MANUFACTURING SOFTWARE MARKET LOOK
ERP and Manufacturing Software Survey Cites Dissatisfaction
Analyst firm IDC, a provider of global IT research and technology advice, conducted a survey covering the enterprise applications investment strategies and adoption trends of 250 mid-market manufacturing and distribution companies during the first quarter of 2008. The survey results provide the most current look at the effectiveness and satisfaction of enterprise resource planning (ERP) software and manufacturing software solutions.
The survey quantified a growing dissatisfaction with currently installed ERP software and manufacturing software solutions. Survey participants indicate that currently used ERP and manufacturing software applications often lack the flexibility, functionality and automation capabilities to support business process requirements and cost controls needed in the current economic climate. Approximately one quarter of the respondents claimed their dissatisfaction with their current business software solution capabilities had moved from 17 percent dissatisfied to 25 percent dissatisfied from 2007 to 2008.
Survey participants cited both aging and piecemeal business software applications and an increased trend in replacing obsolete or ineffective software applications with newer and more proven applications. Further, despite a more cautious economic outlook, many participants planned ERP software selection projects and follow-on implementations in the near term as a method to lower costs and better utilize human resources both on the shop floor and in the IT department.
The factors most cited for seeking new ERP software applications included the following:
- Business process improvement (26%)
- Cost reduction (17%)
- Lean manufacturing functionality (12%)
- Better inventory management control (10%)
- Enhanced distribution and supply chain functionality (9%)
- Additional accounting software capabilities and functionality (7%)
- System scalability (6%)
- Compliance and regulatory requirements support (6%)
- Interoperability with disparate systems (3%)
- Additional business intelligence (BI) functionality including analytics and custom reporting (3%)
Completed survey results also indicated that 70 percent of the participants prefer industry specific business software solutions that are designed to meet their unique vertical market requirements. Manufacturing and ERP software vendors have historically focused their business software application suites among the two broadest capabilities of discrete or process manufacturing solutions. However, there is a clear and growing trend among software manufacturers to offer more vertically focused solutions as well as tap into the high growth software as a service (SaaS) market.
Manufacturing Software Market
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