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Social networking as supply chain enabler

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IFS is a public company (OMX STO: IFS) founded in 1983 that develops, supplies, and implements IFS Applications™, a component-based extended ERP suite built on SOA technology. IFS focuses on agile businesses where any of four core processes are strategic: Service & asset management, manufacturing, supply chain and projects.

By Patrick Burnson, Executive Editor
December 03, 2010

Would embedding features like chat, wikis and instant messaging into ERP offer significant benefits? New reseach suggests that it might.

A study of more than 260 manufacturing executives released today by IFS North America indicates how trends in Enterprise 2.0 will affect enterprise software used by mid- to large-sized manufacturers and industrial companies.

Interest in Enterprise 2.0, which marries enterprise resources planning (ERP) with social media functionality is real, but study data suggest that integration of ERP with existing social media tools available online is of limited value. Instead, executives saw more value in ERP that mirrored the functionality of social media sites like Twitter and Facebook in order to streamline internal communication.

The study of manufacturing executives with mid- to large-sized companies was conducted for IFS North America by Boston-based Affinity Research Group.

According to researchers, the ability to integrate with external social media tools on the public internet does not weigh heavily on the selection process for ERP. However, the adoption of social media functions to include collaborative and communication capabilities is viewed with importance, but is not seen as a major influencer.

The report contends that there are two primary benefits of social functionality embedded in ERP. First, it can streamline and communicate within the enterprise; and secondly, it can document business processes to support lean initiatives.

“Manufacturing executives are optimistic about the potential benefits of social functionally embedded in ERP and realize that there could be great value if their ERP application includes features that mirror the functionality of online social networking tools,” said IFS spokesmen. “Increasing communication in the enterprise and the ability to capture the tacit knowledge of senior employees are the most frequently reported benefits.”

The complete study report is now available for download


About the Author

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Patrick Burnson
Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

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