Renowned economist, Michael Porter, says that ‘innovation is the central issue in economic prosperity.’ Seems that those in the Electronics game agree. The Electronics industry is innovating at a ridiculous rate – almost 25 percent of the global research and development investment in 2015 can be traced back to this sector.
Characterized by short product lifecycles, extended supply chains and ever falling prices, the Electronics sector is a highly competitive, constantly evolving environment. Businesses that operate in this space need to be first to market or they are left competing on cost after the fact.
This breakneck pace and zero defect tolerance has created a tech savvy sector that demands consistent, quality service from all of their partners, particularly those providing technology-related solutions.
Bearing this in mind, as well as the fact that unclear benefits have been identified as the biggest obstacle of technology adoption, here are my top five key characteristics for the most effective ERP solution for Electronics manufacturers:
- Software cannot take too long to be developed but needs to be turned around rapidly to gain market traction, an agile approach to releases means benefits are realized faster by end users.
- Companies need to have a culture that enables and encourages innovation to be a success.
- There needs to be personalized customer interfaces. Customers don’t have the patience for technology that is not intuitive and convenient to use.
- The best way to grow margins is to give customers a better experience. Then customers are willing to pay more for innovation.
- Constantly shifting demands and supply chains, especially in the electronics sector, means ERP solutions need to ramp up and down quickly. Windows of opportunity are short and technology solution providers need to respond rapidly.
I believe that information in real time and analytical anticipation can provide deep insight into supply and demand in the market. Game changers, such as the Industrial Internet of Things, are fundamentally changing how the industry conceptualizes, defines, and executes its processes. It is up to ERP vendors to ensure that they keep up or risk missing out.