Software selection for Manufacturing and HighTech ...... · The basic concepts and ... and...

13
What are the most important questions you should ask when selecting business software? P7 What are the key business challenges for manufacturers today? P4 How does the right software address the challenges of your industry? P6 KEY QUESTIONS: ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHAT’S NEXT IFS WHITE PAPER Antony Bourne, Vice President, Global Industry Solutions, IFS, May 2017

Transcript of Software selection for Manufacturing and HighTech ...... · The basic concepts and ... and...

Page 1: Software selection for Manufacturing and HighTech ...... · The basic concepts and ... and operations management. Gartner now speaks of postmodern ERP, which it describes as “a

KEY QUESTIONS

What are the most important questions you should ask when selecting business software

P7

What are the key business challenges for manufacturers today

P4

How does the right software address the challenges of your industry

P6

KEY QUESTIONS

ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

IFS WHITE PAPER Antony Bourne Vice President Global Industry Solutions IFS May 2017

CONTENT

PREPARING MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT 3

COMMON BUSINESS CHALLENGES 4COMPLIANCE ISSUES 4RISING MARGIN PRESSURES 4CONSUMER DEMAND 5STANDARDIZATION 5DISRUPTIVE INNOVATIONS 5

HOW THE RIGHT SOFTWARE ADDRESSES BUSINESS CHALLENGES 7

10 KEY QUESTIONS TO ASK WHEN SELECTING ENTERPRISE SOFTWARE 8

WHAT ARE PEERS SAYING 10

READY FOR SERVITIZATION AND WHATrsquoS NEXT 11

ABOUT IFS 13

3 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXTBY ANTONY BOURNE VICE PRESIDENT GLOBAL INDUSTRY SOLUTIONS IFS

PREPARING MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXTIn todayrsquos accelerating and volatile global marketplace manufacturers and high-tech companies understand that change is constantmdashand a constant challenge

The nature of technological innovation and prevalence of economic uncertainty have transformed the environment for manufacturers from one that was rather slow-moving and monolithic to todayrsquos fast-paced hypercompetitive time-sensitive customer-demanding increasingly nuanced global commercial ecosystem Competition can come from anywhere on the globe at breathtaking speed and risk and opportunity are usually if not always closely coupled (Itrsquos always interesting to note that the Chinese word for crisis contains the characters for both risk and opportunity)

Keeping risk at bay and identifying and seizing opportunity are traits of companies that thrive in this difficult environment and steer a steady course in seas where potential crisis lurks In our digital data-driven world software mdashparticularly enterprise resource planning (ERP) softwaremdashis one of the principal tools organizations leverage to keep the enterprise ship sailing boldly forward

ERP systems are one of the core business applications used by almost all companies that operate above a minimum complexity The basic concepts and functionalities have been developed and implemented for more than 30 years but the term ERP was coined by Gartner in 1990 In the original definition which came from manufacturing resource planning (MRP II) ERP systemsrsquo functionality normally covered finance and accounting (general ledger accounts payable and accounts receivable) purchasing HR management sales or customer order management and operations management Gartner now speaks of postmodern ERP which it describes as ldquoa technology strategy that automates and links administrative and operational business capabilities (such as finance HR purchasing manufacturing and distribution) with appro-priate levels of integration that balance the benefits of vendor-delivered inte-gration against business flexibility and agility This definition highlights that there are two categories of ERP strategy administrative and operationalrdquo1

1 wwwgartnercomit-glossarypostmodern-erp

a technology strategy that automates and links administrative and operational business capabilities (such as finance HR purchasing manufacturing and distribution) with appropriate levels of integration that balance the benefits of vendor-delivered integration against business flexibility and agility This definition highlights that there are two categories of ERP strategy administrative and operational

POSTMODERN ERP IShellip

RISK

OPPORTUNITY

4 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Because these systems are central to todayrsquos enterprise operations their selection must confirm that the features and functionality they provide take into account the rapidly changing nature of global manufacturing and help address the challenges that poses As Gartner notes companies ldquoneed ERP systems that support flexibility rather than inhibit itrdquo2 They need software that enables business agility

This paper explores some of the common business challenges faced by todayrsquos manufacturing and high-tech organizations how the right software addresses these challenges and posits a number of key selection factors that will optimize ROI on software investment for those in the sector

COMMON BUSINESS CHALLENGESWhile each manufacturer has its specific needs and requirements the nature of todayrsquos competition presents a number of challenges that tend to be common across manufacturing organizations Here are a few of the most prominent

COMPLIANCE ISSUESRegulations and regulatory compliance are particularly important in the manu-facturing sector For example according to the National Association of Manufacturers the average manufacturing firm in the United States pays nearly twice the compliance costs of the average US firm small manufactur-ers pay nearly three times as much as the average3 Additionally as global trade increases international standards take on greater importance These can range from multiple ISO standards to directives that have been intro-duced by the European Union (EU) that are moving toward global recognition as de facto or de jure international standards In certain vertical sectors such as medical device manufacturing validation processes are critical Keeping compliance with such regulations is an ongoing concern for manufacturers not only from an adherence perspective but also from a cost of documenta-tion perspective

RISING MARGIN PRESSURESRegardless of the specific sector margins for manufacturers are being squeezed from multiple directions In developed markets top-line growth has slowed or declined whereas in emerging markets margins are threatened by rising labor costs more expensive commodities and cost of distribution4 As such manufacturers need more granular information on what margins are being made when theyrsquore taking or closing orders If margins change based on a supplierrsquos increasing costs the manufacturer needs to be made aware of that proactively as it happens so that action can be taken in response

2 ldquoMagic Quadrant for Single-Instance ERP for Product-Centric Midmarket Companiesrdquo Gartner (Christian Hestermann Nigel Montgomery Chris Pang Michael Guay analysts) November 24 2014 3 ldquoRegulatory Reformrdquo National Association of Manufacturers wwwnamorgIssuesRegulatory-Reform4 Margin Unlocked EY 2013

+

+

SnAg

CuSi

AlFe

5 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

GREATER VISIBILITY AND MORE GRANULAR INFORMATIONA more project-based approach is rapidly emerging in manufacturing Years ago designers and engineers were just treated as overheads within the business Todayrsquos manufacturers want to know how much time and effort mdashspecifically and from wheremdashhave gone into designing a new product How much time (and money) was spent with a customer working on a product design How much did we budget What resources have been used so far How many can we expect to use This process can entail anything from finance doing credit checks to engineers doing drawings to prototype production to manufacturing set-up Visibility of the timeexpense plan is increasingly crucial for many manufacturers and granular detail is key

CONSUMER DEMANDMany manufacturers must now account for individual consumers as well as traditional industrial customers This trend is particularly growing in the environmental arena (perhaps to a greater degree in Europe than America) where consumers are demanding verification that what they are purchasing has been manufactured in a sustainable way Increasingly itrsquos important for manufacturers to have eco-footprint information within their systems to report their carbon footprint recyclable packaging used etc And products down to component level need to be completely traceable Further they need to comply mdashand demonstrate compliancemdashwith standards like REACH and RoHS and EU directives like those on energy labeling ecodesign and energy-related products (ErP) This information needs to be reportable internally to share-holders and increasingly to the public at large

STANDARDIZATION Particularly as operations extend across disparate locations or geographical borders manufacturers and high-tech organizations are looking for ways to standardize their business processes across multiple sites for consistency and cost reduction factors This need extends from design to production to service and applies to smaller manufacturers (eg a company building a product at two different local sites) as well as to global enterprises that may manufacture in one country and assemble in another

DISRUPTIVE INNOVATIONSDisruptive innovations are those that help create new markets and value networks eventually disrupting an existing market and value network (over a few years or decades) and displacing earlier technologies When new tech-nologies emerge the decline of industries is neither rapid nor immediate but successful manufacturers understand that growth demands innovation and innovation in the sector cannot occur without embracing technologically-advanced manufacturing capabilities5

Perhaps the most visible of todayrsquos disruptive technologies is additive manufacturing also known as 3-D printing In the future smaller highly specialized 3-D printing companies will emerge to serve a local area on demand

5 Disruptive Manufacturing Deloitte LLP httpswww2deloittecomcontentdamDeloittecaDocumentsinsights-and-issuesca-en-insights-issues-disruptive-manufacturingpdf

6 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

So instead of manufacturers buying components such as spare parts and having them shipped from afar or buying a machine and putting it into the warehouse and taking up stock and cost from a financial point of view they could wait until a part failed send a command and have it printed on demand within hours

At the moment quality issues are the principal impediment to broad adoption of 3-D printing but these issues will abate over time Yet while the technology has significant and transformative advantages (eg rapid proto-typing reduced lead times rapid innovation rapid manufacturing mass customization use of unique materials) it also brings new risk according to studies by 2018 3-D printing will result in the loss of $100 billion due to counterfeiting of parts6 This in turn will lead to more innovation to counter that risk as manufacturers look to embed ldquoplant DNArdquo in products to check for validity and contract adherence

The Internet of Things (IoT) is another development moving rapidly from the consumer marketplace to manufacturing Sensors are being embedded to provide machine-to-machine communications for applications such as remote monitoring and control enabling manufacturers to get information and act upon it remotely This is speeding maintenance while driving down costs (eg no longer having to send engineers into the field for maintenance on remote installations) through preventive maintenance and improved asset management (ie asset self-management)

Other examples of disruptive innovation range from those becoming more established (eg cloud computing) to nascent but potentially revolutionary developments such as nanotechnology As with 3-D printing nanotechnology has the potential to localize global supply chains with very direct paths from raw materials through to finished products7

Into our era of Industry 40 and the smart factory comes Blockchain a secure distributed electronic ledger that connects parties in a network of trust and integrity to facilitate the transfer of assets and the information pertaining to those assets Blockchain is already beginning to alter the way transactions are carried out by bringing parties together in a trusted network without a third party and by recording each transaction sequentially and securely Usually associated with Bitcoin a range of industries are now see-ing the business benefits it can bring These include

Efficiency As transactions are completed directly between the relevant parties with no intermediary and with digitized information settling the transaction can be quick Added to this is the ability to operate lsquosmart contractsrsquo which automatically trigger commercial actions based on satisfying the criteria laid out in the contract This can dramatically streamline processes and in doing so remove time and cost from transacting

Auditability As each transaction is recorded sequentially and indefinitely it provides an indelible audit trail for the life of an asset even between parties This is especially important if source data is essential in verifying an assets authenticity

6 ldquoGartner Says Use of 3D Printing Will Ignite Major Debate on Ethics and Regulationrdquo Gartner press release January 29 20147 ldquoManufacturingrsquos three biggest disruptive technologiesrdquo The Manufacturer November 6 2014

LOW

MEDIUM HIGH

7 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Traceability Tracking goods in a supply chain can be advantageous when seeking to trace where components are currently residing Information relating to the component can then be relayed to or from the new owner for possible action

Transparency Lack of commercial transparency can sometimes lead to delays in commerce and a breakdown in relations By providing details of transactions against the commercial construct further trust can be enlisted within the process and so provide a more stable relationship based on transparency rather than negotiation

Security As each transaction is verified within the network using indepen-dently verified complex cryptography the authenticity of the information can be assured Assured information is one of the fundamental keys to unlocking the benefits of the Internet of Things (IoT) which is a closed loop cyber autonomous process linking assets to actions

Feedback With full traceability throughout the lifecycle of an asset asset designers and manufacturers can accommodate through-life asset manage-ment into their products to make them more effective This can allow for information returning from shipping installation maintenance and decommis-sioning

Blockchain is yet another lsquodisruptorrsquo that can provide enormous opportunities for digitally savvy companies who adopt it fast

HOW THE RIGHT SOFTWARE ADDRESSES BUSINESS CHALLENGES The right business software supports manufacturingrsquos ability to meet emerg-ing challenges and respond to constant change by providing the foundation for enterprise agility The concept of manufacturing agility involves the devel-opment of manufacturing capabilities to achieve sustained competitive advantage in an unpredictable environment8 Agility is the product of three foundational blocksmdashvision knowledge and flexibilitymdashthat effectively designed and developed software facilitates across the business

VISION Vision is the ability to link business strategy and growth aspira-tions to technology investment and to make informed decisions that prove effective over time Clear vision enables a manufacturer

to correctly assess and balance the risks and opportunities of disruptive technologies The right business software helps focus and clarify vision

KNOWLEDGE Knowledge is the ability to identify understand and predict new sources of threat or opportunity across daily business operations and projects Knowledge enables business insight the most

valuable form of which comes from the ability to assemble a clear compre-hensive and accurate view of the past present and future status of

8 Sud-on P Abareshi A Pittayachewan S and Teo L ldquoManufacturing Agility Construct and Instrument Developmentrdquo World Academy of Science Engineering and Technology 82 2013 p 755

The right business software supports manufacturingrsquos ability to meet emerging challenges and respond to constant change by providing the foundation for enterprise agility

8 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

assets infrastructure and employees across even the most complex global operations and projects The right business software gathers assembles and disseminates knowledge in real time where and when it is needed

FLEXIBILITY Flexibility is the ability to take action rapidly when things happen expectedly or unexpectedly founded on technology that makes rapid and responsive change possible The right software is a

critical part of this technology Vision and knowledge are not fully empowered unless an organization has the flexibility to rapidly change its shape or focus to seize new opportunity or mitigate risk Flexible business technology is necessary for this but so too is a business culture that embraces rather than hinders change and rapid response

10 KEY QUESTIONS TO ASK WHEN SELECTING ENTERPRISE SOFTWARETo see whether software under consideration is meeting the needs of todayrsquos evolving manufacturing environment the following questions are key

1 DOES THE SOFTWARE SUPPORT RAPID BUSINESS CHANGE An organizationrsquos software should help it plan for change Change is constant and the most dominant characteristic of todayrsquos business environment so the ability to plan for the unknown makes it possible for agile companies to thrive Long-term planning is not about being able to predict every future but being able to respond fast and smartly enough to capitalize on change Effective software facilitates the ability to change mdashnot only forecast information but also supply and demand output quickly and provide visibility into what impacts the change will make In todayrsquos markets where new product introduction is increasingly essen-tial to growth enterprise software should help facilitate and control new product introduction

2 DOES THE SOFTWARE PROVIDE ESSENTIAL ACCESS TO DATAmdashTHE RIGHT DATA FOR THE RIGHT PEOPLE AT THE RIGHT TIME Data-driven decision-making is central to enterprise operations but the proliferation of data can be overwhelming for users Well-designed soft-ware delivers data to users in ways they can use it wherever they are whenever they need it without delay or variation Having data in a single place accessible from any device is key A company doesnrsquot want to have to hold up production because itrsquos waiting for signoff from a production supervisor who is traveling on another continent If he or she can review it on a smartphone the company can act now With older software systems this wasnrsquot possible

3 DOES THE SOFTWARE ALLOW FOR FUTURE GROWTH The boundaries between manufacturing and distributing organizations have been slowly disappearing more manufacturing companies have been distributing and servicing their products which has led to tighter integration of ERP CRM and supply chain management (SCM) solutions

9 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Many companies that today are manufacturing only may be looking to add service to their portfolios These companies are served by software that meets their current need but also has the capability to handle future development in the system

4 IS THE SOFTWARE APPEALING TO TODAYrsquoS GENERATION OF WORKERS As the manufacturing workforce ages a younger generation is coming into the sector The longstanding perception of manufacturing as a smokestack environment (ie dirty greasy unhealthy) is giving way to the reality of high-tech manufacturing much more appealing to those that grew up in the digital age When younger people come into manufac-turing they donrsquot want to work with a green-screen application they want something that they are familiar with (ie graphic sophistication touch-screens apps to download onto a phone) How will younger workers mdashsoon to be a majority in the workforcemdashrespond to the software presentation

5 IS THE SOFTWARE USABLE IN TODAYrsquoS CHANGING WORK ENVIRONMENT Related to the question above usability speaks to the way work is done differently today which is something influenced by the younger generation but certainly not limited to them Increasingly the workplace is where we happen to be which may not be within the ldquofour wallsrdquo of the organiza-tion This has certain implications for software Is it mobile Can it be accessed and comprehended by sophisticated and casual users on multiple devices laptops tablets smartphones and in the coming years wearable technology like watches Does it provide role-based portals and interfaces Is it intuitive to anyone who sits in front of it

6 IS THE SOFTWARErsquoS CRM DISCRETE OR EMBEDDED Customer relationship management is increasingly important in todayrsquos manufacturing market and nearly all software providers will have CRM as a separate but integrated package But itrsquos still in a separate world This becomes an issue when manufacturers set up more complex relationships (eg from opportunity to sales to contract delivery) which typically requires integration work Further there are user experience issues including not being able to drill through CRM all the way to the back office nore from the back office into CRM When CRM is embedded in the enterprise software those issues are taken off the table There is no need for integration work Users can now drill through in both directions which can be an important advantage

7 DOES THE SOFTWARE PROVIDE DEPLOYMENT OPTIONS Single instance on-premise enterprise systems are rapidly being relegated to the past as hybrid models continue to grow toward the norm Whereas the majority of those hybrids are a combination of core and point solutions (on-premise) from multiple vendors increasingly manufacturers will use cloud-based point solutions as an essential part of the hybrid approach This is inevitable particularly as manufacturing operations take on global scope Does your software provide real deployment flexibility

10 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

8 DOES THE SOFTWARE SPEED EXECUTION OF TASKS While provision of real-time data is increasingly a given for enterprise software is this translating into faster execution of essential work Consider financials Itrsquos not uncommon to find manufacturers where it takes over a week to do monthrsquos end financials Frankly it should not take more than a day or two When companies arenrsquot able to close their books until the middle of the next month something isnrsquot right with the software system Software should enable companies to have information they can believe and trust in one system so when they print out a trial balance they believe the numbers generated There shouldnrsquot be a need to wait for information (eg for production to indicate how much WIP they have or accounting to report accruals) Real-time data is often over-looked these days because companies are not used to it but itrsquos still a shock when a company tells you it takes a week to do a monthrsquos end report

9 HOW BROAD AND DEEP IS THE SOFTWARE SOLUTION Can the software system phase out the use of multiple systems eliminating undue complexity and cost Today many manufacturers are multi-modal some products are made to order some made to stock some engineered to order some assembled to order and some config-ured to order Can your software handle all these approaches If you set an approach today do you have the ability to easily change over in a weekrsquos monthrsquos or yearrsquos time A broad and deep solution will provide this capability

10 CUSTOMIZATION OR CONFIGURATION IS THE SOFTWARE EASY TO MODIFY Because change will make it likely for a company to want to modify its software over time how easy and how costly will it be to make that change The best systems enable users to add their own fields events and so on without having to go back to the software provider for custom-ization Configuration is part of the functionality out of the box and easy to do not part of an upgrade or requiring additional costs

WHAT ARE PEERS SAYINGFinally companies are well served by looking to respected analysts who assess the status of software providers Of those who study enterprise soft-ware and systems the best known and perhaps most highly respected is Stamford Connecticut-based Gartner

Gartner publishes Peer Insights9 that offer ldquoimpactful insights from real IT decision makersrdquo The insights are described as follows ldquoFree of vendor influence Gartner Peer Insights offers detailed perspectives for every phase of the IT lifecyclemdashfrom evaluation and implementation to service and supportrdquo Below are some of the things peers (Manufacturing CIOs CFOs CTOs) are saying about IFS Applications and why they bought it

9 wwwgartnercomreviewshome

11 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

What do you like most about the product or service

bull Its flexibility to make personalizations without having to customize the product and move those personalizations forward with each new release (CIO Manufacturing)

bull Very stable application with all modules tightly integrated

bull The consistency of the experience over the years

bull The security and the integrity of the system are up to the mark

What were the key factors that drove your decision

bull Product functionality and performance

bull Strong customer focus

bull Breadth of services

bull Financialorganizational viability

bull Pre-existing relationships

bull Product roadmap and future vision

bull Strong services expertise

bull Strong user community

READY FOR SERVITIZATION AND WHATrsquoS NEXTCompanies that have added service to their offerings adapted their organiza-tions to enable this and acquired the requisite technology (often in the form of integrated full-scope enterprise software) have confronted the question of lsquoWhatrsquos nextmdashand reaped significant benefits In fact adding service contributes to much of what is the very essence of good business viz actively looking to the future and seeking to shape it to create opportunities rather than merely grasp those that arise Benefits reported include

Enhanced revenuemdashreported growth between 2x and 4x

Better marginsmdashincreases of 3ndash10 reported

Sustainable business growthmdashincreases of up 5ndash10 reported

Greater customer satisfactionmdashthey are getting what they want

More repeat business greater market share and a better reputation

Predictable income streams

12 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Combining a comprehensive suite of enterprise software that covers ERP EAM ESM (Enterprise Service Management) FSM (IFS Field Service Managementtrade) IFS Enterprise Operational Intelligencetrade (IFS EOItrade) and advanced analytics IFS enables manufacturers to actively take part in the transformation process giving them the capabilities and insights to make decisions based on real-time statuses to not only meet customer needs but also anticipate them Being able to handle todayrsquos business challenges is important shaping whatrsquos next is crucial to growth and continued success

ABOUT ANTONY BOURNEAs Vice President of Global Industry Solutions Antony leads a team of global industry experts who cover the IFS focused industries and support sales marketing and partner enablement Antony is a lead spokesperson for IFS and represents the company in multiple internal and external events analyst updates (including Gartner IDC and ARC) publications blogs and press articles He also has extensive experience of multiple industries (including Manufacturing Construction Life Sciences and High Tech) having dealt with hundreds of companies that have gone through the software selection and implementation process This includes hosting customer advisory councils in conjunction with RampD which ensures the product strategy is in line with industry expectations Antony has over 20 yearsrsquo experience in the IT industry including working in the manufacturing sector Prior to joining IFS in 1997 he held business analyst positions with Ford Motor Company and AlliedSignal During this time he implemented ERP applications as well as business process improvements Antony holds a bachelors degree in Computer Science from the University of Glamorgan and is a member of Mensa

En11

053-

1 Pr

oduc

tion

IFS

Corp

orat

e M

arke

ting

May

201

7

IFSworldcomCOPYRIGHT copy 2017 INDUSTRIAL AND FINANCIAL SYSTEMS IFS AB IFS AND ALL IFS PRODUCTS AND SERVICES NAMES ARE TRADEMARKS OF IFS ALL RIGHTS RESERVED THIS DOCUMENT MAY CONTAIN STATEMENTS OF POSSIBLE FUTURE FUNCTIONALIT Y FOR IFSrsquoS PRODUCTS AND TECHNOLOGY SUCH STATEMENTS ARE FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE INTERPRETED AS ANY COMMITMENT OR REPRESENTATION THE NAMES OF ACTUAL COMPANIES AND PRODUCTS MENTIONED HEREIN MAY BE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS

IFS AB copy2017

IFS develops and delivers enterprise software for customers around the world who manufacture and distribute goods maintain assets and manage service-focused operations The industry expertise of our people and solutions together with commitment to our customers has made us a recognized leader and the most recommended supplier in our sector Our team of 3300 employees supports more than one million users worldwide from a network of local offices and through our growing ecosystem of partners For more information about IFS visit IFSworldcom

AMERICAS +1 888 437 4968

ARGENTINA BRAZIL CANADA ECUADOR MEXICO UNITED STATES

ASIA PACIFIC +65 63 33 33 00

AUSTRALIA INDONESIA JAPAN MALAYSIA NEW ZEALAND PHILIPPINES PR CHINA SINGAPORE THAILAND

EUROPE EAST AND CENTRAL ASIA +48 22 577 45 00

BALKANS CZECH REPUBLIC GEORGIA HUNGARY ISRAEL KAZAKHSTAN POLAND RUSSIA AND CIS SLOVAKIA TURKEY UKRAINE

EUROPE CENTRAL +49 9131 77 340

AUSTRIA BELGIUM GERMANY ITALY NETHERLANDS SWITZERLAND

EUROPE WEST +44 1494 428 900

FRANCE IRELAND PORTUGAL SPAIN UNITED KINGDOM

MIDDLE EAST AND AFRICA +971 4390 0888

INDIA SOUTH AFRICA SRI LANKA UNITED ARAB EMIRATES

SCANDINAVIA +46 13 460 4000

DENMARK NORWAY SWEDEN

FINLAND AND THE BALTIC AREA +358 102 17 9300

ESTONIA FINLAND LATVIA LITHUANIA

ABOUT IFS

Page 2: Software selection for Manufacturing and HighTech ...... · The basic concepts and ... and operations management. Gartner now speaks of postmodern ERP, which it describes as “a

CONTENT

PREPARING MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT 3

COMMON BUSINESS CHALLENGES 4COMPLIANCE ISSUES 4RISING MARGIN PRESSURES 4CONSUMER DEMAND 5STANDARDIZATION 5DISRUPTIVE INNOVATIONS 5

HOW THE RIGHT SOFTWARE ADDRESSES BUSINESS CHALLENGES 7

10 KEY QUESTIONS TO ASK WHEN SELECTING ENTERPRISE SOFTWARE 8

WHAT ARE PEERS SAYING 10

READY FOR SERVITIZATION AND WHATrsquoS NEXT 11

ABOUT IFS 13

3 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXTBY ANTONY BOURNE VICE PRESIDENT GLOBAL INDUSTRY SOLUTIONS IFS

PREPARING MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXTIn todayrsquos accelerating and volatile global marketplace manufacturers and high-tech companies understand that change is constantmdashand a constant challenge

The nature of technological innovation and prevalence of economic uncertainty have transformed the environment for manufacturers from one that was rather slow-moving and monolithic to todayrsquos fast-paced hypercompetitive time-sensitive customer-demanding increasingly nuanced global commercial ecosystem Competition can come from anywhere on the globe at breathtaking speed and risk and opportunity are usually if not always closely coupled (Itrsquos always interesting to note that the Chinese word for crisis contains the characters for both risk and opportunity)

Keeping risk at bay and identifying and seizing opportunity are traits of companies that thrive in this difficult environment and steer a steady course in seas where potential crisis lurks In our digital data-driven world software mdashparticularly enterprise resource planning (ERP) softwaremdashis one of the principal tools organizations leverage to keep the enterprise ship sailing boldly forward

ERP systems are one of the core business applications used by almost all companies that operate above a minimum complexity The basic concepts and functionalities have been developed and implemented for more than 30 years but the term ERP was coined by Gartner in 1990 In the original definition which came from manufacturing resource planning (MRP II) ERP systemsrsquo functionality normally covered finance and accounting (general ledger accounts payable and accounts receivable) purchasing HR management sales or customer order management and operations management Gartner now speaks of postmodern ERP which it describes as ldquoa technology strategy that automates and links administrative and operational business capabilities (such as finance HR purchasing manufacturing and distribution) with appro-priate levels of integration that balance the benefits of vendor-delivered inte-gration against business flexibility and agility This definition highlights that there are two categories of ERP strategy administrative and operationalrdquo1

1 wwwgartnercomit-glossarypostmodern-erp

a technology strategy that automates and links administrative and operational business capabilities (such as finance HR purchasing manufacturing and distribution) with appropriate levels of integration that balance the benefits of vendor-delivered integration against business flexibility and agility This definition highlights that there are two categories of ERP strategy administrative and operational

POSTMODERN ERP IShellip

RISK

OPPORTUNITY

4 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Because these systems are central to todayrsquos enterprise operations their selection must confirm that the features and functionality they provide take into account the rapidly changing nature of global manufacturing and help address the challenges that poses As Gartner notes companies ldquoneed ERP systems that support flexibility rather than inhibit itrdquo2 They need software that enables business agility

This paper explores some of the common business challenges faced by todayrsquos manufacturing and high-tech organizations how the right software addresses these challenges and posits a number of key selection factors that will optimize ROI on software investment for those in the sector

COMMON BUSINESS CHALLENGESWhile each manufacturer has its specific needs and requirements the nature of todayrsquos competition presents a number of challenges that tend to be common across manufacturing organizations Here are a few of the most prominent

COMPLIANCE ISSUESRegulations and regulatory compliance are particularly important in the manu-facturing sector For example according to the National Association of Manufacturers the average manufacturing firm in the United States pays nearly twice the compliance costs of the average US firm small manufactur-ers pay nearly three times as much as the average3 Additionally as global trade increases international standards take on greater importance These can range from multiple ISO standards to directives that have been intro-duced by the European Union (EU) that are moving toward global recognition as de facto or de jure international standards In certain vertical sectors such as medical device manufacturing validation processes are critical Keeping compliance with such regulations is an ongoing concern for manufacturers not only from an adherence perspective but also from a cost of documenta-tion perspective

RISING MARGIN PRESSURESRegardless of the specific sector margins for manufacturers are being squeezed from multiple directions In developed markets top-line growth has slowed or declined whereas in emerging markets margins are threatened by rising labor costs more expensive commodities and cost of distribution4 As such manufacturers need more granular information on what margins are being made when theyrsquore taking or closing orders If margins change based on a supplierrsquos increasing costs the manufacturer needs to be made aware of that proactively as it happens so that action can be taken in response

2 ldquoMagic Quadrant for Single-Instance ERP for Product-Centric Midmarket Companiesrdquo Gartner (Christian Hestermann Nigel Montgomery Chris Pang Michael Guay analysts) November 24 2014 3 ldquoRegulatory Reformrdquo National Association of Manufacturers wwwnamorgIssuesRegulatory-Reform4 Margin Unlocked EY 2013

+

+

SnAg

CuSi

AlFe

5 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

GREATER VISIBILITY AND MORE GRANULAR INFORMATIONA more project-based approach is rapidly emerging in manufacturing Years ago designers and engineers were just treated as overheads within the business Todayrsquos manufacturers want to know how much time and effort mdashspecifically and from wheremdashhave gone into designing a new product How much time (and money) was spent with a customer working on a product design How much did we budget What resources have been used so far How many can we expect to use This process can entail anything from finance doing credit checks to engineers doing drawings to prototype production to manufacturing set-up Visibility of the timeexpense plan is increasingly crucial for many manufacturers and granular detail is key

CONSUMER DEMANDMany manufacturers must now account for individual consumers as well as traditional industrial customers This trend is particularly growing in the environmental arena (perhaps to a greater degree in Europe than America) where consumers are demanding verification that what they are purchasing has been manufactured in a sustainable way Increasingly itrsquos important for manufacturers to have eco-footprint information within their systems to report their carbon footprint recyclable packaging used etc And products down to component level need to be completely traceable Further they need to comply mdashand demonstrate compliancemdashwith standards like REACH and RoHS and EU directives like those on energy labeling ecodesign and energy-related products (ErP) This information needs to be reportable internally to share-holders and increasingly to the public at large

STANDARDIZATION Particularly as operations extend across disparate locations or geographical borders manufacturers and high-tech organizations are looking for ways to standardize their business processes across multiple sites for consistency and cost reduction factors This need extends from design to production to service and applies to smaller manufacturers (eg a company building a product at two different local sites) as well as to global enterprises that may manufacture in one country and assemble in another

DISRUPTIVE INNOVATIONSDisruptive innovations are those that help create new markets and value networks eventually disrupting an existing market and value network (over a few years or decades) and displacing earlier technologies When new tech-nologies emerge the decline of industries is neither rapid nor immediate but successful manufacturers understand that growth demands innovation and innovation in the sector cannot occur without embracing technologically-advanced manufacturing capabilities5

Perhaps the most visible of todayrsquos disruptive technologies is additive manufacturing also known as 3-D printing In the future smaller highly specialized 3-D printing companies will emerge to serve a local area on demand

5 Disruptive Manufacturing Deloitte LLP httpswww2deloittecomcontentdamDeloittecaDocumentsinsights-and-issuesca-en-insights-issues-disruptive-manufacturingpdf

6 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

So instead of manufacturers buying components such as spare parts and having them shipped from afar or buying a machine and putting it into the warehouse and taking up stock and cost from a financial point of view they could wait until a part failed send a command and have it printed on demand within hours

At the moment quality issues are the principal impediment to broad adoption of 3-D printing but these issues will abate over time Yet while the technology has significant and transformative advantages (eg rapid proto-typing reduced lead times rapid innovation rapid manufacturing mass customization use of unique materials) it also brings new risk according to studies by 2018 3-D printing will result in the loss of $100 billion due to counterfeiting of parts6 This in turn will lead to more innovation to counter that risk as manufacturers look to embed ldquoplant DNArdquo in products to check for validity and contract adherence

The Internet of Things (IoT) is another development moving rapidly from the consumer marketplace to manufacturing Sensors are being embedded to provide machine-to-machine communications for applications such as remote monitoring and control enabling manufacturers to get information and act upon it remotely This is speeding maintenance while driving down costs (eg no longer having to send engineers into the field for maintenance on remote installations) through preventive maintenance and improved asset management (ie asset self-management)

Other examples of disruptive innovation range from those becoming more established (eg cloud computing) to nascent but potentially revolutionary developments such as nanotechnology As with 3-D printing nanotechnology has the potential to localize global supply chains with very direct paths from raw materials through to finished products7

Into our era of Industry 40 and the smart factory comes Blockchain a secure distributed electronic ledger that connects parties in a network of trust and integrity to facilitate the transfer of assets and the information pertaining to those assets Blockchain is already beginning to alter the way transactions are carried out by bringing parties together in a trusted network without a third party and by recording each transaction sequentially and securely Usually associated with Bitcoin a range of industries are now see-ing the business benefits it can bring These include

Efficiency As transactions are completed directly between the relevant parties with no intermediary and with digitized information settling the transaction can be quick Added to this is the ability to operate lsquosmart contractsrsquo which automatically trigger commercial actions based on satisfying the criteria laid out in the contract This can dramatically streamline processes and in doing so remove time and cost from transacting

Auditability As each transaction is recorded sequentially and indefinitely it provides an indelible audit trail for the life of an asset even between parties This is especially important if source data is essential in verifying an assets authenticity

6 ldquoGartner Says Use of 3D Printing Will Ignite Major Debate on Ethics and Regulationrdquo Gartner press release January 29 20147 ldquoManufacturingrsquos three biggest disruptive technologiesrdquo The Manufacturer November 6 2014

LOW

MEDIUM HIGH

7 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Traceability Tracking goods in a supply chain can be advantageous when seeking to trace where components are currently residing Information relating to the component can then be relayed to or from the new owner for possible action

Transparency Lack of commercial transparency can sometimes lead to delays in commerce and a breakdown in relations By providing details of transactions against the commercial construct further trust can be enlisted within the process and so provide a more stable relationship based on transparency rather than negotiation

Security As each transaction is verified within the network using indepen-dently verified complex cryptography the authenticity of the information can be assured Assured information is one of the fundamental keys to unlocking the benefits of the Internet of Things (IoT) which is a closed loop cyber autonomous process linking assets to actions

Feedback With full traceability throughout the lifecycle of an asset asset designers and manufacturers can accommodate through-life asset manage-ment into their products to make them more effective This can allow for information returning from shipping installation maintenance and decommis-sioning

Blockchain is yet another lsquodisruptorrsquo that can provide enormous opportunities for digitally savvy companies who adopt it fast

HOW THE RIGHT SOFTWARE ADDRESSES BUSINESS CHALLENGES The right business software supports manufacturingrsquos ability to meet emerg-ing challenges and respond to constant change by providing the foundation for enterprise agility The concept of manufacturing agility involves the devel-opment of manufacturing capabilities to achieve sustained competitive advantage in an unpredictable environment8 Agility is the product of three foundational blocksmdashvision knowledge and flexibilitymdashthat effectively designed and developed software facilitates across the business

VISION Vision is the ability to link business strategy and growth aspira-tions to technology investment and to make informed decisions that prove effective over time Clear vision enables a manufacturer

to correctly assess and balance the risks and opportunities of disruptive technologies The right business software helps focus and clarify vision

KNOWLEDGE Knowledge is the ability to identify understand and predict new sources of threat or opportunity across daily business operations and projects Knowledge enables business insight the most

valuable form of which comes from the ability to assemble a clear compre-hensive and accurate view of the past present and future status of

8 Sud-on P Abareshi A Pittayachewan S and Teo L ldquoManufacturing Agility Construct and Instrument Developmentrdquo World Academy of Science Engineering and Technology 82 2013 p 755

The right business software supports manufacturingrsquos ability to meet emerging challenges and respond to constant change by providing the foundation for enterprise agility

8 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

assets infrastructure and employees across even the most complex global operations and projects The right business software gathers assembles and disseminates knowledge in real time where and when it is needed

FLEXIBILITY Flexibility is the ability to take action rapidly when things happen expectedly or unexpectedly founded on technology that makes rapid and responsive change possible The right software is a

critical part of this technology Vision and knowledge are not fully empowered unless an organization has the flexibility to rapidly change its shape or focus to seize new opportunity or mitigate risk Flexible business technology is necessary for this but so too is a business culture that embraces rather than hinders change and rapid response

10 KEY QUESTIONS TO ASK WHEN SELECTING ENTERPRISE SOFTWARETo see whether software under consideration is meeting the needs of todayrsquos evolving manufacturing environment the following questions are key

1 DOES THE SOFTWARE SUPPORT RAPID BUSINESS CHANGE An organizationrsquos software should help it plan for change Change is constant and the most dominant characteristic of todayrsquos business environment so the ability to plan for the unknown makes it possible for agile companies to thrive Long-term planning is not about being able to predict every future but being able to respond fast and smartly enough to capitalize on change Effective software facilitates the ability to change mdashnot only forecast information but also supply and demand output quickly and provide visibility into what impacts the change will make In todayrsquos markets where new product introduction is increasingly essen-tial to growth enterprise software should help facilitate and control new product introduction

2 DOES THE SOFTWARE PROVIDE ESSENTIAL ACCESS TO DATAmdashTHE RIGHT DATA FOR THE RIGHT PEOPLE AT THE RIGHT TIME Data-driven decision-making is central to enterprise operations but the proliferation of data can be overwhelming for users Well-designed soft-ware delivers data to users in ways they can use it wherever they are whenever they need it without delay or variation Having data in a single place accessible from any device is key A company doesnrsquot want to have to hold up production because itrsquos waiting for signoff from a production supervisor who is traveling on another continent If he or she can review it on a smartphone the company can act now With older software systems this wasnrsquot possible

3 DOES THE SOFTWARE ALLOW FOR FUTURE GROWTH The boundaries between manufacturing and distributing organizations have been slowly disappearing more manufacturing companies have been distributing and servicing their products which has led to tighter integration of ERP CRM and supply chain management (SCM) solutions

9 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Many companies that today are manufacturing only may be looking to add service to their portfolios These companies are served by software that meets their current need but also has the capability to handle future development in the system

4 IS THE SOFTWARE APPEALING TO TODAYrsquoS GENERATION OF WORKERS As the manufacturing workforce ages a younger generation is coming into the sector The longstanding perception of manufacturing as a smokestack environment (ie dirty greasy unhealthy) is giving way to the reality of high-tech manufacturing much more appealing to those that grew up in the digital age When younger people come into manufac-turing they donrsquot want to work with a green-screen application they want something that they are familiar with (ie graphic sophistication touch-screens apps to download onto a phone) How will younger workers mdashsoon to be a majority in the workforcemdashrespond to the software presentation

5 IS THE SOFTWARE USABLE IN TODAYrsquoS CHANGING WORK ENVIRONMENT Related to the question above usability speaks to the way work is done differently today which is something influenced by the younger generation but certainly not limited to them Increasingly the workplace is where we happen to be which may not be within the ldquofour wallsrdquo of the organiza-tion This has certain implications for software Is it mobile Can it be accessed and comprehended by sophisticated and casual users on multiple devices laptops tablets smartphones and in the coming years wearable technology like watches Does it provide role-based portals and interfaces Is it intuitive to anyone who sits in front of it

6 IS THE SOFTWARErsquoS CRM DISCRETE OR EMBEDDED Customer relationship management is increasingly important in todayrsquos manufacturing market and nearly all software providers will have CRM as a separate but integrated package But itrsquos still in a separate world This becomes an issue when manufacturers set up more complex relationships (eg from opportunity to sales to contract delivery) which typically requires integration work Further there are user experience issues including not being able to drill through CRM all the way to the back office nore from the back office into CRM When CRM is embedded in the enterprise software those issues are taken off the table There is no need for integration work Users can now drill through in both directions which can be an important advantage

7 DOES THE SOFTWARE PROVIDE DEPLOYMENT OPTIONS Single instance on-premise enterprise systems are rapidly being relegated to the past as hybrid models continue to grow toward the norm Whereas the majority of those hybrids are a combination of core and point solutions (on-premise) from multiple vendors increasingly manufacturers will use cloud-based point solutions as an essential part of the hybrid approach This is inevitable particularly as manufacturing operations take on global scope Does your software provide real deployment flexibility

10 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

8 DOES THE SOFTWARE SPEED EXECUTION OF TASKS While provision of real-time data is increasingly a given for enterprise software is this translating into faster execution of essential work Consider financials Itrsquos not uncommon to find manufacturers where it takes over a week to do monthrsquos end financials Frankly it should not take more than a day or two When companies arenrsquot able to close their books until the middle of the next month something isnrsquot right with the software system Software should enable companies to have information they can believe and trust in one system so when they print out a trial balance they believe the numbers generated There shouldnrsquot be a need to wait for information (eg for production to indicate how much WIP they have or accounting to report accruals) Real-time data is often over-looked these days because companies are not used to it but itrsquos still a shock when a company tells you it takes a week to do a monthrsquos end report

9 HOW BROAD AND DEEP IS THE SOFTWARE SOLUTION Can the software system phase out the use of multiple systems eliminating undue complexity and cost Today many manufacturers are multi-modal some products are made to order some made to stock some engineered to order some assembled to order and some config-ured to order Can your software handle all these approaches If you set an approach today do you have the ability to easily change over in a weekrsquos monthrsquos or yearrsquos time A broad and deep solution will provide this capability

10 CUSTOMIZATION OR CONFIGURATION IS THE SOFTWARE EASY TO MODIFY Because change will make it likely for a company to want to modify its software over time how easy and how costly will it be to make that change The best systems enable users to add their own fields events and so on without having to go back to the software provider for custom-ization Configuration is part of the functionality out of the box and easy to do not part of an upgrade or requiring additional costs

WHAT ARE PEERS SAYINGFinally companies are well served by looking to respected analysts who assess the status of software providers Of those who study enterprise soft-ware and systems the best known and perhaps most highly respected is Stamford Connecticut-based Gartner

Gartner publishes Peer Insights9 that offer ldquoimpactful insights from real IT decision makersrdquo The insights are described as follows ldquoFree of vendor influence Gartner Peer Insights offers detailed perspectives for every phase of the IT lifecyclemdashfrom evaluation and implementation to service and supportrdquo Below are some of the things peers (Manufacturing CIOs CFOs CTOs) are saying about IFS Applications and why they bought it

9 wwwgartnercomreviewshome

11 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

What do you like most about the product or service

bull Its flexibility to make personalizations without having to customize the product and move those personalizations forward with each new release (CIO Manufacturing)

bull Very stable application with all modules tightly integrated

bull The consistency of the experience over the years

bull The security and the integrity of the system are up to the mark

What were the key factors that drove your decision

bull Product functionality and performance

bull Strong customer focus

bull Breadth of services

bull Financialorganizational viability

bull Pre-existing relationships

bull Product roadmap and future vision

bull Strong services expertise

bull Strong user community

READY FOR SERVITIZATION AND WHATrsquoS NEXTCompanies that have added service to their offerings adapted their organiza-tions to enable this and acquired the requisite technology (often in the form of integrated full-scope enterprise software) have confronted the question of lsquoWhatrsquos nextmdashand reaped significant benefits In fact adding service contributes to much of what is the very essence of good business viz actively looking to the future and seeking to shape it to create opportunities rather than merely grasp those that arise Benefits reported include

Enhanced revenuemdashreported growth between 2x and 4x

Better marginsmdashincreases of 3ndash10 reported

Sustainable business growthmdashincreases of up 5ndash10 reported

Greater customer satisfactionmdashthey are getting what they want

More repeat business greater market share and a better reputation

Predictable income streams

12 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Combining a comprehensive suite of enterprise software that covers ERP EAM ESM (Enterprise Service Management) FSM (IFS Field Service Managementtrade) IFS Enterprise Operational Intelligencetrade (IFS EOItrade) and advanced analytics IFS enables manufacturers to actively take part in the transformation process giving them the capabilities and insights to make decisions based on real-time statuses to not only meet customer needs but also anticipate them Being able to handle todayrsquos business challenges is important shaping whatrsquos next is crucial to growth and continued success

