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Posts tagged ‘enosix integration’

CIO’s Guide To The New Economics Of Real-Time Integration

CEOs’ decisions today to pursue digital-first strategies for greater revenue growth are defining their company’s competitive strengths in the future. CIOs and their teams are being challenged to drive a larger percentage of revenue growth in 2017 than ever before by providing IT-based insights daily.

  • Enabling faster revenue growth, improving products and replacing obsolete technologies are the top three CEO priorities have for CIOs in 2017.
  • 42% of CIOs say “digital first” is their company’s go-forward strategy for IT investments in 2017 and beyond.
  • 33% of CIOs consider revenue growth as their primary metric for measuring success with their digital business strategies.

The New Economics Of Real-Time Integration

IT teams are taking on the challenge by concentrating on those areas that can scale the quickest and deliver measurable revenue results. They’re finding that the integration approaches taken in the past don’t match the speed that customers, sales, suppliers and senior management need today. A key takeaway from CIOs’ initial efforts includes the finding that making small improvements in data latency can increase sales win rates in 90 days or less while improving cost controls.  Improving data latency is one of the key factors driving the new economics of real-time integration, which is defined below.

  • Integrations’ Inflection Point Has Arrived – Digital-first initiatives for defining new channel, selling and product strategies require more speed than batch-oriented integration can deliver. Customers now expect real-time response across all sales and support channels on a 24/7 basis. The pressure to drive greater revenue through digital channels and deliver a consistently great customer experience are forcing an inflection point of integration technologies today.
  • Batch-oriented approaches to integration fit well in an era of transaction-centric IT. Asynchronous, tightly-coupled, and relying on ETL for moving data around an enterprise network, these approaches were better suited for more predictable revenue strategies.  In contrast, going after new digital channels is unpredictable and requires real-time integration to deliver excellent customer experiences. Service-oriented frameworks that support synchronous data consumption and have low latency are emerging as a better choice for digital-first revenue strategies. Based on loosely-coupled integration points, these frameworks are capable of quickly adapting to new business requirements. Companies including enosiX are revolutionizing services-oriented frameworks by removing the roadblocks legacy integration approaches created.  The following graphic illustrates integrations’ inflection point and how past approaches to integration are giving way to more synchronous, loosely- coupled service-oriented frameworks capable of scaling faster to drive greater revenue.

  • And it’s fueling faster development cycles, reducing time-to-market and improving app and web services quality. The apps, web services, and APIs needed to launch a digital-first strategy don’t exist off-the-shelf, ready to be deployed for the majority of companies. Every company needs to create customizations to existing apps and web services, or create entirely new ones to support digital revenue strategies. Availability of real-time data through service-oriented frameworks is revolutionizing how apps, web services, and customizations get built. With real-time data designed in, it’s possible to test new apps across more use cases and ensure higher quality too.
  • While also enabling IT teams to exceed stakeholder expectations and their goals for digital-first strategies. Integrations’ inflection point is the most visible in how CIOs are now considered more responsible for revenue than ever before. From the initial revenue strategy definition through project managing apps and web services to delivery and producing revenue, CIOs and their teams who see themselves as business strategists excel in their roles. IT teams and the CIOs who lead them are seeing signs of integration’s inflection point every day. They’re seeing just how urgent the inflection point is, and how it’s redefining the economics of how they orchestrate systems together to attain revenue growth.  The insights and expertise CEOs, VPs of Channel Strategy, Marketing, Cloud & IT Infrastructure, and other senior management team members have needed to get quickly translated into apps, web services and digital first strategies that capitalize fast on new opportunities. Only through the use of service-oriented frameworks that can scale to support new revenue processes can any company compete in 2017 and beyond.

 

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Machine Learning Is The New Proving Ground For Competitive Advantage

  • 50% of organizations are planning to use machine learning to better understand customers in 2017.
  • 48% are planning to use machine learning to gain greater competitive advantage.
  • Top future applications of machine learning include automated agents/bots (42%), predictive planning (41%), sales & marketing targeting (37%), and smart assistants (37%).

