ERP Connect Supplement 2013 by Optic Juice

ERP The changing landscape of ERP

Cloud ERP Join the Technology Revolution

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ERP 2013 ERP Continues its Journey

What’s in this supplement?

ERP’s journey continues

P4 Prepare for ERP Connect 2013

What questions should prospective ERP buyers ask themselves before meeting with vendors or when reviewing peer case studies? Advice from speakers at ERP Connect

P6 Brave new world

Technophiles are abuzz with the business opportunities presented by non-transactional data and new systems for manipulating its many forms. If ERP cannot handle this new generation of information, has its usefulness come to an end?

Editorial

This report was compiled for The Manufacturer magazine by: Malcolm Wheatley, IT Editor m.wheatley@sayonemedia.com Jane Gray, Editor j.gray@sayonemedia.com

Design

Art Editor Martin Mitchell martin@opticjuice.co.uk

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By any measure, ERP is a mature technology. But mature isn’t the same as moribund, argues Malcolm Wheatley.

he first ERP system to become truly popular – and even then, only with some of the world’s very largest businesses – was SAP’s now venerable R/3. Twenty-one years old this year, its launch marked the beginning of a wave of adoption that would impel software companies as diverse as database vendor Oracle and (the then) desktop computer specialist Microsoft to join SAP as the world’s leading ERP vendors. A lot, clearly, has changed over the ensuing years. Few manufacturing businesses today are without an ERP system, and a rich set of manufacturingspecific offerings from vendors such as Syspro, QAD and Epicor means that few manufacturers’ needs are un-met. Multi-solution vendor Infor, for its part, has hoovered up niche specialists such as MAPICS, Baan, SSA, Lawson and GEAC, breathing new life into products that were seen by some as losing relevance.

Where next? Yet the question of relevance is very, well, relevant. As discussed on (p6), one body of opinion sees ERP being relegated from its central place at the corporate table, as companies see tools such as business intelligence and mobile computing as offering a greater payback. ERP, goes the argument, is just ‘plumbing’, while it is superiority in analytics, mobile data and leveraging social computing that delivers competitive edge. But even if this is true, that plumbing is critical, points out Andrew Spence, supply chain business development director at Oracle. And as with plumbing generally, things don’t work as well without it. What’s more, no one wants

to wind the clock back to pre-ERP days, and re-employ the small armies of people engaged on the mundane clerical tasks that ERP automates. “The question is how you extend ERP, in order to add value in the modern era,” Spence argues. “And the simple fact remains that many manufacturers have a huge opportunity to do just that – through business intelligence and mobile, certainly, but also in joining together different parts of their supply network.”

Extend and expand Gordon Fleming, chief marketing officer at QAD, agrees. “Maybe ERP isn’t seen as new any longer, but that doesn’t mean that all the opportunities that it offers have been fully tapped – far from it,” he says. “There are a host of companies addressing the wealth of data that they see around them. They’re not all at the same point on that journey, or necessarily heading to the same destination, but it’s nonetheless a definite journey.” Indeed, says John Hamman, manufacturing industry principal at SAP, that journey is essentially a continuation of ERP’s history: in scope, functionality and breadth, ERP has always been growing and extending. As American humorist Mark Twain might have put in, the notion that ERP development has slowed, or that ERP is no longer relevant is premature – very premature. “It’s far too soon to put a boundary on ERP,” states Hamman. “We’ve seen it evolve and change over the years, and it’s far too early to suggest that this will somehow stop or slow down.” In short, 21-years old this year, ERP has plenty of life left in it yet. END

