Why Are We Still Talking About MES–ERP Integration?

Every few months, I still come across discussions about how to integrate MES and ERP. And every time, I find myself asking: why are we still talking about this?

It’s a bit like asking whether a boat floats. The answer is obvious—yes, it does. The real question is where is it going and why are we on it?

Integration Isn’t the Problem

Let’s be clear: integration between MES and ERP is not new, nor is it unsolved. For decades, manufacturers have been connecting these systems to exchange the information that keeps their operations running. I challenge you—have you ever heard of an MES system that couldn’t integrate to ERP?

The technology is there. APIs, middleware, standardized data models, cloud-native platforms—the tools have only gotten better. Integration is no longer the hard part.

As I wrote in an earlier post "About Accountants and Production", ERP and MES have always been about different things. ERP is designed for financial management (order-to-cash) - transactions, costs, compliance, reporting. MES is built for the shop floor—real-time visibility, control, and execution. Each system has its domain. Integration ensures they don’t talk past each other.

But the value doesn’t come from whether or not you can connect the two. It comes from what you do with that connection.

From Technical to Value-Driven

When integration conversations remain technical—what middleware to use, which API calls to expose—we miss the bigger picture.

The true conversation should be:

• What processes, operations and decisions do we want to improve?
• What outcomes are we aiming to achieve?
• What value will the integration unlock for the business?

For example, integrating to have a streamlines and effective work order execution from ERP to MES is not valuable because the two systems are connected. It’s valuable because it eliminates manual re-entry, reduces errors, speeds up production scheduling, and ensures financial systems reflect operational reality in near real time.

Integration is the means. Value is the end.

Enter the Age of Digital and AI

We’re well into the era of digital, transformation is ongoing and constant, and AI in manufacturing is becoming a reality. Advanced analytics, machine learning, digital twins, and agentic AI are reshaping how operations are managed and humans work. Against that backdrop, spending time debating MES–ERP integration feels outdated.

The real opportunity is to ask: how do these systems, together, create the digital backbone that enables AI to bring operational insights that deliver business value?

ERP knows the plan. MES knows what actually happened. AI thrives when it can see both and spot patterns across them—optimizing schedules, predicting disruptions, and suggesting interventions. That’s the conversation worth having.

Time to Move On

So let’s put this to rest: MES and ERP can integrate. They do integrate. The technical questions have answers.

The real debate—the one that matters in the age of digital and AI—is about value. How do we design our digital architectures, processes, and cultures so that integration serves as the foundation for smarter, faster, and more agile manufacturing? Shift the focus from can we integrate? to what value will the integration deliver?

The 5 Pillars of Composability

I am seeing the industry converge on the term Composability to identify and explain the application of digital technologies that can effectively foster digital transformation. For digital transformation to happen, agility, flexibility, and human-centricity are a vital component that increase productivity in operations - the expected outcome. This is where the concept of composability emerges as the collective transformative paradigm. Let's also make it clear that the opposite of composable is monolithic and contrary to monolithic systems, Composable solutions empower manufacturers to adapt quickly, focus on the needs of their operators, and drive continuous improvement. 

Composable solutions are a critical ingredient in digital transformation because they empower manufacturers to enhance productivity by embracing flexibility, agility, and human-centric design. By focusing on the needs of operators and utilizing real-time data, digital tools enable rapid adaptation to changing conditions, boosting efficiency. This approach accelerates time-to-value, enhances collaboration, and supports sustained operational excellence, ultimately leading to higher productivity​.

The Composability Model for Digital Transformation

Let’s dive into the five key pillars that make composability such a powerful approach: Bottom-Up, Agility, Democratization, Human-Centric, and Compliance.

1. Bottom-Up: Building from the Ground Up

In contrast to the rigid, top-down structure of monolithic solutions, composable systems thrive on a bottom-up approach. This allows organizations to build solutions that are tailored to specific processes, activities, and operations. Composability starts at the operational level, focusing on solving problems at the frontline, rather than imposing broad, generic solutions from the top.

By empowering frontline operators and citizen developers to build apps that address their unique challenges, organizations can capture granular data about each activity. This leads to faster problem-solving, more efficient processes, and solutions that are adaptable to rapid changes​. The bottom-up approach is essential for increasing productivity and maintaining agility in a constantly evolving operational environment.