These and many other insights are from a recent survey completed by MIT Technology Review Custom and Google Cloud, Machine Learning: The New Proving Ground for Competitive Advantage (PDF, no opt-in, 10 pp.). Three hundred and seventy-five qualified respondents participated in the study, representing a variety of industries, with the majority being from technology-related organizations (43%). Business services (13%) and financial services (10%) respondents are also included in the study.  Please see page 2 of the study for additional details on the methodology.

Key insights include the following:

  • 50% of those adopting machine learning are seeking more extensive data analysis and insights into how they can improve their core businesses. 46% are seeking greater competitive advantage, and 45% are looking for faster data analysis and speed of insight. 44% are looking at how they can use machine learning to gain enhanced R&D capabilities leading to next-generation products.
If your organization is currently using ML, what are you seeking to gain?*

If your organization is currently using ML, what are you seeking to gain?

  • In organizations now using machine learning, 45% have gained more extensive data analysis and insights. Just over a third (35%) have attained faster data analysis and increased the speed of insight, in addition to enhancing R&D capabilities for next-generation products. The following graphic compares the benefits organizations who have adopted machine learning have gained. One of the primary factors enabling machine learning’s full potential is service oriented frameworks that are synchronous by design, consuming data in real-time without having to move data. enosiX is quickly emerging as a leader in this area, specializing in synchronous real-time Salesforce and SAP integration that enables companies to gain greater insights, intelligence, and deliver measurable results.
your organization is currently using machine learning, what have you actually gained?

If your organization is currently using machine learning, what have you actually gained?

  • 26% of organizations adopting machine learning are committing more than 15% of their budgets to initiatives in this area. 79% of all organizations interviewed are investing in machine learning initiatives today. The following graphic shows the distribution of IT budgets allocated to machine learning during the study’s timeframe of late 2016 and 2017 planning.
What part of your IT budget for 2017 is earmarked for machine learning?

What part of your IT budget for 2017 is earmarked for machine learning? 

  • Half of the organizations (50%) planning to use machine learning to better understand customers in 2017. 48% are adopting machine learning to gain a greater competitive advantage, and 45% are looking to gain more extensive data analysis and data insights. The following graphic compares the benefits organizations adopting machine learning are seeking now.
If your organization is planning to use machine learning, what benefits are you seeking?

If your organization is planning to use machine learning, what benefits are you seeking?

  • Natural language processing (NLP) (49%), text classification and mining(47%), emotion/behavior analysis (47%) and image recognition, classification, and tagging (43%) are the top four projects where machine learning is in use today.  Additional projects now underway include recommendations (42%), personalization (41%), data security (40%), risk analysis (41%), online search (41%) and localization and mapping (39%). Top future uses of machine learning include automated agents/bots (42%), predictive planning (41%), sales & marketing targeting (37%), and smart assistants (37%).
  • 60% of respondents have already implemented a machine learning strategy and committed to ongoing investment in initiatives. 18% have planned to implement a machine learning strategy in the next 12 to 24 months. Of the 60% of respondent companies who have implemented machine learning initiatives, 33% are in the early stages of their strategies, testing use cases. 28% consider their machine learning strategies as mature with between one and five use cases or initiatives ongoing today.

Why IT Projects Fail

There are many reasons why IT integration projects fail.  From the lack of senior management support to imprecise, inaccurate goals, IT integration projects fail more often than they have to. Based on consulting I’ve done with system integrators, distribution providers, financial services firms, logistics providers and manufacturers, five core lessons emerge.  One of the most innovative companies taking on these challenges is enosiX, whose customer wins at Yeti Coolers, Vera Bradley, BUNN and others provide a glimpse into the future of real-time integration.

  • Middleware forces IT integration projects to focus only on moving data instead of improving business processes.
  • Not having a clear idea of the goals the integration needs to attain in the first place.
  • Sacrificing application response times, data accuracy and user experience in never-ending middleware projects.

