Page 10 - Industrial Technology September 2020 issue

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BUSINESS

Manufacturers first in, can be

first out of pandemic downturn

CHALLENGED MANUFACTURERS SEEK MORE IT AGILITY AS
BUSINESS RETURNS. THE SOLUTION LIES IN UPGRADED
ERP SYSTEMS, AND THIS COULD MAKE MANUFACTURING
ONE OF THE FIRST SECTORS TO INITIATE RECOVERY

oomi, a Dell Technologies business, has their applications, according to
revealed results from its ERP Innovator’s 87%, against an average of 76%,
Dilemma report, which finds manufacturers followed by migrating their
Binvesting in modernising legacy ERP systems. It infrastructure to the cloud, in which
finds upgrading the complex systems at the root of the sector follows the average of
manufacturing operations reduces “keep the lights on” 75%. The sector is also ahead of the
spending, to just 35%. This has enabled manufacturers to average in consolidating legacy IT
increase innovation budgets to 32%, allowing further IT infrastructure, with 72% against
innovation – vital in these challenging economic times – 69%.
and further modernization, 33%. Boomi’s research shows
With manufacturing one of the first sectors to return to manufacturers are coping with
work, preparing this vital sector for recovery has never complex hybrid IT environments better than other sectors, well-disposed to systems modernisation, with 41% of
been more critical. As manufacturing leaders search for a with less than half (46%) citing it as a primary challenge, respondents citing the lack of senior buy-in as a problem,
way to withstand today’s fractured supply chains, against the average of 56%. A more pressing issue for against the average of 48%. The real issue appears to be
depressed demand, workforce safety and the widespread manufacturers is the changing business requirements for the lack of proper governance, which 63% identify as a
uncertainty, modernising legacy ERP systems offers a way the sector (53), which concerns 39% of respondents. challenge, while the average lies at 53%.
to increase agility and avoid a prolonged financial slump. The business drivers pushing manufacturers to lift and Some integration challenges weigh more heavily on the
Modernising ERP systems lowers costs of “keeping the shift their ERP systems to the cloud also differ from other manufacturing sector than others: the lack of integration
lights on”, according to manufacturers, which until recent sectors. Gaining IT agility takes first place with 57% technologies able to ingest data from any source (66%)
years claimed 75% of IT budgets, simply to maintain versus the average of 53%, while assurance lies at 53%, surpasses the average of 51%, while organisations are
operations. Upgraded ERP applications are now allowing lower than the total of 57%. Driving business growth is also struggling to find integration professionals who can
manufacturers to drop this to 35%, and free the remainder also more of a priority in terms of ERP modernisation for understand business processes (46%), a shortage which
for innovation (32%), while continuing to modernise manufacturers, 55% against an average of 53%. affects just 39% of the total. It’s a crucial problem to
further applications (33%). Manufacturers also differ from the average in the address for the sector, as it focuses on integration and
As they amp up modernisation efforts, manufacturers reasons behind ERP modernisation projects failing to orchestration strategies to create the best customer
are investing in the consolidation and standardisation of deliver as expected. The manufacturing C-Suite is more experiences (59% – above the average of 52%).

Red tape is key barrier to cybersecurity

he recent Kaspersky report ‘State of industrial phishing attacks. Organisations need to make sure their challenging generally, due to the specific requirements
cybersecurity in the era of digitalisation’ has protection is up to date with these changes and there of OT, the barriers for implementation can complicate
revealed the main barriers that inhibit or delay are no open doors for malicious actions in ICS networks. and slow down the process even more. Some
Timplementation of industrial cybersecurity The above barriers however are what organisations organisations will need to be even more conscious as
projects. The most common obstacles include the will have to overcome when implementing cybersecurity they try to overcome these difficulties with decreased OT
inability to stop production (34%), and bureaucratic projects. Remarkably, most of them refer to bureaucratic security budgets (24%).
steps, such as a lengthy approval process (31%) and rather than technical obstacles – in total, almost half of “It’s always more difficult to invest money and
having too many decision-makers (23%). These barriers organisations (46%) face red tape delays. In addition to resources in projects without a clear return on
may become a critical point in light of Covid-19 because the most prevalent – long approval times and numerous investment, such as with cybersecurity initiatives,”
they can affect the implementation of pandemic-driven decision-makers – these barriers include protracted commented Georgy Shebuldaev, head of growth centre
operational technology (OT) security initiatives. supplier selection and purchasing processes, as well as at Kaspersky. “And while cybersecurity for OT is still a
The cybersecurity race doesn’t slow down, and every interference from other departments. developing area, all these management barriers are
year many incidents, including high-profile attacks, hit These barriers may become even more critical in the quite natural. As a vendor, it is up to us to help
industrial control systems. The pandemic lockdown current post-lockdown period. The survey revealed that customers eliminate these obstacles and simplify and
introduced its own challenges in addition to the existing almost half of organisations (46%) expect to see speed up the implementation of protection measures.
threat landscape. Industrial firms have to adapt to new changes in their OT security priorities as a result of the Our task here is to make ROI more transparent and
norms including remote work, overnight digitalisation pandemic. These organisations will probably need to showcase the risks for businesses so customers can
and new hygiene requirements, as well as specific shift their security strategy on-the-fly and quickly understand the benefits from the very beginning and
pandemic-driven threats such as a massive growth in implement new cybersecurity practices. While it can be better justify them to C-suite or the board if needed.”

10 INDUSTRIAL TECHNOLOGY • September 2020