Enterprise Resource Planning (ERP) software is expected more and more to meet specific industry needs. This study reveals heavy demand for more specific ERP functionality particularly for enterprise asset management (EAM) and service management functions.

1. IFS ERP Survey: Industry
Specific Fit and Functionality
Overview

2. Background
In the fall of 2011, a study was
conducted among manufacturing This study was
executives and professionals of middle conducted by IFS
market to large manufacturers to better North America
understand their need for industry- and Mint Jutras
specific functionality and how well , an independent
those needs are being met. research-based
consulting firm
This study illuminates: that specializes in
• The importance of industry-specific analyzing the
functionality business impact
• How well those needs are met of enterprise
applications
• What impact lack of fit has on the
business

3. Major Areas Explored
 How important is industry- Applications included:
specific functionality?  Enterprise Resource
Planning (ERP)
 How well do current applications  Customer
Relationship Mgt
fit their needs? (CRM)
 How do manufacturers respond  Enterprise Asset
Management (EAM)
to functional gaps  Project/Portfolio
Mgt (PPM)
 How do functional gaps impact  Supply Chain Mgt
their business? (SCM)

4. Key Findings
• 67% of those surveyed indicate they required industry-
specific functionality and even 29% of those that did not
expressed a desire fore it
• Those who require industry-specific functionality:
– Are 12% less likely to have implemented ERP, but more likely to
have implemented other applications
– Rate the fit of their current applications only slightly lower than
those who have no industry-specific needs
– Gaps are filled with additional applications and spreadsheets
– But gaps in functionality add risk and present barriers to serving
customers

5. Type of Business
Process Mfg 38%
Discrete Mfg 36%
Other 12%
Consultant 7%
Contracting/Industrial Projects 5%
Utility 1%
0% 10% 20% 30% 40%

6. Type of Business
Industry-specific functionality is important
All Other, 28% Discrete
MFG, 29%
Process
MFG, 42%
Industry-specific functionality is NOT important
All
Other, 21%
Discrete
MFG, 50%
Process
MFG, 28%

7. Importance of Industry-Specific
Functionality
80%
67% 67%
60%
60%
40%
20%
0%
Desire more industry-specific functionality
Industry-specific functionality an importantcaused by Industry-specific Req'ts
Functional Gaps factor
Basis of Data Cut: Yes
Industry-specific
Functionality is Required

8. Profile of those needing
industry-specific functionality
Yes No
50% 48%
45% 44% 45% 44%
42% 43% 43% 43%
40% 37%
33% 32%
30% 26% 28%
20%
10%
0%
Batch Process Asset Continuous Custom Engineer to Make to Order Repetitive
Management Process Manufacturing Order Manufacturing
On a macro level there is not much difference, therefore the
industry influence are at a more granular level in terms of
processes, customer requirements, compliance, regulatory, etc.

9. Profile of those needing
industry-specific functionality
Yes No
40% 36%
32%
30% 26%
21%
20% 18%
16% 15% 16%
11% 10%
10%
0%
Configure to Order Depot Repair Design Fabricate Engineer Procure Service
Construct Construct Management
More significant differences in customer facing methodologies. The
three to the right signal more intimate interaction with customers

10. Profile of those needing
industry-specific functionality
Basis of Data Cut: Yes
Industry-specific
Yes No Functionality is Required
75% 71%
68%
65%
50%
50%
25%
Large, high-value, and Managing RoA is a core
complex projects discipline

11. Desire for More
Yes No
Basis of Data Cut: Yes
85% Industry-specific
90%
Functionality is Required
60%
29%
30%
0%
"Would like to have" more industry-
specific functionality
While the majority of those who require industry specific
functionality would like more, even 29% of those who do not
require it, desire it.

12. What are they using now?
Yes No Basis of Data Cut: Yes
90% 85%
75% Industry-specific
Functionality is Required
60%
41% 44% 40%
36% 35% 32%
30% 19% 16%
7% 5%
0%
ERP CRM PPM EAM SCM Other
Somewhat less likely to have implemented ERP, but not other
applications. ERP is most likely to be impacted by industry-specific
processes and practices. Not finding the appropriate solution can
prevent investment.

13. How well do they fit now?
Basis of Data Cut: Yes
Yes No Industry-specific
Functionality is Required
4 3.8 3.8
3.6 3.7 3.7 3.6 3.7 3.7
3.5
3.4
3
2
ERP CRM PPM SCM EAM
1 Poor (many functional gaps on a daily basis)
2 Deficient (prevents us from growing)
3 Neutral
4 Good (Does most of what our industry needs)
5 Excellent (no functional gaps)

14. How do gaps hurt your
business?
We are doing non value added work like
double entry in multiple systems, negatively
58%
impacting productivity 63%
We do not have real time visibility, increasing 53%
risk 44% Increased
risk
We cannot grow our business as quickly as we 23%
would like 23%
We are limited in our ability to serve the 28%
customer 9%
Basis of Data Cut: Yes
5% Yes
Other (please specify) Industry-specific
5% No Functionality is Required
0% 25% 50% 75%

15. How do you deal with
functional gaps?
56%
Basis of Data Cut: Yes
60%
Yes No Industry-specific
50% 47%
Functionality is Required
40%
30% 26%
20% 18%
20% 12%
10% 4% 6% 5% 5%
2% 0%
0%
We run more We perform We perform We modify the We create our Other (please
than one extensive work inextensive work in source code of own specify)
enterprise spreadsheets paper-based enterprise custom, “home
application to get and other tools systems software grown”
everything we outside of our applications
need enterprise
application

16. About IFS
IFS is a public company (OMX STO: IFS) founded in
1983 that develops, supplies, and implements IFS
Applications™, a component-based extended ERP
suite built on SOA technology. IFS focuses on agile
businesses where any of four core processes are
strategic: Service & asset
management, manufacturing, supply chain and
projects. The company has 2,000 customers and is
present in more than 50 countries with 2,700
employees in total.

17. IFS ERP Survey: Industry
Specific Fit and Functionality
Contact Information:
Charles Rathmann, Analyst
IFS North America
262.317.7419
chuck.rathmann@ifsworld.com