Prepare for E

RP Connect, The Manufacturer’s successful series of enterprise technology events, is now approaching its seventh iteration. Frank Crew, principle ERP consultant at BSM Consulting and chair for the March 20 event, sets delegates up to get the most out of the day. ERP Connect represents an opportunity to inform your decision making around IT purchases and to learn from the experiences of others who are already on the ERP journey. The combination of case study presentations from manufacturers who have implemented ERP and focused meetings with ERP software providers will give delegates a perspective from both sides of ERP implementation and capability fence. This is very useful in its own right. But you can gain even more value from the day, by thinking in advance about the

specific information you would like to be able to take away. The type of information is likely to be different depending where you are on the ERP journey: Very early stage – no budget yet in place. For delegates at this stage the day is largely about general education with regard to ERP capability. However, you should also be able to get the ERP providers to give you indicative cost estimates. To help them do this, you should be able to tell them which functional areas of your business would be in scope, how many sites would be involved and how many users you would have. Pre-ERP selection stage – budget in place. Delegates at this stage will most likely have already done some ERP research and the day will really be about picking up tips from the case studies and meeting ERP providers so that an initial shortlist can be made. With regard to the latter, prepare by thinking about

ERP Connect 2013 When: March 20

Where: Northampton Marriott , NN4 7HW Why: You’ll meet with a wide range of relevant vendors, pre-informed of your business needs, to talk through different value propositions, roll out models and payment structures. All this is supported by a programme of case study presentations from UK manufacturers who have already won their spurs in ERP implementation projects in a variety of sectors and business sizes. Find out more at www.erpconnect.co.uk or book your place by calling +44 0207 202 4890.

your key differentiator requirements – you can use these to assess ERP product capability when talking to ERP providers. ERP already implemented, but looking to get more value. Delegates at this stage will have been through the initial implementation process. For them, the day will be about looking for examples of best practice that can be taken and applied to their ERP system. To make this process as effective as possible, delegates should think in advance about areas where their ERP system is not working well (or perhaps where it has not been implemented at all), so that they can question and pick up ideas from the case study presenters. A little forethought and advance preparation will let you use ERP Connect to deliver real value. I look forward to meeting with you on the day.

Sixteen pages of notes is testament to the volume and quality of guidance and support generously offered by all of the speakers at ERP Connect Steve Roper, IT Manager, Unison at ERP Connect 2012

ERP 2013 ERP Connect 2013

Keith Nicholl,

Business Improvement Manager, KMF (Precision Sheet Metal) Limited

To get best value from ERP Connect: Think about the main areas of concern that your business may have about a potential ERP project – ask the case study presenters how their organisation dealt with these concerns When considering differentiator requirements think about areas where you expect your ERP project to deliver measurable benefit – use these to focus your discussions with ERP providers ERP Connect represents a unique opportunity to network and to meet people from similar businesses who have already implemented ERP – Use the event to make contacts that you can talk to in future as you continue on your ERP journey

ERP Connect speaker, Keith Nicholl, business improvement manager at precision sheet metal manufacturer KMF gives his view of how ERP Connect delegates can prepare and what questions they should ask on the day to gain maximum value from the event. Mr Nicholl recently led KMF through an enterprise wide ERP implementation.

“To differentiate vendor offerings and make the most vendor meetings it is critical to think about how closely systems mirror your business operations when you are being guided through them,” says Nicholl. “This is very important if you are to find a ‘best fit’ solution. For example, in a make to order manufacturing business you would be looking for functionality that suits the variability and flexibility of the production system – but with the necessary core functionality to support agile MRP, finance, customer relationship management and so on.” The next step should be to determine which part of the business is the most important to achieve ‘fit’ with. “Consider how close a fit can be achieved in this area without making too many compromises with other system aspects.” Don’t forget to ask vendors straight forward practical questions encourages Nicholl. “What is the lead-time and flexibility with regard to consultant availability and skill set matching? Bear in mind that during the course of an implementation different consultant skill sets will be required at different phases within the project.” Nicholl also says prospective ERP buyers should ask what documentation is available before a decision is reached. “You need information on which to base detailed technical research before you buy,” he says. Finally, there are readiness checks to make before you commit to an implementation. “These are quite simple really and, for me, boil down to three points,” states Nicholl: Really understand, and I mean really understand, your processes Select and make available resources who have the necessary skills, knowledge, experience and influence to enable progress. The team members must understand the processes Ensure that critical data to be migrated to the new system is clean, accurate and representative. Team must understand where the data resides and what it is made up of

