Agile Operations, Driven by market needs Lorenzo Veronesi, Research Manager IDC Manufacturing Insights Lisbon, February 17 th , 2020 © IDC
Agile Operations, Driven by market needsLorenzo Veronesi, Research Manager
IDC Manufacturing Insights
Lisbon, February 17th, 2020© IDC
Future of CultureLeadership at Scale
The Shape of the Future Enterprise is Clearer
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Future of Customers
Future of Intelligence
Future of Operations
Future of Work
Empathy at Scale Insights at Scale Operations at Scale Work Model at Scale
IDC Digital Transformation MaturityScape, 2019
Legacy Systems
Manufacturers were called to adopt a multitude of best-of-breed applications beyond the pure ERP to augment business alignment in various areas such as manufacturing, supply chain, business intelligence, B2B.
Provides the necessary infrastructure that forms the transactional system of recordsAs a matter of fact the ERP is primarily focused on financial transactionsMost manufacturers already have it: it’s an essential "commodity" to run the business
Extremely complex interfaces decrease IT efficiency and hinder further business alignment
Legacy Systems
Best-of-breed Applications
ERP“Financial“ ERP
Typical IT landscape in a manufacturing enterprise
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© IDC 4
ERP is instrumental to address data- and efficiencies-related challenges
Key end-user operational challenges
Tracing key metrics across the value chain (e.g. productivity, inventory,
booked vs. billed)
Manual processes causing inefficiencies, errors, inflexibility and
lack of agility
Data accessibility causes operational resources to spend extra time looking backward instead of at
current data
Losing money because of early missing payment discounts, cost savings, and efficient processes
Source: IDC MarketScape Worldwide SaaS and Cloud-Enabled Operational ERP Applications 2019 Vendor Assessment
▪ Does the vendor have experience with my type of industry, product, and operational requirements?
▪ Does the vendor understand the regulations that will impact my business? How are these regulations reflected in my current technology, and how will it change in the future?
▪ What levels of support are available, and are they geographically available for my business?
▪ What are my internal support resources and capabilities?
▪ Should I hire a third party to plan and assist with the implementation of the manufacturing ERP solution?
▪ Is the vendor financially able to provide needed support? Can the vendor support needed investment in the development of future manufacturing ERP software requirements?
▪ Is the vendor committed to this market or industry for the long term?
▪ Is the ROI achievable? Does the vendor have a track record of meeting the ROI requirements?
▪ Can the vendor or partners support global operations?
▪ Can the vendor integrate with my company's other IT systems and those of my partners?
▪ Can the vendor integrate with my company's OT systems, connecting the shop floor with the top floor?
▪ Is the product available anywhere and anytime?
▪ Is the product updated frequently enough for my business needs?
▪ What new innovations is the vendor considering, investing, and tied to with its road map? How and when will it impact manufacturing as a whole and my business?
▪ What is the vendor's strategic investment outlook for the next three to five years? Why?
▪ Will the vendor be a partner, helping my business grow now and in the long term?
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A summary of ERP customer requests
© IDC 6
The pillars of a new generation of ERP
Cloud-based
User-friendly
interfaces
Common data pool
Intelligent ERP
Source: IDC, 2019
▪ i-ERP and intelligent enterprise applications use machine learning (ML), artificial intelligence (AI), and advanced analytics built on a large, curated data set to forecast, track, learn, route, analyze, predict, report, and manage enterprise assets and business processes.
▪ Intelligent ERP and intelligent enterprise applications feature an assistive and conversational user experience and free users' time for higher-value tasks by automating high-volume repeatable tasks and augmenting (via human-machine interaction) the performance of less frequent, more novel tasks.
▪ They are capable of processing, analyzing, and acting on massive volumes of data in real time using in-memory computing (IMC) technologies.
▪ As systems that learn, i-ERP and intelligent enterprise applications must allow for ongoing reconfiguration to enable process refinements and user experience (UX) adaption.
© IDC 7
IDC FutureScape: Worldwide Intelligent ERP 2020Predictions
▪ WHY?• In order to support technology buyers and
vendors in this transition
▪ WHAT? • IDC team has identified top predictions that
will impact business leaders
▪ FOR WHO?• Companies should use these predictions to
help guide their digital business strategy
8© IDC
HOW DOES AN ANALYST COUNT?
1, 6, 3, 10, 2, 5, 4, 8, 7, 9!
© IDC 9
IDC FutureScape: Worldwide Intelligent ERP 2020Predictions
Prediction 1: By 2022, 90% of New Midmarket ERP
System Selections Will Prioritize Analytics, Data, and Prebuilt Cognitive
Business Processes as Critical Differentiating Features That Impact
System Acquisitions
© IDC 10
IDC FutureScape: Worldwide Intelligent ERP 2020Predictions
Prediction 6: By 2024, 80% of New Enterprise Applications Will Be Completely Redesigned to Include New User
Interfaces Aided by Machine Learning and Automation Platforms for a Completely New Look and Feel
© IDC 11
IDC FutureScape: Worldwide Intelligent ERP 2020Predictions
Prediction 3: By 2023, 45% of LOB Leaders Will
Internally Develop Technology Applications, Augmenting Commercially Sourced Applications and Shifting the
Development Cost and Investment from IT to the LOB
© IDC 12
IDC FutureScape: Worldwide Intelligent ERP 2020Predictions
Prediction 10: By 2024, 50% of New ERP Deployments Will Consume Microservices to Perform Core Tasks, and Nearly All Net-New ERP
Deployments Will Consume Some Microservices, While 25% of Legacy Apps
Will Be Refactored
© IDC 13
IDC FutureScape: Worldwide Intelligent ERP 2020Predictions
Prediction 2: By 2025, 50% of Business Applications Will Have Functionality That Does Not Yet Exist; New Solutions Will Support and Bridge Gaps Across the Future of
Work, Intelligence, Innovation, and Customers
© IDC 14
IDC FutureScape: Worldwide Intelligent ERP 2020Predictions
Prediction 5: By 2022, over 75% of Enterprise
Applications Will Be Powered by an Intelligent Core That Analyzes Different Types of Data from a Myriad of Sources
to Improve Decision Making and Business Outcomes
© IDC 15
IDC FutureScape: Worldwide Intelligent ERP 2020Predictions
Prediction 4: By 2021, 25% of ERP Systems Will Be Using AI-Driven Early Discount Rate
Recommendations to Improve Enterprise Cash Flow by 35%
© IDC 16
IDC FutureScape: Worldwide Intelligent ERP 2020Predictions
Prediction 8: By 2021, Driven by a Widening Skills
Gap, 50% of Organizations Will Utilize i-ERP to Capture and Share Tribal
Knowledge of Their More Experienced Employees
© IDC 17
IDC FutureScape: Worldwide Intelligent ERP 2020Predictions
Prediction 7: By 2024, 75% of Digitally Determined
Enterprises Will Be Developing Machine Learning Factories, Which Will Produce Insights from the Digital Core That Can
Be Commercialized
© IDC 18
IDC FutureScape: Worldwide Intelligent ERP 2020Predictions
Prediction 9: By 2023, 70% of Enterprise Application Enablement Will Be Done from Leading-Edge Technology Partners Through the
Vendor's Ecosystem
© IDC 19
ERP enables quick, global expansion at scale
OUR GUIDANCE
SPEED + INNOVATION
“INTELLIGENT INTELLIGENCE”
BE PREPARED FOR EVERYTHING
Thank you!
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