ABOUT ANTONY BOURNEAs Vice President of Global Industry Solutions Antony leads a team of global industry experts who cover the IFS focused industries and support sales marketing and partner enablement Antony is a lead spokesperson for IFS and represents the company in multiple internal and external events analyst updates (including Gartner IDC and ARC) publications blogs and press articles He also has extensive experience of multiple industries (including Manufacturing Construction Life Sciences and High Tech) having dealt with hundreds of companies that have gone through the software selection and implementation process This includes hosting customer advisory councils in conjunction with RampD which ensures the product strategy is in line with industry expectations Antony has over 20 yearsrsquo experience in the IT industry including working in the manufacturing sector Prior to joining IFS in 1997 he held business analyst positions with Ford Motor Company and AlliedSignal During this time he implemented ERP applications as well as business process improvements Antony holds a bachelors degree in Computer Science from the University of Glamorgan and is a member of Mensa

En11

053-

1 Pr

oduc

tion

IFS

Corp

orat

e M

arke

ting

May

201

7

IFSworldcomCOPYRIGHT copy 2017 INDUSTRIAL AND FINANCIAL SYSTEMS IFS AB IFS AND ALL IFS PRODUCTS AND SERVICES NAMES ARE TRADEMARKS OF IFS ALL RIGHTS RESERVED THIS DOCUMENT MAY CONTAIN STATEMENTS OF POSSIBLE FUTURE FUNCTIONALIT Y FOR IFSrsquoS PRODUCTS AND TECHNOLOGY SUCH STATEMENTS ARE FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE INTERPRETED AS ANY COMMITMENT OR REPRESENTATION THE NAMES OF ACTUAL COMPANIES AND PRODUCTS MENTIONED HEREIN MAY BE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS

IFS AB copy2017

IFS develops and delivers enterprise software for customers around the world who manufacture and distribute goods maintain assets and manage service-focused operations The industry expertise of our people and solutions together with commitment to our customers has made us a recognized leader and the most recommended supplier in our sector Our team of 3300 employees supports more than one million users worldwide from a network of local offices and through our growing ecosystem of partners For more information about IFS visit IFSworldcom

AMERICAS +1 888 437 4968

ARGENTINA BRAZIL CANADA ECUADOR MEXICO UNITED STATES

ASIA PACIFIC +65 63 33 33 00

AUSTRALIA INDONESIA JAPAN MALAYSIA NEW ZEALAND PHILIPPINES PR CHINA SINGAPORE THAILAND

EUROPE EAST AND CENTRAL ASIA +48 22 577 45 00

BALKANS CZECH REPUBLIC GEORGIA HUNGARY ISRAEL KAZAKHSTAN POLAND RUSSIA AND CIS SLOVAKIA TURKEY UKRAINE

EUROPE CENTRAL +49 9131 77 340

AUSTRIA BELGIUM GERMANY ITALY NETHERLANDS SWITZERLAND

EUROPE WEST +44 1494 428 900

FRANCE IRELAND PORTUGAL SPAIN UNITED KINGDOM

MIDDLE EAST AND AFRICA +971 4390 0888

INDIA SOUTH AFRICA SRI LANKA UNITED ARAB EMIRATES

SCANDINAVIA +46 13 460 4000

DENMARK NORWAY SWEDEN

FINLAND AND THE BALTIC AREA +358 102 17 9300

ESTONIA FINLAND LATVIA LITHUANIA

ABOUT IFS

Page 3: Software selection for Manufacturing and HighTech ...... · The basic concepts and ... and operations management. Gartner now speaks of postmodern ERP, which it describes as “a

3 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXTBY ANTONY BOURNE VICE PRESIDENT GLOBAL INDUSTRY SOLUTIONS IFS

PREPARING MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXTIn todayrsquos accelerating and volatile global marketplace manufacturers and high-tech companies understand that change is constantmdashand a constant challenge

The nature of technological innovation and prevalence of economic uncertainty have transformed the environment for manufacturers from one that was rather slow-moving and monolithic to todayrsquos fast-paced hypercompetitive time-sensitive customer-demanding increasingly nuanced global commercial ecosystem Competition can come from anywhere on the globe at breathtaking speed and risk and opportunity are usually if not always closely coupled (Itrsquos always interesting to note that the Chinese word for crisis contains the characters for both risk and opportunity)

Keeping risk at bay and identifying and seizing opportunity are traits of companies that thrive in this difficult environment and steer a steady course in seas where potential crisis lurks In our digital data-driven world software mdashparticularly enterprise resource planning (ERP) softwaremdashis one of the principal tools organizations leverage to keep the enterprise ship sailing boldly forward

ERP systems are one of the core business applications used by almost all companies that operate above a minimum complexity The basic concepts and functionalities have been developed and implemented for more than 30 years but the term ERP was coined by Gartner in 1990 In the original definition which came from manufacturing resource planning (MRP II) ERP systemsrsquo functionality normally covered finance and accounting (general ledger accounts payable and accounts receivable) purchasing HR management sales or customer order management and operations management Gartner now speaks of postmodern ERP which it describes as ldquoa technology strategy that automates and links administrative and operational business capabilities (such as finance HR purchasing manufacturing and distribution) with appro-priate levels of integration that balance the benefits of vendor-delivered inte-gration against business flexibility and agility This definition highlights that there are two categories of ERP strategy administrative and operationalrdquo1

1 wwwgartnercomit-glossarypostmodern-erp

a technology strategy that automates and links administrative and operational business capabilities (such as finance HR purchasing manufacturing and distribution) with appropriate levels of integration that balance the benefits of vendor-delivered integration against business flexibility and agility This definition highlights that there are two categories of ERP strategy administrative and operational

POSTMODERN ERP IShellip

RISK

OPPORTUNITY

4 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Because these systems are central to todayrsquos enterprise operations their selection must confirm that the features and functionality they provide take into account the rapidly changing nature of global manufacturing and help address the challenges that poses As Gartner notes companies ldquoneed ERP systems that support flexibility rather than inhibit itrdquo2 They need software that enables business agility

This paper explores some of the common business challenges faced by todayrsquos manufacturing and high-tech organizations how the right software addresses these challenges and posits a number of key selection factors that will optimize ROI on software investment for those in the sector

COMMON BUSINESS CHALLENGESWhile each manufacturer has its specific needs and requirements the nature of todayrsquos competition presents a number of challenges that tend to be common across manufacturing organizations Here are a few of the most prominent

COMPLIANCE ISSUESRegulations and regulatory compliance are particularly important in the manu-facturing sector For example according to the National Association of Manufacturers the average manufacturing firm in the United States pays nearly twice the compliance costs of the average US firm small manufactur-ers pay nearly three times as much as the average3 Additionally as global trade increases international standards take on greater importance These can range from multiple ISO standards to directives that have been intro-duced by the European Union (EU) that are moving toward global recognition as de facto or de jure international standards In certain vertical sectors such as medical device manufacturing validation processes are critical Keeping compliance with such regulations is an ongoing concern for manufacturers not only from an adherence perspective but also from a cost of documenta-tion perspective

RISING MARGIN PRESSURESRegardless of the specific sector margins for manufacturers are being squeezed from multiple directions In developed markets top-line growth has slowed or declined whereas in emerging markets margins are threatened by rising labor costs more expensive commodities and cost of distribution4 As such manufacturers need more granular information on what margins are being made when theyrsquore taking or closing orders If margins change based on a supplierrsquos increasing costs the manufacturer needs to be made aware of that proactively as it happens so that action can be taken in response

2 ldquoMagic Quadrant for Single-Instance ERP for Product-Centric Midmarket Companiesrdquo Gartner (Christian Hestermann Nigel Montgomery Chris Pang Michael Guay analysts) November 24 2014 3 ldquoRegulatory Reformrdquo National Association of Manufacturers wwwnamorgIssuesRegulatory-Reform4 Margin Unlocked EY 2013

+

+

SnAg

CuSi

AlFe

5 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

GREATER VISIBILITY AND MORE GRANULAR INFORMATIONA more project-based approach is rapidly emerging in manufacturing Years ago designers and engineers were just treated as overheads within the business Todayrsquos manufacturers want to know how much time and effort mdashspecifically and from wheremdashhave gone into designing a new product How much time (and money) was spent with a customer working on a product design How much did we budget What resources have been used so far How many can we expect to use This process can entail anything from finance doing credit checks to engineers doing drawings to prototype production to manufacturing set-up Visibility of the timeexpense plan is increasingly crucial for many manufacturers and granular detail is key

CONSUMER DEMANDMany manufacturers must now account for individual consumers as well as traditional industrial customers This trend is particularly growing in the environmental arena (perhaps to a greater degree in Europe than America) where consumers are demanding verification that what they are purchasing has been manufactured in a sustainable way Increasingly itrsquos important for manufacturers to have eco-footprint information within their systems to report their carbon footprint recyclable packaging used etc And products down to component level need to be completely traceable Further they need to comply mdashand demonstrate compliancemdashwith standards like REACH and RoHS and EU directives like those on energy labeling ecodesign and energy-related products (ErP) This information needs to be reportable internally to share-holders and increasingly to the public at large

STANDARDIZATION Particularly as operations extend across disparate locations or geographical borders manufacturers and high-tech organizations are looking for ways to standardize their business processes across multiple sites for consistency and cost reduction factors This need extends from design to production to service and applies to smaller manufacturers (eg a company building a product at two different local sites) as well as to global enterprises that may manufacture in one country and assemble in another

DISRUPTIVE INNOVATIONSDisruptive innovations are those that help create new markets and value networks eventually disrupting an existing market and value network (over a few years or decades) and displacing earlier technologies When new tech-nologies emerge the decline of industries is neither rapid nor immediate but successful manufacturers understand that growth demands innovation and innovation in the sector cannot occur without embracing technologically-advanced manufacturing capabilities5

Perhaps the most visible of todayrsquos disruptive technologies is additive manufacturing also known as 3-D printing In the future smaller highly specialized 3-D printing companies will emerge to serve a local area on demand

5 Disruptive Manufacturing Deloitte LLP httpswww2deloittecomcontentdamDeloittecaDocumentsinsights-and-issuesca-en-insights-issues-disruptive-manufacturingpdf

6 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

So instead of manufacturers buying components such as spare parts and having them shipped from afar or buying a machine and putting it into the warehouse and taking up stock and cost from a financial point of view they could wait until a part failed send a command and have it printed on demand within hours

At the moment quality issues are the principal impediment to broad adoption of 3-D printing but these issues will abate over time Yet while the technology has significant and transformative advantages (eg rapid proto-typing reduced lead times rapid innovation rapid manufacturing mass customization use of unique materials) it also brings new risk according to studies by 2018 3-D printing will result in the loss of $100 billion due to counterfeiting of parts6 This in turn will lead to more innovation to counter that risk as manufacturers look to embed ldquoplant DNArdquo in products to check for validity and contract adherence

The Internet of Things (IoT) is another development moving rapidly from the consumer marketplace to manufacturing Sensors are being embedded to provide machine-to-machine communications for applications such as remote monitoring and control enabling manufacturers to get information and act upon it remotely This is speeding maintenance while driving down costs (eg no longer having to send engineers into the field for maintenance on remote installations) through preventive maintenance and improved asset management (ie asset self-management)

Other examples of disruptive innovation range from those becoming more established (eg cloud computing) to nascent but potentially revolutionary developments such as nanotechnology As with 3-D printing nanotechnology has the potential to localize global supply chains with very direct paths from raw materials through to finished products7

Into our era of Industry 40 and the smart factory comes Blockchain a secure distributed electronic ledger that connects parties in a network of trust and integrity to facilitate the transfer of assets and the information pertaining to those assets Blockchain is already beginning to alter the way transactions are carried out by bringing parties together in a trusted network without a third party and by recording each transaction sequentially and securely Usually associated with Bitcoin a range of industries are now see-ing the business benefits it can bring These include

Efficiency As transactions are completed directly between the relevant parties with no intermediary and with digitized information settling the transaction can be quick Added to this is the ability to operate lsquosmart contractsrsquo which automatically trigger commercial actions based on satisfying the criteria laid out in the contract This can dramatically streamline processes and in doing so remove time and cost from transacting

Auditability As each transaction is recorded sequentially and indefinitely it provides an indelible audit trail for the life of an asset even between parties This is especially important if source data is essential in verifying an assets authenticity

6 ldquoGartner Says Use of 3D Printing Will Ignite Major Debate on Ethics and Regulationrdquo Gartner press release January 29 20147 ldquoManufacturingrsquos three biggest disruptive technologiesrdquo The Manufacturer November 6 2014

LOW

MEDIUM HIGH

7 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Traceability Tracking goods in a supply chain can be advantageous when seeking to trace where components are currently residing Information relating to the component can then be relayed to or from the new owner for possible action

Transparency Lack of commercial transparency can sometimes lead to delays in commerce and a breakdown in relations By providing details of transactions against the commercial construct further trust can be enlisted within the process and so provide a more stable relationship based on transparency rather than negotiation

Security As each transaction is verified within the network using indepen-dently verified complex cryptography the authenticity of the information can be assured Assured information is one of the fundamental keys to unlocking the benefits of the Internet of Things (IoT) which is a closed loop cyber autonomous process linking assets to actions

Feedback With full traceability throughout the lifecycle of an asset asset designers and manufacturers can accommodate through-life asset manage-ment into their products to make them more effective This can allow for information returning from shipping installation maintenance and decommis-sioning

Blockchain is yet another lsquodisruptorrsquo that can provide enormous opportunities for digitally savvy companies who adopt it fast

HOW THE RIGHT SOFTWARE ADDRESSES BUSINESS CHALLENGES The right business software supports manufacturingrsquos ability to meet emerg-ing challenges and respond to constant change by providing the foundation for enterprise agility The concept of manufacturing agility involves the devel-opment of manufacturing capabilities to achieve sustained competitive advantage in an unpredictable environment8 Agility is the product of three foundational blocksmdashvision knowledge and flexibilitymdashthat effectively designed and developed software facilitates across the business

VISION Vision is the ability to link business strategy and growth aspira-tions to technology investment and to make informed decisions that prove effective over time Clear vision enables a manufacturer

to correctly assess and balance the risks and opportunities of disruptive technologies The right business software helps focus and clarify vision

KNOWLEDGE Knowledge is the ability to identify understand and predict new sources of threat or opportunity across daily business operations and projects Knowledge enables business insight the most

valuable form of which comes from the ability to assemble a clear compre-hensive and accurate view of the past present and future status of

8 Sud-on P Abareshi A Pittayachewan S and Teo L ldquoManufacturing Agility Construct and Instrument Developmentrdquo World Academy of Science Engineering and Technology 82 2013 p 755

The right business software supports manufacturingrsquos ability to meet emerging challenges and respond to constant change by providing the foundation for enterprise agility

8 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

assets infrastructure and employees across even the most complex global operations and projects The right business software gathers assembles and disseminates knowledge in real time where and when it is needed

FLEXIBILITY Flexibility is the ability to take action rapidly when things happen expectedly or unexpectedly founded on technology that makes rapid and responsive change possible The right software is a

critical part of this technology Vision and knowledge are not fully empowered unless an organization has the flexibility to rapidly change its shape or focus to seize new opportunity or mitigate risk Flexible business technology is necessary for this but so too is a business culture that embraces rather than hinders change and rapid response

10 KEY QUESTIONS TO ASK WHEN SELECTING ENTERPRISE SOFTWARETo see whether software under consideration is meeting the needs of todayrsquos evolving manufacturing environment the following questions are key

1 DOES THE SOFTWARE SUPPORT RAPID BUSINESS CHANGE An organizationrsquos software should help it plan for change Change is constant and the most dominant characteristic of todayrsquos business environment so the ability to plan for the unknown makes it possible for agile companies to thrive Long-term planning is not about being able to predict every future but being able to respond fast and smartly enough to capitalize on change Effective software facilitates the ability to change mdashnot only forecast information but also supply and demand output quickly and provide visibility into what impacts the change will make In todayrsquos markets where new product introduction is increasingly essen-tial to growth enterprise software should help facilitate and control new product introduction

2 DOES THE SOFTWARE PROVIDE ESSENTIAL ACCESS TO DATAmdashTHE RIGHT DATA FOR THE RIGHT PEOPLE AT THE RIGHT TIME Data-driven decision-making is central to enterprise operations but the proliferation of data can be overwhelming for users Well-designed soft-ware delivers data to users in ways they can use it wherever they are whenever they need it without delay or variation Having data in a single place accessible from any device is key A company doesnrsquot want to have to hold up production because itrsquos waiting for signoff from a production supervisor who is traveling on another continent If he or she can review it on a smartphone the company can act now With older software systems this wasnrsquot possible

3 DOES THE SOFTWARE ALLOW FOR FUTURE GROWTH The boundaries between manufacturing and distributing organizations have been slowly disappearing more manufacturing companies have been distributing and servicing their products which has led to tighter integration of ERP CRM and supply chain management (SCM) solutions

9 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Many companies that today are manufacturing only may be looking to add service to their portfolios These companies are served by software that meets their current need but also has the capability to handle future development in the system

4 IS THE SOFTWARE APPEALING TO TODAYrsquoS GENERATION OF WORKERS As the manufacturing workforce ages a younger generation is coming into the sector The longstanding perception of manufacturing as a smokestack environment (ie dirty greasy unhealthy) is giving way to the reality of high-tech manufacturing much more appealing to those that grew up in the digital age When younger people come into manufac-turing they donrsquot want to work with a green-screen application they want something that they are familiar with (ie graphic sophistication touch-screens apps to download onto a phone) How will younger workers mdashsoon to be a majority in the workforcemdashrespond to the software presentation

5 IS THE SOFTWARE USABLE IN TODAYrsquoS CHANGING WORK ENVIRONMENT Related to the question above usability speaks to the way work is done differently today which is something influenced by the younger generation but certainly not limited to them Increasingly the workplace is where we happen to be which may not be within the ldquofour wallsrdquo of the organiza-tion This has certain implications for software Is it mobile Can it be accessed and comprehended by sophisticated and casual users on multiple devices laptops tablets smartphones and in the coming years wearable technology like watches Does it provide role-based portals and interfaces Is it intuitive to anyone who sits in front of it

6 IS THE SOFTWARErsquoS CRM DISCRETE OR EMBEDDED Customer relationship management is increasingly important in todayrsquos manufacturing market and nearly all software providers will have CRM as a separate but integrated package But itrsquos still in a separate world This becomes an issue when manufacturers set up more complex relationships (eg from opportunity to sales to contract delivery) which typically requires integration work Further there are user experience issues including not being able to drill through CRM all the way to the back office nore from the back office into CRM When CRM is embedded in the enterprise software those issues are taken off the table There is no need for integration work Users can now drill through in both directions which can be an important advantage

7 DOES THE SOFTWARE PROVIDE DEPLOYMENT OPTIONS Single instance on-premise enterprise systems are rapidly being relegated to the past as hybrid models continue to grow toward the norm Whereas the majority of those hybrids are a combination of core and point solutions (on-premise) from multiple vendors increasingly manufacturers will use cloud-based point solutions as an essential part of the hybrid approach This is inevitable particularly as manufacturing operations take on global scope Does your software provide real deployment flexibility

10 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

8 DOES THE SOFTWARE SPEED EXECUTION OF TASKS While provision of real-time data is increasingly a given for enterprise software is this translating into faster execution of essential work Consider financials Itrsquos not uncommon to find manufacturers where it takes over a week to do monthrsquos end financials Frankly it should not take more than a day or two When companies arenrsquot able to close their books until the middle of the next month something isnrsquot right with the software system Software should enable companies to have information they can believe and trust in one system so when they print out a trial balance they believe the numbers generated There shouldnrsquot be a need to wait for information (eg for production to indicate how much WIP they have or accounting to report accruals) Real-time data is often over-looked these days because companies are not used to it but itrsquos still a shock when a company tells you it takes a week to do a monthrsquos end report

9 HOW BROAD AND DEEP IS THE SOFTWARE SOLUTION Can the software system phase out the use of multiple systems eliminating undue complexity and cost Today many manufacturers are multi-modal some products are made to order some made to stock some engineered to order some assembled to order and some config-ured to order Can your software handle all these approaches If you set an approach today do you have the ability to easily change over in a weekrsquos monthrsquos or yearrsquos time A broad and deep solution will provide this capability

10 CUSTOMIZATION OR CONFIGURATION IS THE SOFTWARE EASY TO MODIFY Because change will make it likely for a company to want to modify its software over time how easy and how costly will it be to make that change The best systems enable users to add their own fields events and so on without having to go back to the software provider for custom-ization Configuration is part of the functionality out of the box and easy to do not part of an upgrade or requiring additional costs

WHAT ARE PEERS SAYINGFinally companies are well served by looking to respected analysts who assess the status of software providers Of those who study enterprise soft-ware and systems the best known and perhaps most highly respected is Stamford Connecticut-based Gartner

Gartner publishes Peer Insights9 that offer ldquoimpactful insights from real IT decision makersrdquo The insights are described as follows ldquoFree of vendor influence Gartner Peer Insights offers detailed perspectives for every phase of the IT lifecyclemdashfrom evaluation and implementation to service and supportrdquo Below are some of the things peers (Manufacturing CIOs CFOs CTOs) are saying about IFS Applications and why they bought it

9 wwwgartnercomreviewshome

11 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

What do you like most about the product or service

bull Its flexibility to make personalizations without having to customize the product and move those personalizations forward with each new release (CIO Manufacturing)

bull Very stable application with all modules tightly integrated

bull The consistency of the experience over the years

bull The security and the integrity of the system are up to the mark

What were the key factors that drove your decision

bull Product functionality and performance

bull Strong customer focus

bull Breadth of services

bull Financialorganizational viability

bull Pre-existing relationships

bull Product roadmap and future vision

bull Strong services expertise

bull Strong user community

READY FOR SERVITIZATION AND WHATrsquoS NEXTCompanies that have added service to their offerings adapted their organiza-tions to enable this and acquired the requisite technology (often in the form of integrated full-scope enterprise software) have confronted the question of lsquoWhatrsquos nextmdashand reaped significant benefits In fact adding service contributes to much of what is the very essence of good business viz actively looking to the future and seeking to shape it to create opportunities rather than merely grasp those that arise Benefits reported include

Enhanced revenuemdashreported growth between 2x and 4x

Better marginsmdashincreases of 3ndash10 reported

Sustainable business growthmdashincreases of up 5ndash10 reported

Greater customer satisfactionmdashthey are getting what they want

More repeat business greater market share and a better reputation

Predictable income streams

12 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Combining a comprehensive suite of enterprise software that covers ERP EAM ESM (Enterprise Service Management) FSM (IFS Field Service Managementtrade) IFS Enterprise Operational Intelligencetrade (IFS EOItrade) and advanced analytics IFS enables manufacturers to actively take part in the transformation process giving them the capabilities and insights to make decisions based on real-time statuses to not only meet customer needs but also anticipate them Being able to handle todayrsquos business challenges is important shaping whatrsquos next is crucial to growth and continued success

