Why Do Manufacturers Use Less Than 30% Of Their ERP Capabilities?

Sept. 7, 2006
While two thirds of manufactures report choosing their ERP systems based on functionally, in reality they use only 26.6% of the available features and functions. The study, "The ERP In Manufacturing Benchmark," produced by Boston based Aberdeen Group, ...

While two thirds of manufactures report choosing their ERP systems based on functionally, in reality they use only 26.6% of the available features and functions. The study, "The ERP In Manufacturing Benchmark," produced by Boston based Aberdeen Group, surveyed more than 1000 companies, including Johnson Controls, Delphi, Schlumberger, Tyco Electronics, Ford and Lockheed Martin.

"The chief ERP implementation challenges were associated with the alignment of business processes and software capabilities. Companies struggle to balance customization related issues with business process re-design amidst costs associated with upgrades, replacements, consolidation and latent integration costs," said Cindy Jutras, vice president, manufacturing & ERP research at the Aberdeen Group.

Jutras offers manufacturers recommendations for ERP strategies:

  • Balance aligning business processes to software capabilities against aligning software capabilities to business processes. This maximizes benefit and allows for business evolution.
  • Consolidation decisions must carefully weigh the business value brought to the enterprise.
  • Resist replacement strategies that simply duplicate business processes currently in place.
  • Don't fall into the trap of believing an ERP implementation is ever completely done.

To obtain a copy of the report, visit: http://www.aberdeen.com/summary/report/benchmark/RA_ERP_CJ_3361.asp

Interested in information related to this topic? Subscribe to our twice-monthly Information Technology eNewsletter.

Popular Sponsored Recommendations

Beware Extreme Software

Sept. 24, 2023
As a manufacturer, you understand the importance of staying ahead of the curve and being proactive in your approach to technology. With the rapid pace of change in the industry...

Process Mining For Dummies

Nov. 19, 2023
Here it is. Everything you need to know about process mining in a single book, written in the easy-to-understand, hard-to-forget style that ‘For Dummies’ manages so effortlessly...

Legacy Phone Lines Are Draining Your Profits

Oct. 30, 2023
Copper wire phone line expenses that support emergency devices could be costing your company millions of dollars in wasteful overhead expenses. Rates have been skyrocketing while...

The Benefits of Continuous Thermal Monitoring

Oct. 17, 2023
Read this eBook to learn more about collecting and using data intelligently to improve performance.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!