Five Lessons Learned From IT Integration Failures

The following lessons learned are based on my experiences and work with IT departments, Vice Presidents of Infrastructure, Enterprise Systems, Cloud Platforms, CIOs, and CFOs. The lessons learned from them are helping current and future IT integration projects increase the odds of success.

  1. Selecting middleware or an integration platform not capable of offline, mobile use with the ability to synchronize in real-time once connected. The fastest growing areas of Customer Relationship Management (CRM) are being fueled by the real-time availability of data on mobile devices. In Configure-Price-Quote (CPQ) and Quote-to-Cash (QTC) workflows, tethered and untethered use cases dominate. To be competitive, any company relying on these two strategies to sell must have an integration framework capable of delivering data in real-time that enables quick app response times, higher performance, and a better user experience. IT integration projects that don’t take this requirement into account nearly always fail.
  1. Selecting an integration solution that requires time-consuming, expensive training and has a steep learning curve. When a given middleware, integration technology or framework is too difficult for IT to learn and use, projects fail fast. The middleware landscape is littered with companies whose marketing is covering up products that have non-existent to mediocre documentation and learning materials. One of the primary factors behind Salesforce’s exceptional growth is their commitment to making the user experience on their platform immediately scalable to each application developed and launched on it. Within 30 minutes, sales teams are often up and running with new apps, successfully selling as a result. Integration frameworks that don’t force system users to change how they work are the new gold standard and are driving the market forward.
  1. Using middleware for business process logic integration when it is designed for data only. Attempting to use middleware for business process logic workflows can get complex and costly fast. It’s one of the main reasons IT integration projects don’t deliver results. In reality, the most valuable aspects of any integration project are the business processes and supporting logic that is automated, streamlined and tailored to a businesses’ unique needs, revolutionizing it in the process. This point of failure happens when IT architects push middleware beyond its limits and attempt to do what more streamlined integration frameworks are designed to accomplish. Business process logic is core to the future of any IT integration project. It is surprising that more organizations don’t look for integration frameworks that have this capability designed into the core architecture.
  1. Failing to consider how data transfers can be minimized or eliminated in the planning and deployment of an integration project. The more customer-centric a project, the more the variety and depth of data transfers required for the integration to be complete. Data transfers grow exponentially and can challenge the scale of a middleware platform quickly. The most successful IT integration projects aren’t data transfer-intensive, they are business strategy driven. One of the most effective best practices of integration is not having to move the data at all. Using an SOA-based framework as a means to enable data consumption without having to perform lengthy ETL processes is the future of integration. By definition, middleware relies on a series of tightly-coupled integration points designed to move data asynchronously. In contrast, SOA-based frameworks are designed to enable real-time synchronous communication through the use of loosely-coupled connections that can flex in response to business process requirements.
  1. Failure to plan and anticipate how a change in one cloud platform or enterprise application including those running on Salesforce’s Force.com, a SAP R/3 system and other platforms impact the entire company’s IT stability. The VP of Infrastructure for a globally-based gaming and hospitality chain told me he and his team often are given the challenging task of bringing up new casino and hotel operations offices globally in two weeks. He sends in an advance team to determine how best to integrate with any legacy on-premise systems. The team also works to integrate any unique Salesforce apps that need to be included into the main Salesforce instance at the tab level, and to determine how best to integrate into the SAP R/3 procurement system. System security is the highest priority during the integration pilot and go-live work.  The company has standardized on a series of network adapters and connectors that are designed to shield all traffic across the network. He told me that just one API change in the IT stack supporting their SAP R/3 integration would cause all adapters to quit working, report an error condition and force debugging to the line level.  They learned this during a go-live with a Reno property. Today all changes to middleware are run in a pilot mode in a sandbox first, and the company is looking to get away from middleware entirely as a result.

From the enosiX blog post, Why IT Integration Projects Fail.

2017 Is Quickly Becoming The Year Of The API Economy

Shanghai is a high-rise buildings, the rapid development of the city.

