IFS prepares SL manufacturers for Project Economy

3-Sep-2009

Sri Lanka is on the threshold of a Project Economy, experts at IFS a global leader in business applications explained, and local manufacturers must prepare themselves with the right tools to gear up for the emerging changes.

Across the world, there is a new phenomenon taking over as more and more businesses focus on operations that revolve around projects, which assemble experts, standards, tools and technology into a temporary arrangement to achieve set objectives and then disband. Moving from the Information Age of the 1990s, the revolution called the Project Economy has increased business complexity, shortened product lifecycles and has resulted in a greater dependence on information. Sri Lanka is not immune to this global change, and as IFS Sri Lanka Head of Applications- Manufacturing , Thusitha Withanage pointed out, it is now more important than ever for local manufacturers to implement the right systems to deal with the realities of a Project Economy.

IFS represents over 20 large manufacturing and supply chain customers in the South Asian region alone, and Withanage explained that these concerns which deal primarily with the markets in the West are not immune to the changes taking place there. “With the larger markets of USA and many parts of Europe firmly within the Project Economy, manufacturers in this part of the world are also rethinking the way they do things to fall in line with the industry trends.”

Integration is key

The reality is that many manufacturers have to deal with increasing complexity and changing business operations where it has become vital to integrate with the suppliers’ systems and the customers’ systems in order to smoothly carry out their activities. “We now see a scenario where outsourcing has become the order of the day for many manufacturers,” he informed. “In the past, a company would research and develop their product, manufacture it, sell it and even provide the after sales service for the customer. Now, the situation has changed with some manufacturers simply providing their brand name to a product manufactured elsewhere. The dynamics have altered, and for businesses to keep up, information and it’s flow is vital.” He said that applications based on Service Oriented Component Architecture (SOCA). is now key to keep track of all the developments within the business and to obtain the information required swiftly and flexibly. “As way back as 1995, IFS recognized the need of a forward thinking, flexible business application that can deal with the various components of a business,” he said, “And our Service Oriented Component Architecture based applications ensured that a business can have multiple integration points within the suppliers and the customers.”

For example, he said with Service Oriented Component Architecture (SOCA).

based applications a manufacturer can find out the moment his supplier dispatches the goods he ordered, or the minute a customer places a new order and its specifications. “With an integrated business solution, handling a complex environment becomes much easier.”

Dealing with the Project Economy

There is a risk in allowing external access into the business’ system, he admitted, but with the proper ERP, the system can create points of integration for only the information that needs to be shared. “It’s similar to having several interfaces to access the same information, but at the end of the day, functioning in a Project Economy environment becomes simpler.”

He added that IFS is the ideal choice for many manufacturers in the region who wish to invest in a business application with IFS’ commitment to constant innovation and easy access. “We make our applications technology proof, and we incorporate the changes we foresee in the market much before the industry takes notice.”

An important sign of a Project Economy is the shortening life span of a product which creates enormous pressure on manufacturers to innovate and change. However, Withanage added that the same features ensured that manufacturers in a Project Economy were better equipped to handle the recent global economic crisis. “They were already focusing on lowering costs through outsourcing and contracting employees, technology and new tools were already a part of their business operations, so it was easier to find solutions within a Project Economy unlike any other methodology,” he concluded.