Manufacturers looking to efficiently upgrade their IT capabilities and gain access to new business application functionality have two basic options available, according to
Magic Software Enterprises. They can either sign up with a software-as-a-service (SaaS) vendor or they can develop their system in house using custom software. The SaaS option is on the rise as the market continues to swing towards the integration of 'services' and 'information'. This 'service industrialisation' is personified by the SaaS business model, which meets business functionality needs with a measurable, buyable commodity that is available on the open market.
According to the company, SaaS is the ultimate playing field 'leveller', enabling small manufacturers to achieve the same operational efficiency of big players with big IT budgets, developing custom-made ERP and CRM systems. With all that said, however, there remains a significant advantage to building manufacturing applications in house. While SaaS provides a fast and easy way to obtain the IT capabilities needed, it remains, by its very nature, a one-size-fits-all solution, with little or no room for customisation to fit the specific business processes in some manufacturing enterprises.
If manufacturers are looking for very specific functionality - which does not leave them dependent upon the continued existence of their SaaS vendor - there is a good argument for opting for custom software development. That argument can be made even stronger if the cost of custom development can be reduced and the end result made more adaptable to changing business demands and the needs of a mobile workforce. The development of rich internet applications (RIAs) solves some of these issues. Manufacturers that have implemented custom RIA systems report a number of benefits.
First, RIAs are inherently mobile; the user has access to his or her main ERP or CRM system from anywhere, as long as there is internet connectivity. This is particularly beneficial for manufacturing organisations since this industry typically has work operations and staff that cannot be tied to a static desk or workstation. RIAs enable shop-floor operations and inventory staff and managers to work on the move and still have instant access to the core CRM or ERP system of the organisation. Second, one of the main advantages of RIAs is that they are, by nature, 'rich' - this means better user interfaces and improved functionality, typically including dashboards with moving graphs that can display histories and up-to-date inventory levels, sales figures and orders.
This can help improve decision making, reduce product costs, better identify bottlenecks and anticipate shortages and improve lean-manufacturing procedures. Third, manufacturing industries require fast and up-to-date inventory data and a real-time view of work in progress; RIAs can provide real-time tracking and batch item monitoring, including radio-frequency identification, barcodes and other tracking systems, helping manufacturers to more efficiently and effectively manage their manufacturing processes. In addition, RIAs can pull data from multiple data warehouses and systems and present that information on a single screen or a reduced number of screens, with screens that can be opened and viewed simultaneously with visualisation capabilities as well as drill-down and scroll-down capabilities, enabling staff and management to view more detailed information as required.
Another advantage is that custom-designed RIAs accessing local data warehouses can be optimised for master item synchronisation, potentially saving organisations millions. All in all, the benefits of custom-writing RIAs present some significant advantages for manufacturers. That is, of course, until the user starts writing; then, he or she realises that developing an RIA that features internet accessibility with the power and functionality of a desktop application involves system complexity. Custom RIA development can be prohibitive to many manufacturers because the sophistication of the software requires two kinds of programmers: RIA programmers for the client-side user interface and traditional business logic programmers for the back-end server application.
Maintaining two development teams is not cheap, fast or easy, hence the attraction of the SaaS option. However, this issue can now be resolved with a new approach to RIA development that pre-compiles and pre-configures the heavy code-writing processes into ready-made business application engines - or metadata engines. Application platforms that make use of metadata engines, such as Magic Software's Unipaas, allow a single programmer to create and deploy the entire business application from end to end, without the need for multiple programming languages or multiple development teams.
With a simpler coding process and fewer specialised skills required to design and implement changes, manufacturers can also more easily custom change their applications as their business needs evolve. Metadata-driven application platforms can reduce typical RIA development costs by up to 75 per cent, making RIA competitively viable for smaller manufacturers and those with lower IT budgets. Metadata application platforms allow RIAs to become a viable, economic alternative to SaaS for a large number of manufacturing companies. Manufacturers can retain their customised, mission-critical applications in house, while avoiding the IT expenses associated with conventional RIA development and deployment.
