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The Digital Transformation of Manufacturing Starts with Saas-Based/Cloud ERP

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The Digital Transformation of Manufacturing Starts with Saas-Based/Cloud ERP The Digital Transformation Of Manufacturing Starts With SaaS-based/Cloud ERP FEATURING RESEARCH FROM FORRESTER Vendor Landscape: SaaS ERP Applications, 2017 2 INTRODUCTION Many manufacturers struggle to gain granular visibility to their operations. This is often the result of paper-based processes and reports shifting around the facility. Different people within the organization may track things in Excel, but real-time information is rarely housed digitally in one place at any given time. Visibility is also an issue because manufacturers might be using different systems for different purposes. For example, a finance or accounting system (often ERP) that has no connectivity or connection to the plant floor production systems (SCADA, MES). That means there is a lot of manual work that goes into collecting data, sharing information across the plant (or plants), and giving the right people access to the timely data they need to make decisions. The problem grows exponentially with each additional location. People are forced to be “collectors” rather than strategic problem solvers and manufacturing infrastructure support becomes a bottleneck IN THIS to the real focus of the business: the actual manufacturing itself. DOCUMENT Digital transformation needs to enable manufacturers to control the plant floor, fully connect the 1 The Digital business, and unlock the people potential—the real engine behind every business. Transformation Of Manufacturing Starts With CONTROL THE PLANT FLOOR SaaS-based/ Cloud ERP Manufacturing starts at the plant floor. Period. This is where material moves, product is created, and where the work gets done. Manufacturers must have plant floor control, including access to 4 Research From production information, inventory, quality data, and the ability to quickly adjust to machine status Forrester: Vendor Landscape: across the enterprise. This is very difficult when information is not housed and transmitted digitally, or SaaS ERP when processes and documentation are conducted manually. Applications, 2017 CONNECT EVERYTHING 26 About Plex The plant floor must connect to the rest of the enterprise to make key data accessible and promote rapid, accurate decision-making. Beyond the plant floor, the business should provide connectivity to suppliers and customers. Employees should also have instant access as appropriate to the data they need. Digital transformation delivered by Saas/cloud addresses both problems: controlling the shop floor and connecting everything. By automating paper-based, manual processes, and consolidating information into one database, a single set of accurate data is accessible as needed by the users (and machines) that need it. The key for manufacturers is a cloud ERP that also supports manufacturing execution system (MES) functionality and reporting in a single, connected platform. 3 UNLOCK PEOPLE POTENTIAL Cloud ERP automates production communication and processes freeing up resources to focus on problem solving instead of managing the hassles of legacy systems. Technical people that previously managed IT infrastructure and software systems can pivot to focus on data analysis. Production workers have instant access over any device to production details rather than hunting down and piecing together information. Managers can view, at a moment’s notice, analytics that relate to their role from anywhere, over any device, to stay on top of their business. These capabilities empower employees to work at their best, adding incredible value to the present and future of the business. SaaS-based/cloud ERP is the first step in the continuum of digital transformation in manufacturing. Going paperless, automating processes, and adding granular visibility deliver a seismic shift in the way manufacturing business is conducted while also laying the foundation for future innovation. 