Manufacturing Leaders Are Taking Back Control of Their IT Roadmap

Summary

Like their peers in most other industries, manufacturing IT leaders are under pressure to innovate in the face of shrinking budgets. And their Enterprise Resource Planning (ERP) vendors aren’t helping matters. More pushers than partners, many ERP vendors mandate costly upgrades and migrations that offer little to no ROI.

For some IT leaders, these vendor-driven roadmaps lead to dead-ends. But many successful manufacturing leaders are getting back in the driver’s seat and regaining control of their IT roadmaps, reclaiming control and redefining their approach to IT. And it starts with an important shift in perception, from viewing IT as a cost center to recognizing its potential as a strategic enabler capable of generating efficiencies to fuel growth and profitability.
 
This shift in mindset requires a fresh perspective on ERP systems. Such systems rarely serve as strategic platforms for growth. Instead, see them as mission-critical utilities that must function well, but only with a minimum level of effort. This, in turn, frees teams from rigid vendor-driven roadmaps to align more closely with the distinctive business needs of manufacturing organizations.
 
How are manufacturing IT leaders shifting mindsets to regain control of their IT roadmaps? Let’s explore.
 

Why manufacturing IT leaders are taking back control of their IT roadmap

Manufacturing leaders are increasingly taking charge of their technology and software strategies in response to concerns and challenges arising from enterprise software vendors mandating unnecessary upgrades that disrupt operations and require costly adjustments. In many instances, such upgrades and adjustments are misaligned with business needs.

Additionally, the pressure to adopt vendor subscription models has raised deep concerns among IT leaders. In fact, according to a recent Censuswide survey “Organizations Want More Control Over Their IT Roadmap,” a staggering 99% of respondents have voiced concerns about the implementation of vendor subscription-based licensing models. Many of these models offer little to no ROI, as 72% of leaders cite dissatisfaction due to inadequate support and service. Lack of accountability (62%) and limited expertise (46%) were also cited by experts in terms of their mistrust of subscription-based models.

The high costs and intricate nature of vendor-led upgrades, along with the complexities and expenses tied to managing multiple IT service providers, have pushed manufacturing leaders to explore more cost-effective and flexible alternatives. Leaders are actively seeking software solutions that provide greater flexibility, affordability and responsiveness. Regaining control is the path to follow, ensuring that IT investments align with business goals and offer tangible benefits without unnecessary disruptions.
 

How is this new software strategy mindset sinking in?

Manufacturing leaders employ a variety of strategies to regain control of their IT and focus on business-driven roadmaps. Some opt to outsource IT support and services to extend the life of their current systems, breaking free from vendor-imposed constraints.

One such example comes from Hyundai Motor Group, a pioneer in Korea's automobile manufacturing industry and a champion of next-generation, AI-powered vehicles. To avoid ever-increasing budget demands, Hyundai deflected costly expenditures from their traditional enterprise software provider and took advantage of a significant cost reduction opportunity by outsourcing services and support for Oracle Database. This strategic shift not only reduced costs but also ensured maximum uptime for their Oracle environment.

Outsourcing support saved Hyundai Motor Group 50% of annual costs while ensuring continuous availability of their environment. Third-party maintenance for Oracle Database delivered ongoing business continuity and covered system-specific issues that their traditional provider would not support, significantly improving the quality of support and enhancing both the speed and effectiveness of issue resolution.

Hyundai pumped the brakes on being driven down the vendor’s roadmap, and instead they’re firmly in the driver’s seat, following their business-driven roadmap. These changes helped Hyundai accelerate efficiency and innovation, enabling them to invest in technologies, skills and expertise today that will support ground-breaking innovations tomorrow.
 

The future is independence

Successful manufacturing leaders are actively taking back control of their IT roadmaps, while avoiding vendor-driven mandates. This means making technology decisions aligned with business needs, while optimizing costs and driving innovation. As exemplified by Hyundai, strategic shifts such as choosing independent IT support and maintenance can enable organizations in any industry to cut unnecessary costs and invest in strategic projects.

For manufacturing IT leaders weary of vendor-driven roadmaps, the first step to taking back control of their IT roadmaps is a by taking an independent viewpoint on their ERP investments separate from the vendor talk track. By moving to a new ERP and database model that optimizes operational costs via solutions that makes sense for the short and long-term goals of the business, retains core enterprise applications where “rip and replace” won’t add value, and focuses new investments on products and services that align with business strategies for growth and innovation, manufacturing leaders can move forward with a healthier budget and stronger grip on the reins of their business.