Analysis & Commentary:

TOOLS CAN DRIVE VALUE FROM DATA

In the beginning, enterprise resource planning (ERP) came into its own because companies knew information existed somewhere within the organization but could not get to it because it was scattered all over the place, says Dave Vink, executive director of CS Holdings.

In the next phase, ERP and data warehousing brought all the information together, but there was so much of it that it was impossible to see the wood for the trees, so it was still not very useful. But now ERP can be packaged with other tools such as business intelligence and customer relationship management to drive the value from the data.

Vink says companies can implement Web portals to personalize and present relevant information to users, customers and business partners over the Internet or a corporate intranet.

For example, he says, a production manager can be presented with key performance indicators such as efficiency levels, downtime and production throughput. This information can be presented by coloured indicators showing different statuses. Users can then drill down to detail level to get to the root cause of success or failure.

Predictive intelligence toolsets can be applied to alert management if the company is heading for turbulent waters.

"The initial ERP functionality provided a great foundation for back-office administration, but now the suppliers are taking a more holistic approach," Vink says.

If an ERP system can provide a manufacturer with specific functionality such as advanced planning and scheduling and plant and equipment maintenance, it is easier to demonstrate value.

Some ERP suppliers are taking this a step further by developing tools that provide a bridge between process control and instrumentation and the business systems.

Vink says process control, or manufacturing execution systems, have always been characterised by their real-time nature, whereas financial systems have been transaction-orientated. The two camps have grown up in isolation, but there is now a realization that they must be integrated.

Vink says process control, or manufacturing execution systems, have always been characterized by their real-time nature, whereas financial systems have been transaction-orientated. The two camps have grown up in isolation, but there is now a realization that they must be integrated.