Asset and service management are new targets for IFS

It’s steady as she goes at Swedish manufacturing business systems developer IFS – with the goal for 2004 set as leadership in its key sectors. President and CEO Michael Hallen says that, following a period of acquisitions and rationalisation completed last year, the firm is now focused on organic growth. Acquisitions, he says, are not currently on the agenda, and the company’s tight share ownership protects it from hostile bid activity of the kind that was launched against PeopleSoft by Oracle. Looking at Baan, for example, recently acquired by SSA Global from Invensys for a song, he said IFS hadn’t been interested – not only because of the potential liabilities, but because IFS has been through that phase and is now focused on developing what it has for the mid-long term. That being the case, it’s all about good execution throughout the world in its seven target markets. Those remain aerospace and defence, automotive suppliers, general engineer/make-to-order manufacturing, batch process industries, the utilities sector, service management and high tech and electronics. The common thread throughout is complex, multi-site engineering and manufacturing, along with specialisation in the more asset-intensive industries, like power generation and chemicals, particularly for the MRO (maintenance, repair and overhaul) services management. Indeed, it is those two legs that have been exploited so effectively by the company’s management around the world to effect what has been meteoric growth. Potential users now see an organisation with a good global infrastructure, completed localisation, and very broad and deep engineering, manufacturing and asset management functionality. “Very few of the ERP vendors can do this. We present the same face to our customers everywhere,” says Hallen. And he insists that the componentised approach, with ‘buy only what you need’ message, is also still an appealing one. It’s worth noting incidentally that although the firm scores well in $50—500m divisions and major sites of large corporates, it’s also been extremely successful with most of the majors in aerospace and defence, as well as in power generation, where the figures are far higher. Hallen says that for him, leadership in 2004 means “not having to put any effort in to be on the shortlist for all major projects in each of our markets.” To achieve that he says the firm will continue to work with the thought leaders in its customers and chosen sectors. Meanwhile, for IFS Applications 2004, he says we can expect special emphasis on maintenance and asset management functionality, as well as further developments for the rest of its manufacturing and engineering business management. We can also expect further improvements in terms of the look and feel, implementation times, support and the user experience. Supporting after sales service – a growing area for many manufacturers as they seek to grow revenue beyond product sales – is already well served by IFS. UK managing director Alastair Sorbie cites broadcast television equipment manufacturer Vinten, as well as Tricon and medical equipment maker Keymed as emerging users, and he expects service and fulfilling supply chain management to grow as more companies outsource more production abroad.