67% of ERP users want more industry-specific functionality, IFS study reveals
The majority of Enterprise Resource Planning (ERP) users in a survey of industrial executives say they need more functionality for their specific industry.
This need was most pronounced in the most complex and demanding industries, including engineer, procure, and construct contracting, service management-intensive businesses and those for whom management of capital assets for return on capital assets (RoA) are critical.
The study is based on a survey of more than 200 manufacturing and other executives, and the data was analyzed by Cindy Jutras of analyst firm Mint Jutras, Boston. The data indicates that 67 percent of respondents said industry-specific functionality was an important feature for them in enterprise software selection. Moreover, a near identical percentage, 67.1 percent, said they would like to have more industry-specific functionality in their enterprise application. Moreover, 60 percent of respondents said they struggle with functional gaps due to the lack of industry specific functionality in their enterprise solution.
The single group of companies with the most pronounced need for greater specialized functionality was companies where managing return on assets (RoA) is a core discipline. The need for ERP with enterprise asset management (EAM) functionality creates a “perfect storm” that many enterprise solutions do not handle well.
“IFS Applications is simply the strongest product on the market today that offers world class EAM functionality as an integrated part of an ERP suite,” IFS North America President and CEO Cindy Jaudon said. “If operation and maintenance of capital assets like production facilities, aircraft or even distributed assets like windmills is at the core of your business, you really need an enterprise solution that addresses asset management as a strategic discipline rather than an afterthought. It is also noteworthy that those companies that need greater industry-specific functionality are those with the most demanding and complex business models. And that is exactly the type of company for which IFS Applications is best-suited.”
A complimentary copy of the study, The Demand for Industry-Specific ERP, can be downloaded from http://download.ifsworld.com/Studies.
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 industries 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 approximately 60 countries with 2,700 employees in total.