This article first appeared in Digital Edge, The Edge Malaysia Weekly on May 26, 2025 - June 1, 2025

The manufacturing sector is undergoing a profound transformation, spurred by evolving regulations, competitive pressures and a growing appetite for innovation. As advanced technologies continue to reshape operations, manufacturers are increasingly turning to partners to help them adapt and adopt these new tools.

Epicor Software Corp is one such provider. Its enterprise resource planning (ERP) systems have seen increasing adoption, particularly in the manufacturing sector, with nearly 90% of Epicor’s Asian clients coming from this industry.

An ERP system is a digital platform that integrates and manages various business processes, centralising operations. These systems can be deployed on-premises or on the cloud, with the latter allowing for further advanced technology integration.

“Epicor is really focused on providing an end-to-end manufacturing solution from the ERP, AI (artificial intelligence), IoT (Internet of Things) solution, everything integrated,” says Epicor Asia vice-president Vincent Tang.

Companies like Epicor, which specialise in serving the manufacturing sector, draw on their global experience to offer solutions that are make-to-order, configure-to-order, engineer-to-order and project-based.

According to Tang, many of Epicor’s Asian clients are firms that have outgrown their initial ERP systems — often locally developed due to cost. As these companies evolve from small businesses into medium enterprises, they typically seek out more scaleable solutions from providers like Epicor.

In the Asian region, various factors are driving this technological shift. In Malaysia, the move towards mandatory e-invoicing is a key example.

Malaysia announced in 2023 that e-invoicing would be compulsory for all businesses, starting with those generating more than RM100 million in annual turnover from August that year. As firms transition into the medium and large enterprise brackets, the deadline for compliance draws closer, prompting them to overhaul financial and ERP systems — often with partners like Epicor.

Similar developments are unfolding in countries such as Singapore and China, Tang says. Epicor is now working to replicate its success in Malaysia across other markets in the region.

However, this expansion has not been without challenges. One major hurdle, he says, lies in addressing country-specific needs.

“For Epicor to provide the solution for all these countries in Asia, we need to resolve [not only] the language issue, but also the legal requirement, what we call CSF (country-specific functionality),” explains Tang.

Epicor International executive vice-president Andy Coussins adds that there are broader technological trends reshaping manufacturing, particularly the growing integration of advanced technologies into ERP systems.

“We’re seeing some transformation in manufacturing in terms of being digital. We’re seeing sustainability becoming more and more important … And then obviously, the advent of AI and machine learning is becoming increasingly important to become more competitive in the marketplace,” he says.

Coussins refers to cloud adoption as one factor that is particularly striking. Many companies are opting to move data from on-premises to the cloud, primarily for enhanced security and professional infrastructure management.

This is one of the main reasons Epicor has seen 99% growth in cloud solution adoption across Asia, according to Coussins. Tang adds that since Epicor launched its cloud data centre in Singapore in 2021, its cloud business in the region has risen by 90%.

AI is also playing a key role in digital transformation. Integration of AI into ERP systems has proven especially appealing to manufacturers due to its ability to accelerate and optimise operations.

Coussins shares an anecdote from Epicor’s Asia Connect 2025 — a conference where clients gather and share experiences — where a car component manufacturer explained how it used AI integrated into ERP systems to identify damaged car parts after a crash. The AI extracted the technical specifications of both the vehicle and the damaged components, allowing the company to estimate production and delivery costs.

Still, Coussins cautions against adopting technology for technology’s sake, stressing the importance of clarity and purpose.

“[What’s] really important is having clearly defined, measurable processes or procedures you would like AI to help and enhance, and then you’re investing dollars wisely in order to get that return. So you have to be very clear and specific about what the objective is,” says Coussins.

He adds that ERP implementation is just the starting point. To maximise benefits, manufacturers must deploy a full ecosystem of tools — ranging from business intelligence to IoT — around the ERP hub. This, he notes, requires a long-term IT strategy, often spanning at least three years.

One company that has undergone this transformation is Malaysia’s Betamek Bhd (KL:BETA). Previously reliant on an internally developed ERP system, the company transitioned to Epicor’s cloud-based ERP after its listing on Bursa Malaysia in 2022.

“Part of our aim at that time was to resolve the problems of e-invoicing … We then worked with Epicor and implemented it on time, on budget. We actually went live one month before the deadline,” says Betamek’s chief technology officer Safuan Yusof.

Reflecting on the experience, Safuan says the company could not have managed using its older on-premise system, pointing out that the manual processes would have been overwhelming.

Beyond e-invoicing, relying on Epicor’s pre-established systems has also benefited Betamek in other areas, such as sustainability reporting.

“Epicor has all the data that we require for our reporting to Bursa,” says Safuan.

In line with Coussins’ warning about indiscriminate AI adoption, Safuan shares Betamek’s AI strategy, which centres on four goals: improving factory productivity and quality, integrating AI into products, leveraging ERP for better decision-making, and increasing AI awareness among staff. Still, he admits that selecting the right system and training employees posed major challenges.

He explains that previously only a select group could operate the ERP system, but now everyone in the plant can use it, thanks to extensive training delivered by partners.

Now that ERP and, by extension, AI systems are accessible to all staff, the next challenge is maximising the value of these tools.

Betamek plans to integrate its systems into a single platform, including connecting its Manufacturing Execution System with its Surface Mount Technology line. Full-scale AI implementation is targeted for completion within the next two years.

Across Asia, the journey to digital transformation is not uniform. Smaller manufacturers, especially those in emerging markets, often lack the IT capabilities, skilled personnel or financial means to overhaul legacy systems overnight.

As a result, many start with hybrid approaches — such as connecting only key production lines to the cloud or integrating AI tools for specific-use cases.

To address this, Epicor has begun working with local implementation partners to provide phased rollouts and targeted training sessions. These partnerships also play a crucial role in localising systems, ensuring compliance with regulatory frameworks and offering on-the-ground support for manufacturers with limited IT teams.

“Digital transformation is not a one-time upgrade. It’s an ongoing process of rethinking how manufacturing is done — from procurement to production to delivery,” says Tang.

Ultimately, manufacturers that invest in the right digital infrastructure today are better positioned to thrive in tomorrow’s industrial landscape — one defined not just by automation, but also by resilience, visibility and data-driven decision-making.

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