ABOUT ANTONY BOURNEAs Vice President of Global Industry Solutions Antony leads a team of global industry experts who cover the IFS focused industries and support sales marketing and partner enablement Antony is a lead spokesperson for IFS and represents the company in multiple internal and external events analyst updates (including Gartner IDC and ARC) publications blogs and press articles He also has extensive experience of multiple industries (including Manufacturing Construction Life Sciences and High Tech) having dealt with hundreds of companies that have gone through the software selection and implementation process This includes hosting customer advisory councils in conjunction with RampD which ensures the product strategy is in line with industry expectations Antony has over 20 yearsrsquo experience in the IT industry including working in the manufacturing sector Prior to joining IFS in 1997 he held business analyst positions with Ford Motor Company and AlliedSignal During this time he implemented ERP applications as well as business process improvements Antony holds a bachelors degree in Computer Science from the University of Glamorgan and is a member of Mensa

En11

053-

1 Pr

oduc

tion

IFS

Corp

orat

e M

arke

ting

May

201

7

IFSworldcomCOPYRIGHT copy 2017 INDUSTRIAL AND FINANCIAL SYSTEMS IFS AB IFS AND ALL IFS PRODUCTS AND SERVICES NAMES ARE TRADEMARKS OF IFS ALL RIGHTS RESERVED THIS DOCUMENT MAY CONTAIN STATEMENTS OF POSSIBLE FUTURE FUNCTIONALIT Y FOR IFSrsquoS PRODUCTS AND TECHNOLOGY SUCH STATEMENTS ARE FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE INTERPRETED AS ANY COMMITMENT OR REPRESENTATION THE NAMES OF ACTUAL COMPANIES AND PRODUCTS MENTIONED HEREIN MAY BE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS

IFS AB copy2017

IFS develops and delivers enterprise software for customers around the world who manufacture and distribute goods maintain assets and manage service-focused operations The industry expertise of our people and solutions together with commitment to our customers has made us a recognized leader and the most recommended supplier in our sector Our team of 3300 employees supports more than one million users worldwide from a network of local offices and through our growing ecosystem of partners For more information about IFS visit IFSworldcom

AMERICAS +1 888 437 4968

ARGENTINA BRAZIL CANADA ECUADOR MEXICO UNITED STATES

ASIA PACIFIC +65 63 33 33 00

AUSTRALIA INDONESIA JAPAN MALAYSIA NEW ZEALAND PHILIPPINES PR CHINA SINGAPORE THAILAND

EUROPE EAST AND CENTRAL ASIA +48 22 577 45 00

BALKANS CZECH REPUBLIC GEORGIA HUNGARY ISRAEL KAZAKHSTAN POLAND RUSSIA AND CIS SLOVAKIA TURKEY UKRAINE

EUROPE CENTRAL +49 9131 77 340

AUSTRIA BELGIUM GERMANY ITALY NETHERLANDS SWITZERLAND

EUROPE WEST +44 1494 428 900

FRANCE IRELAND PORTUGAL SPAIN UNITED KINGDOM

MIDDLE EAST AND AFRICA +971 4390 0888

INDIA SOUTH AFRICA SRI LANKA UNITED ARAB EMIRATES

SCANDINAVIA +46 13 460 4000

DENMARK NORWAY SWEDEN

FINLAND AND THE BALTIC AREA +358 102 17 9300

ESTONIA FINLAND LATVIA LITHUANIA

ABOUT IFS

Page 4: Software selection for Manufacturing and HighTech ...... · The basic concepts and ... and operations management. Gartner now speaks of postmodern ERP, which it describes as “a

4 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Because these systems are central to todayrsquos enterprise operations their selection must confirm that the features and functionality they provide take into account the rapidly changing nature of global manufacturing and help address the challenges that poses As Gartner notes companies ldquoneed ERP systems that support flexibility rather than inhibit itrdquo2 They need software that enables business agility

This paper explores some of the common business challenges faced by todayrsquos manufacturing and high-tech organizations how the right software addresses these challenges and posits a number of key selection factors that will optimize ROI on software investment for those in the sector

COMMON BUSINESS CHALLENGESWhile each manufacturer has its specific needs and requirements the nature of todayrsquos competition presents a number of challenges that tend to be common across manufacturing organizations Here are a few of the most prominent

COMPLIANCE ISSUESRegulations and regulatory compliance are particularly important in the manu-facturing sector For example according to the National Association of Manufacturers the average manufacturing firm in the United States pays nearly twice the compliance costs of the average US firm small manufactur-ers pay nearly three times as much as the average3 Additionally as global trade increases international standards take on greater importance These can range from multiple ISO standards to directives that have been intro-duced by the European Union (EU) that are moving toward global recognition as de facto or de jure international standards In certain vertical sectors such as medical device manufacturing validation processes are critical Keeping compliance with such regulations is an ongoing concern for manufacturers not only from an adherence perspective but also from a cost of documenta-tion perspective

RISING MARGIN PRESSURESRegardless of the specific sector margins for manufacturers are being squeezed from multiple directions In developed markets top-line growth has slowed or declined whereas in emerging markets margins are threatened by rising labor costs more expensive commodities and cost of distribution4 As such manufacturers need more granular information on what margins are being made when theyrsquore taking or closing orders If margins change based on a supplierrsquos increasing costs the manufacturer needs to be made aware of that proactively as it happens so that action can be taken in response

2 ldquoMagic Quadrant for Single-Instance ERP for Product-Centric Midmarket Companiesrdquo Gartner (Christian Hestermann Nigel Montgomery Chris Pang Michael Guay analysts) November 24 2014 3 ldquoRegulatory Reformrdquo National Association of Manufacturers wwwnamorgIssuesRegulatory-Reform4 Margin Unlocked EY 2013

+

+

SnAg

CuSi

AlFe

5 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

GREATER VISIBILITY AND MORE GRANULAR INFORMATIONA more project-based approach is rapidly emerging in manufacturing Years ago designers and engineers were just treated as overheads within the business Todayrsquos manufacturers want to know how much time and effort mdashspecifically and from wheremdashhave gone into designing a new product How much time (and money) was spent with a customer working on a product design How much did we budget What resources have been used so far How many can we expect to use This process can entail anything from finance doing credit checks to engineers doing drawings to prototype production to manufacturing set-up Visibility of the timeexpense plan is increasingly crucial for many manufacturers and granular detail is key

CONSUMER DEMANDMany manufacturers must now account for individual consumers as well as traditional industrial customers This trend is particularly growing in the environmental arena (perhaps to a greater degree in Europe than America) where consumers are demanding verification that what they are purchasing has been manufactured in a sustainable way Increasingly itrsquos important for manufacturers to have eco-footprint information within their systems to report their carbon footprint recyclable packaging used etc And products down to component level need to be completely traceable Further they need to comply mdashand demonstrate compliancemdashwith standards like REACH and RoHS and EU directives like those on energy labeling ecodesign and energy-related products (ErP) This information needs to be reportable internally to share-holders and increasingly to the public at large

STANDARDIZATION Particularly as operations extend across disparate locations or geographical borders manufacturers and high-tech organizations are looking for ways to standardize their business processes across multiple sites for consistency and cost reduction factors This need extends from design to production to service and applies to smaller manufacturers (eg a company building a product at two different local sites) as well as to global enterprises that may manufacture in one country and assemble in another

DISRUPTIVE INNOVATIONSDisruptive innovations are those that help create new markets and value networks eventually disrupting an existing market and value network (over a few years or decades) and displacing earlier technologies When new tech-nologies emerge the decline of industries is neither rapid nor immediate but successful manufacturers understand that growth demands innovation and innovation in the sector cannot occur without embracing technologically-advanced manufacturing capabilities5

Perhaps the most visible of todayrsquos disruptive technologies is additive manufacturing also known as 3-D printing In the future smaller highly specialized 3-D printing companies will emerge to serve a local area on demand

5 Disruptive Manufacturing Deloitte LLP httpswww2deloittecomcontentdamDeloittecaDocumentsinsights-and-issuesca-en-insights-issues-disruptive-manufacturingpdf

6 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

So instead of manufacturers buying components such as spare parts and having them shipped from afar or buying a machine and putting it into the warehouse and taking up stock and cost from a financial point of view they could wait until a part failed send a command and have it printed on demand within hours

At the moment quality issues are the principal impediment to broad adoption of 3-D printing but these issues will abate over time Yet while the technology has significant and transformative advantages (eg rapid proto-typing reduced lead times rapid innovation rapid manufacturing mass customization use of unique materials) it also brings new risk according to studies by 2018 3-D printing will result in the loss of $100 billion due to counterfeiting of parts6 This in turn will lead to more innovation to counter that risk as manufacturers look to embed ldquoplant DNArdquo in products to check for validity and contract adherence

The Internet of Things (IoT) is another development moving rapidly from the consumer marketplace to manufacturing Sensors are being embedded to provide machine-to-machine communications for applications such as remote monitoring and control enabling manufacturers to get information and act upon it remotely This is speeding maintenance while driving down costs (eg no longer having to send engineers into the field for maintenance on remote installations) through preventive maintenance and improved asset management (ie asset self-management)

Other examples of disruptive innovation range from those becoming more established (eg cloud computing) to nascent but potentially revolutionary developments such as nanotechnology As with 3-D printing nanotechnology has the potential to localize global supply chains with very direct paths from raw materials through to finished products7

Into our era of Industry 40 and the smart factory comes Blockchain a secure distributed electronic ledger that connects parties in a network of trust and integrity to facilitate the transfer of assets and the information pertaining to those assets Blockchain is already beginning to alter the way transactions are carried out by bringing parties together in a trusted network without a third party and by recording each transaction sequentially and securely Usually associated with Bitcoin a range of industries are now see-ing the business benefits it can bring These include

Efficiency As transactions are completed directly between the relevant parties with no intermediary and with digitized information settling the transaction can be quick Added to this is the ability to operate lsquosmart contractsrsquo which automatically trigger commercial actions based on satisfying the criteria laid out in the contract This can dramatically streamline processes and in doing so remove time and cost from transacting

Auditability As each transaction is recorded sequentially and indefinitely it provides an indelible audit trail for the life of an asset even between parties This is especially important if source data is essential in verifying an assets authenticity

6 ldquoGartner Says Use of 3D Printing Will Ignite Major Debate on Ethics and Regulationrdquo Gartner press release January 29 20147 ldquoManufacturingrsquos three biggest disruptive technologiesrdquo The Manufacturer November 6 2014

LOW

MEDIUM HIGH

7 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Traceability Tracking goods in a supply chain can be advantageous when seeking to trace where components are currently residing Information relating to the component can then be relayed to or from the new owner for possible action

Transparency Lack of commercial transparency can sometimes lead to delays in commerce and a breakdown in relations By providing details of transactions against the commercial construct further trust can be enlisted within the process and so provide a more stable relationship based on transparency rather than negotiation

Security As each transaction is verified within the network using indepen-dently verified complex cryptography the authenticity of the information can be assured Assured information is one of the fundamental keys to unlocking the benefits of the Internet of Things (IoT) which is a closed loop cyber autonomous process linking assets to actions

Feedback With full traceability throughout the lifecycle of an asset asset designers and manufacturers can accommodate through-life asset manage-ment into their products to make them more effective This can allow for information returning from shipping installation maintenance and decommis-sioning

Blockchain is yet another lsquodisruptorrsquo that can provide enormous opportunities for digitally savvy companies who adopt it fast

HOW THE RIGHT SOFTWARE ADDRESSES BUSINESS CHALLENGES The right business software supports manufacturingrsquos ability to meet emerg-ing challenges and respond to constant change by providing the foundation for enterprise agility The concept of manufacturing agility involves the devel-opment of manufacturing capabilities to achieve sustained competitive advantage in an unpredictable environment8 Agility is the product of three foundational blocksmdashvision knowledge and flexibilitymdashthat effectively designed and developed software facilitates across the business

VISION Vision is the ability to link business strategy and growth aspira-tions to technology investment and to make informed decisions that prove effective over time Clear vision enables a manufacturer

to correctly assess and balance the risks and opportunities of disruptive technologies The right business software helps focus and clarify vision

KNOWLEDGE Knowledge is the ability to identify understand and predict new sources of threat or opportunity across daily business operations and projects Knowledge enables business insight the most

valuable form of which comes from the ability to assemble a clear compre-hensive and accurate view of the past present and future status of

8 Sud-on P Abareshi A Pittayachewan S and Teo L ldquoManufacturing Agility Construct and Instrument Developmentrdquo World Academy of Science Engineering and Technology 82 2013 p 755

The right business software supports manufacturingrsquos ability to meet emerging challenges and respond to constant change by providing the foundation for enterprise agility

8 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

assets infrastructure and employees across even the most complex global operations and projects The right business software gathers assembles and disseminates knowledge in real time where and when it is needed

FLEXIBILITY Flexibility is the ability to take action rapidly when things happen expectedly or unexpectedly founded on technology that makes rapid and responsive change possible The right software is a

critical part of this technology Vision and knowledge are not fully empowered unless an organization has the flexibility to rapidly change its shape or focus to seize new opportunity or mitigate risk Flexible business technology is necessary for this but so too is a business culture that embraces rather than hinders change and rapid response

10 KEY QUESTIONS TO ASK WHEN SELECTING ENTERPRISE SOFTWARETo see whether software under consideration is meeting the needs of todayrsquos evolving manufacturing environment the following questions are key

1 DOES THE SOFTWARE SUPPORT RAPID BUSINESS CHANGE An organizationrsquos software should help it plan for change Change is constant and the most dominant characteristic of todayrsquos business environment so the ability to plan for the unknown makes it possible for agile companies to thrive Long-term planning is not about being able to predict every future but being able to respond fast and smartly enough to capitalize on change Effective software facilitates the ability to change mdashnot only forecast information but also supply and demand output quickly and provide visibility into what impacts the change will make In todayrsquos markets where new product introduction is increasingly essen-tial to growth enterprise software should help facilitate and control new product introduction

2 DOES THE SOFTWARE PROVIDE ESSENTIAL ACCESS TO DATAmdashTHE RIGHT DATA FOR THE RIGHT PEOPLE AT THE RIGHT TIME Data-driven decision-making is central to enterprise operations but the proliferation of data can be overwhelming for users Well-designed soft-ware delivers data to users in ways they can use it wherever they are whenever they need it without delay or variation Having data in a single place accessible from any device is key A company doesnrsquot want to have to hold up production because itrsquos waiting for signoff from a production supervisor who is traveling on another continent If he or she can review it on a smartphone the company can act now With older software systems this wasnrsquot possible

3 DOES THE SOFTWARE ALLOW FOR FUTURE GROWTH The boundaries between manufacturing and distributing organizations have been slowly disappearing more manufacturing companies have been distributing and servicing their products which has led to tighter integration of ERP CRM and supply chain management (SCM) solutions

9 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Many companies that today are manufacturing only may be looking to add service to their portfolios These companies are served by software that meets their current need but also has the capability to handle future development in the system

4 IS THE SOFTWARE APPEALING TO TODAYrsquoS GENERATION OF WORKERS As the manufacturing workforce ages a younger generation is coming into the sector The longstanding perception of manufacturing as a smokestack environment (ie dirty greasy unhealthy) is giving way to the reality of high-tech manufacturing much more appealing to those that grew up in the digital age When younger people come into manufac-turing they donrsquot want to work with a green-screen application they want something that they are familiar with (ie graphic sophistication touch-screens apps to download onto a phone) How will younger workers mdashsoon to be a majority in the workforcemdashrespond to the software presentation

5 IS THE SOFTWARE USABLE IN TODAYrsquoS CHANGING WORK ENVIRONMENT Related to the question above usability speaks to the way work is done differently today which is something influenced by the younger generation but certainly not limited to them Increasingly the workplace is where we happen to be which may not be within the ldquofour wallsrdquo of the organiza-tion This has certain implications for software Is it mobile Can it be accessed and comprehended by sophisticated and casual users on multiple devices laptops tablets smartphones and in the coming years wearable technology like watches Does it provide role-based portals and interfaces Is it intuitive to anyone who sits in front of it

6 IS THE SOFTWARErsquoS CRM DISCRETE OR EMBEDDED Customer relationship management is increasingly important in todayrsquos manufacturing market and nearly all software providers will have CRM as a separate but integrated package But itrsquos still in a separate world This becomes an issue when manufacturers set up more complex relationships (eg from opportunity to sales to contract delivery) which typically requires integration work Further there are user experience issues including not being able to drill through CRM all the way to the back office nore from the back office into CRM When CRM is embedded in the enterprise software those issues are taken off the table There is no need for integration work Users can now drill through in both directions which can be an important advantage

7 DOES THE SOFTWARE PROVIDE DEPLOYMENT OPTIONS Single instance on-premise enterprise systems are rapidly being relegated to the past as hybrid models continue to grow toward the norm Whereas the majority of those hybrids are a combination of core and point solutions (on-premise) from multiple vendors increasingly manufacturers will use cloud-based point solutions as an essential part of the hybrid approach This is inevitable particularly as manufacturing operations take on global scope Does your software provide real deployment flexibility

10 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

8 DOES THE SOFTWARE SPEED EXECUTION OF TASKS While provision of real-time data is increasingly a given for enterprise software is this translating into faster execution of essential work Consider financials Itrsquos not uncommon to find manufacturers where it takes over a week to do monthrsquos end financials Frankly it should not take more than a day or two When companies arenrsquot able to close their books until the middle of the next month something isnrsquot right with the software system Software should enable companies to have information they can believe and trust in one system so when they print out a trial balance they believe the numbers generated There shouldnrsquot be a need to wait for information (eg for production to indicate how much WIP they have or accounting to report accruals) Real-time data is often over-looked these days because companies are not used to it but itrsquos still a shock when a company tells you it takes a week to do a monthrsquos end report

9 HOW BROAD AND DEEP IS THE SOFTWARE SOLUTION Can the software system phase out the use of multiple systems eliminating undue complexity and cost Today many manufacturers are multi-modal some products are made to order some made to stock some engineered to order some assembled to order and some config-ured to order Can your software handle all these approaches If you set an approach today do you have the ability to easily change over in a weekrsquos monthrsquos or yearrsquos time A broad and deep solution will provide this capability

10 CUSTOMIZATION OR CONFIGURATION IS THE SOFTWARE EASY TO MODIFY Because change will make it likely for a company to want to modify its software over time how easy and how costly will it be to make that change The best systems enable users to add their own fields events and so on without having to go back to the software provider for custom-ization Configuration is part of the functionality out of the box and easy to do not part of an upgrade or requiring additional costs

WHAT ARE PEERS SAYINGFinally companies are well served by looking to respected analysts who assess the status of software providers Of those who study enterprise soft-ware and systems the best known and perhaps most highly respected is Stamford Connecticut-based Gartner

Gartner publishes Peer Insights9 that offer ldquoimpactful insights from real IT decision makersrdquo The insights are described as follows ldquoFree of vendor influence Gartner Peer Insights offers detailed perspectives for every phase of the IT lifecyclemdashfrom evaluation and implementation to service and supportrdquo Below are some of the things peers (Manufacturing CIOs CFOs CTOs) are saying about IFS Applications and why they bought it

9 wwwgartnercomreviewshome

11 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

What do you like most about the product or service

bull Its flexibility to make personalizations without having to customize the product and move those personalizations forward with each new release (CIO Manufacturing)

bull Very stable application with all modules tightly integrated

bull The consistency of the experience over the years

bull The security and the integrity of the system are up to the mark

What were the key factors that drove your decision

bull Product functionality and performance

bull Strong customer focus

bull Breadth of services

bull Financialorganizational viability

bull Pre-existing relationships

bull Product roadmap and future vision

bull Strong services expertise

bull Strong user community

READY FOR SERVITIZATION AND WHATrsquoS NEXTCompanies that have added service to their offerings adapted their organiza-tions to enable this and acquired the requisite technology (often in the form of integrated full-scope enterprise software) have confronted the question of lsquoWhatrsquos nextmdashand reaped significant benefits In fact adding service contributes to much of what is the very essence of good business viz actively looking to the future and seeking to shape it to create opportunities rather than merely grasp those that arise Benefits reported include

Enhanced revenuemdashreported growth between 2x and 4x

Better marginsmdashincreases of 3ndash10 reported

Sustainable business growthmdashincreases of up 5ndash10 reported

Greater customer satisfactionmdashthey are getting what they want

More repeat business greater market share and a better reputation

Predictable income streams

12 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Combining a comprehensive suite of enterprise software that covers ERP EAM ESM (Enterprise Service Management) FSM (IFS Field Service Managementtrade) IFS Enterprise Operational Intelligencetrade (IFS EOItrade) and advanced analytics IFS enables manufacturers to actively take part in the transformation process giving them the capabilities and insights to make decisions based on real-time statuses to not only meet customer needs but also anticipate them Being able to handle todayrsquos business challenges is important shaping whatrsquos next is crucial to growth and continued success

ABOUT ANTONY BOURNEAs Vice President of Global Industry Solutions Antony leads a team of global industry experts who cover the IFS focused industries and support sales marketing and partner enablement Antony is a lead spokesperson for IFS and represents the company in multiple internal and external events analyst updates (including Gartner IDC and ARC) publications blogs and press articles He also has extensive experience of multiple industries (including Manufacturing Construction Life Sciences and High Tech) having dealt with hundreds of companies that have gone through the software selection and implementation process This includes hosting customer advisory councils in conjunction with RampD which ensures the product strategy is in line with industry expectations Antony has over 20 yearsrsquo experience in the IT industry including working in the manufacturing sector Prior to joining IFS in 1997 he held business analyst positions with Ford Motor Company and AlliedSignal During this time he implemented ERP applications as well as business process improvements Antony holds a bachelors degree in Computer Science from the University of Glamorgan and is a member of Mensa

