Embracing complexity challenge will secure competitive advantage

The white paper, In Pursuit of Operational Excellence: Accelerating Business Change Through Next Generation ERP, highlights the need for manufacturers to not only confront the complexity challenge but to embrace the opportunity presented by rapid innovation to secure competitive advantage. However, manufacturers across all industries and all regions claim that they are not equipped with adequate tools to achieve this goal.

IT systems fall short with levels of complexity

According to the white paper, manufacturers recognise and acknowledge the increase in complexity and strategies to manage it vary widely across industry sectors according to their unique industry challenges. Automotive and aerospace look toward improved demand planning (60 % and 57%, respectively) to improve operational efficiencies, while high-tech electronics opts for increased sourcing from lower cost countries (49%) and better alignment of IT with the business (49%). Meanwhile, the industrial machinery sector is seeking to adopt strategies focused mostly on improved customer fulfilment (53%). However, the common denominator, according to two-thirds of manufacturers, is that business processes and IT systems fall short of dealing with current levels of complexity.

Companies must address key challenges

"Manufacturers all around the world must maintain strict discipline over their operations management in order to improve profitability," said Pierfrancesco Manenti, head of IDC Manufacturing Insights, Europe, Middle East and Africa. "Companies must directly address key challenges such as harnessing and embracing the complexity that surrounds their operations while reducing internal complications by having consistent processes, better informed people, and open lines of communication. There is a huge requirement for modern applications that can support new, customer driven operating models to help manufacturers exploit innovation and profitable growth."

"Similar to the 2010 survey, complexity remains high on the list of priorities for manufacturers, who recognise that their need to offer choice and differentiated service also creates increased operational complexity and a hidden cost to manage it," said Andrew Kinder, director of product marketing at Infor. "The right enterprise applications and technology strategy has a big part to play in confronting the complexity challenge with solutions that facilitate better, faster decision making, support an increasingly mobile workforce and equip manufacturers with business agility rather than rigidity."