Skip to content

Archive for

2017 Is The Year Integration Enables Industry 4.0 Growth

  • industry-40-landscape35% of companies adopting Industry 4.0 predict revenue gains over 20% in the next five years.
  • Data analytics and digital trust are the foundations of Industry 4.0.
  • Cost-sensitive industries including semiconductors, electronics, and oil and gas are the most focused on adopting Industry 4.0, with 80% of companies in these industries saying it is one of their top priorities.

The recent article by Boston Consulting Group (BCG), Sprinting To Value In Industry 4.0, provides insights into how real-time integration between enterprise systems is an essential catalyst for Industry 4.0 growth. Industry 4.0 focuses on the end-to-end digitization of all physical assets and integration into digital ecosystems with value chain partners encompassing a broad spectrum of technologies. BCG surveyed 380 US-based manufacturing executives and managers at companies representing a wide range of sizes in various industries to complete the study.

Industry 4.0 Is  At An Inflection Point Today 

Having attained initial results from Industry 4.0 initiatives, many manufacturers are moving forward with the advanced analytics and Big Data-related projects that are based on real-time integration between CRM, ERP, 3rd party and legacy systems. A recent Price Waterhouse Coopers (PwC) study of Industry 4.0 adoption, Industry 4.0: Building The Digital Enterprise (PDF, no opt-in, 36 pp.) found that 72% of manufacturing enterprises predict their use of data analytics will substantially improve customer relationships and customer intelligence along the product life cycle. Real-time integration enables manufacturers to more effectively serve their customers, communicate with suppliers, and manage distribution channels. Of the many innovative start-ups taking on the complex challenges of integrating cloud and on-premise systems to streamline revenue-generating business processes, enosiX shows potential to bridge legacy ERP and cloud-based CRM systems quickly and deliver results.

There are many more potential benefits to adopting Industry 4.0 for those enterprises who choose to create and continually strengthen real-time integration links across the global operations. Recent research completed by Boston Consulting Group and PwC highlight several of them below:

  • Manufacturers expect to gain the greatest value from Industry 4.0 by reducing manufacturing costs (47%), improving product quality (43%) and attaining operations agility (42%). 89% of all manufacturers see an opportunity to use Industry 4.0 to improve manufacturing productivity. Reducing supply chain costs (37%), enabling product innovation (33%) and attaining faster time-to-market (31%) are the next level of benefits manufacturers expect to attain. The following graphic provides an analysis of where manufacturers see Industry 4.0 having the greatest impact on their organizations.

 industry-40-image-1

  • Manufacturers are gaining the greatest value from Industry 4.0 by creating pilot projects that create flexible, agile real-time platforms supporting new business models with real-time integration. Industry 4.0’s focus on enabling end-to-end digitization of all physical assets and integration into digital ecosystems relies on real-time integration to succeed. For manufacturers in cost-sensitive industries, the urgency of translating the vision of digital transformation into results is key to their future growth. The more competitively intense an industry, the more essential real-time integration

industry-40-image-2

  • Investing in greater digitization and support for enterprise-wide integration is predicted to increase 118% by 2020 in support of Industry 4.0. 33% of manufacturers surveyed report they have a high level of digitization today, projected to increase to 72% by 2020. The leading areas of these investments include vertical value chain integration (72%), product development and engineering (71%), and customer access including sales channels and marketing (68%).
  • New product development and optimizing existing products and services are the greatest areas of growth potential for analytics and Big Data using Industry 4.0 technologies and integration strategies through 2020. Industry 4.0 is revolutionizing the use of analytics and manufacturing intelligence, setting the foundation for greater optimization of overall business and control, better manufacturing, and operations planning, greater optimization of logistics and more efficient maintenance of production assets and machinery. By better orchestrating these strategic areas, manufacturers are going to be able to attain levels of accuracy and responsiveness to customers not achievable before.
  • Globally, manufacturing enterprises expect to gain an additional 2.9% in digital revenues per year through 2020, with digitizing their existing product portfolios (47%) leading all other strategies, further underscoring the need for real-time integration. Introducing an entirely new digital product portfolio is the second most common strategy (44%) followed by creating and offering new digital services to external customers (42%). Just over a third (38%) plan to create and sell big data analytics services to external customers.