An interesting phenomena is that the bottom-up approach fosters an emergent design, where solutions are built iteratively, from the operational level up. This means frontline workers, who are closest to the challenges, contribute to the system’s development. By decentralizing control, emergent designs allows for rapid adjustments and iterations, ensuring that solutions evolve in real-time, in response to actual needs. This approach significantly reduces the time-to-value, as it enables immediate deployment and incremental improvements, accelerating innovation and aligning solutions with real-world demands​

2. Agility: Embracing Change through Lean and Continuous Improvement

Agility in composable solutions is crucial because it inherently supports Lean principles, which emphasize continuous improvement, waste reduction, and efficiency. Composability takes Lean further by bringing in adoption of digital technologies as a key enablers. Its the reunion of Lean and Agile, allowing for rapid cycles of innovation, quick iterations, and on-demand changes, which are essential for staying responsive in fast-paced environments.

In manufacturing, continuous improvement is key and agility is non-negotiable. Composable solutions, by design, are highly adaptable and enable organizations to iterate quickly. Unlike monolithic systems that lock you into predefined processes, composable systems allow for short test-fail-learn cycles that drive faster innovation. This agility extends to everything from software updates to operational adjustments, ensuring that you can stay ahead of challenges and capitalize on new opportunities. Agility also allows for faster implementation and a reduced time-to-value, meaning that benefits can be realized almost immediately after deployment​.

Augmented Lean represents this evolution of Lean, where digital tools and real-time data empower frontline workers to make immediate, informed decisions, maximizing efficiency and productivity in ways traditional Lean couldn’t achieve.

3. Democratization: Empowering Citizen Developers

The democratization of technology is another cornerstone of composability. This is where no-code and low-code platforms come in, they enable citizen developers - the people close to the operations, such as engineers, technicians, or operators - to create, modify, and maintain apps without needing deep IT or coding expertise.

This critically reduces dependency on a software skills, centralized IT and specialized OT departments - it speeds up the development of solutions that directly address operational challenges. As more people within the organization are empowered to contribute to solution development, it fosters a culture of innovation, encourages experimentation, and accelerates digital transformation​.

Democratization in composable solutions means empowering the people who know the process best, frontline workers and engineers, to create content. When those closest to the operations develop solutions, the results are more accurate, relevant, and effective. This drastically reduces development time because it eliminates communication gaps between IT and operations. With a no-code platform, these citizen developers can quickly build, test, and deploy apps that meet specific operational needs, accelerating time-to-value and promoting continuous innovation​

4. Human-Centric: Augmenting Human Capabilities

In a composable system, technology is designed to serve operators, rather than the other way around. In traditional monolithic systems, operators must conform to rigid workflows dictated by the system, limiting their ability to adapt and innovate. With composable solutions, however, operators are empowered by tools that assist them in performing tasks more efficiently, providing real-time insights, and reducing manual effort. This human-centric approach leverages the unique skills of workers, driving productivity increases by augmenting human decision-making and capabilities​

Therefore composability at its core is human-centric. It is built around augmenting human activity rather than replacing them, automating processes where it makes sense but still including them, ie "human in the loop". In a composable system, the technology is there to serve the operator, providing tools that digitize manual tasks, streamline workflows, and offer real-time data insights.

This focus on human-centric apps leads to more intuitive user experiences, reduced error rates, and improved operator efficiency. By connecting operators with their environment through digital tools, sensors, and IIoT devices, composable systems elevate the performance of the workforce, ensuring that technology acts as a productivity enabler.

5. Compliance: Built-In Validation

In the regulated industries, such as life sciences among others, compliance is a critical pillar and probably needs a deeper dive in a future blog post. Composable solutions, especially frontline operations platforms, must be designed with compliance in mind. They have to allow organizations to build and validate solutions iteratively while maintaining compliance. Digital data has to be captured and available to document all the required aspects such as: version control, audit trails, and automated validation processes.

With compliance built into the system from the ground up, organizations can ensure that their solutions are always aligned with regulatory requirements without stalling innovation. Continuous improvements and app iterations can be made seamlessly while keeping operations compliant​ with automatically captured digital data as evidence. 

Validation 4.0 is an essential component of composable solutions and is part of the Pharma 4.0 operational model. It applies a risk-based approach to testing, ensuring that apps are validated for their intended use without lengthy delays. This iterative process allows for continuous updates and improvements while maintaining compliance. Validation 4.0 integrates seamlessly into the digital transformation, supporting rapid deployment and constant change, enabling businesses to innovate faster without compromising regulatory standards. This agility is critical for modern operations to thrive in evolving environments​.

In Summary

Composable solutions represent a fundamental shift in how manufacturing operations are structured and executed. By embracing the principles of Bottom-Up, Agility, Democratization, Human-Centricity, and Compliance, organizations can achieve faster time-to-value, greater productivity, and enhanced operational flexibility. The future of manufacturing lies in building systems that are as dynamic and adaptable as the challenges they address.

Composability as defined here and if applied correctly can give your manufacturing operations a massive jump on your digital transformation. Interestingly it can also serve to sift through the hype and ambiguity in the different so called "digital" technologies. By simply asking the technology vendors how the implement and satisfy the 5 pillars you can effectively qualify any technology as being in or our of the new paradigm. Remember clear objectives and strategy are still the most crucial part of your digital strategy. These objectives have to clearly define how productivity is increased in your operation and clarity around the composability drivers is an excellent strategy.

About Accountants and Production Managers: ERP vs. MES

This is a rewrite of a whitepaper that I published in 2004 based on a long and frustrating MES selection process where the "can I use my ERP as MES" misunderstanding went rampant. I find that the discussion is still very relevant today and the topic gets even more confusing with some of the emerging digital technologies in this space. So this is an attempt to bring more clarity...

About ERP and MES

With today’s increasingly accelerating manufacturing technology innovation, digital transformation is critical for staying competitive. Among the key systems that have traditionally driven manufacturing operations are Manufacturing Execution Systems (MES) and Enterprise Resource Planning (ERP) systems. The myriad of opinions and discussion on these concept in the context of digital transformation and therefore understanding the differences between these two systems is crucial. In addition, as digital technologies continue to advance, the lines between MES and ERP are increasingly blurring, especially with the advent of No-Code democratization and Frontline Operations Platforms. I have found that and effective ways to conceptualize this is through the analogy of a production manager and a company accountant.

The Accountant: ERP’s Role in Manufacturing

In the last decade ERP systems have seen massive proliferation into many businesses, including manufacturing businesses. These businesses have invested heavily in ERP systems and today struggle to realize payback from these investments. In the case of manufacturing businesses, realizing ROI is logically focused on the production floor, an area in which ERPs are traditionally considered weak.

As the ERP market becomes increasingly saturated, vendors are looking for ways to increase revenue and expand their footprint. ERP vendors have turned their attention to shop floor management and manufacturing execution systems (MES). By adding MES functionality, they can increase license revenue. 

Consider the role of an accountant in a manufacturing company. The accountant manages financial records, oversees budgets, handles payroll, and ensures that all financial transactions comply with regulations. Their work involves high-level data analysis, financial forecasting, and strategic decision-making that influences the entire organization. This is akin to the role of an ERP system.

At their core, ERP systems are advanced accounting information management systems, they are enterprise-wide management tools designed to integrate various functions across a business. In manufacturing, ERP systems handle tasks such as procurement, inventory management, finance, human resources, and supply chain operations. They provide planning tools like Material Requirements Planning (MRP) and Manufacturing Resource Planning (MRP II), which help companies predict future resource needs based on historical data and forecasts.

However, despite their comprehensive nature, ERP systems are not designed to manage the real-time, dynamic environment of the production floor. They excel at providing a broad, strategic view but lack the granular control needed to manage the intricacies of manufacturing processes. Just as an accountant isn’t equipped to manage the day-to-day operations on the production floor, an ERP system isn’t designed to handle the real-time demands of production management.

The Production Manager: MES’s Role on the Shop Floor

MESs have evolved to address the inherently complex production management functions. An MES is a specialized system focused on the shop floor, where it manages real-time production activities. It coordinates equipment, workers, materials, and processes to ensure that production is carried out according to plan. Unlike ERP systems, MES operates in real-time, responding instantly to changes and ensuring that production goals are met. It tracks production data minute by minute, making it possible to identify and correct issues as they arise.

Imagine the role of a production manager. This person is in the thick of things, ensuring that production runs smoothly and efficiently. They manage workers, monitor machines, and make real-time decisions to keep everything on track. The production manager is intimately familiar with the production process, knows when to adjust schedules, and reacts quickly to any disruptions. This role exemplifies what an MES does in a manufacturing environment.

While ERP provides a high-level overview of production schedules and resources, MES is concerned with execution ensuring that production is executed as planned. MES is deeply integrated with the physical aspects of manufacturing, enabling it to manage the nuances of the production process that ERP systems cannot.

Differences Between MES and ERP

Aspect	ERP  (Enterprise Resource Planning)	MES  (Manufacturing Execution System)
Scope and Focus	Covers a wide range of business functions across the entire enterprise. Designed for strategic planning and resource management across departments.	Specifically focused on the production floor, with deeper engagement in executing production processes, equipment monitoring, and labor management.
Data and Time Frame	Deals with high-level, aggregated data, often historical or forecast-based and financially biased. Works on a broader timeframe for long-term planning and decision-making.	Operates in real-time, handling detailed, granular data from the shop floor, responding immediately to production needs.
Integration and Flexibility	Integrates various business functions but often lacks the flexibility needed for real-time adjustments on the production floor.	Highly flexible and adaptable to the dynamic environment of manufacturing. Integrates with machinery, sensors, and other shop floor systems.
Decision-Making	Supports strategic, long-term decision-making at the corporate level, focusing on overall financial business performance and resource allocation.	Highly flexible and adaptable to the dynamic environment of manufacturing. Integrates with machinery, sensors, and other shop floor systems.

Blurring the Lines: How Digital Technologies Are Redefining MES and ERP

As digital transformation continues to reshape manufacturing, the era of traditional monolithic MES may be coming to an end. New technologies and platforms are presenting a different way to solve the shop floor management coordination challenge. Based on the foundations of MES these new solution incorporate advanced digital technologies such as No-Code, IIoT (Industrial Internet of Things), machine learning, AI-driven analytics, Generative AI and enhanced user interfaces. They offer a more holistic view of manufacturing operations, providing real-time insights that empower workers on the shop floor to make data-driven decisions.

Unlike traditional monolithic MES, which focused solely on production execution, the new breed of technologies leading with the Frontline Operations Platforms encompass a broader range of activities, including quality control, maintenance, lab operations, inventory management, and workforce training. This transformation is a direct response to the growing need for systems that not only manage production but also integrate seamlessly with other digital tools and platforms to enhance overall operational efficiency. It also aligns with the broader digital paradigm, where the goal is not just to automate existing processes but to create a more connected, intelligent, and responsive manufacturing environment. The integration capabilities of Frontline Operations Platforms enable a seamless flow of information between the shop floor and the enterprise level, blurring the traditional lines between MES and ERP.

Several key trends are driving this convergence:

1. IIoT and Real-Time Data Integration:

The proliferation of IIoT devices on the shop floor allows for the real-time collection and analysis of data. This data can be fed into both MES and ERP systems, enabling more informed decision-making across all levels of the organization. For instance, real-time production data captured by IIoT sensors can be used by the ERP system to adjust supply chain logistics or by the MES to optimize production schedules on the fly.

2. Advanced Analytics and AI:

Machine learning and AI are increasingly being used to analyze the vast amounts of data generated by manufacturing processes. These technologies enable predictive maintenance, demand forecasting, and process optimization, functions that traditionally belonged to either MES or ERP. The use of advanced analytics allows these systems to overlap, as both can now contribute to strategic and operational decision-making.

3. Human Centric Platforms:

The new no-code platforms take a human centric approach that break down the traditional process centric solution. They allow to build solution that can be used across manufacturing modalities and also allow to combine MES and ERP functionalities blurring the lines between the two. The new solutions provide a democratized platform for managing all operational process. Workers on the shop floor, managers, and executives can all access the same platform, though with different levels of detail and control, depending on their role.

4. Cloud Computing and Edge Computing:

The shift towards cloud-based solutions and edge computing is enabling greater integration and scalability of MES and ERP systems. Cloud computing allows for centralized data management, making it easier to integrate MES and ERP data. Edge computing, on the other hand, brings computational power closer to the production site, enabling real-time data processing and decision-making that benefits both MES and ERP functions.

5. Interoperability and Open Standards:

Increasingly, manufacturers are adopting interoperable systems that can communicate with each other through open standards. This trend is making it easier to integrate MES and ERP systems, allowing for a more seamless exchange of data and better collaboration between different departments.

The Future: A Converged System for Manufacturing Excellence

The convergence of MES and ERP functionalities into more integrated platforms represents the future of manufacturing. As these systems continue to evolve, they will offer manufacturers the ability to manage both high-level strategic planning and detailed operational execution through a single, cohesive platform. This convergence will enable a more agile and responsive manufacturing process, better equipped to meet the demands of the modern market. The systems are working together more closely than ever, driven by advancements in digital technology that empower manufacturers to achieve new levels of efficiency, flexibility, and innovation.

In Summary...

In the rapidly changing landscape of manufacturing, understanding the distinct yet increasingly interconnected roles of ERP and MES systems is crucial. As digital technologies continue to advance, these systems are evolving and converging, offering manufacturers a powerful toolset for driving operational excellence. The transformation of MES into Frontline Operations Platforms exemplifies this convergence, blurring the lines between strategic planning and operational execution. By embracing these integrated platforms, manufacturers can unlock new opportunities for efficiency, agility, and competitiveness, setting the stage for a new era of manufacturing excellence in the digital age.

