Follow this blog:
RSS

Social networking revolution on manufacturers’ radars

By | September 13, 2010, 10:31 AM PDT

Call it the final frontier of social networking in the enterprise — those large, complex, behemoth enterprise resource planning (ERP) systems, designed to control and report on the flow of money and materials across production and supply chains.

Assembly plant, crica 1944. Photo: Wikipedia

Assembly plant, circa 1944: Probably the only social networking here was hand signals and shouts across the production floor. Photo: Wikipedia

Will Enterprise 2.0 — defined as the constellation of services, from social networking to blogs and wikis — begun to shape the way corporate end users interact with these systems?  Possibly so, a new survey says — but not for the reasons you may think.

Yes, Enterprise 2.0 and social networking are great emerging channels for engaging with customers and helping employees collaborate better. But for ERP systems, which are large and complex environments, social networking offers a way to capture and digitize institutional knowledge and expertise. With large complex ERP environments, there’s a lot of knowledge that is kept in peoples’ heads — knowledge that walks out the door upon other job offers or retirement.

In a new survey of 325 manufacturing executives, six out of ten see the potential for social networking to enhance the capabilities of their ERP systems. One out of four said they want to see social networking capabilities built right into their ERP systems, and a lesser number, 12 percent, see potential for integration with existing social media tools.

These observations were confirmed the survey, commissioned by IFS North America. I recently had the opportunity to speak with Chuck Rathmann, IFS industry analyst, about the results, which are soon scheduled for release.

The jury is out as to the direct value of social media — at least as its practiced today — in big enterprise application settings. “We wondered to what extent people actually want their ERP to actually be integrated with social media tools,” says Rathmann. “That hasn’t been too much of a hot ticket. Unless you’re dealing with consumer product technologies or retailers, its hard to see where you could get real enterprise value from this. You’re really talking about a CRM initiative, where people are talking about your company, and you want to be able to track what it is they’re saying. But exactly how that relates the enterprise environment and your general ledger and your supply chain and all these different things, it remains to be seen.”

What executives seem to want, Rathmann says, is to have the ERP software itself “enable the type of communication and collaboration that we see in a social network type of setting.” Just build it into the system itself.

The survey finds that the greatest anticipated value in social media in ERP environments stems primarily from increased communication and the capture of tacit knowledge of senior employees.

In addition, more than two out of five executives see potential for employing social media tools to capture the knowledge of retiring employees. A social media-enabled enterprise application can help address issue with a shrinking workforce, Rathmann explains. “They said they really need their enterprise application to help them capture and retain the tacit knowledge of their senior employees.”

Start your week smarter with our weekly e-mail newsletter. It's your cheat sheet for good ideas. Get it.

Joe McKendrick

About Joe McKendrick

Joe McKendrick is a contributing editor for SmartPlanet.

Joe McKendrick

Joe McKendrick

Contributing Editor, Business

Joe McKendrick is an independent analyst who tracks the impact of information technology on management and markets. He is the author of the SOA Manifesto and has written for Forbes, ZDNet and Database Trends & Applications. He holds a degree from Temple University. He is based in Pennsylvania.

Follow him on Twitter.

Joe McKendrick

Joe McKendrick

Joe McKendrick is an independent consultant and editor. Joe has performed project work for the following companies in the IT marketspace: IBM, Systinet/HP, Teradata. He has performed project work for the following organizations in partnership with Unisphere Research (Unisphere Media): IBM, Oracle Corp., International Oracle Users Group, Oracle Applications Users Group, Professional Association for SQL Server, International DB2 Users Group, International Sybase Users Group.

He writes for SmartPlanet and is not an employee of CBS.

If you liked this, don't miss...
2
Comments

Join the conversation!

Follow via:
RSS
0 Votes
+ -
RE: Social networking revolution on manufacturers' radars
Making the content of ERP and other large scale line of business addressable (i.e. linkable) using standard Web protocols with appropriate authentication / single sign on for access can meet these expectations easily in my opinion.

The ability to link and search (federate) across ERP and Enterprise 2.0 communication and collaboration systems can make it straightforward to talk about and track issues represented in ERP and other systems - just as links on the public Web make it simple to use Twitter, blogs, wikis and other media to talk about other content.

See "Fixing Enterprise Search" for more on this http://traction.tractionsoftware.com/traction/permalink/Blog1521
Posted by grl@...
14th Sep 2010
0 Votes
+ -
Social Networking and Cloud Computing
The most difficult thing about this transition to social networking
and cloud computing is the age of the decision makers. Those
under 30 (maybe 40) totally get how social media/social
networking works and they are expecting it in their software, just
as they are looking for web based solutions. Those that are
older don't often see the value of these new media. This is a
wave that is being pushed by the young. They want to
collaborate, share, post, etc.

If ERP can catch up with the likes of Salesforce.com (with their
Chatter product) and provide real time alerts via a "wall" for the
users to manage things, then ERP will see a different level of
adoption from a different set of users. ERP enhances business
communication, but it is still slow by today's standards of real-time
collaboration.

A good article on ERP and Social Media is
http://www.erpandmore.com/2010/07/20/social-erp/
Posted by cshaul168@...
15th Sep 2010
Join the conversation
Formatting +
BB Codes - Note: HTML is not supported in forums
  • [b] Bold [/b]
  • [i] Italic [/i]
  • [u] Underline [/u]
  • [s] Strikethrough [/s]
  • [q] "Quote" [/q]
  • [ol][*] 1. Ordered List [/ol]
  • [ul][*] · Unordered List [/ul]
  • [pre] Preformat [/pre]
  • [quote] "Blockquote" [/quote]

Join the SmartPlanet community and join the conversation! Signing up is fast and free. Don't wait -- we want to hear your opinion!