ERP adoption in process manufacturing sector in Malaysia is still low

Press release - KUALA LUMPUR, 26 November, 2013

According to iContro Software Sdn Bhd, 100% homegrown, Malaysia-based ERP provider, the current level of Enterprise Resource Planning (ERP) computerisation in the manufacturing sector in Malaysia is very low. This is seen especially in the process based (eg paints) manufacturing sector.

Frank Lee, CEO of iContro Sdn Bhd 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’.
Frank Lee, CEO, iContro

Take note that the manufacturing industry is generally divided into two types - Process and Discrete, whereby the earlier is highly complex as it involves products that cannot then be broken down into its component parts once produced. Examples of process manufacturing include chemicals and raw material substances, oil & gas fuels, pharmaceutical goods and bio-engineered.

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.

In my opinion, Mr. Lee has given Malaysia too much credits. As the matter of fact, big data and cloud implementation didn't take off well too - especially in Malaysia.

I give credit to Mr. Lee's comment on why the adoption of ERP in the process-based manufacturing is slower than expected - 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.

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