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Transforming manufacturing: How Epicor ERP helps the CIO harness the power of change

An executive briefi ng brought to you by Epicor


02 Executive Briefi ng Executive Summary

Executive summary

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In this paper, we will show how innovative technology has had a major impact on the manufacturing sector in general and on the role of the CIO in particular.

Where previously IT was a service operation supporting the business, today without advanced technologies, there might not be a business.

ERP has been a signifi cant driver in this seismic shift. It has enabled greater real-time visibility, not simply within an organisation, but across an entire supply chain.

This has made it possible for executives and managers to make more informed decisions, react effectively against the threats posed by globalisation and strive towards operational excellence and profi tability.

Thanks to ERP and other advanced technology tools, the CIO is no longer limited to IT, or to an ‘Improver’ role. The CIO’s position as a transformative business leader undoubtedly brings new pressures—but it also brings signifi cant rewards, both personally and professionally. However to be able to transform, you need vision.

Epicor ERP, uniquely positioned as a Visionary in the Gartner® Magic Quadrant™ for Single-Instance ERP for Product-Centric Midmarket Companies¹, helps you to clearly anticipate the business world ahead. Architected to meet the needs of the manufacturing sector, Epicor ERP offers a world-proven, fl exible, modular solution that can be tailored to specifi c industry requirements.

1 Gartner Inc. “Magic Quadrant for Single-Instance ERP for Product-Centric Midmarket Companies” by Christian Hestermann, Chris Pang and Nigel Montgomery, June 27, 2012.


02 Executive Briefi ng

Section 1 Technology no longer serves the business:Technology is the business

Section 1

Only a few years ago IT and business had a well-defi ned supplier/customer relationship, with IT responding and reacting to the demands of the executive suite.

Today, technology and commerce are so interdependent that they must be viewed as one entity.

Advances in technology, and a growing realisation of its capabilities have gone a long way towards acceptance of this new norm.

In virtually every sector new tools and applications have powered enormous progress in areas such as productivity, cost reduction and speed to market. This progress is as a result of technology that has evolved from a transactional past to focus on an operational future.

Nowhere is this more true than in manufacturing, which has met the threat of globalisation head on with technology.

Here, ERP has played a signifi cant operational role by improving the speed and effi ciency of processes, and by enabling greater visibility into the business for faster, better-informed decision making.

Expansion into new markets and subsequently managing changing business models means that executives rely on ERP systems to provide a view of the entire supply chain.

Indeed as globalisation continues to create heightened competition in the manufacturing marketplace, ERP systems need to be more fl exible, agile and responsive to help carve out differentiators in customer service and innovative business models.

In other words ERP should be an enabler, embedded in the business.

Seeing the business impact of these solutions, applications, and underlying technology has largely been the role of the CIO.

However evolution is a journey, not a destination. ERP systems lie at the very heart of continuous improvement as they themselves continue to evolve. Therefore, CIOs must drive usability and leverage new functionality in the context of business objectives in order to demonstrate their operational and fi nancial value.

Wherever you are on the technology adoption curve, Epicor can help you make a real difference to your company’s performance and profi tability.

Next: Exploring the changing role of the CIO

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Epicor Manufacturing is a powerful, yet easy to use, integrated manufacturing solution. Robust manufacturing capabilities combined with innovative tools to synchronise the complex relationships that determine supply, demand and fulfi lment, means you can reach new, industry-leading levels of business performance. That’s why over 3,700 customers worldwide have chosen Epicor to run their business.


02 Executive Briefi ng Section 2

Section 2 The Transformative CIO:Making the difference, driving the changeIn the previous section we touched on the altered relationship between technology and commerce. In particular we looked at how ERP has broadened the horizons of many organisations.

It follows then that the role of the CIO must have also changed. But how, and to what extent?

In answer to the question: Has the role of the CIO changed within the last fi ve years, and if so, how?, two-thirds of recently-surveyed² CIOs and other senior executives in UK manufacturing companies asserted that it had.

No surprise there; change is a constant. Even though it many not be as rapid or as far reaching as those involved would like, it is happening.

What’s startling is that nine out of ten non-CIOs were much more confi dent in their assessment of the degree of change. No less than two-thirds described the changing role of the CIO as being from ‘Improver’ to ‘Infl uencer’. Furthermore, those that had recognised a shift from Infl uencer to Transformer were also not currently in a CIO role.

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² Is your CIO an Improver or Transformer? Survey done in conjunction with The Manufacturer, 2013.



Practical Improvers and Transforming Infl uencers

Improvers are hands on. Controlling costs, increasing effi ciency, optimising processes and making sure the business gets the IT that it needs. Their focus is on doing things better.

