TRENDS IN ENTERPRISE ASSET MANAGEMENT DRIVING COMPLIANCE AND FINANCIAL RESULTS

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2 TRENDS IN ENTERPRISE ASSET MANAGEMENT DRIVING COMPLIANCE AND FINANCIAL RESULTS Manage the Future, Not the Past RICK VEAGUE, CTO, IFS NORTH AMERICA

3 A HIGHLY COMPLEX, COLLABORATIVE CULTURE 3

4 TRENDS DRIVING FINANCIAL RESULTS IN ERP/ EAMSOLUTIONS The World is Getting Smaller: Business is Global It s a Online World: We re Connected Demographics and Social Media: The Changing Workforce Information Where Its Needed: The Age of Context Keeping Up With the Tech Curve: Cloud Computing 4

5 5 TREND #1: THE WORLD IS GETTING SMALLER

6 BUSINESS IS GLOBAL

7 TECHNOLOGY FUNCTIONALITY GLOBAL BUSINESS PACE OF CHANGE

8 GLOBAL MARKETS A DISRUPTIVE CHANGE Emerging markets will be not only a source of significant revenue growth for companies but also a source of talent, true innovation and ground-breaking approaches to business, which they will leverage on a global scale. Emmanuelle Roman, Global Consumer Products Markets Leader, Ernst& Young

9 GLOBAL TRENDS LEADING EMERGING MARKETS WILL CONTINUE TO DRIVE GLOBAL GROWTH Estimates show that 70% of world growth over the next few years will come from emerging markets, with China and India accounting for 40% of that growth 9

10 GLOBAL TRENDS EMERGING MARKET LEADERS WILL BECOME A DISRUPTIVE FORCE IN THE GLOBAL COMPETITIVE LANDSCAPE As emerging market countries gain in stature, new companies are taking center stage. The rise of these emerging market leaders will constitute one of the fastest-growing global trends of this decade. 10

11 GLOBAL TRENDS RISING POPULATION AND PROSPERITY DRIVE NEW CONSUMER GROWTH Between now and 2050, the world's population is expected to grow by 2.3 billion people, eventually reaching 9.1 billion. The combined purchasing power of the global middle classes is estimated to more than double by 2030 to US$56 trillion 11

12 Shift Happens the biggest change in recent global development has been the improved ability to seamlessly share and cooperate regardless of physical or cultural borders a quantum leap in collective human intelligence

13 Question: Where are the Largest Populations in the World? 13

14 World Populations (Millions) 1,400 1,200 1, Mobile Users 14

15 At 300M members, LinkedIn would be the fourth largest country in the world. Social Media = Business 15

16 SOURCE: Forrester study of IT Decision makers, Q IT DECISION MAKERS 73% Have engaged with a vendor on social networks 85% Use social networks for business 95% Use LinkedIn 45% Use personal social networks 44% Use microblogs

17 B2B BEHAVIOUR HAS CHANGED BUSINESS PROCESSES MUST ADAPT ITS NOT JUST ABOUT TECHNOLOGY

18 COMPETITION DRIVING GLOBAL BUSINESS GLOBAL NETWORKS DRIVE COMPETITION TO NEW LEVELS Internet search, business collaboration drives global competition Force businesses to be really good at what they do best, divest themselves of less profitable activities Drive M&A activities GLOBAL VISIBILITY INTO MULTI-SITE OPERATIONS AGILITY Supports better planning, decision making Clearer view of costs Better support of business analytics and reporting Faster decision cycles possible Supports M&A strategies better

19 TREND #2: IT S A CONNECTED WORLD

20 s 1980s Mainframes dominate, centralization is the norm 1990s 2000 s Cost and a need for agility drive decentralization 2000 s Today Rise of global networks, relentless competition drives collaboration, mergers & acquisitions, and a return to centralization of IT, and a Decentralization of Users

21 MOBILE ISN T THE FUTURE HERE AND NOW FORCE FOR TRANSFORMATION EVERYDAY BUSINESS IS HYPER-CONNECTED By % of business applications will be accessed via mobile solutions. Now is a critical moment for optimizing mobility within business strategy MOBILE'S EVOLUTION FAR OUTPACING ERP The mobile market has huge velocity that fuels innovation, disrupts user expectations and strengthens ERP space ERP IS A MOBILE SWEET SPOT Howa business chooses to sell and serve is now often more important than whatit offers. Mobility is a force for competitive differentiation Source: Gartner 21

22 REACHING BUSINESS OBJECTIVES BUSINESS BENEFITS ON INDIVIDUAL & BUSINESS LEVEL PERSONAL WORKDAY Balance work and private life Employer branding PRIVATE LIFE Reduced admin back-log More fun and convenient Higher productivity Better customer service Lower admin cost Shorter order lead time BUSINESS PROCESS BUSINESS OBJECTIVES 22

23 THE INDIVIDUAL TAKES CENTER STAGE ACCESS MY WAY WEARABLES BECOME COMMONPLACE Technology and user experience first emerge in the consumer market and then spread into business BRING YOUR OWN DEVICE /BEHAVIOR (BYOD/BYOB) Using private, more advanced or beloved devices and services to access company resources IMPORTANT PIECE TO THE LIFE PUZZLE People prioritize a flexible work environment where work and pleasure are mixed

24 TO ONLINE ALL THE TIME 24

25 COUNTERFORCES TO BE ALIGNED MOBILE INHIBITORS DELAY BUSINESS TRANSFORMATION INHIBITORS Security Company policy Cost of integration DRIVERS Productivity Stay competitive Data quality Attract and retain talent Source: IDC mobility white paper 25

26 DRIVING FINANCIAL RESULTS MOBILE TRANSFORMATION OPERATION IMPROVED PRODUCTIVITY & LOWER COSTS Faster and easier data capture and access to critical information Easier collaboration between individuals and companies DATA QUALITY Data validation, no double entries IMPROVED COMPETITIVENESS Time is a competitive differentiator mobility cuts data lead time INDIVIDUAL EASIER, FASTER AND MORE FUN Increase work motivation SIGNALS MODERN EMPLOYEE Attract and retain talent Work / life balance IMPROVED PRODUCTIVITY Do more in less time 26

27 27 TREND #3: CHANGING WORKFORCE

28 BRAIN DRAIN THE CHALLENGE OF AN AGING WORKFORCE The oldest of the 78 million US Baby Boomers are now reaching retirement age. Some will want to keep working either full-or part-time and others will have no other economic choice. But the vast majority will leave the workplace, creating a management challenge and a workforce vacuum. The group of 48 million Gen Xersis too small to replace the legions of exiting boomers, and the young, tech-savvy generation behind the Gen Xers(known as the Millennialsor Gen Yers) has entirely different work expectations from earlier generations, which complicates the picture. Forrester Research

29 LABOR FORCE DEMOGRAPHICS PROFOUND CHANGES LOTS OF PEOPLE, NOT ENOUGH SKILLS An estimated 31% of employers worldwide find it difficult to fill positions because of talent shortages in their markets The talent market is increasingly global and mobile. The bond between company and employee has weakened, even in corporate cultures where loyalty was once prized The Next Generation workforce has very different expectations 29

30 NEXT GENERATION WORKFORCE is such an old way of sending letters Used the Internet since age birth Downloaded more products than purchased in store More friends online then in the neighborhood Not used to complex systems

31 Today's children will never understand the connection between these two. 31

32 BUSINESS INTEGRATED SOCIAL MEDIA A NEW TREND: COLLABORATION IN CONTEXT Collaboration with team members and knowledge experts from a unified business application Users don t lose context when seeking information; improves efficiency Knowledge attached in-context to business objects and data Collective knowledge stored as part of your Corporate Data under your control It makes it even easier to use business applications Complement to social networks 32

33 COLLABORATION IN CONTEXT A MASHED UP BUSINESS & SOCIAL TREND Merging traditional business apps with newer social media concepts Combines structured data (rows & columns) with unstructured data (chats, posts, blogs) Can be used to capture knowledge as well as transaction: Enterprise Content? Places unstructured content into a structured form for future use: Big Data? 33

34 DRIVING FINANCIAL RESULTS COLLABORATION IN CONTEXT AND SOCIAL MEDIA KNOWLEDGE CAPTURE Don t let knowledge walk out the door Afterall, your company is paying for it! DATA BECOMES ENTERPRISE CONTENT Disconnected bits becomes unified information Shared experiences drives a learning organization IMPROVED COMPETITIVENESS Time is a competitive differentiator access to useful information cuts lead time and mistakes EASIER, FASTER AND MORE FUN Easier collaboration between individuals and companies Increase work motivation SIGNALS MODERN EMPLOYEE Attract and retain talent Work / life balance IMPROVED PRODUCTIVITY Do more in less time Learn from past actions 34

35 35 TREND #4: THE AGE OF CONTEXT

36 HUMANS ARE VISUALLY ORIENTED SHOULDN T ARE BUSINESS SYSTEMS BE ALSO? 36

37 TRANSFORMING DATA VISUALLY IMPROVE UNDERSTANDING IN REAL TIME 37

38 MASH-UPS LINKS DATA & VISUALIZATION PRECISION AND UNDERSTANDING: BUSINESS INSIGHT 38

39 GARTNER DEFINITION Business Intelligence is a broad category of applications and technologies for gathering, storing, analyzing, and providing access to information to help enterprise users make better business decisions. 39

40 BUILT IN BI IN THE USER S CONTEXT MULTIPLE LEVELS EXECUTIVE LEVEL Executive Dashboards KPI s linked to strategic initiative ANALYTICAL LEVEL / BIG DATA Deep data analysis and analytics Data Mining OPERATIONAL LEVEL Analytic information combined with transactional What I need to see right now 40

41 A.I.

42 BIG DATA SALES CONFERENCE IN BARCELONA 2013

43

44 DRIVING FINANCIAL RESULTS IN CONTEXT INTEGRATED BUSINESS ANALYTICS ONE SOURCE OF TRUTH 44 From transaction to analytical Consistency and accuracy IMPROVED DECISION MAKING Better information yields better decision making Fact based, not Speculation MULTIPLE LEVELS Something for everyone: Executive, Analyst, Operational In Context: When you need it, where you need it

45 45 TREND #5: CLOUD COMPUTING

46 COMPLEXITY GETTING YOU DOWN? 46

47 THE NEW NORMAL FOR IT DEMAND FOR IT GROWS, BUT BUDGETS ARE NOT The new normal for IT: Take on new, complex technologies, deploy it globally, delivery new and enhanced services, at current budget levels (or less), while doing everything IT is already doing. And don t increase business risk! 47

48 THE MOVE TO THE CLOUD TRENDS ACCORDING TO GARTNER Public Cloud computing services will be a $72.9B market in 2015, up from 21.5B in 2010 Public Cloud computing will fuel the information technology industry for the next 25 years Software as a Service will represent three quarters of all spending on public cloud services The US will represent 50 percent of all public cloud services in 2015 Source: Gartner 48

49 CLOUD HYPE = CLOUDY INFORMATION

50 SO WHAT DOES CLOUD REALLY BUY YOU? AGILITY & FLEXIBILITY BUSINESS ALIGNED IT INCREASED OPPORTUNITY REDUCED IT RISK 50

51 CLOUD VSSAAS CLOUD IS ADEPLOYMENTMODEL A way of installing and delivering software SAAS IS LICENSINGMODEL A way of paying for software use THEY ARE INDEPENDENT CHOICES You can one, the other, both, or neither 51

52 DRIVING FINANCIAL RESULTS CLOUD CLOUD VS. ON PREMISES Substantially reduced need for on-site technical support of IT technology (direct cost savings) Pay as you go / Scale up / Scale down REDUCE OPERATIONAL COST On site deployment increasingly complex and expensive Higher value than do it yourself with less risk to the business ADDRESS GLOBALIZATION Variable as business needs change up or down Highly available, disaster recoverable solution to meet round-the-cloud operational needs in a cost effective manner IMPROVE TOTAL COST OF OWNERSHIP Traditional licensing best over longer periods SaaS best for shorter term projects 52

53 53 SUMMARY

54 TRENDS DRIVING FINANCIAL RESULTS IN ERP/ EAMSOLUTIONS The World is Getting Smaller: Business is Global It s a Online World: We re Connected Demographics and Social Media: The Changing Workforce Information Where Its Needed: The Age of Context Keeping Up With the Tech Curve: Cloud Computing 54

55 TECHNOLOGY IS ENABLING NEW CAPABILITIES NEW BEHAVIOURS

56 BUSINESS PROCESSES USER EXPECTATIONS APPLICATIONS

57 IT S NOT THE STRONGEST SPECIES THAT SURVIVES, NOR THE SMARTEST, BUT THE ONE MOST ADAPTABLE TO CHANGE CHARLES DARWIN

58 THIS DOCUMENT MAY CONTAIN STATEMENTS OF POSSIBLE FUTURE FUNCTIONALITY FOR IFS S SOFTWARE PRODUCTS AND TECHNOLOGY. SUCH STATEMENTS OF FUTURE FUNCTIONALITY ARE FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE INTERPRETED AS ANY COMMITMENT OR REPRESENTATION. IFS AND ALL IFSPRODUCT NAMES ARE TRADEMARKS OF IFS. THE NAMES OF ACTUAL COMPANIES AND PRODUCTS MENTIONED HEREIN MAY BE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS IFS

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