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by Lauren Gibbons Paul, Contributing Editor   | Abstract: | Following widespread ERP investments a decade ago, many manufacturers are finding that they now need to spend more to fill functional gaps left by enterprise software. This time, business managers are driving the technology purchases. |
 A decade or so after making major investments in enterprise resource planning (ERP) systems, many manufacturing executives are getting more involved in the decision to buy applications that fill gaps left by the major enterprise applications, according to AMR Research Inc. Manufacturers are beginning to spend substantial money on global trade, logistics management, inventory optimization, and warehouse management — functions that are outside the core ERP systems, says Jane Barrett, research director for AMR. Unlike the ERP implementations, however, line of business (LoB) managers are getting intimately involved in these purchases — from selection, to implementation, to ensuring the promised return on investment (ROI). This trend is the natural consequence of businesses having spent millions on ERP without anyone on the business side stepping up to be accountable for the long-promised benefits, according to Roddy Martin, general manager and vice president of value chain strategies for AMR Research. "For the past few years, the IT organization has been whacking in systems without the necessary leadership from the business side. They did not play a role in putting in these big IT investments," Martin says. "Now the business has woken up. They're saying, 'We spent $2 billion on SAP, and we're not sure we got the business value.' They have not played the role they should have played to ensure ROI. Now they want to take leadership of IT to get value back from these investments." [Click to continue] |