| |February 20198Cloud Computing For the ERPCloud computing is the future of ERP. Not only can it cut the cost of running the infrastructure significant-ly, it can also help drive the standardization agenda, which is so critical in making an ERP roll out success-ful. Within GE Power, we look at ERPs and Cloud tech-nology by categorizing ERP into three buckets: small, medium, and large. For our small and medium sized ERPs, we are incorporating the Cloud SaaS platform. For the first time in GE, we will have one smaller sized manufacturing and engineering site migrating to the Cloud SaaS platform in April 2017. Based upon the learnings from this pilot, we will be rolling this solu-tion out for our medium-size manufacturing sites. For our large-scale ERP, we are taking a hybrid approach where we have the ERP by itself on premise while hav-ing some of our pillar platforms (e.g., commercial, pro-curement) on the cloud. This serves two purposes:in a smaller to mid-size environment, it gives us the oppor-tunity to learn and experiment with SaaS solutions, while in the larger scale ERP environment; it sets the path toward SaaS by having the peripheral applica-tions on the cloud.1. Big Data Analytics: Shaping ERP: Big data and analytics are real. Early on, our focus concentrated on rolling out ERPs first and then worrying about reporting, data and analytics at a later point in time. Now data and analytics are continuously shaping the way we roll out ERPs. Most of the ERP software comes with built in reporting tools. We can leverage those tools for operational reporting purposes. How-ever,throughout the entire ERP ecosystem we have several pillar applications like PLM, Services and Repair, and Commercial that interface with the ERP. These applications, along with the ERP, come togeth-er to form what we term as the `digital thread' for an enterprise. We leverage big data and analytics plat-forms to harness this digital thread across all pillar applications. By doing this, we form a semantic data layer that is consistent across all pillar applications, which is key to GE becoming a digital industrial lead-er. At the project's conclusion, we will not measure the success of ERP on simply the schedule and bud-get. These are just table stakes. Success for GE Power's ERP depends on how we enable and drive this digital thread to increase productivity, which can then trans-late into optimized working capital and incremental business revenue. 2. Step toward Innovation ERP is a business ini-tiative: it is not an IT project. ERP must enable inher-ent business transformation and it must be aimed at enabling outcomes. GE Power has made a strategic decision to operate a single SAP instance supporting 40,000 global users across our three largest business units. This will be the single largest ERP within GE;ap-proximately 40 percent of GE Power's overall operat-ing profit will be processed through this platform. We have adopted a two phased ERP strategy to enable this within GE Power. This allows us to think about ERPs a bit differently. Phase 1 is focused on implementing the enterprise platform by leveraging the principles of agile methodology and eliminating waste in our ex-isting processes and drive productivity. As a result, we can automate the product lifecycle while maintaining the install base information (the transactional records for every piece of equipment that gets shipped and serviced) and records on every employee involved in the production process. Phase 2 is focused on laying the broad foundations of the SAP platform to drive fu-ture innovation and growth. In this phase, we will be leveraging the GE-developed Predix cloud-based plat-form to realize the concept of digital thread, utilize big data and analytics, and build the digital enterprise of the future. When Phase 2 is completed, we will be able to drive better inventory optimization, predict the status of our assets, understand the failure modes of our equipment, and manage the cost of quality much more precisely. In short, GE Power is not taking the tra-ditional waterfall approach to ERP implementation, starting with foundation first then growth. Instead, we are running a true agile methodology to accelerate business value and learn as we grow.3. Technologies for the Future: With ERP deploy-ments, user experience has always been a challenge BUILDING A FUTURE-PROOF ERP PLATFORMBy Jorge Frausto, SVP-Enterprise Systems, GE Powerexpert opinion
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