En11

053-

1 Pr

oduc

tion

IFS

Corp

orat

e M

arke

ting

May

201

7

IFSworldcomCOPYRIGHT copy 2017 INDUSTRIAL AND FINANCIAL SYSTEMS IFS AB IFS AND ALL IFS PRODUCTS AND SERVICES NAMES ARE TRADEMARKS OF IFS ALL RIGHTS RESERVED THIS DOCUMENT MAY CONTAIN STATEMENTS OF POSSIBLE FUTURE FUNCTIONALIT Y FOR IFSrsquoS PRODUCTS AND TECHNOLOGY SUCH STATEMENTS ARE FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE INTERPRETED AS ANY COMMITMENT OR REPRESENTATION THE NAMES OF ACTUAL COMPANIES AND PRODUCTS MENTIONED HEREIN MAY BE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS

IFS AB copy2017

IFS develops and delivers enterprise software for customers around the world who manufacture and distribute goods maintain assets and manage service-focused operations The industry expertise of our people and solutions together with commitment to our customers has made us a recognized leader and the most recommended supplier in our sector Our team of 3300 employees supports more than one million users worldwide from a network of local offices and through our growing ecosystem of partners For more information about IFS visit IFSworldcom

AMERICAS +1 888 437 4968

ARGENTINA BRAZIL CANADA ECUADOR MEXICO UNITED STATES

ASIA PACIFIC +65 63 33 33 00

AUSTRALIA INDONESIA JAPAN MALAYSIA NEW ZEALAND PHILIPPINES PR CHINA SINGAPORE THAILAND

EUROPE EAST AND CENTRAL ASIA +48 22 577 45 00

BALKANS CZECH REPUBLIC GEORGIA HUNGARY ISRAEL KAZAKHSTAN POLAND RUSSIA AND CIS SLOVAKIA TURKEY UKRAINE

EUROPE CENTRAL +49 9131 77 340

AUSTRIA BELGIUM GERMANY ITALY NETHERLANDS SWITZERLAND

EUROPE WEST +44 1494 428 900

FRANCE IRELAND PORTUGAL SPAIN UNITED KINGDOM

MIDDLE EAST AND AFRICA +971 4390 0888

INDIA SOUTH AFRICA SRI LANKA UNITED ARAB EMIRATES

SCANDINAVIA +46 13 460 4000

DENMARK NORWAY SWEDEN

FINLAND AND THE BALTIC AREA +358 102 17 9300

ESTONIA FINLAND LATVIA LITHUANIA

ABOUT IFS

Page 5: Software selection for Manufacturing and HighTech ...... · The basic concepts and ... and operations management. Gartner now speaks of postmodern ERP, which it describes as “a

5 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

GREATER VISIBILITY AND MORE GRANULAR INFORMATIONA more project-based approach is rapidly emerging in manufacturing Years ago designers and engineers were just treated as overheads within the business Todayrsquos manufacturers want to know how much time and effort mdashspecifically and from wheremdashhave gone into designing a new product How much time (and money) was spent with a customer working on a product design How much did we budget What resources have been used so far How many can we expect to use This process can entail anything from finance doing credit checks to engineers doing drawings to prototype production to manufacturing set-up Visibility of the timeexpense plan is increasingly crucial for many manufacturers and granular detail is key

CONSUMER DEMANDMany manufacturers must now account for individual consumers as well as traditional industrial customers This trend is particularly growing in the environmental arena (perhaps to a greater degree in Europe than America) where consumers are demanding verification that what they are purchasing has been manufactured in a sustainable way Increasingly itrsquos important for manufacturers to have eco-footprint information within their systems to report their carbon footprint recyclable packaging used etc And products down to component level need to be completely traceable Further they need to comply mdashand demonstrate compliancemdashwith standards like REACH and RoHS and EU directives like those on energy labeling ecodesign and energy-related products (ErP) This information needs to be reportable internally to share-holders and increasingly to the public at large

STANDARDIZATION Particularly as operations extend across disparate locations or geographical borders manufacturers and high-tech organizations are looking for ways to standardize their business processes across multiple sites for consistency and cost reduction factors This need extends from design to production to service and applies to smaller manufacturers (eg a company building a product at two different local sites) as well as to global enterprises that may manufacture in one country and assemble in another

DISRUPTIVE INNOVATIONSDisruptive innovations are those that help create new markets and value networks eventually disrupting an existing market and value network (over a few years or decades) and displacing earlier technologies When new tech-nologies emerge the decline of industries is neither rapid nor immediate but successful manufacturers understand that growth demands innovation and innovation in the sector cannot occur without embracing technologically-advanced manufacturing capabilities5

Perhaps the most visible of todayrsquos disruptive technologies is additive manufacturing also known as 3-D printing In the future smaller highly specialized 3-D printing companies will emerge to serve a local area on demand

5 Disruptive Manufacturing Deloitte LLP httpswww2deloittecomcontentdamDeloittecaDocumentsinsights-and-issuesca-en-insights-issues-disruptive-manufacturingpdf

6 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

So instead of manufacturers buying components such as spare parts and having them shipped from afar or buying a machine and putting it into the warehouse and taking up stock and cost from a financial point of view they could wait until a part failed send a command and have it printed on demand within hours

At the moment quality issues are the principal impediment to broad adoption of 3-D printing but these issues will abate over time Yet while the technology has significant and transformative advantages (eg rapid proto-typing reduced lead times rapid innovation rapid manufacturing mass customization use of unique materials) it also brings new risk according to studies by 2018 3-D printing will result in the loss of $100 billion due to counterfeiting of parts6 This in turn will lead to more innovation to counter that risk as manufacturers look to embed ldquoplant DNArdquo in products to check for validity and contract adherence

The Internet of Things (IoT) is another development moving rapidly from the consumer marketplace to manufacturing Sensors are being embedded to provide machine-to-machine communications for applications such as remote monitoring and control enabling manufacturers to get information and act upon it remotely This is speeding maintenance while driving down costs (eg no longer having to send engineers into the field for maintenance on remote installations) through preventive maintenance and improved asset management (ie asset self-management)

Other examples of disruptive innovation range from those becoming more established (eg cloud computing) to nascent but potentially revolutionary developments such as nanotechnology As with 3-D printing nanotechnology has the potential to localize global supply chains with very direct paths from raw materials through to finished products7

Into our era of Industry 40 and the smart factory comes Blockchain a secure distributed electronic ledger that connects parties in a network of trust and integrity to facilitate the transfer of assets and the information pertaining to those assets Blockchain is already beginning to alter the way transactions are carried out by bringing parties together in a trusted network without a third party and by recording each transaction sequentially and securely Usually associated with Bitcoin a range of industries are now see-ing the business benefits it can bring These include

Efficiency As transactions are completed directly between the relevant parties with no intermediary and with digitized information settling the transaction can be quick Added to this is the ability to operate lsquosmart contractsrsquo which automatically trigger commercial actions based on satisfying the criteria laid out in the contract This can dramatically streamline processes and in doing so remove time and cost from transacting

Auditability As each transaction is recorded sequentially and indefinitely it provides an indelible audit trail for the life of an asset even between parties This is especially important if source data is essential in verifying an assets authenticity

6 ldquoGartner Says Use of 3D Printing Will Ignite Major Debate on Ethics and Regulationrdquo Gartner press release January 29 20147 ldquoManufacturingrsquos three biggest disruptive technologiesrdquo The Manufacturer November 6 2014

LOW

MEDIUM HIGH

7 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Traceability Tracking goods in a supply chain can be advantageous when seeking to trace where components are currently residing Information relating to the component can then be relayed to or from the new owner for possible action

Transparency Lack of commercial transparency can sometimes lead to delays in commerce and a breakdown in relations By providing details of transactions against the commercial construct further trust can be enlisted within the process and so provide a more stable relationship based on transparency rather than negotiation

Security As each transaction is verified within the network using indepen-dently verified complex cryptography the authenticity of the information can be assured Assured information is one of the fundamental keys to unlocking the benefits of the Internet of Things (IoT) which is a closed loop cyber autonomous process linking assets to actions

Feedback With full traceability throughout the lifecycle of an asset asset designers and manufacturers can accommodate through-life asset manage-ment into their products to make them more effective This can allow for information returning from shipping installation maintenance and decommis-sioning

Blockchain is yet another lsquodisruptorrsquo that can provide enormous opportunities for digitally savvy companies who adopt it fast

HOW THE RIGHT SOFTWARE ADDRESSES BUSINESS CHALLENGES The right business software supports manufacturingrsquos ability to meet emerg-ing challenges and respond to constant change by providing the foundation for enterprise agility The concept of manufacturing agility involves the devel-opment of manufacturing capabilities to achieve sustained competitive advantage in an unpredictable environment8 Agility is the product of three foundational blocksmdashvision knowledge and flexibilitymdashthat effectively designed and developed software facilitates across the business

VISION Vision is the ability to link business strategy and growth aspira-tions to technology investment and to make informed decisions that prove effective over time Clear vision enables a manufacturer

to correctly assess and balance the risks and opportunities of disruptive technologies The right business software helps focus and clarify vision

KNOWLEDGE Knowledge is the ability to identify understand and predict new sources of threat or opportunity across daily business operations and projects Knowledge enables business insight the most

valuable form of which comes from the ability to assemble a clear compre-hensive and accurate view of the past present and future status of

8 Sud-on P Abareshi A Pittayachewan S and Teo L ldquoManufacturing Agility Construct and Instrument Developmentrdquo World Academy of Science Engineering and Technology 82 2013 p 755

The right business software supports manufacturingrsquos ability to meet emerging challenges and respond to constant change by providing the foundation for enterprise agility

8 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

assets infrastructure and employees across even the most complex global operations and projects The right business software gathers assembles and disseminates knowledge in real time where and when it is needed

FLEXIBILITY Flexibility is the ability to take action rapidly when things happen expectedly or unexpectedly founded on technology that makes rapid and responsive change possible The right software is a

critical part of this technology Vision and knowledge are not fully empowered unless an organization has the flexibility to rapidly change its shape or focus to seize new opportunity or mitigate risk Flexible business technology is necessary for this but so too is a business culture that embraces rather than hinders change and rapid response

10 KEY QUESTIONS TO ASK WHEN SELECTING ENTERPRISE SOFTWARETo see whether software under consideration is meeting the needs of todayrsquos evolving manufacturing environment the following questions are key

1 DOES THE SOFTWARE SUPPORT RAPID BUSINESS CHANGE An organizationrsquos software should help it plan for change Change is constant and the most dominant characteristic of todayrsquos business environment so the ability to plan for the unknown makes it possible for agile companies to thrive Long-term planning is not about being able to predict every future but being able to respond fast and smartly enough to capitalize on change Effective software facilitates the ability to change mdashnot only forecast information but also supply and demand output quickly and provide visibility into what impacts the change will make In todayrsquos markets where new product introduction is increasingly essen-tial to growth enterprise software should help facilitate and control new product introduction

2 DOES THE SOFTWARE PROVIDE ESSENTIAL ACCESS TO DATAmdashTHE RIGHT DATA FOR THE RIGHT PEOPLE AT THE RIGHT TIME Data-driven decision-making is central to enterprise operations but the proliferation of data can be overwhelming for users Well-designed soft-ware delivers data to users in ways they can use it wherever they are whenever they need it without delay or variation Having data in a single place accessible from any device is key A company doesnrsquot want to have to hold up production because itrsquos waiting for signoff from a production supervisor who is traveling on another continent If he or she can review it on a smartphone the company can act now With older software systems this wasnrsquot possible

3 DOES THE SOFTWARE ALLOW FOR FUTURE GROWTH The boundaries between manufacturing and distributing organizations have been slowly disappearing more manufacturing companies have been distributing and servicing their products which has led to tighter integration of ERP CRM and supply chain management (SCM) solutions

9 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Many companies that today are manufacturing only may be looking to add service to their portfolios These companies are served by software that meets their current need but also has the capability to handle future development in the system

4 IS THE SOFTWARE APPEALING TO TODAYrsquoS GENERATION OF WORKERS As the manufacturing workforce ages a younger generation is coming into the sector The longstanding perception of manufacturing as a smokestack environment (ie dirty greasy unhealthy) is giving way to the reality of high-tech manufacturing much more appealing to those that grew up in the digital age When younger people come into manufac-turing they donrsquot want to work with a green-screen application they want something that they are familiar with (ie graphic sophistication touch-screens apps to download onto a phone) How will younger workers mdashsoon to be a majority in the workforcemdashrespond to the software presentation

5 IS THE SOFTWARE USABLE IN TODAYrsquoS CHANGING WORK ENVIRONMENT Related to the question above usability speaks to the way work is done differently today which is something influenced by the younger generation but certainly not limited to them Increasingly the workplace is where we happen to be which may not be within the ldquofour wallsrdquo of the organiza-tion This has certain implications for software Is it mobile Can it be accessed and comprehended by sophisticated and casual users on multiple devices laptops tablets smartphones and in the coming years wearable technology like watches Does it provide role-based portals and interfaces Is it intuitive to anyone who sits in front of it

6 IS THE SOFTWARErsquoS CRM DISCRETE OR EMBEDDED Customer relationship management is increasingly important in todayrsquos manufacturing market and nearly all software providers will have CRM as a separate but integrated package But itrsquos still in a separate world This becomes an issue when manufacturers set up more complex relationships (eg from opportunity to sales to contract delivery) which typically requires integration work Further there are user experience issues including not being able to drill through CRM all the way to the back office nore from the back office into CRM When CRM is embedded in the enterprise software those issues are taken off the table There is no need for integration work Users can now drill through in both directions which can be an important advantage

7 DOES THE SOFTWARE PROVIDE DEPLOYMENT OPTIONS Single instance on-premise enterprise systems are rapidly being relegated to the past as hybrid models continue to grow toward the norm Whereas the majority of those hybrids are a combination of core and point solutions (on-premise) from multiple vendors increasingly manufacturers will use cloud-based point solutions as an essential part of the hybrid approach This is inevitable particularly as manufacturing operations take on global scope Does your software provide real deployment flexibility

10 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

8 DOES THE SOFTWARE SPEED EXECUTION OF TASKS While provision of real-time data is increasingly a given for enterprise software is this translating into faster execution of essential work Consider financials Itrsquos not uncommon to find manufacturers where it takes over a week to do monthrsquos end financials Frankly it should not take more than a day or two When companies arenrsquot able to close their books until the middle of the next month something isnrsquot right with the software system Software should enable companies to have information they can believe and trust in one system so when they print out a trial balance they believe the numbers generated There shouldnrsquot be a need to wait for information (eg for production to indicate how much WIP they have or accounting to report accruals) Real-time data is often over-looked these days because companies are not used to it but itrsquos still a shock when a company tells you it takes a week to do a monthrsquos end report

9 HOW BROAD AND DEEP IS THE SOFTWARE SOLUTION Can the software system phase out the use of multiple systems eliminating undue complexity and cost Today many manufacturers are multi-modal some products are made to order some made to stock some engineered to order some assembled to order and some config-ured to order Can your software handle all these approaches If you set an approach today do you have the ability to easily change over in a weekrsquos monthrsquos or yearrsquos time A broad and deep solution will provide this capability

10 CUSTOMIZATION OR CONFIGURATION IS THE SOFTWARE EASY TO MODIFY Because change will make it likely for a company to want to modify its software over time how easy and how costly will it be to make that change The best systems enable users to add their own fields events and so on without having to go back to the software provider for custom-ization Configuration is part of the functionality out of the box and easy to do not part of an upgrade or requiring additional costs

WHAT ARE PEERS SAYINGFinally companies are well served by looking to respected analysts who assess the status of software providers Of those who study enterprise soft-ware and systems the best known and perhaps most highly respected is Stamford Connecticut-based Gartner

Gartner publishes Peer Insights9 that offer ldquoimpactful insights from real IT decision makersrdquo The insights are described as follows ldquoFree of vendor influence Gartner Peer Insights offers detailed perspectives for every phase of the IT lifecyclemdashfrom evaluation and implementation to service and supportrdquo Below are some of the things peers (Manufacturing CIOs CFOs CTOs) are saying about IFS Applications and why they bought it

9 wwwgartnercomreviewshome

11 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

What do you like most about the product or service

bull Its flexibility to make personalizations without having to customize the product and move those personalizations forward with each new release (CIO Manufacturing)

bull Very stable application with all modules tightly integrated

bull The consistency of the experience over the years

bull The security and the integrity of the system are up to the mark

What were the key factors that drove your decision

bull Product functionality and performance

bull Strong customer focus

bull Breadth of services

bull Financialorganizational viability

bull Pre-existing relationships

bull Product roadmap and future vision

bull Strong services expertise

bull Strong user community

READY FOR SERVITIZATION AND WHATrsquoS NEXTCompanies that have added service to their offerings adapted their organiza-tions to enable this and acquired the requisite technology (often in the form of integrated full-scope enterprise software) have confronted the question of lsquoWhatrsquos nextmdashand reaped significant benefits In fact adding service contributes to much of what is the very essence of good business viz actively looking to the future and seeking to shape it to create opportunities rather than merely grasp those that arise Benefits reported include

Enhanced revenuemdashreported growth between 2x and 4x

Better marginsmdashincreases of 3ndash10 reported

Sustainable business growthmdashincreases of up 5ndash10 reported

Greater customer satisfactionmdashthey are getting what they want

More repeat business greater market share and a better reputation

Predictable income streams

12 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Combining a comprehensive suite of enterprise software that covers ERP EAM ESM (Enterprise Service Management) FSM (IFS Field Service Managementtrade) IFS Enterprise Operational Intelligencetrade (IFS EOItrade) and advanced analytics IFS enables manufacturers to actively take part in the transformation process giving them the capabilities and insights to make decisions based on real-time statuses to not only meet customer needs but also anticipate them Being able to handle todayrsquos business challenges is important shaping whatrsquos next is crucial to growth and continued success

ABOUT ANTONY BOURNEAs Vice President of Global Industry Solutions Antony leads a team of global industry experts who cover the IFS focused industries and support sales marketing and partner enablement Antony is a lead spokesperson for IFS and represents the company in multiple internal and external events analyst updates (including Gartner IDC and ARC) publications blogs and press articles He also has extensive experience of multiple industries (including Manufacturing Construction Life Sciences and High Tech) having dealt with hundreds of companies that have gone through the software selection and implementation process This includes hosting customer advisory councils in conjunction with RampD which ensures the product strategy is in line with industry expectations Antony has over 20 yearsrsquo experience in the IT industry including working in the manufacturing sector Prior to joining IFS in 1997 he held business analyst positions with Ford Motor Company and AlliedSignal During this time he implemented ERP applications as well as business process improvements Antony holds a bachelors degree in Computer Science from the University of Glamorgan and is a member of Mensa

En11

053-

1 Pr

oduc

tion

IFS

Corp

orat

e M

arke

ting

May

201

7

IFSworldcomCOPYRIGHT copy 2017 INDUSTRIAL AND FINANCIAL SYSTEMS IFS AB IFS AND ALL IFS PRODUCTS AND SERVICES NAMES ARE TRADEMARKS OF IFS ALL RIGHTS RESERVED THIS DOCUMENT MAY CONTAIN STATEMENTS OF POSSIBLE FUTURE FUNCTIONALIT Y FOR IFSrsquoS PRODUCTS AND TECHNOLOGY SUCH STATEMENTS ARE FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE INTERPRETED AS ANY COMMITMENT OR REPRESENTATION THE NAMES OF ACTUAL COMPANIES AND PRODUCTS MENTIONED HEREIN MAY BE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS

IFS AB copy2017

IFS develops and delivers enterprise software for customers around the world who manufacture and distribute goods maintain assets and manage service-focused operations The industry expertise of our people and solutions together with commitment to our customers has made us a recognized leader and the most recommended supplier in our sector Our team of 3300 employees supports more than one million users worldwide from a network of local offices and through our growing ecosystem of partners For more information about IFS visit IFSworldcom

AMERICAS +1 888 437 4968

ARGENTINA BRAZIL CANADA ECUADOR MEXICO UNITED STATES

ASIA PACIFIC +65 63 33 33 00

AUSTRALIA INDONESIA JAPAN MALAYSIA NEW ZEALAND PHILIPPINES PR CHINA SINGAPORE THAILAND

EUROPE EAST AND CENTRAL ASIA +48 22 577 45 00

BALKANS CZECH REPUBLIC GEORGIA HUNGARY ISRAEL KAZAKHSTAN POLAND RUSSIA AND CIS SLOVAKIA TURKEY UKRAINE

EUROPE CENTRAL +49 9131 77 340

AUSTRIA BELGIUM GERMANY ITALY NETHERLANDS SWITZERLAND

EUROPE WEST +44 1494 428 900

FRANCE IRELAND PORTUGAL SPAIN UNITED KINGDOM

MIDDLE EAST AND AFRICA +971 4390 0888

INDIA SOUTH AFRICA SRI LANKA UNITED ARAB EMIRATES

SCANDINAVIA +46 13 460 4000

DENMARK NORWAY SWEDEN

FINLAND AND THE BALTIC AREA +358 102 17 9300

ESTONIA FINLAND LATVIA LITHUANIA

ABOUT IFS

Page 6: Software selection for Manufacturing and HighTech ...... · The basic concepts and ... and operations management. Gartner now speaks of postmodern ERP, which it describes as “a

6 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

So instead of manufacturers buying components such as spare parts and having them shipped from afar or buying a machine and putting it into the warehouse and taking up stock and cost from a financial point of view they could wait until a part failed send a command and have it printed on demand within hours

At the moment quality issues are the principal impediment to broad adoption of 3-D printing but these issues will abate over time Yet while the technology has significant and transformative advantages (eg rapid proto-typing reduced lead times rapid innovation rapid manufacturing mass customization use of unique materials) it also brings new risk according to studies by 2018 3-D printing will result in the loss of $100 billion due to counterfeiting of parts6 This in turn will lead to more innovation to counter that risk as manufacturers look to embed ldquoplant DNArdquo in products to check for validity and contract adherence

The Internet of Things (IoT) is another development moving rapidly from the consumer marketplace to manufacturing Sensors are being embedded to provide machine-to-machine communications for applications such as remote monitoring and control enabling manufacturers to get information and act upon it remotely This is speeding maintenance while driving down costs (eg no longer having to send engineers into the field for maintenance on remote installations) through preventive maintenance and improved asset management (ie asset self-management)

Other examples of disruptive innovation range from those becoming more established (eg cloud computing) to nascent but potentially revolutionary developments such as nanotechnology As with 3-D printing nanotechnology has the potential to localize global supply chains with very direct paths from raw materials through to finished products7

Into our era of Industry 40 and the smart factory comes Blockchain a secure distributed electronic ledger that connects parties in a network of trust and integrity to facilitate the transfer of assets and the information pertaining to those assets Blockchain is already beginning to alter the way transactions are carried out by bringing parties together in a trusted network without a third party and by recording each transaction sequentially and securely Usually associated with Bitcoin a range of industries are now see-ing the business benefits it can bring These include

