Cloud usage in manufacturing and engineering to triple by 2017

Cloud usage in manufacturing and engineering to triple by 2017

Manufacturing moving to the cloud for efficiency, better data visibility, lower TCO, and increased productivity.

June 30, 2016
Manufacturing Group

Santa Clara, California – Global manufacturing companies say they have realized good results by adopting cloud applications, and they plan to accelerate cloud use dramatically by 2017 – especially in their manufacturing, engineering and operations groups. Some of the biggest benefits have come from lower IT costs, higher employee productivity, better data visibility and gains in process automation. These are just a few of the findings of a recent survey conducted in conjunction with the Manufacturing ISV Cloud Summit, held this spring.

Perhaps the study's most intriguing implication is that as these companies move their operations, engineering and manufacturing to the cloud, platforms originally developed for sales and marketing – such as Salesforce – may become the backbone of all enterprise software.

During the Manufacturing ISV Cloud Summit – sponsored by Salesforce, ICIX, Propel, Rootstock, and Tavant Technologies – manufacturing professionals were asked how enterprise cloud apps like Salesforce, Workday and NetSuite were being used in their manufacturing businesses.

Key findings from the survey include:

  • Manufacturing companies have reaped big rewards and lower costs from their early internal cloud adoption: Over 60% of respondents said cloud apps have helped them realize internally focused benefits. Higher employee productivity, process automation, data visibility and lower IT costs ranked as the top cloud benefits.
  • The shift to cloud solutions will accelerate quickly: Eighty percent of operations departments, 70% of engineering groups and 59% of manufacturing departments expect to grow their use of enterprise cloud apps dramatically by 2017.
  • Surprisingly, IT decision-makers in manufacturing, operations and engineering have been more cautious than their marketing and sales counterparts in adopting cloud platforms: Only 19% of manufacturing, 20% of operations and 25% of engineering departments are currently using enterprise cloud apps.

View the infographic summary, "On the Cloud Frontier: Manufacturing and Operations," which includes ICIX recommendations for supply chain transparency

"Manufacturing and operations professionals have clearly realized that building on one common cloud platform throughout an enterprise has enormous benefits, including improved productivity, better automation of information sharing for improved decision-making and greater transparency," says Brian Roufa, chief marketing officer for ICIX. "With this significant shift in the industry, companies are now moving more and more of their core business functions to the cloud – and are choosing strategic cloud platforms such as Salesforce on which to run their business."

"While sales and marketing teams have been using the cloud for years, the survey indicates that engineers now feel that it's their time to start enjoying what the cloud can do for them," says Miguel Tam, VP of marketing at Propel. "With world-class cloud platforms like Salesforce, manufacturing companies don't have to worry about data security or reliability. Enterprise engineering solutions like Propel, which is built 100% on the Salesforce platform, make it possible for manufacturers to collaborate much more closely with customers, partners and employees, so they can deliver great products."

"Adopting cloud technologies across departments makes it much easier to realize the full benefits of the cloud," says Rajendran Nair, VP of Marketing at Rootstock Software. "Just as marketing needs to know what happened to the leads it passed, sales needs to know what happened after they closed deals, and operations needs to know what's coming down the pipeline. Companies need a unified cloud platform that spans the spectrum of their internal and external operations, and allows data and processes to span multiple solutions that are on this platform. We believe Salesforce and its large network of partners such as Rootstock, Propel and ICIX provide an unmatched ecosystem that will deliver on the true potential of the cloud."

About ICIX
ICIX solutions enable companies to safeguard consumers, protect their brand, and build trust – all while improving margins. Its applications and the ICIX retail cloud network are built on the Salesforce Customer Success Platform. They bring unparalleled visibility and efficiency to the extended supply chain for product safety, compliance and corporate social responsibility. ICIX helps the retail industry's leading companies collaborate across trading partner networks to achieve Active Transparency. More than 20,000 businesses are active members of the ICIX network, including leading retailers and manufacturers, their trading partners and over 50 testing, inspection and certification companies. For more information about the company and its portfolio of products, visit www.icix.com.

About Propel
At Propel, we make PLM that's made for everyone. Created by Product Lifecycle Management and cloud veterans, Propel helps everyone connect with your customers, products and services, so you can propel innovation and propel your business. With Propel, you can easily manage all the hardware, software, services, and customer information that help customers embrace your products. Based in the heart of Silicon Valley, Propel is a modern PLM solution built 100% on the Salesforce App Cloud. For more information, visit www.propelPLM.com.

About Rootstock Software
Rootstock Software is a proven provider of powerful and nimble manufacturing, distribution and supply chain solutions built and deployed on the Salesforce Platform (the world's #1 cloud computing platform). The Rootstock solutions enable real-time management of manufacturing, distribution and supply chain operations from front to back, anytime and anywhere. The company's manufacturing, distribution and supply chain apps integrate "out of the box" with Salesforce Sales Cloud and other ERP-centric applications written on the Salesforce Platform. With unparalleled executive experience in manufacturing and distribution software and an established base of installed and implemented cloud customers, Rootstock offers a better and more reliable way to plan and execute required activities, deliver essential information to all parts of the organization, and improve timely and informed business decision making. The Rootstock apps also provide the control and visibility required to elevate the total performance of manufacturing, distribution and supply chain operations. Rootstock is available on the Salesforce AppExchange, the world's most popular marketplace for business apps.

Source: ICIX