OCTOBER 2017CIOAPPLICATIONS.COM8Cloud Computing for the ERPCloud computing is the future of ERP. Not only can it cut the cost of running the infrastructure significantly, it can also help drive the standardization agenda, which is so critical in making an ERP roll out successful. Within GE Power, we look at ERPs and Cloud technology by categorizing ERP into three buckets: small, medium, and large. For our small and medium sized ERPs, we are incorporating the Cloud SaaS platform. For the first time in GE, we will have one smaller sized manufacturing and engineering site migrating to the Cloud SaaS platform in April 2017. Based upon the learnings from this pilot, we will be rolling this solution out for our medium-size manufacturing sites. For our large-scale ERP, we are taking a hybrid approach where we have the ERP by itself on premise while having some of our pillar platforms (e.g., commercial, procurement, etc.) on the cloud. This serves two purposes: in a smaller to mid-size environment, it gives us the opportunity to learn and experiment with SaaS solutions, while in the larger scale ERP environment; it sets the path toward SaaS by having the peripheral applications on the cloud.Big Data Analytics: Shaping ERPBig data and analytics are really significant in the current scenario. Early on, our focus concentrated on rolling out ERPs first and then worrying about reporting, data and analytics at a later point in time. Now data and analytics are continuously shaping the way we roll out ERPs. Most of the ERP software comes with built in reporting tools. We can leverage those tools for operational reporting purposes. However, throughout the entire ERP ecosystem we have several pillar applications like PLM, Services and Repair, and Commercial that interface with the ERP. These applications, along with the ERP, come together to form what we term as the `digital thread' for an enterprise. We leverage big data and analytics platforms to harness this digital thread across all pillar applications. By doing this, we form a semantic data layer that is consistent across all pillar applications, which is key to GE becoming a digital industrial leader. At the project's conclusion, we will not measure the success of ERP on simply the schedule and budget. These are just table stakes. Success for GE Power's ERP depends on how we enable and drive this digital thread to increase productivity, which can then translate into optimized working capital and incremental business revenue.Step Toward Innovation ERP is a business initiative; it is not an IT project. ERP must enable inherent business transformation and it must be aimed at enabling outcomes. GE Power has made a strategic decision to operate a single SAP instance supporting 40,000 global users across our three largest business units. This will be the single largest ERP within GE; approximately 40 percent of GE Power's overall operating profit will be processed through this platform. We have adopted a two phased ERP strategy to enable this within GE Power. This allows us to think about ERPs a bit differently. Phase 1is focused on implementing the enterprise platform by leveraging the principles of agile methodology and eliminating waste in our existing processes and drive productivity. As a result, we can automate the product lifecycle while maintaining the install base information (the transactional records for every piece of equipment that gets shipped and serviced) and records on every employee involved in the production process. Phase 2 is focused on laying the broad foundations of the SAP platform to drive future innovation and growth. In this phase, we will be leveraging the GE-developed Predix cloud-based platform JORGE FRAUSTO, SVP ­ ENTERPRISE SYSTEMS, GE POWERIn My ViewBUILDING A FUTURE-PROOF ERP PLATFORMJorge Frausto
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