Infl uencers are tomorrows Transformers—they do better things by bringing the power of technology to bear on business problems.

Most CIOs currently have a foot in both camps, because only if you can improve manufacturing processes (productivity, profi tability, effi ciency, and quality), can you shift the focus to innovation.

It’s the understanding of technology’s potential that enables the CIO to achieve these aims. Epicor can help you, your team and the wider business to see what is possible.

Next: What does this mean in context?

Section 2 5

67% of CIOs say role has changed over 5 years. 89% of non-CIOs agree.

Executive Briefi ng Room at the Top: How technology is inspiring a new breed of CIO in manufacturing

“ In simple terms, a CIO applies technology to increase productivity, while at the same time reducing cost and time to market.”


02 Executive Briefi ng Section 3 6

Section 3 Balancing IT and the business: How much, how soon, how far?As we have seen, a CIO performs a delicate balancing act every working day between maintaining business continuity, improving productivity and evolving the IT infrastructure to align with and anticipate key business initiatives.

True Transformers understand the strategic vision and seek out technologies to fulfi ll that vision.

They understand which new tools and applications will solve issues or improve processes that the business has yet to acknowledge as needing attention. Cloud, virtualisation, security, BYOD and big data are undoubtedly on the CIO radar, but understanding their application in the context of the business strategy is a true Transformer’s skill.

Ultimately, the rate at which IT can help meet the strategic vision will depend on how far the CIO can tip the balance in its adoption and utilisation. It is evident, however, that CIOs still have a “fi refi ghting” role due to outdated or over complex technology.

Making this happen also boils down to the CIO’s ability to drive change and research shows that today’s CIO needs a new set of personal characteristics to be successful in their role. Survey respondents were asked, “Which top three attributes do you feel are vital in your role as a CIO today that weren’t so critical fi ve years ago?”

Non-CIOs said being a good communicator, a strategic thinker and acting as a change agent are the top three attributes for today’s CIO. And whilst CIOs agreed on strategy and change, they prioritised the need to be more proactive.

So, what are the key business initiatives CIOs are having to apply technology to?

From the survey, 67% of CIOs were involved in initiatives to optimise and streamline the supply chain. This is also confi rmed in a recent report published by IDC Manufacturing Insights. Optimising production and supply chain processes was cited as one of the top three business initiatives to be undertaken in the next three years. Interestingly, three out of the top fi ve answers were focused around working with and serving customers.

These initiatives call for technology that can simplify and modernise production and supply chain processes, as well as increase the engagement and relationships you have with your customers.

Next: Perception is reality—it just depends upon who is doing the perceiving

Epicor ERP is inspired by real business issues

An underlying architecture of visionary and industry-leading technologies is at the core of Epicor ERP. It forms the foundation upon which businesses like yours execute strategies and achieve objectives, operating seamlessly and effectively in the background and enabling the development, automation, and optimisation of innovative and differentiating business processes.



Section 4 The 360° View: How technology is shaping the role of the CIOThe demand for speed, reinvention, agility and innovation has increased over the last fi ve years.

These are not our words, but the unanimous voice of CIOs and non-CIOs in answer to a survey question about changes within their own organisation.

100 % of our CIOs also agree that they need to embrace innovative ways to source and retain suppliers and customers in order to stay competitive.

So how are CIOs meeting that demand?Clearly, the adoption and implementation of new technologies fi gures heavily.

So too does the shifting balance from ‘Improver’ to ‘Transformer/Infl uencer’ and the growing role of the CIO as a business leader.

What technologies have been deployed, and what has been their impact both on day-to-day operations and strategic planning?

100% of CIOs questioned were confi dent that ‘best in class’ companies perform better due to their use of business systems.

More tellingly most respondents were clear that this out-performance came from ERP, with almost eight out of ten non-CIO respondents also attributing the impact to either ERP or supply chain management systems.

With regards to the impact of ERP on the business, both CIOs and non-CIOs agreed that it enabled better visibility into the business. They also agreed that ERP had reduced the complexity and increased the speed of key operational processes. Interestingly, they did have differing opinions on the impact of ERP on waste and cost reduction.

Clearly ERP cannot be viewed in isolation. It must be viewed as part of the business as a whole and is therefore impacted by the same macro-economic and strategic infl uences. When asked ‘What are the three main business drivers that are shaping your current focus?’ both groups agreed that expansion into new markets and managing change in the business model were priorities. CIOs went on to cite getting products to market, while non-CIOs referenced general economic conditions.

Section 4 7



Finally, when quizzed on which new technologies they saw as being primary investments to enable their business further in the future, CIOs said mobile. Non-CIOs were split, 66% citing mobile and 33% SaaS.