Efficiency As transactions are completed directly between the relevant parties with no intermediary and with digitized information settling the transaction can be quick Added to this is the ability to operate lsquosmart contractsrsquo which automatically trigger commercial actions based on satisfying the criteria laid out in the contract This can dramatically streamline processes and in doing so remove time and cost from transacting

Auditability As each transaction is recorded sequentially and indefinitely it provides an indelible audit trail for the life of an asset even between parties This is especially important if source data is essential in verifying an assets authenticity

6 ldquoGartner Says Use of 3D Printing Will Ignite Major Debate on Ethics and Regulationrdquo Gartner press release January 29 20147 ldquoManufacturingrsquos three biggest disruptive technologiesrdquo The Manufacturer November 6 2014

LOW

MEDIUM HIGH

7 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Traceability Tracking goods in a supply chain can be advantageous when seeking to trace where components are currently residing Information relating to the component can then be relayed to or from the new owner for possible action

Transparency Lack of commercial transparency can sometimes lead to delays in commerce and a breakdown in relations By providing details of transactions against the commercial construct further trust can be enlisted within the process and so provide a more stable relationship based on transparency rather than negotiation

Security As each transaction is verified within the network using indepen-dently verified complex cryptography the authenticity of the information can be assured Assured information is one of the fundamental keys to unlocking the benefits of the Internet of Things (IoT) which is a closed loop cyber autonomous process linking assets to actions

Feedback With full traceability throughout the lifecycle of an asset asset designers and manufacturers can accommodate through-life asset manage-ment into their products to make them more effective This can allow for information returning from shipping installation maintenance and decommis-sioning

Blockchain is yet another lsquodisruptorrsquo that can provide enormous opportunities for digitally savvy companies who adopt it fast

HOW THE RIGHT SOFTWARE ADDRESSES BUSINESS CHALLENGES The right business software supports manufacturingrsquos ability to meet emerg-ing challenges and respond to constant change by providing the foundation for enterprise agility The concept of manufacturing agility involves the devel-opment of manufacturing capabilities to achieve sustained competitive advantage in an unpredictable environment8 Agility is the product of three foundational blocksmdashvision knowledge and flexibilitymdashthat effectively designed and developed software facilitates across the business

VISION Vision is the ability to link business strategy and growth aspira-tions to technology investment and to make informed decisions that prove effective over time Clear vision enables a manufacturer

to correctly assess and balance the risks and opportunities of disruptive technologies The right business software helps focus and clarify vision

KNOWLEDGE Knowledge is the ability to identify understand and predict new sources of threat or opportunity across daily business operations and projects Knowledge enables business insight the most

valuable form of which comes from the ability to assemble a clear compre-hensive and accurate view of the past present and future status of

8 Sud-on P Abareshi A Pittayachewan S and Teo L ldquoManufacturing Agility Construct and Instrument Developmentrdquo World Academy of Science Engineering and Technology 82 2013 p 755

The right business software supports manufacturingrsquos ability to meet emerging challenges and respond to constant change by providing the foundation for enterprise agility

8 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

assets infrastructure and employees across even the most complex global operations and projects The right business software gathers assembles and disseminates knowledge in real time where and when it is needed

FLEXIBILITY Flexibility is the ability to take action rapidly when things happen expectedly or unexpectedly founded on technology that makes rapid and responsive change possible The right software is a

critical part of this technology Vision and knowledge are not fully empowered unless an organization has the flexibility to rapidly change its shape or focus to seize new opportunity or mitigate risk Flexible business technology is necessary for this but so too is a business culture that embraces rather than hinders change and rapid response

10 KEY QUESTIONS TO ASK WHEN SELECTING ENTERPRISE SOFTWARETo see whether software under consideration is meeting the needs of todayrsquos evolving manufacturing environment the following questions are key

1 DOES THE SOFTWARE SUPPORT RAPID BUSINESS CHANGE An organizationrsquos software should help it plan for change Change is constant and the most dominant characteristic of todayrsquos business environment so the ability to plan for the unknown makes it possible for agile companies to thrive Long-term planning is not about being able to predict every future but being able to respond fast and smartly enough to capitalize on change Effective software facilitates the ability to change mdashnot only forecast information but also supply and demand output quickly and provide visibility into what impacts the change will make In todayrsquos markets where new product introduction is increasingly essen-tial to growth enterprise software should help facilitate and control new product introduction

2 DOES THE SOFTWARE PROVIDE ESSENTIAL ACCESS TO DATAmdashTHE RIGHT DATA FOR THE RIGHT PEOPLE AT THE RIGHT TIME Data-driven decision-making is central to enterprise operations but the proliferation of data can be overwhelming for users Well-designed soft-ware delivers data to users in ways they can use it wherever they are whenever they need it without delay or variation Having data in a single place accessible from any device is key A company doesnrsquot want to have to hold up production because itrsquos waiting for signoff from a production supervisor who is traveling on another continent If he or she can review it on a smartphone the company can act now With older software systems this wasnrsquot possible

3 DOES THE SOFTWARE ALLOW FOR FUTURE GROWTH The boundaries between manufacturing and distributing organizations have been slowly disappearing more manufacturing companies have been distributing and servicing their products which has led to tighter integration of ERP CRM and supply chain management (SCM) solutions

9 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Many companies that today are manufacturing only may be looking to add service to their portfolios These companies are served by software that meets their current need but also has the capability to handle future development in the system

4 IS THE SOFTWARE APPEALING TO TODAYrsquoS GENERATION OF WORKERS As the manufacturing workforce ages a younger generation is coming into the sector The longstanding perception of manufacturing as a smokestack environment (ie dirty greasy unhealthy) is giving way to the reality of high-tech manufacturing much more appealing to those that grew up in the digital age When younger people come into manufac-turing they donrsquot want to work with a green-screen application they want something that they are familiar with (ie graphic sophistication touch-screens apps to download onto a phone) How will younger workers mdashsoon to be a majority in the workforcemdashrespond to the software presentation

5 IS THE SOFTWARE USABLE IN TODAYrsquoS CHANGING WORK ENVIRONMENT Related to the question above usability speaks to the way work is done differently today which is something influenced by the younger generation but certainly not limited to them Increasingly the workplace is where we happen to be which may not be within the ldquofour wallsrdquo of the organiza-tion This has certain implications for software Is it mobile Can it be accessed and comprehended by sophisticated and casual users on multiple devices laptops tablets smartphones and in the coming years wearable technology like watches Does it provide role-based portals and interfaces Is it intuitive to anyone who sits in front of it

6 IS THE SOFTWARErsquoS CRM DISCRETE OR EMBEDDED Customer relationship management is increasingly important in todayrsquos manufacturing market and nearly all software providers will have CRM as a separate but integrated package But itrsquos still in a separate world This becomes an issue when manufacturers set up more complex relationships (eg from opportunity to sales to contract delivery) which typically requires integration work Further there are user experience issues including not being able to drill through CRM all the way to the back office nore from the back office into CRM When CRM is embedded in the enterprise software those issues are taken off the table There is no need for integration work Users can now drill through in both directions which can be an important advantage

7 DOES THE SOFTWARE PROVIDE DEPLOYMENT OPTIONS Single instance on-premise enterprise systems are rapidly being relegated to the past as hybrid models continue to grow toward the norm Whereas the majority of those hybrids are a combination of core and point solutions (on-premise) from multiple vendors increasingly manufacturers will use cloud-based point solutions as an essential part of the hybrid approach This is inevitable particularly as manufacturing operations take on global scope Does your software provide real deployment flexibility

10 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

8 DOES THE SOFTWARE SPEED EXECUTION OF TASKS While provision of real-time data is increasingly a given for enterprise software is this translating into faster execution of essential work Consider financials Itrsquos not uncommon to find manufacturers where it takes over a week to do monthrsquos end financials Frankly it should not take more than a day or two When companies arenrsquot able to close their books until the middle of the next month something isnrsquot right with the software system Software should enable companies to have information they can believe and trust in one system so when they print out a trial balance they believe the numbers generated There shouldnrsquot be a need to wait for information (eg for production to indicate how much WIP they have or accounting to report accruals) Real-time data is often over-looked these days because companies are not used to it but itrsquos still a shock when a company tells you it takes a week to do a monthrsquos end report

9 HOW BROAD AND DEEP IS THE SOFTWARE SOLUTION Can the software system phase out the use of multiple systems eliminating undue complexity and cost Today many manufacturers are multi-modal some products are made to order some made to stock some engineered to order some assembled to order and some config-ured to order Can your software handle all these approaches If you set an approach today do you have the ability to easily change over in a weekrsquos monthrsquos or yearrsquos time A broad and deep solution will provide this capability

10 CUSTOMIZATION OR CONFIGURATION IS THE SOFTWARE EASY TO MODIFY Because change will make it likely for a company to want to modify its software over time how easy and how costly will it be to make that change The best systems enable users to add their own fields events and so on without having to go back to the software provider for custom-ization Configuration is part of the functionality out of the box and easy to do not part of an upgrade or requiring additional costs

WHAT ARE PEERS SAYINGFinally companies are well served by looking to respected analysts who assess the status of software providers Of those who study enterprise soft-ware and systems the best known and perhaps most highly respected is Stamford Connecticut-based Gartner

Gartner publishes Peer Insights9 that offer ldquoimpactful insights from real IT decision makersrdquo The insights are described as follows ldquoFree of vendor influence Gartner Peer Insights offers detailed perspectives for every phase of the IT lifecyclemdashfrom evaluation and implementation to service and supportrdquo Below are some of the things peers (Manufacturing CIOs CFOs CTOs) are saying about IFS Applications and why they bought it

9 wwwgartnercomreviewshome

11 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

What do you like most about the product or service

bull Its flexibility to make personalizations without having to customize the product and move those personalizations forward with each new release (CIO Manufacturing)

bull Very stable application with all modules tightly integrated

bull The consistency of the experience over the years

bull The security and the integrity of the system are up to the mark

What were the key factors that drove your decision

bull Product functionality and performance

bull Strong customer focus

bull Breadth of services

bull Financialorganizational viability

bull Pre-existing relationships

bull Product roadmap and future vision

bull Strong services expertise

bull Strong user community

READY FOR SERVITIZATION AND WHATrsquoS NEXTCompanies that have added service to their offerings adapted their organiza-tions to enable this and acquired the requisite technology (often in the form of integrated full-scope enterprise software) have confronted the question of lsquoWhatrsquos nextmdashand reaped significant benefits In fact adding service contributes to much of what is the very essence of good business viz actively looking to the future and seeking to shape it to create opportunities rather than merely grasp those that arise Benefits reported include

Enhanced revenuemdashreported growth between 2x and 4x

Better marginsmdashincreases of 3ndash10 reported

Sustainable business growthmdashincreases of up 5ndash10 reported

Greater customer satisfactionmdashthey are getting what they want

More repeat business greater market share and a better reputation

Predictable income streams

12 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Combining a comprehensive suite of enterprise software that covers ERP EAM ESM (Enterprise Service Management) FSM (IFS Field Service Managementtrade) IFS Enterprise Operational Intelligencetrade (IFS EOItrade) and advanced analytics IFS enables manufacturers to actively take part in the transformation process giving them the capabilities and insights to make decisions based on real-time statuses to not only meet customer needs but also anticipate them Being able to handle todayrsquos business challenges is important shaping whatrsquos next is crucial to growth and continued success

ABOUT ANTONY BOURNEAs Vice President of Global Industry Solutions Antony leads a team of global industry experts who cover the IFS focused industries and support sales marketing and partner enablement Antony is a lead spokesperson for IFS and represents the company in multiple internal and external events analyst updates (including Gartner IDC and ARC) publications blogs and press articles He also has extensive experience of multiple industries (including Manufacturing Construction Life Sciences and High Tech) having dealt with hundreds of companies that have gone through the software selection and implementation process This includes hosting customer advisory councils in conjunction with RampD which ensures the product strategy is in line with industry expectations Antony has over 20 yearsrsquo experience in the IT industry including working in the manufacturing sector Prior to joining IFS in 1997 he held business analyst positions with Ford Motor Company and AlliedSignal During this time he implemented ERP applications as well as business process improvements Antony holds a bachelors degree in Computer Science from the University of Glamorgan and is a member of Mensa

En11

053-

1 Pr

oduc

tion

IFS

Corp

orat

e M

arke

ting

May

201

7

IFSworldcomCOPYRIGHT copy 2017 INDUSTRIAL AND FINANCIAL SYSTEMS IFS AB IFS AND ALL IFS PRODUCTS AND SERVICES NAMES ARE TRADEMARKS OF IFS ALL RIGHTS RESERVED THIS DOCUMENT MAY CONTAIN STATEMENTS OF POSSIBLE FUTURE FUNCTIONALIT Y FOR IFSrsquoS PRODUCTS AND TECHNOLOGY SUCH STATEMENTS ARE FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE INTERPRETED AS ANY COMMITMENT OR REPRESENTATION THE NAMES OF ACTUAL COMPANIES AND PRODUCTS MENTIONED HEREIN MAY BE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS

IFS AB copy2017

IFS develops and delivers enterprise software for customers around the world who manufacture and distribute goods maintain assets and manage service-focused operations The industry expertise of our people and solutions together with commitment to our customers has made us a recognized leader and the most recommended supplier in our sector Our team of 3300 employees supports more than one million users worldwide from a network of local offices and through our growing ecosystem of partners For more information about IFS visit IFSworldcom

AMERICAS +1 888 437 4968

ARGENTINA BRAZIL CANADA ECUADOR MEXICO UNITED STATES

ASIA PACIFIC +65 63 33 33 00

AUSTRALIA INDONESIA JAPAN MALAYSIA NEW ZEALAND PHILIPPINES PR CHINA SINGAPORE THAILAND

EUROPE EAST AND CENTRAL ASIA +48 22 577 45 00

BALKANS CZECH REPUBLIC GEORGIA HUNGARY ISRAEL KAZAKHSTAN POLAND RUSSIA AND CIS SLOVAKIA TURKEY UKRAINE

EUROPE CENTRAL +49 9131 77 340

AUSTRIA BELGIUM GERMANY ITALY NETHERLANDS SWITZERLAND

EUROPE WEST +44 1494 428 900

FRANCE IRELAND PORTUGAL SPAIN UNITED KINGDOM

MIDDLE EAST AND AFRICA +971 4390 0888

INDIA SOUTH AFRICA SRI LANKA UNITED ARAB EMIRATES

SCANDINAVIA +46 13 460 4000

DENMARK NORWAY SWEDEN

FINLAND AND THE BALTIC AREA +358 102 17 9300

ESTONIA FINLAND LATVIA LITHUANIA

ABOUT IFS

Page 7: Software selection for Manufacturing and HighTech ...... · The basic concepts and ... and operations management. Gartner now speaks of postmodern ERP, which it describes as “a

7 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Traceability Tracking goods in a supply chain can be advantageous when seeking to trace where components are currently residing Information relating to the component can then be relayed to or from the new owner for possible action

Transparency Lack of commercial transparency can sometimes lead to delays in commerce and a breakdown in relations By providing details of transactions against the commercial construct further trust can be enlisted within the process and so provide a more stable relationship based on transparency rather than negotiation

Security As each transaction is verified within the network using indepen-dently verified complex cryptography the authenticity of the information can be assured Assured information is one of the fundamental keys to unlocking the benefits of the Internet of Things (IoT) which is a closed loop cyber autonomous process linking assets to actions

Feedback With full traceability throughout the lifecycle of an asset asset designers and manufacturers can accommodate through-life asset manage-ment into their products to make them more effective This can allow for information returning from shipping installation maintenance and decommis-sioning

Blockchain is yet another lsquodisruptorrsquo that can provide enormous opportunities for digitally savvy companies who adopt it fast

HOW THE RIGHT SOFTWARE ADDRESSES BUSINESS CHALLENGES The right business software supports manufacturingrsquos ability to meet emerg-ing challenges and respond to constant change by providing the foundation for enterprise agility The concept of manufacturing agility involves the devel-opment of manufacturing capabilities to achieve sustained competitive advantage in an unpredictable environment8 Agility is the product of three foundational blocksmdashvision knowledge and flexibilitymdashthat effectively designed and developed software facilitates across the business

VISION Vision is the ability to link business strategy and growth aspira-tions to technology investment and to make informed decisions that prove effective over time Clear vision enables a manufacturer

to correctly assess and balance the risks and opportunities of disruptive technologies The right business software helps focus and clarify vision

KNOWLEDGE Knowledge is the ability to identify understand and predict new sources of threat or opportunity across daily business operations and projects Knowledge enables business insight the most

valuable form of which comes from the ability to assemble a clear compre-hensive and accurate view of the past present and future status of

8 Sud-on P Abareshi A Pittayachewan S and Teo L ldquoManufacturing Agility Construct and Instrument Developmentrdquo World Academy of Science Engineering and Technology 82 2013 p 755

The right business software supports manufacturingrsquos ability to meet emerging challenges and respond to constant change by providing the foundation for enterprise agility

8 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

assets infrastructure and employees across even the most complex global operations and projects The right business software gathers assembles and disseminates knowledge in real time where and when it is needed

FLEXIBILITY Flexibility is the ability to take action rapidly when things happen expectedly or unexpectedly founded on technology that makes rapid and responsive change possible The right software is a

critical part of this technology Vision and knowledge are not fully empowered unless an organization has the flexibility to rapidly change its shape or focus to seize new opportunity or mitigate risk Flexible business technology is necessary for this but so too is a business culture that embraces rather than hinders change and rapid response

10 KEY QUESTIONS TO ASK WHEN SELECTING ENTERPRISE SOFTWARETo see whether software under consideration is meeting the needs of todayrsquos evolving manufacturing environment the following questions are key

1 DOES THE SOFTWARE SUPPORT RAPID BUSINESS CHANGE An organizationrsquos software should help it plan for change Change is constant and the most dominant characteristic of todayrsquos business environment so the ability to plan for the unknown makes it possible for agile companies to thrive Long-term planning is not about being able to predict every future but being able to respond fast and smartly enough to capitalize on change Effective software facilitates the ability to change mdashnot only forecast information but also supply and demand output quickly and provide visibility into what impacts the change will make In todayrsquos markets where new product introduction is increasingly essen-tial to growth enterprise software should help facilitate and control new product introduction

2 DOES THE SOFTWARE PROVIDE ESSENTIAL ACCESS TO DATAmdashTHE RIGHT DATA FOR THE RIGHT PEOPLE AT THE RIGHT TIME Data-driven decision-making is central to enterprise operations but the proliferation of data can be overwhelming for users Well-designed soft-ware delivers data to users in ways they can use it wherever they are whenever they need it without delay or variation Having data in a single place accessible from any device is key A company doesnrsquot want to have to hold up production because itrsquos waiting for signoff from a production supervisor who is traveling on another continent If he or she can review it on a smartphone the company can act now With older software systems this wasnrsquot possible

3 DOES THE SOFTWARE ALLOW FOR FUTURE GROWTH The boundaries between manufacturing and distributing organizations have been slowly disappearing more manufacturing companies have been distributing and servicing their products which has led to tighter integration of ERP CRM and supply chain management (SCM) solutions

9 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Many companies that today are manufacturing only may be looking to add service to their portfolios These companies are served by software that meets their current need but also has the capability to handle future development in the system

4 IS THE SOFTWARE APPEALING TO TODAYrsquoS GENERATION OF WORKERS As the manufacturing workforce ages a younger generation is coming into the sector The longstanding perception of manufacturing as a smokestack environment (ie dirty greasy unhealthy) is giving way to the reality of high-tech manufacturing much more appealing to those that grew up in the digital age When younger people come into manufac-turing they donrsquot want to work with a green-screen application they want something that they are familiar with (ie graphic sophistication touch-screens apps to download onto a phone) How will younger workers mdashsoon to be a majority in the workforcemdashrespond to the software presentation

5 IS THE SOFTWARE USABLE IN TODAYrsquoS CHANGING WORK ENVIRONMENT Related to the question above usability speaks to the way work is done differently today which is something influenced by the younger generation but certainly not limited to them Increasingly the workplace is where we happen to be which may not be within the ldquofour wallsrdquo of the organiza-tion This has certain implications for software Is it mobile Can it be accessed and comprehended by sophisticated and casual users on multiple devices laptops tablets smartphones and in the coming years wearable technology like watches Does it provide role-based portals and interfaces Is it intuitive to anyone who sits in front of it

6 IS THE SOFTWARErsquoS CRM DISCRETE OR EMBEDDED Customer relationship management is increasingly important in todayrsquos manufacturing market and nearly all software providers will have CRM as a separate but integrated package But itrsquos still in a separate world This becomes an issue when manufacturers set up more complex relationships (eg from opportunity to sales to contract delivery) which typically requires integration work Further there are user experience issues including not being able to drill through CRM all the way to the back office nore from the back office into CRM When CRM is embedded in the enterprise software those issues are taken off the table There is no need for integration work Users can now drill through in both directions which can be an important advantage

7 DOES THE SOFTWARE PROVIDE DEPLOYMENT OPTIONS Single instance on-premise enterprise systems are rapidly being relegated to the past as hybrid models continue to grow toward the norm Whereas the majority of those hybrids are a combination of core and point solutions (on-premise) from multiple vendors increasingly manufacturers will use cloud-based point solutions as an essential part of the hybrid approach This is inevitable particularly as manufacturing operations take on global scope Does your software provide real deployment flexibility

10 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

8 DOES THE SOFTWARE SPEED EXECUTION OF TASKS While provision of real-time data is increasingly a given for enterprise software is this translating into faster execution of essential work Consider financials Itrsquos not uncommon to find manufacturers where it takes over a week to do monthrsquos end financials Frankly it should not take more than a day or two When companies arenrsquot able to close their books until the middle of the next month something isnrsquot right with the software system Software should enable companies to have information they can believe and trust in one system so when they print out a trial balance they believe the numbers generated There shouldnrsquot be a need to wait for information (eg for production to indicate how much WIP they have or accounting to report accruals) Real-time data is often over-looked these days because companies are not used to it but itrsquos still a shock when a company tells you it takes a week to do a monthrsquos end report

9 HOW BROAD AND DEEP IS THE SOFTWARE SOLUTION Can the software system phase out the use of multiple systems eliminating undue complexity and cost Today many manufacturers are multi-modal some products are made to order some made to stock some engineered to order some assembled to order and some config-ured to order Can your software handle all these approaches If you set an approach today do you have the ability to easily change over in a weekrsquos monthrsquos or yearrsquos time A broad and deep solution will provide this capability