 

Advertisements

3 Ways To Improve Selling Results With SAP Integration


sap-integration
The more integrated the systems are supporting any selling strategy, the greater the chances sales will increase. That’s because accuracy, speed, and quality of every quote matter more than ever. Being able to strengthen every customer interaction with insight and intelligence often means the difference between successful upsells, cross-sells and the chance to bid and win new projects. Defining a roadmap to enrich selling strategies using SAP integration is delivering results across a variety of manufacturing and service industries today.

Getting more value out of the customer data locked in legacy SAP systems can improve selling results starting with existing sales cycles. Knowing what each customer purchased, when, at what price, and for which project or location is invaluable in accelerating sales cycles today. There are many ways to improve selling results using SAP integration, and the following are the top three based on conversations with SAP Architects, CIOs and IT Directors working with Sales Operations to improve selling results. These five approaches are generating more leads, closing more deals, leading to better selling decisions and improving sales productivity.

 3 Ways SAP Integration Is Improving Selling Results

  1. Reducing and eliminating significant gaps in the Configure-Price-Quote (CPQ) process by integrating Salesforce and SAP systems improves selling and revenue results quickly. The following two illustrations compare how much time and revenue escape from the selling process. It’s common to see companies lose at least 20% of their orders when they rely on manual approaches to handling quotes, pricing, and configurations. The greater the complexity of the deal is the more potential for lost revenue.  The second graphic shows how greater system integration leads to lower costs to complete an order, cycle time reductions, order rework reductions, and lead times for entire orders dropping from 69 to 22 days.

3 Ways To Improve Selling Results With SAP Integration

3 Ways To Improve Selling Results With SAP Integration

  1. Having customer order history, pricing, discounts and previously purchased bundles stored in SAP ERP systems integrated into Salesforce will drive better decisions on which customers are most likely to buy upsells, cross-sells and new products when. Instead of having just to rely on current activity with a given customer, sales teams can analyze sales history to find potential purchasing trends and indications of who can sign off on deals in progress. Having real-time access to SAP data within Salesforce gives sales teams the most valuable competitive advantage there is, which is more time to focus on customers and closing deals.  enosiX is taking a leadership role in the area of real-time SAP to Salesforce integration, enabling enterprises to sell and operate more effectively.
  1. Improving Sales Operations and Customer Service productivity by providing customer data in real-time via Salesforce to support teams on a 24/7 basis worldwide. The two departments who rely on customer data more than sales need to have real-time access to customer data on a 24/7 basis from any device at any time, on a global scale. By integrating customer data held today in SAP ERP and related systems to Salesforce, Sales Operations, and Customer Service will have the visibility they’ve never had before. And that will translate into faster response times, higher customer satisfaction and potentially more sales too.

Additional Reading:

Accenture, Empowering Your Sales Force

Aberdeen Group, Configure-Price-Quote: Best-In-Class Deployments that Speed The Sale

Aberdeen Group, Configure/Price/Quote: Better, Faster Sales Deals Enabled

Aberdeen Group, Sales Enablement Advances In Configure/Price/Quote Solutions

Forbes, What’s Hot In CRM Applications, 2015: Why CPQ Continues To Accelerate

Forbes,  Cloud-Based CPQ Continues To Be One Of The Hottest Enterprise Apps Of 2016

Forbes, Five Ways Cloud-Based CPQ Increases Sales Effectiveness And Drives Up CRM Adoption

The Sales Management Association,  The Impact of Quoting Automation: Enabling the Sales Force, Optimizing Profits, and Improving Customer Engagement

5 Ways Real-Time Mobile Apps Delight Customers And Streamline Manufacturing

  • 2017-mobile-apps-in-manufacturingProviding real-time responses 24/7 on any mobile device anywhere is the new normal in 2017.
  • 54% of B2B companies selling online report that their customers are using smartphones to research purchases, and 52% say that their customers are using smartphones to buy online
  • The majority of CEOs (86%) see mobility as essential to creating and sustaining a competitive advantage.
  • Industrial manufacturing CEOs prioritize mobility (73%), cybersecurity (72%) and data mining and analysis (70%) as their top three priorities for attaining competitive advantage.

PriceWaterhouse Coopers (PWC) annually surveys global CEOs to learn about their current and future priorities, plans and technology adoption trends. PwC’s 18th Annual Global CEO Survey (free, no opt-in) is based on interviews with 1,322 CEOs located in 77 countries. The survey provides valuable insights into the strategic direction enterprises are taking with technology investments.

