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MANUFACTURING INDUSTRY TRENDS AND HOW IFS APPLICATIONS PREPARES YOU TO MEET THEM

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AGENDA

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THE STATE OF THE

MANUFACTURING MARKET

TRENDS & HOW IFS HELPS YOU

MEET THEM

STATE OF THE MARKET

INDUSTRIAL MANUFACTURING MARKET

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MARGINS UNDER PRESSURE

Source - IDC Manufacturing Insights' Global Performance Management Index

58% of new IT investments in 2013 will involve direct participation by line of business executives (LOB’s) — IDC 2013 Predictions

Firms in the S&P 500 are currently sitting on top of a $900 billion “Cash Mountain” 40% more than they had on the books before the recession hit in 2008. — The Economist

TRANSLATING TREND INTO SPEND

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Region 2012 2013 Change

Asia/Pac 52,852 56,736 7.3%

US 106,394 111,937 5.2%

WE 85,406 88,952 4.2%

ROW 32,239 35,205 9.2%

STATE OF THE INDUSTRY

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OVERVIEW

Frequent product changes and technology innovation drive need for speed

Introduction of value-added services drives new focus areas of lifecycle management

Deeper supply chains and management of complex technologies drive advanced planning and scheduling

STATE OF THE INDUSTRY

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OVERVIEW

Geographical shift From Far East: greater cost efficiencies To Eastern Europe: faster response to demands

Broadening Focus From: making products themselves To: selling services and delivering after-sales support (to raise margins and ability to increase uniqueness in offering)

3D PRINTING

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INTRODUCTION

3D printing is an opportunity and a real threat

3D PRINTING

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COUNTERFEIT GOODS ARE INEVITABLE

By 2018, 3D printing will result in the loss of at least $100 billion per year in intellectual property globally

Low Cost

Easy Access

Wide range of copies possible

TABLETS TO OVERTAKE PC SALES

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SALES OF DEVICES

Source – Gartner Predictions 2013

59% 4%

37%

2013 PC Ultramobile Tablet

32%

12% 56%

2017 PC Ultramobile Tablet

ANDROID BECOMES DOMINANT

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IT DEVICE OPERATING SYSTEMS

Source – Gartner Predictions 2013

TRENDS

Productivity

Mobility

Usability

Service Offering

TRENDS OVERVIEW

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Process productivity

Ecosystem productivity

Individual productivity

Management productivity

PRODUCTIVITY OVERVIEW

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Source – IDC Manufacturing Insights 2013

FINDING INFORMATION Enterprise Search

COLLABORATION Send to Tasks—follow up IFS Talk

DO LESS, GET MORE Conditional Formatting Workflow events

PRODUCTIVITY HOW IFS CAN HELP

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EVERYDAY BUSINESS IS HYPER-CONNECTED

By 2015 50% of business applications will be accessed via mobile solutions. Now is a critical moment for optimizing mobility within business strategy

MOBILE'S EVOLUTION FAR OUTPACING ERP

The mobile market has huge velocity that fuels innovation, disrupts user expectations and strengthens ERP space

ERP IS A MOBILE SWEET SPOT

How a business chooses to sell and serve is now often more important than what it offers. Mobility is a force for competitive differentiation

MOBILE ISN’T ‘THE FUTURE’ IT IS HERE AND NOW

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MOBILITY IFS SOLUTIONS FOR THREE PERSONAS

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CASUAL Complementary on the move

PROFESSIONAL Business critical, executed when mobile

TRANSACTIONAL Convenient on laptops, tablets, and ultrabooks

IFS Mobile Work Order

IFS Touch Apps

IFS Warehouse Data Collection Off-line / on-line

On-line Off-line / on-line

On-line

IFS Enterprise Explorer

According to Gartner “User centricity is not a technology per se. Rather, it is a characteristic of an organization's ERP strategy that no longer puts data at the center of the strategy, but rather the needs and working behavior of different groups of users”

USER CENTRICITY OVERVIEW

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USER CENTRICITY

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HOW IFS CAN HELP

Companies are now looking for new avenues to boost revenue, and offering in-house, as opposed to 3rd party, services is one option.

This is often referred to as “Servitization”

Manufacturers that incorporate useful services with their existing products are realising business growth of between 5 and 10% on average a year. (Source - Manufacturing Digital)

SERVICE OFFERING OVERVIEW

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SOLUTION OVERVIEW – AFTER-MARKET

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Equipment

Project

Project Delivery Manufacturing Distribution

Supplier Warranty Customer Warranty

As-Built Product Structure Serviceable Equipment automatically created on Delivery

As Built Configuration / Characteristics Service Contract & SLA’s Preventive Servicing What, Where, Who

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SERVICE MANAGEMENT

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HUMAN RESOURCES Training, Recruitment, Competencies & Certifications, ... DOCUMENT MANAGEMENT

Asset Management Work Order Equipment

Service Contract

Planned Reactive

Cost Purchasing

Time Expenses

Inventory

Revenue Time &

Materials Period

Finance

Call Centre CRM Quotations

Metered Billing

SUMMARY

The manufacturing industry is beginning to show good signs of recovery

Trends Productivity Mobility User Centricity Service Offering

We have manufacturing customers in over 45 countries

We will continue to develop our solution with the aim of becoming the best solution for manufacturing companies

SUMMARY

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ANTONY BOURNE GLOBAL MANUFACTURING INDUSTRY DIRECTOR

Email Antony.Bourne@ifsworld.com LinkedIn IFS

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QUESTIONS

THIS DOCUMENT MAY CONTAIN STATEMENTS OF POSSIBLE FUTURE FUNCTIONALITY FOR IFS’S SOFTWARE PRODUCTS AND TECHNOLOGY. SUCH STATEMENTS OF FUTURE FUNCTIONALITY ARE FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE

INTERPRETED AS ANY COMMITMENT OR REPRESENTATION. IFS AND ALL IFS PRODUCT NAMES ARE TRADEMARKS OF IFS. THE NAMES OF ACTUAL COMPANIES AND PRODUCTS MENTIONED HEREIN MAY BE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS.

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