Key Trends to Impact ERP Adoption in Asia

By Alan Tong | Oct 27, 2008

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IDC sees four major trends that will impact adoption of ERP systems in Asia in the coming years. These include:

1. Globalization ― Large global manufacturers that have established their facilities in Asia will invest in ERP solutions to streamline their back-office processes and also integrate these processes to their headoffice. Local suppliers/manufacturers will adopt IT automation such as ERP as part of the conformity to global manufacturers requirements when trading with them.

2. Competition will force manufacturers to invest in technology such as ERP solution to streamline their back-end processing such as accounting, procurement, and order management. Besides workflow efficiency, the investment will lower the cost of producing the goods.

3. Governance Risk Compliance ― Increase complexity in financial reporting and processes such as taxation, audit and compliance. Asian manufacturers are required to comply with international standards and regulations when exporting to Europe and US. Thus companies will need to change some of their business processes to comply with international requirements.

4. Resource management ― Scarcity of raw material and resources, such as fuel, will demand manufacturers to improve their efficiency in consuming these components. Manufacturers will need to invest in solutions that will assist them in better planning and execution in producing the end product.

About the author
Alan Tong is Senior Research Manager of IDC's Asia/Pacific Enterprise Application Research.