Page 48 - MetalForming August 2014

Trends in ERP Converge
Executive Access to ERP
All have access and regularly use ERP
At least some execs have limited access to ERP
We have set up dashboards for execs, can only be run on a laptop/desktop
Execs carry dashboards on their mobile devices
Get alerts from ERP on mobile devices and can take action
Get alerts from ERP on mobile devices but can’t take direct action
5% 2%
47%
61%
2013 2014
31% 29%
21% 23%
18% 13%
8% 12%
Execs have no direct access to ERP
0%
25% 50%
75%
10% 11%
Fig. 2
or even surpass, what used to be called best of breed. Not only has the overlap between modules and extensions grown significantly, but the integra- tion capabilities also have made it more difficult to distinguish between the two.
The bottom line: Functionality that once required specialty add-on solu- tions now may be satisfied through ERP.And,evenbasiccorefeaturesmay be delivered through new components outside of your standard packaged releases.
Many of these new components will be offered in the cloud, which also will better facilitate accessing them from mobile devices. This will broaden the base of users engaged with these appli- cations, and that broader base will extend to higher levels in the corporate structure—a more-demanding audi- ence. Expect executives to become more engaged and demand more from the data that has been sitting dormant and underutilized for years (Fig. 2).
The Cloud, and the Widening Gap Between “Haves”
and “Have Nots”
Those that “get it” will use new ERP technology to solve problems previ- ously deemed unsolvable. As a result,
the gap between the “haves” and “have nots” will widen. Achieving or main- taining a competitive edge will become difficult, if not impossible, without the right supporting technology.
Does that mean you need to be a technologist to get ahead? No, you only must understand the possibilities and be open to change. Outdated technol- ogy and lack of functionality are most oftencitedasthereasonsforreplacing legacy ERP systems. Those hesitant to replace their legacy systems must remove their heads from the sand, and at least consider raising them to the cloud.
While somewhat of an over-simpli- fication, the primary benefit of cloud- based ERP is the ability to access enter- prise software anytime, from anywhere. SaaS also can change the game in terms of innovation. Our survey respondents recognize the potential for many of these benefits, with a heavy emphasis on cost savings—the most obvious being the elimination of an upfront license fee and the initial and ongoing maintenance cost of hardware.
Relatively few survey takers under- stand how SaaS ERP can deliver inno- vation. A traditional ERP upgrade cycle can last several months, as the vendor plans, develops and tests new features
and functions and then sends the pack- aged enhancements through test cycles with a select few customers. In the end, some customers might wait 2 to 3 years before installing these enhancements.
This process reinforces the benefits of developing enhancements as inde- pendent external components that can be delivered incrementally. But there always will be some innovations that require modification to existing code. Conversely, if a vendor only must main- tain a single set of program code (the latest release) and can package up and deliver new features, in small chunks, as they are developed and fully tested, then it only stands to reason that it can accelerate the pace of innovation. This also ensures that no customer is left behind running old, outdated releases. This becomes possible in a SaaS environment and, as a result, SaaS vendors have succeeded in raising the bar in terms of quickly delivering enhanced functionality.
Be warned, however, as such inno- vation is not guaranteed. When choos- ing a solution, whether SaaS, hosted or on-premise, customers must ask ques- tions about the pace of and methodol- ogy behind innovation. Customers that demand more receive more.
The Mobile Executive
As noted earlier, top-level execu- tives are becoming more directly con- nected to ERP. The less tethered we become to wired connections, the more tethered we become to the business.
Our survey finds that although 76 percent say they receive alerts based on enterprise data, only 18 percent get alerts from ERP (9 percent can take action and 9 percent cannot). That means many of those alerts are prepared manually and sent through e-mail, text or chat functions.
So why haven’t we made any more progress in taking action from ERP alerts sent to our mobile devices? Con- sumer apps on mobile devices have raised the bar in terms of defining “easy to use” and “intuitive.” Executives will not tolerate an enterprise appli- cation they can’t intuitively navigate, or
46 MetalForming/August 2014
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