The following graphic from the report illustrates the strategic importance CEOs are placing on mobile technologies:

Competing On Accuracy, Speed And Responsiveness Is How You Win Today

CEOs at the world’s leading industrial manufacturing companies share a common focus on how to continually improve the accuracy, speed, and responsiveness of their companies using mobile technologies. A recent study by research firm Forrester shows that 54% of B2B companies selling online report that their customers are using smartphones to research purchases, and 52% say that their customers are using smartphones to buy online.

Being ready to respond with complete quotes, pricing, order status, delivery dates, updated service information on a 24/7 basis on any device anywhere is the new normal. Amazon’s ability to take orders, process, ship and deliver them in some cases all within 24 hours is driving up expectations in B2B selling too.  And a key part of making sure you can compete in 2017 and beyond is by having an integrated mobile apps strategy that provides customers the information they need when they need it.

The following are five ways real-time mobile apps delight customers and streamline manufacturing:

  1. Enabling configure, price and quoting (CPQ) apps to provide real-time updates on any device, anywhere wins more deals and keeps customers sold on doing business with you. According to a recent Gartner study, the competitor in any deal who is the first to produce a quality quote will win the deal 70% of the time. Given the competitive intensity around delivering the first, highest quality quote possible, having mobile apps that are based on real-time Salesforce and SAP integration is a must-have. From the very first interaction with any new prospect to closing a sale, having mobile apps that deliver real-time information gained through CRM and ERP integration is key.
  1. Being able to answer “When will my order ship?” anytime, anywhere on any device, at any time is what it takes to win and keep customers today. It’s time to challenge the outdated assumption that customers only want to speak with you when your legacy systems are available. The best manufacturers are modeling Amazon today, providing real-time alerts on when orders are being prepared to ship, providing e-mail and text alerts and delivery times and shipping information. Mobile apps need to be used to extend past the boundaries of legacy systems that don’t meet the minimum expectations of customers today. The CEO of an electrical machine manufacturer told me that once he was able to launch mobile apps for his customers, there was a 76% reduction in order status calls to the enterprise sales teams and 13% increase in sales the first six months these apps were available.
  1. Getting in control of quality and being able to manage customer expectations and relationships to positive outcomes with accurate data. Quality, compliance, inbound inspection and quality assurance are applications that often are isolated from CRM, ERP and customer service systems. The lack of integration between these systems wastes valuable time in getting back to customers on how best to solve quality problems and address questions they may have. That’s why it’s so important to have compliance, product quality, and quality assurance data delivered on mobile apps in a context the customer can use. Having this data available over mobile apps, enabled for customers’ use via Salesforce integration, reduces problem escalations and provides greater accuracy. Enabling quality data on mobile apps also helps to unify operations and production, giving everyone on the shop floor visibility into quality levels of order and long-term, over product lines being produced. Making data and reporting available company-wide often requires integration to SAP ERP and legacy systems, with companies including enosiX emerging as market leaders.
  1. Reducing Field Service call cancellations and delays by accurately communicating parts and staffing requirements shows respect for your customers. There is nothing more frustrating from a customer’s perspective than waiting for a field service technician to show up, only to find they don’t have the necessary parts or are told the problem was completely different than the one that needs to be solved. By enabling Salesforce integration with field service apps and providing customers with real-time alerts to their mobile devices via an app, field service calls can lead to solved problems and higher customer satisfaction faster.
  1. Providing customers with real-time updates via mobile apps on delivery dates driven by supply chain conditions helps in managing expectations while giving production planners the information they need to meet demand. Manufacturers whose business models rely on rapid inventory turns, tight production schedules, and thin margins are the leading early adopters of mobile technologies for logistics and supply chain coordination. Enabling mobile apps to provide the latest updates on Available-To-Promise (ATP), Capable-To-Promise (CTP) requires SAP integration across the Salesforce platform. Being able to provide updates on how suppliers are potentially impacting their delivery dates on orders is invaluable in managing expectations over the long-term.

McKinsey’s 2016 Analytics Study Defines The Future Of Machine Learning

  • U.S. retailer supply chain operations who have adopted data and analytics have seen up to a 19% increase in operating margin over the last five years.
  • Design-to-value, supply chain management and after-sales support are three areas where analytics are making a financial contribution in manufacturing.
  • 40% of all the potential value associated with the Internet of Things requires interoperability between IoT systems.