This year more CIOs will have their bonuses tied to how many new business models they help create with existing and planned IT platforms than ever before. This trend will accelerate over the next three years. CIOs and IT staffs need to start thinking about how they can become business strategists first, technicians and enablers of IT second. CIOs must create and launch new business models faster to keep their companies competitive. APIs are the fuel helping to make this happen.

The Urgency To Create New Business Models Is Driving API Proliferation

APIs (Application Programmer Interfaces) are the components that enable diverse platforms, apps, and systems to connect and share data with each other.  Think of APIs as a set of software modules, tools, and protocols that enable two or more platforms, systems and most commonly, applications to communicate with each other and initiate tasks or processes. APIs are essential for defining and customizing Graphical User Interfaces (GUIs) too. Cloud platform providers all have extensive APIs defined and work in close collaboration with development partners to fine-tune app performance using them. Amazon Web Services, Facebook, Google, Marketo, Salesforce, SAP Hybris, Twitter and thousands of other companies have APIs available. As of today, the Programmable Web lists 16,590 APIs in its database.

Removing The Hype By Benchmarking API Maturity

Senior management teams need to de-hype the entire issue of APIs as part of their broader business strategies before jumping in to create some of their own. In reality, many APIs are still nascent, emerging from a regular series of test and development cycles with developer partners. APIs also vary drastically regarding stability, reliability, and quality. The majority are aggregations of binary, relatively straightforward commands as they are the easiest to create.

Customer needs are driving the most efficient API development programs. Having a strong focus on the customer and being accountable for how the API’s quality turns out is essential. Customer-centric development is also forcing APIs to scale up faster, providing contextual intelligence and insight over completing simple tasks. These customer-centric APIs are driving greater maturity into development cycles, enabling quicker maturity of API code bases across the board. The following Cloud Platform API Maturity Model provides the context of how APIs must progress to provide greater contextual intelligence to enable prescriptive and cognitive workflows.

api-fuel

What’s Driving 2017’s Ascent To Year Of The API Economy 
The factors driving 2017 to be the year of the API economy are larger than any pending IPO, recent acquisition or merger. They’re the shifts occurring in how APIs are consumed, integrated into platforms and enriched with greater potential to provide contextual intelligence for customers.  The following factors are contributing to APIs rapidly maturing in 2017:

  • Organizations and their IT teams are starting to focus more on unique API consumption strategies first. Being able to orchestrate different APIs together and enable entirely new business processes and models fast is what matters most. Orchestrating APIs and create real-time integration is a challenging task, however, especially between on-premise, legacy systems and cloud platforms and apps. A noteworthy company to watch in this area is enosiX who has proven expertise in providing real-time integration between Salesforce and SAP enterprise systems.
  • APIs are becoming enablers of omnichannel selling and service business models quickly. The most complex APIs are being built within B2B companies who have the goal of providing a contextually intelligent real-time experience across all the channels they sell through. This is a daunting task and one that would be more efficient if each channel’s unique needs to the persona level were taken into account first.
  • The best APIs are starting to reflect requirements to the persona and customer journey level. Individual persona needs must drive API development, and this encompasses the device(s) they use, apps they regularly work with and the workflows across all apps on a platform. When an app or platform provider has anticipated the persona needs and charted customer journeys, it shows in the APIs created. The APIs reflect customer preferences much more clearly and are more efficient in delivering great apps as a result. Providing an API code base that has these features accelerates new app development and opens entirely new channels for selling.

Bottom Line: APIs are most valuable for creating new business models and streamlining selling strategies across all channels. The greatest revenue potential they provide is removing barriers to growing revenue by integrating platforms and apps so organizations can quickly launch new business models and scale fast.

Five Reasons Why Every CIO Needs An Integration Roadmap In 2017

The difference between CIOs who lead and those caught in never-ending reactionary cycles is often a strategic IT plan and integration roadmap. It’s the CIOs who take the time to create and pursue an integration roadmap that has the greatest chance of breaking out of always reacting to IT projects and leading them instead. That’s because the majority of inbound requests center on data, reports or analysis only deliverable by integrating two or more systems together.

