the assembly of a complex part, as a simple
example.
Utilising sensors allows staff to immediately
detect potential problems and ensure that any
issue that may affect quality or safety issues are
promptly dealt with well before they arise.
When connected to specific Cloud applications,
a torque wrench can capture the torque applied
to a specific part, as well as information like the
specific wrench that was used, when that wrench
was last calibrated and the employee(s) who used
it.
Put into a practical global context, IDC estimates
there will be 30 billion sensor-connected “things”
by 2020. This change defines a fundamental shift
in how value is created for individual consumers,
and across the entire global economy.
Faults can be detected in real time, and even when
they’re missed, the Cloud applications can trace
every part affected back to the root cause.
2 http://www.industryweek.com/cloud-computing/three-ways-internet-things-will-change-manufacturing-forever
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So how can disruption help
the manufacturing industry?
What is mainly transformative about the IoT is the changing nature of the products that companies will
make and how they will be made.
Smart, connected products are generating new value in ways we couldn’t imagine even five years ago –
from reduced costs of production to improved efficiencies in areas like service and innovation, opening
up new landscapes for invention and growth, as well as speed to market for new products and ability to
service global need.
To compete, differentiate, and win in this new IoT world, companies must recognise the transformative
(again, disruptive) power of the IoT – and be ready to collect, analyse and capitalise on the information
(data) now being generated by customers, suppliers and the products themselves.
In other words, manufacturing companies must now be also ready to identify and assess potentially
profitable new business opportunities that all this product-generated data uncovers.3
It’s time for manufacturers
to think and act outside of the box
A study from the Economist Intelligence Unit found 87 per cent of leading executives from across the
globe have had operations affected by out-of-date infrastructure.
New technologies that can identify issues with infrastructure before they occur will be needed by
companies to put them on a firm footing for the future.
IoT enabled solutions will help companies improve efficiency, extend the life of assets, reduce the risk of
failure and improve the ability of businesses to meet customer expectations and demand.
These same leading executives understand that their strategic competitive advantages might erode or
be enhanced by emerging technical solutions.
Disruptive technologies could potentially raise productivity, attract more customers, inspire new market
strategies, and drive substantial growth.
From the perspective of today’s (and tomorrow’s) manufacturing, adopting these technologies is no
longer simply optional or convenient. It’s a necessity to remain competitive.4
3 http://www.ptc.com/internet-of-things#sthash.i8vEAqNZ.dpuf
4 http://digabit.com/how-the-adoption-of-disruptive-technology-is-driving-growth-for-manufacturers/
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Using next-generation
business management solutions to exploit and take
advantage of what IoT offers
In order to capitalise on all the benefits of the IoT, the implementation of new technologies in ERP or
next generation business management solutions is the best way for manufacturers to improve and
increase their efficiencies.
Manufacturers need to understand that improvements in efficiencies will only come when they think
‘outside the box’ and embrace the notion that disruptive technologies are not only good for their
business, but will also help improve the outcomes in a sector that is in a continual state of flux.
Therefore, by adopting faster, simpler and more flexible business management solutions, manufacturers
can keep well ahead of the huge changes that are happening right now across a range of industries,
including manufacturing.
However, getting the right solution is half of the battle and experience suggests that success is down to
procuring the right software from the right provider.
Harness the power
of disruption with business management solutions
Manufacturing companies recognise that holistic business management solutions can help them
overcome the barriers they are likely to face in the future, but the key is getting the right one.
An ERP or next generation business management solution with a strong process manufacturing
foundation that supports many of the best practices required to align business processes is what is
required.
The best business management solutions use flexible data models to support complex organisational
deployment and reporting structures, simplifying management across multiple facilities, companies or
business units, regions and countries from a common installed instance of the solution.
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Getting ready
for the Internet of Things with Sage X3
Sage X3 has been designed to support complex organisational deployment and reporting structures, in
order to simplify management across multiple facilities, companies or business units and geographic
regions.
With built-in functionality for manufacturing, distribution and services tasks, Sage X3 can be customised
to accommodate a range of rules and processes.
For the requirements of the IoT, Sage X3 is scalable and is designed to adapt to the needs of large
volumes of data, making it simple to manage a global business while at the same time navigating the
new universe that is the Internet of Things.
For more information, go to www.sagex3.com
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