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UK manufacturers turn to system improvements focused on better business
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01/05/2008
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More than half of UK manufacturers have abandoned the ‘rip and replace’ approach to system buying, according to research published by business infrastructure software Software AG.
Of 150 IT directors surveyed, 52% said they will focus on modernising existing systems and business processes over the coming three years, instead of purchasing new solutions – compared with just 18%in the last three-year period.
And of those, one in five will target their investments on BPM (business process management) technology, over the next six months, while one in four say they will be investing in SOA (services orientated architecture) and one in 10 will invest in BAM (business activity monitoring).
Says Software AG UK country manager Jim Close: “Most UK organisations already have much of the technology needed to drive business performance.”
And hence, he believes, the finding that the number of companies buying packaged applications is dropping – with just 39% having invested serious software budget on systems such as SAP, and only 22% planning to do so over the next three years.
Close also notes that, while 43% of respondents’ budgets were previously spent on in-house applications, the study shows this number falling to nearer 26% over the next three years.
However, he believes that years of buying packaged systems, or in-house development, have led to a disparate IT landscape, which is slowing businesses down. “Too many UK companies are sitting on an IT jigsaw,” he says, adding: “Business infrastructure technology, such as BPM and SOA, helps companies to put the pieces of the puzzle together for effective performance.”
His view: “As industries face more challenges in a slowing economy, the most successful companies won’t just compete on the products or the ideas they have, but on how effectively they can run key operations. It has never been more critical to get the technology underlying the business processes right.”
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Author
Brian Tinham
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