"We have been seeing increased traction from on-premises to cloud-enabled solutions in the region over the last couple of years. The changing manufacturing landscape along with significant interest towards integrating value chain data for improved operational resilience has been one of the top drivers for choosing a cloud-based ERP application", said Sampath Kumar Venkataswamy, senior research manager, IDC Asia/Pacific Manufacturing Insights.
Investment in cloud infrastructure, software, and platforms is one of the top three technology areas of focus for regional manufacturers according to a survey run by IDC Asia/Pacific Manufacturing Insights. The case for centralized decision-making and data monitoring has further accelerated the shift from on-premise to cloud applications.
IDC estimates that the spend on cloud applications and infrastructure in Asia/Pacific will reach US$124 billion by 2025 at a year-on-year growth rate of 28.8%, indicating a sustained focus on cloud-enabled software applications.
The scale of ERP system use is expanding and seen as a foundational step to improve business performance across functions in individual locations, as well as across the value chains.
Common requirements among APAC customers
One of the critical aspects highlighted in the research is the need for standardization. Organizations must have an eye on the future and understand the importance of processes and data standards that can help them expand further with their supply chain partners.
The choice of the right vendor who can provide the right balance between product customizations, out-of-the-box industry-specific solutions is crucial to the long-term business growth and strategy.
Other significant developments include new product development efforts and the ability of these enterprise applications to align various functional data streams to reduce the time to market.
IDC research has consistently shown that local support and presence matters for organizations in the region. Metrics such as resolution time, ticket closures, and implementation time are quite important to the partner selection exercise.
The need for regional customizations, localizations, and language was highlighted consistently during our conversations with the ERP end-users.
Technologies such as IoT, BDA, and AI are expected to help automate decisions, provide insights, and identify additional opportunities for new revenue streams and innovations.
Several vendors have already been investing in these technologies to enable a seamless and real-time data feed that can pre-empt and predict disruptions. The idea of a collaborative and coordinated data platform also aids in creating a resilient operations framework.