10 CUSTOMIZATION OR CONFIGURATION IS THE SOFTWARE EASY TO MODIFY Because change will make it likely for a company to want to modify its software over time how easy and how costly will it be to make that change The best systems enable users to add their own fields events and so on without having to go back to the software provider for custom-ization Configuration is part of the functionality out of the box and easy to do not part of an upgrade or requiring additional costs

WHAT ARE PEERS SAYINGFinally companies are well served by looking to respected analysts who assess the status of software providers Of those who study enterprise soft-ware and systems the best known and perhaps most highly respected is Stamford Connecticut-based Gartner

Gartner publishes Peer Insights9 that offer ldquoimpactful insights from real IT decision makersrdquo The insights are described as follows ldquoFree of vendor influence Gartner Peer Insights offers detailed perspectives for every phase of the IT lifecyclemdashfrom evaluation and implementation to service and supportrdquo Below are some of the things peers (Manufacturing CIOs CFOs CTOs) are saying about IFS Applications and why they bought it

9 wwwgartnercomreviewshome

11 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

What do you like most about the product or service

bull Its flexibility to make personalizations without having to customize the product and move those personalizations forward with each new release (CIO Manufacturing)

bull Very stable application with all modules tightly integrated

bull The consistency of the experience over the years

bull The security and the integrity of the system are up to the mark

What were the key factors that drove your decision

bull Product functionality and performance

bull Strong customer focus

bull Breadth of services

bull Financialorganizational viability

bull Pre-existing relationships

bull Product roadmap and future vision

bull Strong services expertise

bull Strong user community

READY FOR SERVITIZATION AND WHATrsquoS NEXTCompanies that have added service to their offerings adapted their organiza-tions to enable this and acquired the requisite technology (often in the form of integrated full-scope enterprise software) have confronted the question of lsquoWhatrsquos nextmdashand reaped significant benefits In fact adding service contributes to much of what is the very essence of good business viz actively looking to the future and seeking to shape it to create opportunities rather than merely grasp those that arise Benefits reported include

Enhanced revenuemdashreported growth between 2x and 4x

Better marginsmdashincreases of 3ndash10 reported

Sustainable business growthmdashincreases of up 5ndash10 reported

Greater customer satisfactionmdashthey are getting what they want

More repeat business greater market share and a better reputation

Predictable income streams

12 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Combining a comprehensive suite of enterprise software that covers ERP EAM ESM (Enterprise Service Management) FSM (IFS Field Service Managementtrade) IFS Enterprise Operational Intelligencetrade (IFS EOItrade) and advanced analytics IFS enables manufacturers to actively take part in the transformation process giving them the capabilities and insights to make decisions based on real-time statuses to not only meet customer needs but also anticipate them Being able to handle todayrsquos business challenges is important shaping whatrsquos next is crucial to growth and continued success

ABOUT ANTONY BOURNEAs Vice President of Global Industry Solutions Antony leads a team of global industry experts who cover the IFS focused industries and support sales marketing and partner enablement Antony is a lead spokesperson for IFS and represents the company in multiple internal and external events analyst updates (including Gartner IDC and ARC) publications blogs and press articles He also has extensive experience of multiple industries (including Manufacturing Construction Life Sciences and High Tech) having dealt with hundreds of companies that have gone through the software selection and implementation process This includes hosting customer advisory councils in conjunction with RampD which ensures the product strategy is in line with industry expectations Antony has over 20 yearsrsquo experience in the IT industry including working in the manufacturing sector Prior to joining IFS in 1997 he held business analyst positions with Ford Motor Company and AlliedSignal During this time he implemented ERP applications as well as business process improvements Antony holds a bachelors degree in Computer Science from the University of Glamorgan and is a member of Mensa

En11

053-

1 Pr

oduc

tion

IFS

Corp

orat

e M

arke

ting

May

201

7

IFSworldcomCOPYRIGHT copy 2017 INDUSTRIAL AND FINANCIAL SYSTEMS IFS AB IFS AND ALL IFS PRODUCTS AND SERVICES NAMES ARE TRADEMARKS OF IFS ALL RIGHTS RESERVED THIS DOCUMENT MAY CONTAIN STATEMENTS OF POSSIBLE FUTURE FUNCTIONALIT Y FOR IFSrsquoS PRODUCTS AND TECHNOLOGY SUCH STATEMENTS ARE FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE INTERPRETED AS ANY COMMITMENT OR REPRESENTATION THE NAMES OF ACTUAL COMPANIES AND PRODUCTS MENTIONED HEREIN MAY BE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS

IFS AB copy2017

IFS develops and delivers enterprise software for customers around the world who manufacture and distribute goods maintain assets and manage service-focused operations The industry expertise of our people and solutions together with commitment to our customers has made us a recognized leader and the most recommended supplier in our sector Our team of 3300 employees supports more than one million users worldwide from a network of local offices and through our growing ecosystem of partners For more information about IFS visit IFSworldcom

AMERICAS +1 888 437 4968

ARGENTINA BRAZIL CANADA ECUADOR MEXICO UNITED STATES

ASIA PACIFIC +65 63 33 33 00

AUSTRALIA INDONESIA JAPAN MALAYSIA NEW ZEALAND PHILIPPINES PR CHINA SINGAPORE THAILAND

EUROPE EAST AND CENTRAL ASIA +48 22 577 45 00

BALKANS CZECH REPUBLIC GEORGIA HUNGARY ISRAEL KAZAKHSTAN POLAND RUSSIA AND CIS SLOVAKIA TURKEY UKRAINE

EUROPE CENTRAL +49 9131 77 340

AUSTRIA BELGIUM GERMANY ITALY NETHERLANDS SWITZERLAND

EUROPE WEST +44 1494 428 900

FRANCE IRELAND PORTUGAL SPAIN UNITED KINGDOM

MIDDLE EAST AND AFRICA +971 4390 0888

INDIA SOUTH AFRICA SRI LANKA UNITED ARAB EMIRATES

SCANDINAVIA +46 13 460 4000

DENMARK NORWAY SWEDEN

FINLAND AND THE BALTIC AREA +358 102 17 9300

ESTONIA FINLAND LATVIA LITHUANIA

ABOUT IFS

Page 8: Software selection for Manufacturing and HighTech ...... · The basic concepts and ... and operations management. Gartner now speaks of postmodern ERP, which it describes as “a

8 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

assets infrastructure and employees across even the most complex global operations and projects The right business software gathers assembles and disseminates knowledge in real time where and when it is needed

FLEXIBILITY Flexibility is the ability to take action rapidly when things happen expectedly or unexpectedly founded on technology that makes rapid and responsive change possible The right software is a

critical part of this technology Vision and knowledge are not fully empowered unless an organization has the flexibility to rapidly change its shape or focus to seize new opportunity or mitigate risk Flexible business technology is necessary for this but so too is a business culture that embraces rather than hinders change and rapid response

10 KEY QUESTIONS TO ASK WHEN SELECTING ENTERPRISE SOFTWARETo see whether software under consideration is meeting the needs of todayrsquos evolving manufacturing environment the following questions are key

1 DOES THE SOFTWARE SUPPORT RAPID BUSINESS CHANGE An organizationrsquos software should help it plan for change Change is constant and the most dominant characteristic of todayrsquos business environment so the ability to plan for the unknown makes it possible for agile companies to thrive Long-term planning is not about being able to predict every future but being able to respond fast and smartly enough to capitalize on change Effective software facilitates the ability to change mdashnot only forecast information but also supply and demand output quickly and provide visibility into what impacts the change will make In todayrsquos markets where new product introduction is increasingly essen-tial to growth enterprise software should help facilitate and control new product introduction

2 DOES THE SOFTWARE PROVIDE ESSENTIAL ACCESS TO DATAmdashTHE RIGHT DATA FOR THE RIGHT PEOPLE AT THE RIGHT TIME Data-driven decision-making is central to enterprise operations but the proliferation of data can be overwhelming for users Well-designed soft-ware delivers data to users in ways they can use it wherever they are whenever they need it without delay or variation Having data in a single place accessible from any device is key A company doesnrsquot want to have to hold up production because itrsquos waiting for signoff from a production supervisor who is traveling on another continent If he or she can review it on a smartphone the company can act now With older software systems this wasnrsquot possible

3 DOES THE SOFTWARE ALLOW FOR FUTURE GROWTH The boundaries between manufacturing and distributing organizations have been slowly disappearing more manufacturing companies have been distributing and servicing their products which has led to tighter integration of ERP CRM and supply chain management (SCM) solutions

9 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Many companies that today are manufacturing only may be looking to add service to their portfolios These companies are served by software that meets their current need but also has the capability to handle future development in the system

4 IS THE SOFTWARE APPEALING TO TODAYrsquoS GENERATION OF WORKERS As the manufacturing workforce ages a younger generation is coming into the sector The longstanding perception of manufacturing as a smokestack environment (ie dirty greasy unhealthy) is giving way to the reality of high-tech manufacturing much more appealing to those that grew up in the digital age When younger people come into manufac-turing they donrsquot want to work with a green-screen application they want something that they are familiar with (ie graphic sophistication touch-screens apps to download onto a phone) How will younger workers mdashsoon to be a majority in the workforcemdashrespond to the software presentation

5 IS THE SOFTWARE USABLE IN TODAYrsquoS CHANGING WORK ENVIRONMENT Related to the question above usability speaks to the way work is done differently today which is something influenced by the younger generation but certainly not limited to them Increasingly the workplace is where we happen to be which may not be within the ldquofour wallsrdquo of the organiza-tion This has certain implications for software Is it mobile Can it be accessed and comprehended by sophisticated and casual users on multiple devices laptops tablets smartphones and in the coming years wearable technology like watches Does it provide role-based portals and interfaces Is it intuitive to anyone who sits in front of it

6 IS THE SOFTWARErsquoS CRM DISCRETE OR EMBEDDED Customer relationship management is increasingly important in todayrsquos manufacturing market and nearly all software providers will have CRM as a separate but integrated package But itrsquos still in a separate world This becomes an issue when manufacturers set up more complex relationships (eg from opportunity to sales to contract delivery) which typically requires integration work Further there are user experience issues including not being able to drill through CRM all the way to the back office nore from the back office into CRM When CRM is embedded in the enterprise software those issues are taken off the table There is no need for integration work Users can now drill through in both directions which can be an important advantage

7 DOES THE SOFTWARE PROVIDE DEPLOYMENT OPTIONS Single instance on-premise enterprise systems are rapidly being relegated to the past as hybrid models continue to grow toward the norm Whereas the majority of those hybrids are a combination of core and point solutions (on-premise) from multiple vendors increasingly manufacturers will use cloud-based point solutions as an essential part of the hybrid approach This is inevitable particularly as manufacturing operations take on global scope Does your software provide real deployment flexibility

10 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

8 DOES THE SOFTWARE SPEED EXECUTION OF TASKS While provision of real-time data is increasingly a given for enterprise software is this translating into faster execution of essential work Consider financials Itrsquos not uncommon to find manufacturers where it takes over a week to do monthrsquos end financials Frankly it should not take more than a day or two When companies arenrsquot able to close their books until the middle of the next month something isnrsquot right with the software system Software should enable companies to have information they can believe and trust in one system so when they print out a trial balance they believe the numbers generated There shouldnrsquot be a need to wait for information (eg for production to indicate how much WIP they have or accounting to report accruals) Real-time data is often over-looked these days because companies are not used to it but itrsquos still a shock when a company tells you it takes a week to do a monthrsquos end report

9 HOW BROAD AND DEEP IS THE SOFTWARE SOLUTION Can the software system phase out the use of multiple systems eliminating undue complexity and cost Today many manufacturers are multi-modal some products are made to order some made to stock some engineered to order some assembled to order and some config-ured to order Can your software handle all these approaches If you set an approach today do you have the ability to easily change over in a weekrsquos monthrsquos or yearrsquos time A broad and deep solution will provide this capability

10 CUSTOMIZATION OR CONFIGURATION IS THE SOFTWARE EASY TO MODIFY Because change will make it likely for a company to want to modify its software over time how easy and how costly will it be to make that change The best systems enable users to add their own fields events and so on without having to go back to the software provider for custom-ization Configuration is part of the functionality out of the box and easy to do not part of an upgrade or requiring additional costs

WHAT ARE PEERS SAYINGFinally companies are well served by looking to respected analysts who assess the status of software providers Of those who study enterprise soft-ware and systems the best known and perhaps most highly respected is Stamford Connecticut-based Gartner

Gartner publishes Peer Insights9 that offer ldquoimpactful insights from real IT decision makersrdquo The insights are described as follows ldquoFree of vendor influence Gartner Peer Insights offers detailed perspectives for every phase of the IT lifecyclemdashfrom evaluation and implementation to service and supportrdquo Below are some of the things peers (Manufacturing CIOs CFOs CTOs) are saying about IFS Applications and why they bought it

9 wwwgartnercomreviewshome

11 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

What do you like most about the product or service

bull Its flexibility to make personalizations without having to customize the product and move those personalizations forward with each new release (CIO Manufacturing)

bull Very stable application with all modules tightly integrated

bull The consistency of the experience over the years

bull The security and the integrity of the system are up to the mark

What were the key factors that drove your decision

bull Product functionality and performance

bull Strong customer focus

bull Breadth of services

bull Financialorganizational viability

bull Pre-existing relationships

bull Product roadmap and future vision

bull Strong services expertise

bull Strong user community

READY FOR SERVITIZATION AND WHATrsquoS NEXTCompanies that have added service to their offerings adapted their organiza-tions to enable this and acquired the requisite technology (often in the form of integrated full-scope enterprise software) have confronted the question of lsquoWhatrsquos nextmdashand reaped significant benefits In fact adding service contributes to much of what is the very essence of good business viz actively looking to the future and seeking to shape it to create opportunities rather than merely grasp those that arise Benefits reported include

Enhanced revenuemdashreported growth between 2x and 4x

Better marginsmdashincreases of 3ndash10 reported

Sustainable business growthmdashincreases of up 5ndash10 reported

Greater customer satisfactionmdashthey are getting what they want

More repeat business greater market share and a better reputation

Predictable income streams

12 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Combining a comprehensive suite of enterprise software that covers ERP EAM ESM (Enterprise Service Management) FSM (IFS Field Service Managementtrade) IFS Enterprise Operational Intelligencetrade (IFS EOItrade) and advanced analytics IFS enables manufacturers to actively take part in the transformation process giving them the capabilities and insights to make decisions based on real-time statuses to not only meet customer needs but also anticipate them Being able to handle todayrsquos business challenges is important shaping whatrsquos next is crucial to growth and continued success

ABOUT ANTONY BOURNEAs Vice President of Global Industry Solutions Antony leads a team of global industry experts who cover the IFS focused industries and support sales marketing and partner enablement Antony is a lead spokesperson for IFS and represents the company in multiple internal and external events analyst updates (including Gartner IDC and ARC) publications blogs and press articles He also has extensive experience of multiple industries (including Manufacturing Construction Life Sciences and High Tech) having dealt with hundreds of companies that have gone through the software selection and implementation process This includes hosting customer advisory councils in conjunction with RampD which ensures the product strategy is in line with industry expectations Antony has over 20 yearsrsquo experience in the IT industry including working in the manufacturing sector Prior to joining IFS in 1997 he held business analyst positions with Ford Motor Company and AlliedSignal During this time he implemented ERP applications as well as business process improvements Antony holds a bachelors degree in Computer Science from the University of Glamorgan and is a member of Mensa

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IFSworldcomCOPYRIGHT copy 2017 INDUSTRIAL AND FINANCIAL SYSTEMS IFS AB IFS AND ALL IFS PRODUCTS AND SERVICES NAMES ARE TRADEMARKS OF IFS ALL RIGHTS RESERVED THIS DOCUMENT MAY CONTAIN STATEMENTS OF POSSIBLE FUTURE FUNCTIONALIT Y FOR IFSrsquoS PRODUCTS AND TECHNOLOGY SUCH STATEMENTS ARE FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE INTERPRETED AS ANY COMMITMENT OR REPRESENTATION THE NAMES OF ACTUAL COMPANIES AND PRODUCTS MENTIONED HEREIN MAY BE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS

IFS AB copy2017

IFS develops and delivers enterprise software for customers around the world who manufacture and distribute goods maintain assets and manage service-focused operations The industry expertise of our people and solutions together with commitment to our customers has made us a recognized leader and the most recommended supplier in our sector Our team of 3300 employees supports more than one million users worldwide from a network of local offices and through our growing ecosystem of partners For more information about IFS visit IFSworldcom

AMERICAS +1 888 437 4968

ARGENTINA BRAZIL CANADA ECUADOR MEXICO UNITED STATES

ASIA PACIFIC +65 63 33 33 00

AUSTRALIA INDONESIA JAPAN MALAYSIA NEW ZEALAND PHILIPPINES PR CHINA SINGAPORE THAILAND

EUROPE EAST AND CENTRAL ASIA +48 22 577 45 00

BALKANS CZECH REPUBLIC GEORGIA HUNGARY ISRAEL KAZAKHSTAN POLAND RUSSIA AND CIS SLOVAKIA TURKEY UKRAINE

EUROPE CENTRAL +49 9131 77 340

AUSTRIA BELGIUM GERMANY ITALY NETHERLANDS SWITZERLAND

EUROPE WEST +44 1494 428 900

FRANCE IRELAND PORTUGAL SPAIN UNITED KINGDOM

MIDDLE EAST AND AFRICA +971 4390 0888

INDIA SOUTH AFRICA SRI LANKA UNITED ARAB EMIRATES

SCANDINAVIA +46 13 460 4000

DENMARK NORWAY SWEDEN

FINLAND AND THE BALTIC AREA +358 102 17 9300

ESTONIA FINLAND LATVIA LITHUANIA

ABOUT IFS

Page 9: Software selection for Manufacturing and HighTech ...... · The basic concepts and ... and operations management. Gartner now speaks of postmodern ERP, which it describes as “a

9 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Many companies that today are manufacturing only may be looking to add service to their portfolios These companies are served by software that meets their current need but also has the capability to handle future development in the system

4 IS THE SOFTWARE APPEALING TO TODAYrsquoS GENERATION OF WORKERS As the manufacturing workforce ages a younger generation is coming into the sector The longstanding perception of manufacturing as a smokestack environment (ie dirty greasy unhealthy) is giving way to the reality of high-tech manufacturing much more appealing to those that grew up in the digital age When younger people come into manufac-turing they donrsquot want to work with a green-screen application they want something that they are familiar with (ie graphic sophistication touch-screens apps to download onto a phone) How will younger workers mdashsoon to be a majority in the workforcemdashrespond to the software presentation

5 IS THE SOFTWARE USABLE IN TODAYrsquoS CHANGING WORK ENVIRONMENT Related to the question above usability speaks to the way work is done differently today which is something influenced by the younger generation but certainly not limited to them Increasingly the workplace is where we happen to be which may not be within the ldquofour wallsrdquo of the organiza-tion This has certain implications for software Is it mobile Can it be accessed and comprehended by sophisticated and casual users on multiple devices laptops tablets smartphones and in the coming years wearable technology like watches Does it provide role-based portals and interfaces Is it intuitive to anyone who sits in front of it

6 IS THE SOFTWARErsquoS CRM DISCRETE OR EMBEDDED Customer relationship management is increasingly important in todayrsquos manufacturing market and nearly all software providers will have CRM as a separate but integrated package But itrsquos still in a separate world This becomes an issue when manufacturers set up more complex relationships (eg from opportunity to sales to contract delivery) which typically requires integration work Further there are user experience issues including not being able to drill through CRM all the way to the back office nore from the back office into CRM When CRM is embedded in the enterprise software those issues are taken off the table There is no need for integration work Users can now drill through in both directions which can be an important advantage

7 DOES THE SOFTWARE PROVIDE DEPLOYMENT OPTIONS Single instance on-premise enterprise systems are rapidly being relegated to the past as hybrid models continue to grow toward the norm Whereas the majority of those hybrids are a combination of core and point solutions (on-premise) from multiple vendors increasingly manufacturers will use cloud-based point solutions as an essential part of the hybrid approach This is inevitable particularly as manufacturing operations take on global scope Does your software provide real deployment flexibility

10 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

8 DOES THE SOFTWARE SPEED EXECUTION OF TASKS While provision of real-time data is increasingly a given for enterprise software is this translating into faster execution of essential work Consider financials Itrsquos not uncommon to find manufacturers where it takes over a week to do monthrsquos end financials Frankly it should not take more than a day or two When companies arenrsquot able to close their books until the middle of the next month something isnrsquot right with the software system Software should enable companies to have information they can believe and trust in one system so when they print out a trial balance they believe the numbers generated There shouldnrsquot be a need to wait for information (eg for production to indicate how much WIP they have or accounting to report accruals) Real-time data is often over-looked these days because companies are not used to it but itrsquos still a shock when a company tells you it takes a week to do a monthrsquos end report

9 HOW BROAD AND DEEP IS THE SOFTWARE SOLUTION Can the software system phase out the use of multiple systems eliminating undue complexity and cost Today many manufacturers are multi-modal some products are made to order some made to stock some engineered to order some assembled to order and some config-ured to order Can your software handle all these approaches If you set an approach today do you have the ability to easily change over in a weekrsquos monthrsquos or yearrsquos time A broad and deep solution will provide this capability

10 CUSTOMIZATION OR CONFIGURATION IS THE SOFTWARE EASY TO MODIFY Because change will make it likely for a company to want to modify its software over time how easy and how costly will it be to make that change The best systems enable users to add their own fields events and so on without having to go back to the software provider for custom-ization Configuration is part of the functionality out of the box and easy to do not part of an upgrade or requiring additional costs

WHAT ARE PEERS SAYINGFinally companies are well served by looking to respected analysts who assess the status of software providers Of those who study enterprise soft-ware and systems the best known and perhaps most highly respected is Stamford Connecticut-based Gartner

Gartner publishes Peer Insights9 that offer ldquoimpactful insights from real IT decision makersrdquo The insights are described as follows ldquoFree of vendor influence Gartner Peer Insights offers detailed perspectives for every phase of the IT lifecyclemdashfrom evaluation and implementation to service and supportrdquo Below are some of the things peers (Manufacturing CIOs CFOs CTOs) are saying about IFS Applications and why they bought it

