Manufacturing and Logistics IT - March 2013

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Insight

mentioned the inability of their current ERP system to support fast decision making when asked about major limitations of their current systems. Almost 50 per cent cited a lack of support for collaboration and social networking capabilities. Unlike traditional ERP systems, which have treated reporting and analysis as an after-thought, next generation solutions deliver in-context Business Intelligence and collaboration built into the process. Next generation solutions take a holistic view of business processes beyond planning and transaction management by providing insight for every role in the organisation.

Overcoming fragmentation High-Tech manufacturers believe the major

Some 63 per cent of survey respondents plan to consolidate their ERP system landscape and support their global business through a single global instance.

barrier to effective decision making comes from the inaccessibility of accurate data, as it is stored in too many different IT systems and

In view of these results it is not surprising that

operational needs of the High-Tech industry

locked up behind rigid organisation and

close to 80 per cent of High-Tech companies

without compromising on financial

information silos. They want to overcome

feel that their current ERP system does not

management and compliance. Because such

current system fragmentation and encourage

allow them to react quickly enough to

applications come with High-Tech Industry

a more collaborative environment with greater

changing business needs. But companies

best practice built in, they can be

visibility and easier access to the right

seem determined to fixing the issue given its

implemented faster with fewer customisations,

information.

strategic importance. Nearly 50 per cent of the

require far fewer integrations and can be

High-Tech respondents expect their company

rapidly reconfigured to enable business

As a result they recognise the importance of

will undertake specific initiatives aimed at

process change and innovation.

modernising traditional IT, leveraging what IDC

better aligning IT with the business over the next three years.

calls the ‘four IT forces’: Cloud computing, Some 63 per cent of survey respondents plan

social business, mobility, and Big Data. Next

to consolidate their ERP system landscape

generation operational ERP fosters

But how do you get there? Our research has

and support their global business through a

collaboration, enables rapid decision-making

shown that Financial ERP systems improve IT

single global instance. Why? Because

and coordinated action across on premise and

efficiency over custom developed systems,

operations require multi-site planning and

Cloud services by embracing the social

but do little to support the needs of the

execution capabilities to orchestrate

enterprise, enterprise mobility and Big Data.

business. Best-of-Breed applications can help

increasingly complex processes. Strategic

Nearly 95 per cent of respondents believe

with improved business alignment, but

sourcing and shared services promise

these four forces will change the way they

typically result in inconsistent data, information

significant cost savings across organisational

work in the near future, and more than 40 per

silos and a lack of process integration.

boundaries. Global visibility and the sharing of

cent believe these will completely change the

best practices in pursuit of Operational

way the business is managed.

Excellence become a reality. But even more

Supporting specific operational needs

importantly, a single global instance of

IDC Manufacturing Insights expects High-Tech

Operational ERP is a key foundation for growth

manufacturers to make foundational

strategies.

investments in these technologies to improve

But there is a better option: ‘Operational ERP’ systems built to support the specific

26

IT

MANUFACTURING

&LOGISTICS

March 2013

the value of their IT systems and in particular Over 60 per cent of survey respondents

their ERP. n

www.logisticsit.com


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