Social media has added scope to networking and knowledge sharing at business events. Follow key learning points from presentations and vendor meeting at ERP Connect and exchange observations or experiences with fellow delegates over twitter. Use the hash tag and/or our handle to maximise your insight into twitter content and help us collate comment. #ERPConnect @TheManufacturer

A very useful event. The presentations were very good, displaying a good span of products and projects from those with small user to large user bases Steve Mead, Production Director, Vision Engineering

Having all of the main players in ERP in a single room was a real enabler for me at this early stage of our journey Steve Roper, IT Manager, Unison at ERP Connect 2012

In summary then, Nicholl says a successful ERP selection and implementation journey relies on processes, knowledge, people, fit and data awareness.

Brave new world

The IT landscape is changing. Can ERP remain relevant? Malcolm Wheatley investigates.

ottingham-based Hillarys Blinds manufactures blinds, curtains and awnings – 30,000 different ones a week, sold direct to customers through a network of 950 self employed advisors. Complexity is a major challenge, explains Julian Bond, head of information technology at the company. “There are four million size permutations in half a million combinations of fabric, colour, options and accessories,” he notes. “Multiply the two numbers together, and you begin to see the size of the problem.” A decision in 1999 to move to SAP’s iconic R/3 ERP system was partly driven by Y2K concerns, he relates, but was primarily fuelled by the need to access SAP’s powerful variant configuration tool, identified as the best way for the business to effectively manage the challenges of its complex product offering. “We’ve been on a journey ever since,” he sums up. “We’ve upgraded the core ERP engine, with a further upgrade to SAP ECC 6.0 due later this year, and implemented SAP’s mobile and CRM solutions. “Sales advisors can sit in customers’ homes, take an order with a mobile device, and enter it into the system there and then. Before we went mobile, we used to have an army of people here in Nottingham opening envelopes and keying orders in – entering them directly reduces the cycle time, cuts the error rate, and delivers a faster order-to-cash process.” In short, he sums up, Hillarys has grown rapidly over the last decade, and the decision to move to SAP is seen as fundamental to underpinning that growth.

“ERP is a journey, not a one-off hit,” he stresses. “As our business changes and evolves, the challenge for us is to change and evolve our systems to suit.”

Context It’s a challenge that is writ large in factories and manufacturing businesses across Britain. From social computing to factory floor devices, an explosion of data is providing manufacturers with new insights and productivity-boosting analytics. But in the rush to embrace new analyticsdriven technologies, is there a danger that ERP may lose its pre-eminence in the corporate world, and be regarded as mere transactional plumbing? How can manufacturers maintain the impetus of their drive to derive fresh value for ERP? And how can ERP remain relevant in a world of increasing amounts of

ERP is the bedrock on which the rest of the business is built. Take away ERP, and it just doesn’t work. ERP isn’t losing relevance – it’s gaining fresh and more actionable real-time perspectives Julian Bond, IT Manager, Head of IT, Hillarys Blinds

non-transactional data? Talk to those close to the issue, and a fascinating picture emerges. Far from being sidelined by these new capabilities, they attest, ERP’s business-centric position in the information hierarchy actually provides critical context. “It would be naïve to assume that all the newly-available information in plant-floor systems, social computing and so on can be meaningfully accessed without ERP,” says Paul Saxton, business intelligence architect at Microsoft Dynamics specialist implementation partner eBECS. “There are a lot of answers out there, but fewer questions. ERP provides the context for those questions, and often the questions themselves.” Take, for instance, a manufacturer experiencing quality problems with particular batches of particular products. Plant-floor analytics might highlight tighter tolerances or slower running speeds as causal factors – but

ERP 2013 Brave new world

The issue of nontransactional data hasn’t diminished the value of ERP – if anything, it’s made it more critical. There’s a wealth of unstructured data for which ERP provides a lens that adds focus and context Roman Bukary, Head of Distribution and Manufacturing, NetSuite

only the ERP system provides the context in which to see that the orders are for a particular customer, requiring a particular surface finish. Similarly, machine-to-machine (M2M) communication capabilities add value to ERP by improving business responsiveness through real-time data acquisition – whether that data is coming from mobile devices in the field, or raw material supplies on the factory floor. “Time and again, our customers tell us that M2M is improving their responsiveness and analytics capabilities,” says Chris Warren, director of M2M specialist Wireless Logic. “Whether it’s vending machines dispensing protective equipment, or the running speeds and hours of service of remote equipment, M2M makes ERP richer and more functional than before.”

Roman Bukary, head of distribution and manufacturing at cloud-based ERP vendor NetSuite, agrees. “The issue of non-transactional data hasn’t diminished the value of ERP – if anything, it’s made it more critical,” he asserts. “There’s a wealth of unstructured data for which ERP provides a lens that adds focus and context.”

Forward view Back at Hillarys Blinds, SAP’s Business Warehouse business intelligence and analytics offering provides a case in point. “As a business, we’re very promotionallydriven,” says head of information technology Bond. “As we get better insights into our data, it’s providing answers to questions that we didn’t know we had. Down at ‘the coal face’, in our customers’ homes, we can see precisely how well particular promotions are working. In other words, we can identify a direct link between marketing expenditure, and the results.” Field sales managers, for instance, receive up to the minute performance data showing how well sales advisors are doing in turning leads into orders. If an advisor’s sales suddenly drop, says Bond, the manager can establish the cause right away. And they might discover, for instance, that a local competitor is running a sale. “There and then, he can decide whether to authorise an additional level of discount, or increase advertising spend in the local

newspaper: it’s real-time results, and not a rear-view mirror explaining what happened when it’s too late to do anything about it.” Adrian Simpson, chief innovation officer at SAP UK, agrees. “Manufacturers don’t just make: they sell, too,” he stresses. “And whether it’s sales conversions or things that people are saying in real-time on Twitter or Facebook, manufacturers need to be saying: ‘People are saying something about our products: what are they saying, and how should we be reacting?’.” Hillary’s Bond is in no doubt that ERP will remain central to business as manufacturers explore this brave new world. “ERP is the bedrock on which the rest of the business is built,” he insists. “Take away ERP, and it just doesn’t work. ERP isn’t losing relevance – it’s gaining fresh and more actionable real-time perspectives.” END

Manufacturers don’t just make: they sell, too. When people are saying things in real-time on Twitter or Facebook, manufacturers need to be saying: ‘People are saying something about our products: what are they saying, and how should we be reacting? Adrian Simpson, Chief Innovation Officer, SAP UK

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Moderated by BSM Consulting – independent ERP consultants

Wednesday 20th March 2013, Northampton Marriott Hotel

09:30 to 17:00

Connect with like-minded manufacturing professionals looking for growth and opportunity through advancing their ERP system. If you are looking to install or upgrade your ERP system in 2013/2014, then ERP Connect is vital to ensuring your company has the best solution for it’s needs. By attending, delegates will be able to gain insight and develop their understanding through:

Speakers include:

Inspirational keynotes and case studies: Ensuring you will build the right strategy for implementation and avoid costly mistakes. Structured one-to-one meetings: Helping you to fully understand the market and who can best support your journey.

Allan Behrens, Managing Director, Taxal

Sean Jackson, Managing Director, BSM Consulting

Ben Salder, Head of HR and Change Management, BAE Systems Maritime Submarines

John Shaw, CIO & Head of Information Services, Mainstream Renewable Power Ltd

Reassurance and validation: Support your company’s decision making process through due diligence, research and exposure to best practice in ERP.

Keith Nicholl, Business Improvement Manager, KMF (Precision Sheet Metal) Limited

Networking in a peer-to-peer environment: Meet with fellow professionals to build the knowledge and insight needed for success in your ERP implementation. Leadership and change management strategy: Learn how to win and sustain senior management buy-in and increase workforce engagement for an ERP project that truly transforms your business.

Cy Wilkinson, Managing Director, Cressall

To register a place please contact Benn Walsh on: Tel: 020 7202 7485 Email: b.walsh@sayonemedia.com

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