The ERP in Manufacturing Benchmark Report

Cindy Jutras

Sujets

• managers

Informations

• Publié par: Onsey
• Nombre de lectures: 18
• Langue: English

Extrait

The ERP in Manufacturing
Benchmark Report









August 2006

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The ERP in Manufacturing Benchmark Report

Executive Summary
Enterprise Resource Planning (ERP) systems and their MRP (Material Requirements
Planning) predecessors have been around for almost three decades now. As a result,
many aging implementations, based on outdated technology, are limiting the business
process evolution necessary to any company who wants to thrive and grow amidst the
pressures of globalization and increasingly demanding customers. Conversely manufac-
turers demand more value from ERP implementations, not only as their systems age, but
as enterprise applications proliferate, raising questions concerning upgrade, replacement,
consolidation and rationalization.
Key Business Value Findings
The chief ERP implementation challenges cited by respondents were associated with the
alignment of business processes with software capabilities. Customization related chal-
lenges arise where software has been adapted to fit the business. Business process redes-
ign challenges arise where processes are
adapted to the software. Companies
struggle to balance the two amidst costs “In implementing enterprise applications
associated with upgrades and latent inte- many organizations neglect to assess the
gration costs where point solutions or
technology platform, only to discover-after custom applications have been used to
the fact-that the hardware and networking fill the gaps in functionality.
infrastructure is insufficient to support the
software.” Implications & Analysis
As a result, enterprises are struggling to
-Jim Moore, Business System Manager, derive more and better business value
from their ERP implementations. That R&M Energy Systems
often means driving the use of ERP
deeper into their organizations or broader
across more of the enterprise. It means extending the footprint beyond the core ERP
functionality and making decisions between ERP vendors and pure play or “best of
breed” solutions. For this to be successful, business processes must be streamlined and
standardized throughout and in many cases outdated technology just doesn’t cut it.
Recommendations for Action
Companies should evaluate current ERP implementations to ensure they effectively ac-
complish the following:
• Balance aligning business processes to software capabilities against aligning
software capabilities to business processes to maximize benefit and allow your
business to evolve
• Consolidation decisions must weigh carefully the business value brought to the
enterprise.

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AberdeenGroup • i The ERP in Manufacturing Benchmark Report

• Resist replacement strategies that simply duplicate business processes currently
in place
• Don’t fall into the trap of believing an ERP implementation is ever completely
done
• Increase collaboration between Information Technology (IT) and Line of Busi-
ness staff in order to gain the most business value within time and budget con-
straints.



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ii • AberdeenGroup The ERP in Manufacturing Benchmark Report


Table of Contents
Executive Summary .............................................................................................. i
Key Business Value Findings ................................................................................ i
Implications & Analysis.......................................................................................... i
Recommendations for Action i
Chapter One: Issue at Hand1
Chapter Two: Key Business Value Findings.........................................................5
Factors Affecting Upgrade decisions....................................................................6
Factors Affecting Replacement Strategies ...........................................................8
Consolidation Strategies ......................................................................................9
Challenges and Responses ............................................................................... 11
Chapter Three: Implications & Analysis.............................................................13
Measuring Success............................................................................................14
ERP Usage ........................................................................................................16
Beyond ERP.......................................................................................................18
Software Selection Criteria.................................................................................21
Chapter Four: Recommendations for Action ...................................................... 23
Consolidation Recommendations.......................................................................23
Replacement Strategy Recommendations.........................................................24
Recommendations Concerning Rationalization of ERP Extensions ...................24
Laggard Steps to Success .................................................................................25
Industry Average Steps to Success....................................................................25
Best in Class Next Steps....................................................................................26
Featured Sponsors.............................................................................................27

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AberdeenGroup The ERP in Manufacturing Benchmark Report

Infor ............................................................................................................. 27
Lawson ........................................................................................................ 27
Plexus.......................................................................................................... 28
QAD 28
Softbrands ................................................................................................... 29
Sponsor Directory ..............................................................................................30
Infor 30
Lawson ........................................................................................................ 30
Plexus.......................................................................................................... 30
QAD Inc....................................................................................................... 30
Softbrands, Inc. ........................................................................................... 30
Author Profile .....................................................................................................31
Appendix A: Research Methodology ..................................................................32
Appendix B: Related Aberdeen Research & Tools .............................................34
About AberdeenGroup ......................................................................................35
Our Mission ................................................................................................. 35
Our Approach .............................................................................................. 35
Our History of Integrity................................................................................. 35















All print and electronic rights are the property of AberdeenGroup © 2006.
AberdeenGroup The ERP in Manufacturing Benchmark Report


Figures
Figure 1: Age of ERP Implementations..................................................................................2
Figure 2: How many ERP’s do you have across your enterprise? .........................................2
Figure 3: Business Drivers impacting ERP strategies............................................................4
Figure 4: Planned actions within the next 12 months.............................................................5
Figure 5: Current Release Status ............................................................................................6
Figure 6: Reasons to delay upgrading ....................................................................................7
Figure 7: Motivation behind replacement strategy.................................................................8
Figure 8: Planning to Consolidate? ......................................................................................10
Figure 9: Performance Improvements Achieved with ERP Implementations......................15
Figure 10: Metrics Tied to Success15
Figure 11: Did you purchase this from your ERP vendor? ...............................