Get­ting Your Man­u­fac­tur­ing Unit on Cloud 9

Decoding the top 5 rea­sons to adopt the cloud-based ERP so­lu­tion makes busi­ness sense

Dataquest - - INDUSTRY -

The In­dian man­u­fac­tur­ing sec­tor has clearly taken cen­ter stage post the an­nounce­ment of the cur­rent gov­ern­ment’s ‘Make-in-In­dia’ ini­tia­tive aimed at rais­ing global com­pet­i­tive­ness of the sec­tor for the coun­try’s long term-growth. The vi­sion of this first-of-its-kind pol­icy is to wit­ness an in­crease in the share of man­u­fac­tur­ing in the coun­try’s Gross Do­mes­tic Prod­uct from 16% to 25% by 2022. The gov­ern­ment has listed tech­nol­ogy as of the key con­tribut­ing fac­tors in achiev­ing this tar­get.

A lot rests on the In­dian man­u­fac­tur­ing sec­tor to up the ante in terms of growth per­for­mance to com­pli­ment ef­forts made to make In­dia ‘the next man­u­fac­tur­ing des­ti­na­tion’. Ac­cord­ing to a re­search re­port on the tech­nol­ogy adop­tion trends among man­u­fac­tur­ing en­ter­prises in In­dia, ERP is the largest pri­or­ity for spend in a CIO’s budget with sig­nif­i­cant growth ex­pected over the next 5 years. In a nut­shell, a cloud-based ERP so­lu­tion helps stream­line the man­u­fac­tur­ing process, and free up cap­i­tal, while giv- 64 www.dqin­ ing the nec­es­sary flex­i­bil­ity to meet evolv­ing op­er­a­tional needs.

Be­low are the top five rea­sons why mov­ing to a cloud­based ERP so­lu­tion makes busi­ness sense. COST RE­DUC­TION Whether or not a par­tic­u­lar in­dus­try is go­ing through a lean pe­riod, com­pa­nies will al­ways try to cut cor­ners and cloud adop­tion are means to this end. A re­cent sur­vey of global CFOs car­ried out by Deloitte in­di­cated that re­duc­tion in IT in­vest­ments (54%) emerged as the most im­por­tant strate­gic drivers for or­ga­ni­za­tions to switch to Cloud com­put­ing. A study by Com­puter Eco­nomics shows that or­ga­ni­za­tions that moved most or all of their sys­tems to the cloud saw an av­er­age 15% re­duc­tion in IT spend­ing. This re­duc­tion came not only from a re­duc­tion in data cen­ter spend­ing, but also in IT per­son­nel costs.

In ad­di­tion, ad­van­tages of cloud-based im­ple­men­ta­tions in­clude re­quire­ment of less devel­op­ment and test­ing

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