These and many other insights are from the McKinsey Global Institute’s study The Age of Analytics: Competing In A Data-Driven World published in collaboration with McKinsey Analytics this month. You can get a copy of the Executive Summary here (28 pp., free, no opt-in, PDF) and the full report (136 pp., free, no opt-in, PDF) here. Five years ago the McKinsey Global Institute (MGI) released Big Data: The Next Frontier For Innovation, Competition, and Productivity (156 pp., free no opt-in, PDF), and in the years since McKinsey sees data science adoption and value accelerate, specifically in the areas of machine learning and deep learning. The study underscores how critical integration is for gaining greater value from data and analytics.

Key takeaways from the study include the following:McKinsey Analytics

  • Location-based services and U.S. retail are showing the greatest progress capturing value from data and analytics. Location-based services are capturing up to 60% of data and analytics value today predicted by McKinsey in their 2011 report. McKinsey predicts there are growing opportunities for businesses to use geospatial data to track assets, teams, and customers across dispersed locations to generate new insights and improve efficiency. U.S. Retail is capturing up to 40%, and Manufacturing, 30%.  The following graphic compares the potential impact as predicted in McKinsey’s 2011 study with the value captured by segment today, including a definition of major barriers to adoption.

uneven-progress

  • Machine learning’s greatest potential across industries includes improving forecasting and predictive analytics. McKinsey analyzed the 120 use cases their research found as most significant in machine learning and then weighted them based on respondents’ mention of each. The result is a heat map of machine learning’s greatest potential impact across industries and use case types.  Please see the report for detailed scorecards of each industry’s use case ranked by impact and data richness.

machine-learning-impact

  • Machine learning’s potential to deliver real-time optimization across industries is just starting to evolve and will quickly accelerate in the next three years. McKinsey analyzed the data richness associated with each of the 300 machine learning use cases, defining this attribute as a combination of data volume and variety. Please see page 105 of the study for a thorough explanation of McKinsey’s definition of data volume and variety used in the context of this study The result of evaluating machine learning’s data richness by industry is shown in the following heat map:

rich-data-is-an-enabler

  • Enabling autonomous vehicles and personalizing advertising are two of the highest opportunity use cases for machine learning today. Additional use cases with high potential include optimizing pricing, routing, and scheduling based on real-time data in travel and logistics; predicting personalized health outcomes, and optimizing merchandising strategy in retail. McKinsey identified 120 potential use cases of machine learning in 12 industries and surveyed more than 600 industry experts on their potential impact. They found an extraordinary breadth of potential applications for machine learning.  Each of the use cases was identified as being one of the top three in an industry by at least one expert in that industry. McKinsey plotted the top 120 use cases below, with the y-axis shows the volume of available data (encompassing its breadth and frequency), while the x-axis shows the potential impact, based on surveys of more than 600 industry experts. The size of the bubble reflects the diversity of the available data sources.

machine-learning

  • Designing an appropriate organizational structure to support data and analytics activities (45%), Ensuring senior management involvement (42%), and designing effective data architecture and technology infrastructure (36%) are the three most significant challenges to attaining data and analytics objectives. McKinsey found that the barriers break into the three categories: strategy, leadership, and talent; organizational structure and processes; and technology infrastructure. Approximately half of executives across geographies and industries reported greater difficulty recruiting analytical talent than any other kind of talent. 40% say retention is also an issue.

barriers-to-analytics-and-machine-learning-adoption

  • U.S. retailer supply chain operations who have adopted data and analytics have seen up to a 19% increase in operating margin over the last five years. Using data and analytics to improve merchandising including pricing, assortment, and placement optimization is leading to an additional 16% in operating margin improvement. The following table illustrates data and analytics’ contribution to U.S. retail operations by area.

us-retail-data-sheet

  • Design-to-value, supply chain management and after-sales support are three areas where analytics are making a financial contribution in manufacturing. McKinsey estimates that analytics have increased manufacturer’s gross margins by as much as 40% when used in design-to-value workflows and projects. Up to 15% of after-sales costs have been reduced through the use of analytics that includes product sensor data analysis for after-sales service. There are several interesting companies to watch in this area, with two of the most innovative being Sight Machine and enosiX, with the latter enabling real-time integration between SAP and Salesforce systems. The following graphic illustrates the estimated impact of analytics on manufacturing financial performance by area.

manufacturing

%d bloggers like this: