How does the digitalization of product/service design influence ERP adoption?

This paper briefly explores how the adoption of an Enterprise Resource Planning (ERP) system can be influenced by the digitalisation of product or services design. Data has become a key commodity to the success of products. Data gathered from launched products can be used to identify changes required on products (Cantamessa et al., 2020). Data collected on customers also improves the organisations’ understanding of their customers and their needs. It is to the organisation’s (specifically designers’) benefit, therefore, to keep constant interactions with customers to keep up with their evolving needs and to design products that will keep customers who have adopted its products and attract new customers (Cantamessa et al., 2020). Traditionally, product design was done on paper in a form of drawings. More and more, organisations are transitioning more to digital product design, with the use of Computer Aided Design (CAD) and Product Design Management systems. The continuous generation, collection and analysis of data has shifted the design paradigm (Cantamessa et al., 2020). Collaborations between the product/service design function and other organisational functions have become crucial to the product/service development process. Barna and Ionescu (2023) view Enterprise Resource Planning (ERP) systems as a representation of “integrated IT systems that have the role of incorporating a series of modules and functions necessary for the development of the organization’s activity” (p. 1). From a product design perspective, there are potential risks of recapturing the same data, data misalignment within functions, and/or possible human error where design systems (CAD/PDM and PLM systems) aren’t integrated with the ERP system (Janusz, 2015). The integration of product design systems and ERP allows for direct sharing of engineering and manufacturing data through automated processes (Batchelor & Anderson, n.d.). In summary, many organisations are using digital technologies to design, develop and manage their products. The gathering and analysis of data has become pivotal to product’s success. Digitalisation of product/service design encourages ERP the adoption as it improves organisational efficiency and product/service quality.