4 FOR ApplicatiON DEVELOPMENT & DELIVERY PROFESSIONALS Vendor Landscape: SaaS ERP Applications, 2017 The Shift To SaaS ERP Accelerates As Businesses Adapt To Digital Transformation by Paul D. Hamerman January 23, 2017 Why Read This Report Key Takeaways Software-as-a-service (SaaS) enterprise resource The Digital Disruption Of SaaS Is Transforming planning (ERP) is accelerating as a mainstream The ERP Software Landscape delivery model to help companies gain flexibility Demand for cloud-based ERP solutions is and leverage modern cloud technologies. The growing rapidly as midsize and enterprise clients market landscape is evolving as pure-play SaaS explore alternatives to legacy on-premises ERP providers battle traditional ERP vendors that systems. Pure-play SaaS vendors are seeing are repositioning their offerings for the cloud. increasing traction, while most traditionally on- Application development and delivery (AD&D) premises vendors are moving rapidly to transition leaders and their business partners should assess their business models from license-plus- the viability of their current ERP deployments and maintenance to subscription. consider the rapidly changing ERP landscape as The Market Is Delineated Between SaaS-Only you plan a transition path to the cloud. And Mixed-Mode Players ERP deployment models vary significantly, from SaaS-only to single-tenant cloud. AD&D leaders and their business partners must weigh the benefits of systems designed specifically for multitenant SaaS deployment against mixed- mode versions of traditionally on-premises ERP offerings. Adoption Patterns Vary By Industry And Company Size Midsize and smaller companies in services industries are adopting SaaS ERP rapidly, but the adoption level lags in manufacturing and larger enterprises. We expect adoption to scale up as more robust offerings from leading vendors gain customer success, and vertical-specific offerings will expand as well. FORRESTER.COM 5 FOR ApplicatiON DEVELOPMENT & DELIVERY PROFESSIONALS Vendor Landscape: SaaS ERP Applications, 2017 The Shift To SaaS ERP Accelerates As Businesses Adapt To Digital Transformation by Paul D. Hamerman with Christopher Andrews, Joseph Miller, Bill Seguin, and Andrew Reese January 23, 2017 Table Of Contents Notes & Resources SaaS ERP Increases Speed And Agility For Forrester surveyed 17 ERP vendor companies Digital Transformation on their SaaS ERP offerings and interviewed 12 vendors for this report. In addition, we spoke with Vendors Play A Nuanced Game In Positioning dozens of user companies via Forrester client Cloud And SaaS ERP inquiries related to their ERP needs. The Transition To SaaS ERP Is Driving New Levels Of ERP Competition Related Research Documents SaaS ERP Vendors Range From Global Giants Application Adoption Trends 2016: SaaS Expands To Market Disruptors Across The Enterprise And Across The Globe Recommendations Brief: Oracle’s NetSuite Acquisition Signals A Evaluate SaaS Options To Replace Aging On- Shifting ERP Landscape Premises ERP Systems The SaaS Customer Success Life Cycle What It Means SaaS Will Be The Preferred ERP Deployment Mode Supplemental Material Forrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA 02140 USA +1 617-613-6000 | Fax: +1 617-613-5000 | forrester.com © 2017 Forrester Research, Inc. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. Unauthorized copying or distributing is a violation of copyright law. [email protected] or +1 866-367-7378 6 SaaS ERP Increases Speed And Agility For Digital Transformation The disruptive forces of the digital age are changing how we engage our customers, generate revenue, manage our people, and deliver high-quality products and services. The transition to SaaS delivery models is an essential part of this, as companies migrate from costly and cumbersome on- premises software to SaaS models that are more user-friendly, more agile, and easier to scale. The rapid adoption and success at scale of SaaS solutions for many business functions — from customer relationship management (CRM) to human resources and procurement — is now transforming the software consumption model and the software industry. ERP systems are an essential part of the transformation. They enable AD&D leaders to better integrate operational execution with financial processes — and ultimately create positive outcomes for customers by accelerating value delivery. With core business systems like ERP, leading companies are turning historically batch processes into real-time processes; automating planning and reporting cycles; and integrating the entire revenue stream and procure-to-pay processes seamlessly in the cloud.1 SAAS BENEFITS RANGE FROM EFFICIENCY TO SPEED AND AGILITY The benefits of moving ERP systems from on-premises or hosted deployments to SaaS are significant. Systems built for SaaS typically offer better business flexibility, rapid deployment, and the ability to assimilate new features and technology improvements as soon as vendors release them (see Figure 1). With SaaS as a design point, ERP applications offer more advanced analytics and simplified, mobile- ready user experiences when compared with on-premises systems built a decade or more ago. For example, Microsoft’s SaaS ERP offering, Microsoft Dynamics 365 for Operations, features a touch- enabled user experience and advanced analytics via Microsoft Power BI. With SaaS ERP, AD&D leaders can expect to realize the following key benefits: › Higher business agility and faster
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