Next: ERP as an enabler

Section 4 8

Using Epicor, you can shape your ERP functionality to effect new and emerging ways of doing business that are completely unique, without bringing IT complexity, cost, and risk into the equation.

100% of CIOs attributed performance gains to ERP.

According to Aberdeen Group, Best-in-Class manufacturers are reporting the following benefi ts as a direct result of ERP in comparison to others:

• Reduction in operational costs—19% vs 8%• Improvement in complete and on time

shipments—17% vs 12%• Reduction in inventory—20% vs 7%

Source: Aberdeen Group 2012: ERP in Manufacturing 2012—The Evolving ERP Strategy

The convergence of social, mobile, and cloud IT infrastructure provides the opportunity for radical business transformation and resources realignment. SoMoClo™ reframes infrastructure decisions in a unifi ed model and repositions IT as a facilitator of the future of the business.

This heady time for technology and innovation is an opportunity for the CIO to re-establish his or her position as a technology thought leader.

Source: Aberdeen Group 2012: SoMoClo at the Mobile Edge.



Section 5 Enabling success:How Epicor delivers continuous improvement If ERP is at the heart of modern manufacturing, Epicor is at the heart of successful business transformation through technology.

Why Epicor?

Because not all ERP systems are created equal.

Despite ERP’s role as a stimulus for business out-performance being cited, many respondents felt that the ERP systems extant in their own organisation were under delivering.

So what makes Epicor ERP different? And why is it important both now and in the future?

Epicor Manufacturing ERP was designed from the ground up to meet the unique requirements of the manufacturing sector. It’s a modular solution, so you can tailor, share and reuse services.

This means Epicor ERP offers unprecedented levels of fl exibility, usability and agility—in application-to-application integration and in business-to-business collaboration.

“Epicor is a system that will put all the knowledge of the business in the hands of every user, when they need it, and allow them to work much more effi ciently and intelligently towards the set targets.” Frederick Kayrouz, general manager for M-TEK.

Across your whole supply chain, from raw materials to customer warehouse, Epicor ERP can enhance effi ciency, drive down costs, and deliver customer satisfaction so exceptional that it impacts your bottom line.

Of course, technology can’t change anything by itself. It needs the vision and drive of a transformative business leader to unlock its capability:

“Epicor has helped us to streamline all our processes and bring transparency into the daily business. Epicor ERP will have a key role in all our future development plans. It has the global capabilities for money transfers, doing business in different currencies, legislation and taxing, in fact everything we were looking for. When we grow, Epicor will grow with us.” Robert Blomstedt, Vice President, Nordic Cast Sourcing.

Harness the power of change. Learn more about Epicor ERP and continuous improvement.

Section 5 9


02 Executive Briefi ng Section 5

Learn more about the role of the modern manufacturer:

Visit emea.businessinspired.com for more information

See our infographic on the changing role of the CIO emea.businessinspired.com/infographic

Download our Executive Briefi ngRoom at the Top: how technology is inspiring a new breed of CIO in manufacturing

50% of CIOs and 44% of non-CIOs agreed that ERP had reduced the complexity of key operational processes, as well as enhancing speed.

56% and 33%, respectively, said that ERP had helped to reduce operational costs.

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All % statistics: The Manufacturer CIO survey 2013

Contact us for more information on Epicor Products and Services

The contents of this document are for informational purposes only and are subject to change without notice. Epicor Software Corporation makes no guarantee, representations or warranties with regard to the enclosed information and specifically disclaims, to the full extent of the law, any applicable implied warranties, such as fitness for a particular purpose, merchantability, satisfactory quality or reasonable skill and care. This document and its contents, including the viewpoints, dates and functional content expressed herein are believed to be accurate as of its date of publication, September 2013. As each user of Epicor software is likely to be unique in their requirements in the use of such software and their business processes, users of this document are always advised to discuss the content of this document with their Epicor account manager. The usage of any Epicor software shall be pursuant to the applicable end user license agreement and the performance of any consulting services by Epicor personnel shall be pursuant to applicable standard services terms and conditions. Usage of the solution(s) described in this document with other Epicor software or third party products may require the purchase of licenses for such other products. Epicor, Business Inspired, and the Epicor logo are trademarks of Epicor Software Corporation or its affiliated companies registered in the United States and certain other countries. The Magic Quadrant and Gartner are either trademarks or registered trademarks of Gartner, Inc. or its affiliates. SoMoClo is a trademark of the Aberdeen Group, Inc. Aberdeen is either a registered trademark or trademark of Harte-Hanks in the U.S. and other countries. All other trademarks mentioned are the property of their respective owners. Copyright © 2013 Epicor Software Corporation. All rights reserved. No part of this publication may be reproduced in any form without the prior written consent of Epicor Software Corporation.

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