Yet, it is naive and risky to assume that one of these systems can be extended to effectively do the other’s job. Similarly, one would not assign an accountant to be a production manager, or vice versa. Each might be an expert in his own field, yet it takes a completely different set of skills, expertise and knowledge to effectively tackle each task.

Taming the Lone Wolf: How to Avoid a Custom Monolith

The Perils of the Custom Monolith

Imagine a tightly packed toolbox – everything you need, but jammed together. Changes become risky domino effects. Deployments are slow and cumbersome. Scaling? Forget about it. Combine this with a single person heroically building a massive, all-encompassing solution or application that the operations is critically dependent on - we have all experienced it. This is called a "custom monolith".

While the effort and dedication of the lone wolf is admirable and commendable, this "custom monolith" approach usually ends up being expensive and risky to unravel. The custom monolith situation is typically more likely to happen with tools and platforms that offer a democratized approach. Its not only modern platforms that this pertains to, I have seen this phenomena with SCADA/HMIs, Access, MatLab, Quickbase, Retool, Tulip, etc., and of course the beloved Excel (or any spreadsheet).  

With the advent of no-code/low-code platforms that are fast becoming the norm in digital transformation the custom monolith phenomena is happening more often and faster. After all that is one of the characteristics of digital technology - order of magnitude faster. Its both a blessing and a curse, we all love the early adopter - the person who embraces the technology and creates the initial value for all. But then that initial solution grows and becomes an unwieldy custom monolith that only that person knows how to tame. Even more problematic is that the aura of the custom solution is that its complex and has a narrow scope. It can critically stall your digital transformation by alienating the platform, where people are fearful that they can't master the technology and dismissive of its relevancy to their other use cases. 

I have experienced countless times where customers bring in other technologies to solve a problem that their existing no-code platform excels in because it was used for one specific use case solved by a custom monolith. In one example a solution was built for inventory replenishment of manual assembly lines that became a big money saver for the company. The solution was built on a no-code platform and grew in scope to cover more and more lines such that it was intricate and complex - of course by one person. This was touted as a great success story in the companies digitalization journey but on the flip side shoehorned the digital platform to be an "inventory replenishment" system. When I visited the facility I noticed another technology being used for digital work instruction, which was a core capability of the digital platform. When I inquired about their choice of technologies the process engineers said; "well the platform is an inventory solution and we needed work instructions". They then added; "the technology we choose did not require the lone-wolf's [reference to the person who built the inventory solution] level of expertise". This was a clear case of a complete stall in technology adoption because of the "custom monolith" phenomena.

Breaking Free: Fostering Collaboration and Adoption

So how do we avoid these situations, and more importantly how do we setup of successful adoption of democratized digital technologies? The key is to divert the early adoption motion into a sustainable broad citizen development motion and thus prevent a lone wolf situation. Here are a few things to consider:

• Teamwork Makes the Dream Work
  Don't let one person become an island. Start building a community of citizen developers with a diverse backgrounds from all over the company. A culture of collaboration fosters peer reviews, knowledge sharing, and a sense of shared ownership. This is kind of obvious but sometimes hard to realize. 

• Embrace Shared Content
  The community should have a common collaboration hub, a center of excellence that they can use to network and share content. Establish clear guidelines for how to use the digital platform including selected use cases, content development practices, template, data structures, and integrations. This creates a foundation for future content developers to build upon, preventing them from becoming an unmaintainable labyrinth.

• Communication is Key
  Regular discussions about content goals, relevant use cases, technical roadblocks, and future features are crucial. This keeps everyone on the same page and helps identify opportunities to break down the monolith into smaller, more manageable pieces. It is also critical to establish a set of rules about what makes for good vs bad content - specifically around monolithic vs composable solution. These rules should be made part of the culture so that people regularly discuss content based on them.

• Governance
  Regular evaluation and discussions about goals, content effectiveness, solution value, technical roadblocks, and future features are crucial. Create an internal a process where content can be vetted and then shared for reuse across the company. Establish simple rules about how to create libraries of content, how to manage this content and how to disseminate it. Establish a simple but effective set of principles that define teamwork, use and development of shared content and communication, ie the combination of the key points listed above. 

Accelerated Digital Transformation

It sometimes goes unnoticed - by spreading the effort of building digital content broadly in an organization you essentially crowdsource your digital transformation. Done right this is an immense force that can accelerate your digital transformation beyond anything that you may have imagined. Of course managing and guiding this force is not trivial and requires strong leadership, effective governance and clear strategic objectives.