Five Proven Principles from Successful IT Leaders. Connect with Your Success in the Manufacturing Cloud

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1 Five Proven Principles from Successful IT Leaders Connect with Your Success in the Manufacturing Cloud

2 What s the secret sauce of a successful IT leader? Technical know-how is one of the ingredients but that s just the beginning. Truly successful leaders see that IT is more than infrastructure and that cloud is more than a software delivery model. Let s look at five proven principles from IT leaders who have found success in the manufacturing cloud, leading their organizations, advancing their careers, and redefining the role of information officer. Principle #1 Focus on Business Initiatives Successful IT leaders have upended the status quo. Rather than trying to fix disconnected ERP systems, they have moved to the cloud where they can focus on business initiatives, delivering value instead of dealing with: Different versions of software Disruptive or disabling system upgrades Hardware infrastructure High energy costs A break/fix model of IT personnel deployment 2 5 Reasons Successful CIOs Are Connected in the Manufacturing Cloud

3 Manufacturers view the cloud as central to their ability to compete. Forty percent of survey participants draw a direct correlation between cloud technologies and their ability to innovate during the next five years. Additionally, 77 percent expect to increase plant or enterprise integration and 73 percent plan to enhance quality programs as a result of cloud technologies. Source: State of Manufacturing Technology Survey, 2014 According to participants in the Computerworld Forecast Survey, the top five priorities for business in the next 12 months are: 53% Contain Costs 47% Optimize and automate business processes 44% Optimize existing investments 38% Accelerate business agility 35% Grow revenue The Plex solution itself supports our profitability through lower TCO than an on-premise solution. We don t spend money on hardware, patching, security or other associated infrastructure, maintenance and personnel. Molly Hunting, Director of IT, Shape Corp. 3 5 Reasons Successful CIOs Are Connected in the Manufacturing Cloud

4 Principle #2 Drive Operational Rigor Successful IT leaders have changed their behavior. Instead of acting as keepers of on-site infrastructure, they are drivers of operational rigor, using cloud technology as a platform to eliminate sloppy processes and support efficiency. Cost is no longer the chief driver of manufacturing: quality, speed and innovation are the new keys to competitiveness. As organizational owners of the cloud, IT leaders make it possible to glean operational insights, foster innovation and dramatically improve efficiencies throughout the supply chain, from sourcing to manufacturing to customer delivery. Manufacturers view the cloud as central to their ability to compete. Forty percent of survey participants draw a direct correlation between cloud technologies and their ability to innovate during the next five years. 77% Increase plant or enterprise integration 74% Enhance quality programs 53% Increase third-party connectivity 41% Increase production innovation 26% Expand into new business segments 15% Expand into new geographical markets 4% None of the above Source: State of Manufacturing Technology Survey, Reasons Successful CIOs Are Connected in the Manufacturing Cloud

5 IT Budget Check Top 6 Areas of Reduced IT Spending The manufacturing sector is migrating to the cloud. If your budget is built around these six areas, it s quite possible your budget may be cut. Hardware Legacy systems modernization/replacement Data center consolidation/optimization Software, on-premises Unified communications Storage Source: Computerworld Forecast Survey, May/June 2014 Essentially it (Plex) gave us one system with all the manufacturing processes we needed, fully integrated, so that we could undertake wholesale change across our organization, without having to buy add-ons or make huge customizations. Matt Shamblin, Technical Services Manager, Caltherm 5 5 Reasons Successful CIOs Are Connected in the Manufacturing Cloud

6 Principle #3 Leverage Big Data Successful IT leaders are taking the initiative, moving to a cloud platform where data is not merely collected but communicated, shared and acted upon. The intersection of the cloud and the Internet of Making Things opens the door to a new source of intelligence for manufacturers. Most manufacturers use operational analytics to manage their business and monitor cost and efficiency. But data ubiquity only matters if it is easily accessible and updated. By connecting devices, smart phones, tablets, even Programmable Logic Controllers (PLCs) to the cloud, machines can talk to the company s information system and provide access to real-time information about its operations through any browser, across a shop floor or a facility, and even across a global organization. Careers Are Being Built on Big Data CIOs ownership of business analytics doubled in one year. 15% 30% Source: Prashast Gupta CEB Information Technology Blog October Reasons Successful CIOs Are Connected in the Manufacturing Cloud

