The Readiness of ERP Systems for the Factory of the Future

Abstract

Abstract In 2011, at the Hanover Fair, the term Industry 4.0 was first coined. In October 2012, the Working Group on Industry 4.0, presented a set of implementation recommendations to the German government. The term Industry 4.0 initiates from a project in the high-tech strategy of the German government. Such project advocates the computerization of the manufacturing industry. It is also known as the 4 th industrial revolution. Precisely speaking, industry 4.0 is based on the technological concepts of cyber-physical systems, Internet of Things (IoT), which enables the Factory of the Future (FoF). Within the modular structured smart factories of Industry 4.0, cyber-physical systems monitor physical processes, create a virtual copy of the physical world and make decentralized decisions. Over the IoT, Cyber-physical systems communicate and cooperate with each other and with humans in real time. Enterprise resource planning (ERP) systems are considered the backbone for the Industry 4.0. Thus, this paper attempts to answer the research question: “Are today's ERP systems ready for the FoF?”. We have conducted interviews with manufacturers, ERP vendors, and partners in order to seek their feedback on the readiness of ERP systems for the FoF. Our results show that ERP systems are ready for the FoF.