9 wwwgartnercomreviewshome

11 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

What do you like most about the product or service

bull Its flexibility to make personalizations without having to customize the product and move those personalizations forward with each new release (CIO Manufacturing)

bull Very stable application with all modules tightly integrated

bull The consistency of the experience over the years

bull The security and the integrity of the system are up to the mark

What were the key factors that drove your decision

bull Product functionality and performance

bull Strong customer focus

bull Breadth of services

bull Financialorganizational viability

bull Pre-existing relationships

bull Product roadmap and future vision

bull Strong services expertise

bull Strong user community

READY FOR SERVITIZATION AND WHATrsquoS NEXTCompanies that have added service to their offerings adapted their organiza-tions to enable this and acquired the requisite technology (often in the form of integrated full-scope enterprise software) have confronted the question of lsquoWhatrsquos nextmdashand reaped significant benefits In fact adding service contributes to much of what is the very essence of good business viz actively looking to the future and seeking to shape it to create opportunities rather than merely grasp those that arise Benefits reported include

Enhanced revenuemdashreported growth between 2x and 4x

Better marginsmdashincreases of 3ndash10 reported

Sustainable business growthmdashincreases of up 5ndash10 reported

Greater customer satisfactionmdashthey are getting what they want

More repeat business greater market share and a better reputation

Predictable income streams

12 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Combining a comprehensive suite of enterprise software that covers ERP EAM ESM (Enterprise Service Management) FSM (IFS Field Service Managementtrade) IFS Enterprise Operational Intelligencetrade (IFS EOItrade) and advanced analytics IFS enables manufacturers to actively take part in the transformation process giving them the capabilities and insights to make decisions based on real-time statuses to not only meet customer needs but also anticipate them Being able to handle todayrsquos business challenges is important shaping whatrsquos next is crucial to growth and continued success

ABOUT ANTONY BOURNEAs Vice President of Global Industry Solutions Antony leads a team of global industry experts who cover the IFS focused industries and support sales marketing and partner enablement Antony is a lead spokesperson for IFS and represents the company in multiple internal and external events analyst updates (including Gartner IDC and ARC) publications blogs and press articles He also has extensive experience of multiple industries (including Manufacturing Construction Life Sciences and High Tech) having dealt with hundreds of companies that have gone through the software selection and implementation process This includes hosting customer advisory councils in conjunction with RampD which ensures the product strategy is in line with industry expectations Antony has over 20 yearsrsquo experience in the IT industry including working in the manufacturing sector Prior to joining IFS in 1997 he held business analyst positions with Ford Motor Company and AlliedSignal During this time he implemented ERP applications as well as business process improvements Antony holds a bachelors degree in Computer Science from the University of Glamorgan and is a member of Mensa

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IFSworldcomCOPYRIGHT copy 2017 INDUSTRIAL AND FINANCIAL SYSTEMS IFS AB IFS AND ALL IFS PRODUCTS AND SERVICES NAMES ARE TRADEMARKS OF IFS ALL RIGHTS RESERVED THIS DOCUMENT MAY CONTAIN STATEMENTS OF POSSIBLE FUTURE FUNCTIONALIT Y FOR IFSrsquoS PRODUCTS AND TECHNOLOGY SUCH STATEMENTS ARE FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE INTERPRETED AS ANY COMMITMENT OR REPRESENTATION THE NAMES OF ACTUAL COMPANIES AND PRODUCTS MENTIONED HEREIN MAY BE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS

IFS AB copy2017

IFS develops and delivers enterprise software for customers around the world who manufacture and distribute goods maintain assets and manage service-focused operations The industry expertise of our people and solutions together with commitment to our customers has made us a recognized leader and the most recommended supplier in our sector Our team of 3300 employees supports more than one million users worldwide from a network of local offices and through our growing ecosystem of partners For more information about IFS visit IFSworldcom

AMERICAS +1 888 437 4968

ARGENTINA BRAZIL CANADA ECUADOR MEXICO UNITED STATES

ASIA PACIFIC +65 63 33 33 00

AUSTRALIA INDONESIA JAPAN MALAYSIA NEW ZEALAND PHILIPPINES PR CHINA SINGAPORE THAILAND

EUROPE EAST AND CENTRAL ASIA +48 22 577 45 00

BALKANS CZECH REPUBLIC GEORGIA HUNGARY ISRAEL KAZAKHSTAN POLAND RUSSIA AND CIS SLOVAKIA TURKEY UKRAINE

EUROPE CENTRAL +49 9131 77 340

AUSTRIA BELGIUM GERMANY ITALY NETHERLANDS SWITZERLAND

EUROPE WEST +44 1494 428 900

FRANCE IRELAND PORTUGAL SPAIN UNITED KINGDOM

MIDDLE EAST AND AFRICA +971 4390 0888

INDIA SOUTH AFRICA SRI LANKA UNITED ARAB EMIRATES

SCANDINAVIA +46 13 460 4000

DENMARK NORWAY SWEDEN

FINLAND AND THE BALTIC AREA +358 102 17 9300

ESTONIA FINLAND LATVIA LITHUANIA

ABOUT IFS

Page 10: Software selection for Manufacturing and HighTech ...... · The basic concepts and ... and operations management. Gartner now speaks of postmodern ERP, which it describes as “a

10 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

8 DOES THE SOFTWARE SPEED EXECUTION OF TASKS While provision of real-time data is increasingly a given for enterprise software is this translating into faster execution of essential work Consider financials Itrsquos not uncommon to find manufacturers where it takes over a week to do monthrsquos end financials Frankly it should not take more than a day or two When companies arenrsquot able to close their books until the middle of the next month something isnrsquot right with the software system Software should enable companies to have information they can believe and trust in one system so when they print out a trial balance they believe the numbers generated There shouldnrsquot be a need to wait for information (eg for production to indicate how much WIP they have or accounting to report accruals) Real-time data is often over-looked these days because companies are not used to it but itrsquos still a shock when a company tells you it takes a week to do a monthrsquos end report

9 HOW BROAD AND DEEP IS THE SOFTWARE SOLUTION Can the software system phase out the use of multiple systems eliminating undue complexity and cost Today many manufacturers are multi-modal some products are made to order some made to stock some engineered to order some assembled to order and some config-ured to order Can your software handle all these approaches If you set an approach today do you have the ability to easily change over in a weekrsquos monthrsquos or yearrsquos time A broad and deep solution will provide this capability

10 CUSTOMIZATION OR CONFIGURATION IS THE SOFTWARE EASY TO MODIFY Because change will make it likely for a company to want to modify its software over time how easy and how costly will it be to make that change The best systems enable users to add their own fields events and so on without having to go back to the software provider for custom-ization Configuration is part of the functionality out of the box and easy to do not part of an upgrade or requiring additional costs

WHAT ARE PEERS SAYINGFinally companies are well served by looking to respected analysts who assess the status of software providers Of those who study enterprise soft-ware and systems the best known and perhaps most highly respected is Stamford Connecticut-based Gartner

Gartner publishes Peer Insights9 that offer ldquoimpactful insights from real IT decision makersrdquo The insights are described as follows ldquoFree of vendor influence Gartner Peer Insights offers detailed perspectives for every phase of the IT lifecyclemdashfrom evaluation and implementation to service and supportrdquo Below are some of the things peers (Manufacturing CIOs CFOs CTOs) are saying about IFS Applications and why they bought it

9 wwwgartnercomreviewshome

11 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

What do you like most about the product or service

bull Its flexibility to make personalizations without having to customize the product and move those personalizations forward with each new release (CIO Manufacturing)

bull Very stable application with all modules tightly integrated

bull The consistency of the experience over the years

bull The security and the integrity of the system are up to the mark

What were the key factors that drove your decision

bull Product functionality and performance

bull Strong customer focus

bull Breadth of services

bull Financialorganizational viability

bull Pre-existing relationships

bull Product roadmap and future vision

bull Strong services expertise

bull Strong user community

READY FOR SERVITIZATION AND WHATrsquoS NEXTCompanies that have added service to their offerings adapted their organiza-tions to enable this and acquired the requisite technology (often in the form of integrated full-scope enterprise software) have confronted the question of lsquoWhatrsquos nextmdashand reaped significant benefits In fact adding service contributes to much of what is the very essence of good business viz actively looking to the future and seeking to shape it to create opportunities rather than merely grasp those that arise Benefits reported include

Enhanced revenuemdashreported growth between 2x and 4x

Better marginsmdashincreases of 3ndash10 reported

Sustainable business growthmdashincreases of up 5ndash10 reported

Greater customer satisfactionmdashthey are getting what they want

More repeat business greater market share and a better reputation

Predictable income streams

12 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Combining a comprehensive suite of enterprise software that covers ERP EAM ESM (Enterprise Service Management) FSM (IFS Field Service Managementtrade) IFS Enterprise Operational Intelligencetrade (IFS EOItrade) and advanced analytics IFS enables manufacturers to actively take part in the transformation process giving them the capabilities and insights to make decisions based on real-time statuses to not only meet customer needs but also anticipate them Being able to handle todayrsquos business challenges is important shaping whatrsquos next is crucial to growth and continued success

ABOUT ANTONY BOURNEAs Vice President of Global Industry Solutions Antony leads a team of global industry experts who cover the IFS focused industries and support sales marketing and partner enablement Antony is a lead spokesperson for IFS and represents the company in multiple internal and external events analyst updates (including Gartner IDC and ARC) publications blogs and press articles He also has extensive experience of multiple industries (including Manufacturing Construction Life Sciences and High Tech) having dealt with hundreds of companies that have gone through the software selection and implementation process This includes hosting customer advisory councils in conjunction with RampD which ensures the product strategy is in line with industry expectations Antony has over 20 yearsrsquo experience in the IT industry including working in the manufacturing sector Prior to joining IFS in 1997 he held business analyst positions with Ford Motor Company and AlliedSignal During this time he implemented ERP applications as well as business process improvements Antony holds a bachelors degree in Computer Science from the University of Glamorgan and is a member of Mensa

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IFSworldcomCOPYRIGHT copy 2017 INDUSTRIAL AND FINANCIAL SYSTEMS IFS AB IFS AND ALL IFS PRODUCTS AND SERVICES NAMES ARE TRADEMARKS OF IFS ALL RIGHTS RESERVED THIS DOCUMENT MAY CONTAIN STATEMENTS OF POSSIBLE FUTURE FUNCTIONALIT Y FOR IFSrsquoS PRODUCTS AND TECHNOLOGY SUCH STATEMENTS ARE FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE INTERPRETED AS ANY COMMITMENT OR REPRESENTATION THE NAMES OF ACTUAL COMPANIES AND PRODUCTS MENTIONED HEREIN MAY BE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS

IFS AB copy2017

IFS develops and delivers enterprise software for customers around the world who manufacture and distribute goods maintain assets and manage service-focused operations The industry expertise of our people and solutions together with commitment to our customers has made us a recognized leader and the most recommended supplier in our sector Our team of 3300 employees supports more than one million users worldwide from a network of local offices and through our growing ecosystem of partners For more information about IFS visit IFSworldcom

AMERICAS +1 888 437 4968

ARGENTINA BRAZIL CANADA ECUADOR MEXICO UNITED STATES

ASIA PACIFIC +65 63 33 33 00

AUSTRALIA INDONESIA JAPAN MALAYSIA NEW ZEALAND PHILIPPINES PR CHINA SINGAPORE THAILAND

EUROPE EAST AND CENTRAL ASIA +48 22 577 45 00

BALKANS CZECH REPUBLIC GEORGIA HUNGARY ISRAEL KAZAKHSTAN POLAND RUSSIA AND CIS SLOVAKIA TURKEY UKRAINE

EUROPE CENTRAL +49 9131 77 340

AUSTRIA BELGIUM GERMANY ITALY NETHERLANDS SWITZERLAND

EUROPE WEST +44 1494 428 900

FRANCE IRELAND PORTUGAL SPAIN UNITED KINGDOM

MIDDLE EAST AND AFRICA +971 4390 0888

INDIA SOUTH AFRICA SRI LANKA UNITED ARAB EMIRATES

SCANDINAVIA +46 13 460 4000

DENMARK NORWAY SWEDEN

FINLAND AND THE BALTIC AREA +358 102 17 9300

ESTONIA FINLAND LATVIA LITHUANIA

ABOUT IFS

Page 11: Software selection for Manufacturing and HighTech ...... · The basic concepts and ... and operations management. Gartner now speaks of postmodern ERP, which it describes as “a

11 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

What do you like most about the product or service

bull Its flexibility to make personalizations without having to customize the product and move those personalizations forward with each new release (CIO Manufacturing)

bull Very stable application with all modules tightly integrated

bull The consistency of the experience over the years

bull The security and the integrity of the system are up to the mark

What were the key factors that drove your decision

bull Product functionality and performance

bull Strong customer focus

bull Breadth of services

bull Financialorganizational viability

bull Pre-existing relationships

bull Product roadmap and future vision

bull Strong services expertise

bull Strong user community

READY FOR SERVITIZATION AND WHATrsquoS NEXTCompanies that have added service to their offerings adapted their organiza-tions to enable this and acquired the requisite technology (often in the form of integrated full-scope enterprise software) have confronted the question of lsquoWhatrsquos nextmdashand reaped significant benefits In fact adding service contributes to much of what is the very essence of good business viz actively looking to the future and seeking to shape it to create opportunities rather than merely grasp those that arise Benefits reported include

Enhanced revenuemdashreported growth between 2x and 4x

Better marginsmdashincreases of 3ndash10 reported

Sustainable business growthmdashincreases of up 5ndash10 reported

Greater customer satisfactionmdashthey are getting what they want

More repeat business greater market share and a better reputation

Predictable income streams

12 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Combining a comprehensive suite of enterprise software that covers ERP EAM ESM (Enterprise Service Management) FSM (IFS Field Service Managementtrade) IFS Enterprise Operational Intelligencetrade (IFS EOItrade) and advanced analytics IFS enables manufacturers to actively take part in the transformation process giving them the capabilities and insights to make decisions based on real-time statuses to not only meet customer needs but also anticipate them Being able to handle todayrsquos business challenges is important shaping whatrsquos next is crucial to growth and continued success

ABOUT ANTONY BOURNEAs Vice President of Global Industry Solutions Antony leads a team of global industry experts who cover the IFS focused industries and support sales marketing and partner enablement Antony is a lead spokesperson for IFS and represents the company in multiple internal and external events analyst updates (including Gartner IDC and ARC) publications blogs and press articles He also has extensive experience of multiple industries (including Manufacturing Construction Life Sciences and High Tech) having dealt with hundreds of companies that have gone through the software selection and implementation process This includes hosting customer advisory councils in conjunction with RampD which ensures the product strategy is in line with industry expectations Antony has over 20 yearsrsquo experience in the IT industry including working in the manufacturing sector Prior to joining IFS in 1997 he held business analyst positions with Ford Motor Company and AlliedSignal During this time he implemented ERP applications as well as business process improvements Antony holds a bachelors degree in Computer Science from the University of Glamorgan and is a member of Mensa

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IFSworldcomCOPYRIGHT copy 2017 INDUSTRIAL AND FINANCIAL SYSTEMS IFS AB IFS AND ALL IFS PRODUCTS AND SERVICES NAMES ARE TRADEMARKS OF IFS ALL RIGHTS RESERVED THIS DOCUMENT MAY CONTAIN STATEMENTS OF POSSIBLE FUTURE FUNCTIONALIT Y FOR IFSrsquoS PRODUCTS AND TECHNOLOGY SUCH STATEMENTS ARE FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE INTERPRETED AS ANY COMMITMENT OR REPRESENTATION THE NAMES OF ACTUAL COMPANIES AND PRODUCTS MENTIONED HEREIN MAY BE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS

IFS AB copy2017

IFS develops and delivers enterprise software for customers around the world who manufacture and distribute goods maintain assets and manage service-focused operations The industry expertise of our people and solutions together with commitment to our customers has made us a recognized leader and the most recommended supplier in our sector Our team of 3300 employees supports more than one million users worldwide from a network of local offices and through our growing ecosystem of partners For more information about IFS visit IFSworldcom

AMERICAS +1 888 437 4968

ARGENTINA BRAZIL CANADA ECUADOR MEXICO UNITED STATES

ASIA PACIFIC +65 63 33 33 00

AUSTRALIA INDONESIA JAPAN MALAYSIA NEW ZEALAND PHILIPPINES PR CHINA SINGAPORE THAILAND

EUROPE EAST AND CENTRAL ASIA +48 22 577 45 00

BALKANS CZECH REPUBLIC GEORGIA HUNGARY ISRAEL KAZAKHSTAN POLAND RUSSIA AND CIS SLOVAKIA TURKEY UKRAINE

EUROPE CENTRAL +49 9131 77 340

AUSTRIA BELGIUM GERMANY ITALY NETHERLANDS SWITZERLAND

EUROPE WEST +44 1494 428 900

FRANCE IRELAND PORTUGAL SPAIN UNITED KINGDOM

MIDDLE EAST AND AFRICA +971 4390 0888

INDIA SOUTH AFRICA SRI LANKA UNITED ARAB EMIRATES

SCANDINAVIA +46 13 460 4000

DENMARK NORWAY SWEDEN

FINLAND AND THE BALTIC AREA +358 102 17 9300

ESTONIA FINLAND LATVIA LITHUANIA

ABOUT IFS

Page 12: Software selection for Manufacturing and HighTech ...... · The basic concepts and ... and operations management. Gartner now speaks of postmodern ERP, which it describes as “a

12 ERP SOFTWARE THAT PREPARES MANUFACTURING AND HIGH-TECH ORGANIZATIONS FOR WHATrsquoS NEXT

Combining a comprehensive suite of enterprise software that covers ERP EAM ESM (Enterprise Service Management) FSM (IFS Field Service Managementtrade) IFS Enterprise Operational Intelligencetrade (IFS EOItrade) and advanced analytics IFS enables manufacturers to actively take part in the transformation process giving them the capabilities and insights to make decisions based on real-time statuses to not only meet customer needs but also anticipate them Being able to handle todayrsquos business challenges is important shaping whatrsquos next is crucial to growth and continued success

ABOUT ANTONY BOURNEAs Vice President of Global Industry Solutions Antony leads a team of global industry experts who cover the IFS focused industries and support sales marketing and partner enablement Antony is a lead spokesperson for IFS and represents the company in multiple internal and external events analyst updates (including Gartner IDC and ARC) publications blogs and press articles He also has extensive experience of multiple industries (including Manufacturing Construction Life Sciences and High Tech) having dealt with hundreds of companies that have gone through the software selection and implementation process This includes hosting customer advisory councils in conjunction with RampD which ensures the product strategy is in line with industry expectations Antony has over 20 yearsrsquo experience in the IT industry including working in the manufacturing sector Prior to joining IFS in 1997 he held business analyst positions with Ford Motor Company and AlliedSignal During this time he implemented ERP applications as well as business process improvements Antony holds a bachelors degree in Computer Science from the University of Glamorgan and is a member of Mensa

En11

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IFSworldcomCOPYRIGHT copy 2017 INDUSTRIAL AND FINANCIAL SYSTEMS IFS AB IFS AND ALL IFS PRODUCTS AND SERVICES NAMES ARE TRADEMARKS OF IFS ALL RIGHTS RESERVED THIS DOCUMENT MAY CONTAIN STATEMENTS OF POSSIBLE FUTURE FUNCTIONALIT Y FOR IFSrsquoS PRODUCTS AND TECHNOLOGY SUCH STATEMENTS ARE FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE INTERPRETED AS ANY COMMITMENT OR REPRESENTATION THE NAMES OF ACTUAL COMPANIES AND PRODUCTS MENTIONED HEREIN MAY BE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS

IFS AB copy2017

IFS develops and delivers enterprise software for customers around the world who manufacture and distribute goods maintain assets and manage service-focused operations The industry expertise of our people and solutions together with commitment to our customers has made us a recognized leader and the most recommended supplier in our sector Our team of 3300 employees supports more than one million users worldwide from a network of local offices and through our growing ecosystem of partners For more information about IFS visit IFSworldcom

AMERICAS +1 888 437 4968

ARGENTINA BRAZIL CANADA ECUADOR MEXICO UNITED STATES

ASIA PACIFIC +65 63 33 33 00

AUSTRALIA INDONESIA JAPAN MALAYSIA NEW ZEALAND PHILIPPINES PR CHINA SINGAPORE THAILAND

EUROPE EAST AND CENTRAL ASIA +48 22 577 45 00

BALKANS CZECH REPUBLIC GEORGIA HUNGARY ISRAEL KAZAKHSTAN POLAND RUSSIA AND CIS SLOVAKIA TURKEY UKRAINE

EUROPE CENTRAL +49 9131 77 340

AUSTRIA BELGIUM GERMANY ITALY NETHERLANDS SWITZERLAND

EUROPE WEST +44 1494 428 900

FRANCE IRELAND PORTUGAL SPAIN UNITED KINGDOM

MIDDLE EAST AND AFRICA +971 4390 0888

INDIA SOUTH AFRICA SRI LANKA UNITED ARAB EMIRATES

SCANDINAVIA +46 13 460 4000

DENMARK NORWAY SWEDEN

FINLAND AND THE BALTIC AREA +358 102 17 9300

ESTONIA FINLAND LATVIA LITHUANIA

ABOUT IFS

Page 13: Software selection for Manufacturing and HighTech ...... · The basic concepts and ... and operations management. Gartner now speaks of postmodern ERP, which it describes as “a

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IFSworldcomCOPYRIGHT copy 2017 INDUSTRIAL AND FINANCIAL SYSTEMS IFS AB IFS AND ALL IFS PRODUCTS AND SERVICES NAMES ARE TRADEMARKS OF IFS ALL RIGHTS RESERVED THIS DOCUMENT MAY CONTAIN STATEMENTS OF POSSIBLE FUTURE FUNCTIONALIT Y FOR IFSrsquoS PRODUCTS AND TECHNOLOGY SUCH STATEMENTS ARE FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE INTERPRETED AS ANY COMMITMENT OR REPRESENTATION THE NAMES OF ACTUAL COMPANIES AND PRODUCTS MENTIONED HEREIN MAY BE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS

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IFS develops and delivers enterprise software for customers around the world who manufacture and distribute goods maintain assets and manage service-focused operations The industry expertise of our people and solutions together with commitment to our customers has made us a recognized leader and the most recommended supplier in our sector Our team of 3300 employees supports more than one million users worldwide from a network of local offices and through our growing ecosystem of partners For more information about IFS visit IFSworldcom

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