7 7 Steps to Transform Big Data into Useful Data Optimize the whole with visibility into every part of the business Connect every part of the business to a single system Monitor real-time data Run analytics from a single source Predict based on singular model of past events Inform and make informed decisions Optimize The possibilities of data on the shop floor are endless. Data that rapidly reveals a problematic process empowers manufacturers to respond faster. As a result, new insights will enable companies to be more predictable in everything that we do. Paul Wright, Director of IT, Accuride 7 5 Reasons Successful CIOs Are Connected in the Manufacturing Cloud

8 Principle #4 Enable Plant Floor Workers as Knowledge Workers Successful IT leaders understand that cloud technology is a platform for insight into operational capabilities and financial status. But even the best platform and the right ERP software cannot assure success if plant floor workers resist using the system. Successful manufacturing IT deployment begins with a testing and training plan to mitigate risk, make the cutover seamless and to protect production integrity. An added benefit of the testing phase is that workers engage with the process, get rid of old habits and become knowledge workers who interact with computer screens instead of paper processes. IT leaders are no longer geeks or gear heads who deploy IT infrastructure. They are knowledge enablers, making it possible for factory workers to access data to support their hunches on how to improve certain processes. Knowledge is power and with power comes the autonomy to actually improve a process, motivating staff and bringing tremendous value to the organization. If any future customers of Plex are concerned about how their workforce will take to the Plex Manufacturing Cloud I would tell them not to worry. Because most of our manufacturing processes were paper based, very few of our people were proficient IT users. We put in place intensive training, even on how to use a mouse, and within a matter of weeks all of our shop floor personnel were using Plex very well indeed. Wally Cain, IT Director, FloraCraft 8 5 Reasons Successful CIOs Are Connected in the Manufacturing Cloud

9 Principle #5 Look at What s Next The manufacturing sector is migrating to the cloud. This transition is accelerating as companies replace legacy systems that have become too complex or expensive to maintain. Successful IT leaders are turning to cloud ERP as a secure, reliable and high-performing platform that offers global access in a highly distributed economy. The future is already here. You can be the person behind the platform who connects all aspects of production, enables manufacturers to see and act on live data and shop floor transactions, incorporates people, machines and materials to control, manage and continuously improve manufacturing activity. Is your ERP system helping you focus on what s next or are you in the business of supporting your ERP? 66% of survey respondents say that cloud technologies have already improved insights into its business 31% say they are currently evaluating big data needs and opportunities or plans to explore this area in the coming year 35% say that data analysis is the most important skill set for the next generation of employees Source: State of Manufacturing Technology Survey, 2014 Plex gives me a platform to work with all departments. It eliminates the time spent in maintaining equipment and worrying about backups, which frees me up and allows me to help our teams add more value. Kevin Jablonski, Director of Information & Communication Systems, Sanders Fine Chocolates 9 5 Reasons Successful CIOs Are Connected in the Manufacturing Cloud

10 2 More Reasons Successful IT Leaders are Connected in the Manufacturing Cloud Plex delivers % uptime. That translates to about one-and-one-half minutes per week, on average, that the system is unavailable Cloud users spend an average of 16.3% less as a percentage of revenue on IT operations and 18.5% less per user, compared to traditional on-site IT operations Stop fixing broken, disconnected ERP. Start leading in the connected manufacturing cloud. Learn more about IT leaders in the Plex Manufacturing Cloud. Molly Hunting, Director of IT, Shape Corp. Matt Shamblin, Technical Services Manager, Caltherm Kevin Jablonski, Director of Information & Communications Systems, Sanders Wally Cain, IT Director, FloraCraft Paul Wright, Director of IT, Accuride Corporation ABOUT PLEX Plex is the Manufacturing Cloud, delivering industry-leading ERP and manufacturing automation to more than 400 companies across process and discrete industries. Plex pioneered Cloud solutions for the shop floor, connecting suppliers, machines, people, systems and customers with capabilities that are easy to configure, deliver continuous innovation and reduce IT costs. With insight that starts on the production line, Plex helps companies see and understand every aspect of their business ecosystems, enabling them to lead in an ever-changing market Reasons Successful CIOs Are Connected in the Manufacturing Cloud