Dismal Level of ERP ‘Computerisation’ in Local Manufacturing Sector

Nov 26, 2013 (Tue):  iContro Software Sdn Bhd (‘iContro’), 100% homegrown, Malaysia-based ERP provider, today shared its recent findings on the current state of computerisation in the Manufacturing sector, the 2nd largest economic industry in the country.

Frank Lee, CEO of iContro, says that despite the great progress in other ICT areas such as mobility, digital media, Big Data and cloud computing; the advancements in the biggest enterprise system – the Enterprise Resource Planning (ERP), is still sadly lacking.

“The behemoth ERP system is the core of all large enterprises and business operations whether in the public sector, telco, financial and retail. Yet, the advancements and technological upgrades within the ERP is one of the slowest and most painful.”

Lee particularly singles out the state of ERP systems in Process-based manufacturers, which he deduced is still ‘…at a very basic level of computerisation and automation’.

“As a significant portion of local manufacturers are process-based, it is not far-fetched to assume that this is currently one of the least automated sectors in the country, despite it being a top economic activity for Malaysia.”

In addition to the ERP systems of process-based manufacturers being the least ‘computerised’ or ‘automated’ of all other manufacturers, iContro estimates that less than one third of Malaysia-based process manufacturers even deploy an ERP system for their operations.

“The main reason for this dismal ERP phenomenon in Malaysia and the region, is because most ERP systems available cannot cope with the highly complex nature of process-based manufacturing.

Even if they have some kind of ERP system, they are mostly limited to handle the manufacturers’ financials, distribution or HR functions only instead of being optimised to integrate and automate the actual and entire process manufacturing operations,” explains Lee.

Over the last 18 years, iContro has been focusing on developing and providing ERP systems for complex business operations. The company today offers a comprehensive suite of ERP solutions across sectors, but hold current dominance of paint manufacturers (which are in the category of process-based manufacturing).

“Most of the paint manufacturers in Malaysia today use iContro as their default ERP – simply because it works extremely well to support all the complexities in their niche operations, and is much more affordable than other international ERP brands in the market,” shares Lee.

Besides continual upgrades to these existing manufacturing clients, he says that iContro is getting interest from players in other sectors such as Building Materials related, Oil & Gas and Property.

“The ERP market in Malaysia is slowly but surely undergoing a transformation as companies scrutinize that the capabilities of their IT purchases can actually perform what the business requires, in the face of ever growing competition in the Market Place” he ends.

Author: Terry KS

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