Agile Operations, Driven by market needs › futurescape › wp-content › uploads › 2020 › 02 › ... · 2020-02-21 · Agile Operations, Driven by market needs Lorenzo Veronesi

Agile Operations, Driven by market needsLorenzo Veronesi, Research Manager

IDC Manufacturing Insights

Lisbon, February 17th, 2020© IDC

Future of CultureLeadership at Scale

The Shape of the Future Enterprise is Clearer

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Future of Customers

Future of Intelligence

Future of Operations

Future of Work

Empathy at Scale Insights at Scale Operations at Scale Work Model at Scale

IDC Digital Transformation MaturityScape, 2019

Legacy Systems

Manufacturers were called to adopt a multitude of best-of-breed applications beyond the pure ERP to augment business alignment in various areas such as manufacturing, supply chain, business intelligence, B2B.

Provides the necessary infrastructure that forms the transactional system of recordsAs a matter of fact the ERP is primarily focused on financial transactionsMost manufacturers already have it: it’s an essential "commodity" to run the business

Extremely complex interfaces decrease IT efficiency and hinder further business alignment

Legacy Systems

Best-of-breed Applications

ERP“Financial“ ERP

Typical IT landscape in a manufacturing enterprise

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© IDC 4

ERP is instrumental to address data- and efficiencies-related challenges

Key end-user operational challenges

Tracing key metrics across the value chain (e.g. productivity, inventory,

booked vs. billed)

Manual processes causing inefficiencies, errors, inflexibility and

lack of agility

Data accessibility causes operational resources to spend extra time looking backward instead of at

current data

Losing money because of early missing payment discounts, cost savings, and efficient processes

Source: IDC MarketScape Worldwide SaaS and Cloud-Enabled Operational ERP Applications 2019 Vendor Assessment

▪ Does the vendor have experience with my type of industry, product, and operational requirements?

▪ Does the vendor understand the regulations that will impact my business? How are these regulations reflected in my current technology, and how will it change in the future?

▪ What levels of support are available, and are they geographically available for my business?

▪ What are my internal support resources and capabilities?

▪ Should I hire a third party to plan and assist with the implementation of the manufacturing ERP solution?

▪ Is the vendor financially able to provide needed support? Can the vendor support needed investment in the development of future manufacturing ERP software requirements?

▪ Is the vendor committed to this market or industry for the long term?

▪ Is the ROI achievable? Does the vendor have a track record of meeting the ROI requirements?

▪ Can the vendor or partners support global operations?

▪ Can the vendor integrate with my company's other IT systems and those of my partners?

▪ Can the vendor integrate with my company's OT systems, connecting the shop floor with the top floor?

▪ Is the product available anywhere and anytime?

▪ Is the product updated frequently enough for my business needs?

▪ What new innovations is the vendor considering, investing, and tied to with its road map? How and when will it impact manufacturing as a whole and my business?

▪ What is the vendor's strategic investment outlook for the next three to five years? Why?

▪ Will the vendor be a partner, helping my business grow now and in the long term?

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A summary of ERP customer requests

© IDC 6

The pillars of a new generation of ERP

Cloud-based

User-friendly

interfaces

Common data pool

Intelligent ERP

Source: IDC, 2019

▪ i-ERP and intelligent enterprise applications use machine learning (ML), artificial intelligence (AI), and advanced analytics built on a large, curated data set to forecast, track, learn, route, analyze, predict, report, and manage enterprise assets and business processes.

▪ Intelligent ERP and intelligent enterprise applications feature an assistive and conversational user experience and free users' time for higher-value tasks by automating high-volume repeatable tasks and augmenting (via human-machine interaction) the performance of less frequent, more novel tasks.

▪ They are capable of processing, analyzing, and acting on massive volumes of data in real time using in-memory computing (IMC) technologies.

▪ As systems that learn, i-ERP and intelligent enterprise applications must allow for ongoing reconfiguration to enable process refinements and user experience (UX) adaption.

© IDC 7

IDC FutureScape: Worldwide Intelligent ERP 2020Predictions

▪ WHY?• In order to support technology buyers and

vendors in this transition

▪ WHAT? • IDC team has identified top predictions that

will impact business leaders

▪ FOR WHO?• Companies should use these predictions to

help guide their digital business strategy

8© IDC

HOW DOES AN ANALYST COUNT?

1, 6, 3, 10, 2, 5, 4, 8, 7, 9!

© IDC 9


Prediction 1: By 2022, 90% of New Midmarket ERP

System Selections Will Prioritize Analytics, Data, and Prebuilt Cognitive

Business Processes as Critical Differentiating Features That Impact

System Acquisitions

© IDC 10


Prediction 6: By 2024, 80% of New Enterprise Applications Will Be Completely Redesigned to Include New User

Interfaces Aided by Machine Learning and Automation Platforms for a Completely New Look and Feel

© IDC 11


Prediction 3: By 2023, 45% of LOB Leaders Will

Internally Develop Technology Applications, Augmenting Commercially Sourced Applications and Shifting the

Development Cost and Investment from IT to the LOB

© IDC 12


Prediction 10: By 2024, 50% of New ERP Deployments Will Consume Microservices to Perform Core Tasks, and Nearly All Net-New ERP

Deployments Will Consume Some Microservices, While 25% of Legacy Apps

Will Be Refactored

© IDC 13


Prediction 2: By 2025, 50% of Business Applications Will Have Functionality That Does Not Yet Exist; New Solutions Will Support and Bridge Gaps Across the Future of

Work, Intelligence, Innovation, and Customers

© IDC 14


Prediction 5: By 2022, over 75% of Enterprise

Applications Will Be Powered by an Intelligent Core That Analyzes Different Types of Data from a Myriad of Sources

to Improve Decision Making and Business Outcomes

© IDC 15


Prediction 4: By 2021, 25% of ERP Systems Will Be Using AI-Driven Early Discount Rate

Recommendations to Improve Enterprise Cash Flow by 35%

© IDC 16


Prediction 8: By 2021, Driven by a Widening Skills

Gap, 50% of Organizations Will Utilize i-ERP to Capture and Share Tribal

Knowledge of Their More Experienced Employees

© IDC 17


Prediction 7: By 2024, 75% of Digitally Determined

Enterprises Will Be Developing Machine Learning Factories, Which Will Produce Insights from the Digital Core That Can

Be Commercialized

© IDC 18


Prediction 9: By 2023, 70% of Enterprise Application Enablement Will Be Done from Leading-Edge Technology Partners Through the

Vendor's Ecosystem

© IDC 19

ERP enables quick, global expansion at scale

OUR GUIDANCE

SPEED + INNOVATION

“INTELLIGENT INTELLIGENCE”

BE PREPARED FOR EVERYTHING

Thank you!

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Agile Operations, Driven by market needs › futurescape › wp-content › uploads › 2020 › 02 › ... · 2020-02-21 · Agile Operations, Driven by market needs Lorenzo Veronesi