Five Ways Integration Roadmaps Are Putting CIOs Back In Control

Based on conversations with CIOs across a variety of industries including manufacturing, distribution, aerospace, financial services, and retailing, five factors emerged that led to creating integration roadmaps and getting in control of IT spending and priorities. I’ve summarized these five factors below:

  1. Integration roadmaps are proving to be an effective catalyst for driving purpose-optimized integration strategies, reducing middleware costs in the process. CIOs who create and continually improve their integration roadmaps are prioritizing purpose-optimized integration strategies to more efficiently scale global operations. Creating real-time integration links between SAP and Salesforce is one example of how CIOs are using purpose-driven integration to reduce customer response times for information, improving customer satisfaction in the process.  Enabling real-time, bi-directional data updates without requiring complex middleware coding and mapping of data is a challenging task, and innovative startups including enosiX are excelling in this area today.
  1. Defining a path for reducing ETL spending and dependence on logs to troubleshoot errors and measure performance.Reducing their dependence on ETL is giving CIOs and their teams much more flexibility in how they manage IT It is also freeing up system analysts to work on new projects instead of troubleshooting integration issues. With no automated error handling or recovery mechanisms, many CIOs are gradually phasing ETL out for more modern integration technologies that eliminate error logs altogether.
  1. Investing in the latest technologies that enable business process and application logic is making IT more responsive, helping them break out of a bureaucratic reputation. When I asked CIOs about the best way to increase responsiveness to internal customers, they wanted integration technologies capable of scaling across the back office and selling systems to make them more responsive. By having integration technologies that enable business process and application logic, the time-consuming, and often error-filled, the task of enabling new business processes manually goes away. And, when IT can react faster, their bureaucratic reputation is also on the way out too.
  1. Choosing to reduce and eliminate hand-built adapters and connectors from their IT infrastructures to free up support funds and time on urgent IT project needs today. One large-scale industrial equipment manufacturer has a staff of software developers and engineers who do nothing but keep adapters and connectors written in ABAP running across their ERP, Manufacturing Execution Systems, quality management, and supply chain systems. With production centers in the Midwestern US, China, and Europe, the ABAP team is always busy but never innovating. They are just ‘keeping the lights on.’ Having an integration roadmap is going to get this manufacturer out of the situation they are in today, which is draining dollars and time from IT.
  1. Move closer to quantifying the value IT delivers by showing how an integration roadmap provides support for cutting maintenance costs, consolidating apps and introducing new platforms. The ROI of IT often hinges on how effective CIOs are at reducing costs and still delivering a median or average level of service. By having a plan in place to attack integration challenges and costs, CIOs can immediately prioritize steps to improve service, reduce costs, and attain department and corporate goals.

Originally published on the enosiX blog, Five Reasons Why Every CIO Needs An Integration Roadmap In 2017. 

5 Ways Integration Is Enabling The Factory Of The Future

  • factory-of-the-future-report93% of global product leaders say that predictive maintenance combined with real-time equipment monitoring enabled by integration is a must-have for factory planning today.
  • 75% of global product leaders plan to implement factory of the future initiatives and programs in the next five years or less, starting with Industry 4.0
  • 67% of automotive executives expect that new technologies enabled by real-time integration will enable their teams to reach and exceed lean management and continuous improvement goals starting this year and accelerating through 2030.

Boston Consulting Group’s recent article, The Factory of the Future provides insights into a recent global survey the consulting firm conducted of more than 750 manufacturing product leaders from leading companies in three industrial sectors: automotive (which includes suppliers and original equipment manufacturers, or OEMs), engineered products, and process industries. The survey’s objective is to define the vision for the factory of the future in 2030.  Determining long-term benefits and the roadmap to implementation are also goals of the study Boston Consulting Group (BCG) and its research partner, the Laboratory for Machine Tools and Production Engineering at RWTH Aachen University, achieved. The Factory of the Future is a vision for how manufacturers should enhance production by making improvements in three dimensions: plant structure, plant digitization, and plant processes.

