ERP in Manufacturing:
Creating a Hub for Visibility, Collaboration, and Innovation Abstract
Nick Castellina, Aberdeen Group
Enterprise Resource Planning (ERP) is the foundation of a successful manufacturing organization. It is essential for promoting standards throughout an organization, discovering potential efficiencies, and managing the front and back-end processes of an organization. But today’s manufacturers are required to be increasingly innovative and more agile in decision-making to stay ahead of customers and provide greater value to customers. Global competition and new sales channels adds greater competition. In many cases, it is no longer safe to provide the same products to the same customers without change. Therefore, manufacturers must enable collaboration and access to greater amounts of data. As such, ERP has evolved to become a hub for collaboration and continuous improvement. This report, based on a survey of 150 manufacturers, identifies Best-in-Class strategies for utilizing ERP to provide visibility to decision-makers and promoting collaboration across boundaries.
ERP is ubiquitous in manufacturing organizations, 92% of respondents reporting using it, but in an increasingly competitive market ERP can serve a greater function beyond which it was originally intended for. Top performing manufacturers are more likely to utilize ERP as a hub for collaboration, innovation, and agile decision-making. In order to do this and keep up with their peers, manufactures should consider these points:
- 47% of the Best-in-Class enable real-time collaboration across departments and divisions in comparison to 33% of All Others
- The Best-in-Class are over twice as likely than All Others to provide their employees with automatic notifications when certain conditions occur
- 83% of the Best-in-Class have integrated business system that create a complete and auditable system of record
- The Best-in-Class are four times as likely as All Others to integrate social networking capabilities into ERP
Today’s successful manufacturing organizations are evolving their ERP strategies to support them in competitive markets. By providing collaboration capabilities and enhanced visibility, manufacturers can innovate, react, and stay ahead of the competition.