Thursday, September 15, 2011

ERP systems can hamper productivity and business agility, global IFS study says

A global study carried out by IDC on behalf of IFS reveals that less than a third of companies find their enterprise applications intuitive and easy to use. The study examined the importance of usability and flexibility in enterprise applications among companies in the USA, the UK, Germany, France, Benelux, Scandinavia and India.

Today’s global business world is more complex and interconnected than ever, constantly posing new challenges on productivity and business agility. There is therefore a growing demand among companies for enterprise applications that are intuitive and easy to use. The survey clearly shows that ERP providers must improve their software in order to meet these demands.

“The study proves what we at IFS have known for many years: usability and agility are vital for companies in terms of productivity. IFS will therefore continue to focus on usability and user experience as these will be areas of key importance going forward,” IFS CTO Dan Matthews said.

The survey, based on interviews with C-level respondents in seven different industries, verified that usability and flexibility are important considerations when evaluating enterprise application software. The most notable findings were:

  • Less than one third (29%) find their enterprise applications intuitive and easy to use
  • More than half (60%) consider some tasks a waste of time when using the enterprise applications
  • Almost half (45%) expect noteworthy business changes to take place within the coming 12-24 months and 82% of these respondents believe their business applications need modification to support these changes
  • 44% believe their enterprise applications have a negative impact on business agility

Anders Elbak, Research Manager at IDC, commented, “The research clearly proves that while being essential for running a company, enterprise applications are likely to hamper productivity through unintuitive user interfaces, poor integrations, difficult navigation and insufficient search functionality.”

Even though a large majority of companies (60%) considered usability when purchasing a new system—24% of respondents even held it as the most important consideration—less than one third (29%) of all respondents were running intuitive and user-friendly enterprise applications—compared with the 2008 IFS study on the same topic, in which 64% of companies reported usability as an important aspect and 42% regarded their systems as easy to use. This suggests that expectations about how intuitive and user-friendly ERP systems should be have been raised in line with the general trend of ‘consumerization’ of software applications and smartphones—a development that will prioritize usability as a consideration for companies evaluating new systems and as a design factor for software companies.

Learn more about how IFS is working with user productivity and download the survey here.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For more than 47 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company.

More information on IDC is available at www.IDC.com

About IFS

IFS is a public company (OMX STO: IFS) founded in 1983 that develops, supplies, and implements IFS Applications™, a component-based extended ERP suite built on SOA technology. IFS focuses on agile businesses where any of four core processes are strategic: Service & asset management, manufacturing, supply chain and projects. The company has 2,000 customers and is present in more than 50 countries with 2,700 employees in total. Net revenue in 2010 was SKr 2.6 billion.

Contact Information

Vice President Corporate Communications Oliver Pilgerstorfer

Phone: +44 1494 428900

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Head of IR Frédéric Guigues

Phone: +46 8 58 78 45 00

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