5 Ways Integration Fuels The Factory Of The Future’s Growth

Real-time integration based on intelligent objects that connect diverse enterprise systems including SAP, Salesforce and others is the foundation that manufacturing companies must adopt to excel in their Factory of the Future efforts. These real-time objects illustrate the future of Application Programmer Interfaces (API).  APIs that will fuel and drive the Factory of the Future will enrich each real-time integration points across manufacturing networks. Intelligent Objects pervasively used today are the precursors to the most valuable APIs that will enable Factories of the Future tomorrow. With APIs continually improving and gaining the capability to provide insight and intelligence, the essential role of real-time integration in all factories of the future becomes clear.

The following are the five ways integration is enabling the Factory of the Future today:

  1. Real-time integration enables the value chains supporting the Factories of the Future to continually accelerate, excel and improve with additional insight that drives future growth strategies. Bringing greater intelligence into each integration point across the value chains supporting the Factories of the Future leads to new technologies delivering greater lean management benefits. Real-time integration will deliver strong benefits in the areas of lean management, predictive maintenance, modular line setups, and the orchestration and collaboration of smart robots.

factory-of-the-future-1

  1. The Implementation Roadmap for the Factory of the Future shows how critical real-time integration is to the Factory of the Future’s vision being attained. Multidirectional layouts, modular line setups, sustainable production, the orchestration of smart and collaborative robotics and attainment of big data and analytics plans all are dependent on real-time integration. The following graphic from the study illustrates just how central integration is to the optimizing of plant structure and plant digitization.

factory-of-the-future-2

  1. By integrating large-scale enterprise systems including those from SAP, Salesforce and others with legacy, 3rd party and homegrown systems, every area of production quality will improve. The most urgent need global manufacturers have is finding new ways to improve product, process and service quality without raising costs. Improving the quality of these three dimensions makes any manufacturer more trusted and successful in selling next-generation products.  By aggregating data using real-time integration so that Big Data and advanced analytics can be used to find new patterns, some of the world’s most well-known manufacturers are excelling on product quality. To produce cylinder heads at its plant in Untertürkheim, Germany, Mercedes-Benz uses predictive analytics to examine more than 600 parameters that influence quality. Mercedes-Benz is an early adopter of using Big Data and advanced analytics to improve quality management and bring high precision to engineering. Bosch has implemented software that analyzes data about its production of fuel injectors in real time. The software monitors process adherence and recognizes trends. It automatically transmits information about deviations to operators, allowing them to improve the process accordingly.
  1. Real-time integration across and within manufacturing systems enables multi-directional layouts of production workflows. The Audi R8 manufacturing facility in Heilbronn, Germany, does not have a fixed conveyor so the teams there has greater multidirectional flexibility in building customized vehicles.  Real-time integration across the Audi factory floor is essential to provide R8 production teams with the specifics of how they can best collaborate and deliver the highest quality vehicles in the shortest amount of time. Real-time integration is enabling driverless transport systems, guided by a laser scanner and radio frequency identification technology in the floor, which moves the car bodies through the assembly process. These systems enable assembly layout changes quickly with no impact on existing production. Enabling real-time integration often involves extensive field mapping between different systems, which is a lengthy and error-prone process. Integration technology provider enosiX has developed a unique, real-time integration technology that obsoletes the need for field mapping and supports bi-directional data updates.
  1. Enabling the Factory of the Future’s production operations to flex in response to rapidly changing customer requirements is entirely dependent on real-time, reliable integration of production and customer-facing systems. The implications of the study on the future of manufacturing underscore just how critical it is for manufacturers to be agile enough to create entirely new business models while gaining insight and intelligence into how they can continually improve lean manufacturing. When real-time integration unifies a value chain for any manufacturer, their speed, scale and ability to simplify the complex processes required to serve customers turns into a formidable competitive advantage.

 

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.

 

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

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