ERP Can Hinder Enterprise Agility

Almost 60 percent of respondents to a study said their ERP or other enterprise software slows them down and prevents their organizations from changing the way they do business.

ITASCA, Ill. -- Almost 60 percent of respondents to a study conducted for IFS North America said their enterprise resource planning (ERP) or other enterprise software slows them down and prevents their organizations from changing the way they do business.

The results of the survey, conducted by an independent research firm among more than 200 executives with mid- to large-sized manufacturing companies throughout North America, is sobering proof that the ERP, enterprise asset management (EAM) and other enterprise software is in many cases more of a hindrance than a help to businesses that need to adapt to changes brought on by market shifts, customer demands, merger and acquisition activity, and new products and business models.

Specifically, 57 percent of respondents said that their ERP software forces them to do things in a proscribed way and cannot be configured to accommodate different processes, and 54 percent agreed that once in place, their enterprise software is very difficult to reconfigure, “as if it were dipped in concrete.”

“As we look at our customer and prospect base, the one constant is change,” IFS North America President and CEO Cindy Jaudon said. “That is probably why 57 percent of respondents to this study said they wished ERP vendors would design enterprise software for fast implementation and reconfiguration. This need for quick deliverables and change management is why way back in 1996 IFS became the first ERP vendor to migrate its products onto a granular, component-based service-oriented architecture that can be configured and reconfigured as needed. Our customers can implement a flexible application suite in phases, adding and reconfiguring components of IFS Applications as needed. We are very proud of that.”

IFS Applications’ component-based architecture provides for fast, step-by-step implementation, and is designed for companies that need enterprise software to enhance, rather than hinder, their enterprise agility. It lets companies implement manageable groups of components in a phased implementation for rapid payback and then allows new components to be added and the system reconfigured with minimal cost and business disruption.

The study, which examines not only enterprise agility but the usability of ERP and other enterprise software, will become publicly available on April 28th at http://download.ifsworld.com - Industry Reports & Studies category. For an advance copy, contact IFS North America at 1-888-437-4968

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