High-tech manufacturers are failing in their customer ERP strategies, according to an IDC whitepaper.
The analyst's "Manufacturing Insights Whitepaper: Get Customers Inspired - A Call to Action for High-tech Manufacturers” says high-tech manufacturing companies are not using modern enterprise resource planning (ERP) solutions to full capacity, and failing to implement a good customer experience strategy as a result.
"The high-tech manufacturing industry is a consumer-driven, fast paced sector where success is fully influenced by meeting those consumer expectations at the end of the value chain," says IDC.
Survey results from the 460 companies questioned globally for the report revealed the majority of high-tech manufacturers are "limited" in using their modern ERP solutions, and as a result understanding how technology innovation can drive greater customer experience.
According to 45 percent of survey respondents, the main barrier to creating a good customer experience is related to lack of back-office/front-office integration in the organisation.
With the inability to quickly adapt business processes and limitations to access and use of the data, these factors "all point to ineffective or rigid IT systems" identified as "critical barriers" to creating a greater customer experience, said IDC.
“Keeping up with the required pace of innovation is by far the main business challenge for high-tech manufacturers today along with rapid changes in market demand and aggressive competitors,” said Pierfrancesco Manenti, an IDC analyst.
“More frugal consumer behaviours in developed countries and demand from unstable emerging economies are pushing high-tech manufacturers to launch initiatives aimed at achieving superior customer loyalty through technology innovation,” said Manenti.
But with increased volatile consumer demand, manufacturers along the high-tech value chain need to gain better visibility with uncertainty in their markets, he said.
John Hiraoka, executive vice president and chief marketing officer of Epicor, which sponsored the IDC report, said: “We believe it is imperative for high-tech manufacturers to create an agile and flexible supply chain by investing in technologies that enable faster decision making, and collaboration across the organisation and with business partners, resulting in superior customer experience.”
He said: “Improving real-time access to data and sharing information with modern ERP solutions, and leveraging mobile, social and cloud channels will bring greater competitive advantage and growth.”