ENRX connects Europe with the Infor ERP cloud solution
The induction adventure of ENRX from Skien employs 1150 individuals across 20 locations in 19 countries and generates a turnover of over 1.5 billion Norwegian kroner. Much of the growth has occurred through acquisitions, resulting in the conglomerate operating with four different ERP systems. The company is now embarking on a comprehensive cloud transformation with the assistance of the Norwegian consulting firm Mazeppa.
ENRX, owned by Arendals Fossekompani, develops, manufactures, installs, and maintains various induction solutions for clients worldwide. The company gained significant attention after securing a prestigious contract worth 150 million Norwegian kroner, aimed at enabling vehicle charging on highways in the USA using induction technology.
For several years, ENRX has utilized the Infor ERP solution across its European corporate leadership and production units. Additionally, Infor is being implemented in companies acquired by ENRX, including those in Germany and the United Kingdom.
"Infor is the most widely used ERP system within ENRX. Transitioning Infor to the cloud is part of a larger initiative within the company to streamline operations by harmonizing and standardizing practices across ENRX companies. Ultimately, the ambition is to expand the use of Infor within the company," says CIO Trygve Kristoffer Nilssen of ENRX.
A shared cloud-based solution simplifies the system portfolio and makes the solution accessible to the company's operations in Europe. Additionally, it will relieve the responsibility for maintaining its server infrastructure, as the cloud solution by Infor is fully managed by Amazon Web Services (AWS), offering the security and operational benefits associated with it.
Don't wait for 'end-of-life'
ENRX expects the on-premises solution from Infor to reach "end-of-life" within 3 to 5 years, and Nilssen compares being stuck with an "end-of-life" on-premises system to being stuck with a customized ERP solution, Alone and responsible for a static solution that eventually hinders the company's expansion and development. "Don't wait for 'end-of-life,'" Nilssen urges.
"It's never the 'right time' to initiate such a comprehensive project," says CEO Aage Ramstad of the consulting firm Mazeppa. "But one should be cautious about postponing a move to the cloud when 'end-of-life' is near."
According to Ramstad, pushing the challenge ahead will lead to an increasing functional and security gap between 'end-of-life' and the cloud solution with each passing year. For ENRX, the scope of transitioning to the cloud will also increase year by year as new companies are incorporated into the current on-premises version. Moreover, one would be left with a business-critical system without functional updates. However, the most risky scenario would be to be forced into such a comprehensive upgrade project at a more inconvenient time and with even less time to spare.
Preparing the Organization
ENRX is already underway in preparing the organization. This involves engaging users and process owners and preparing the technical solution. This is expected to be in place by the end of 2024, with implementation slated for 2025. The consulting firm Mazeppa has been selected to assist with the ERP upgrade until the solution is launched in early 2026.
"The management recognizes the need for a common solution across the entire conglomerate, where the fundamental idea is for many of the ENRX group businesses to use the same system and benefit from and enhance the quality of common master data. Simplified reporting and automation of trade between countries and factories are important areas for improvement. To get there, we must ensure ownership among users and process owners," says CEO Aage Ramstad of Mazeppa.
"We chose Mazeppa because their expertise in Infor LN is outstanding in Norway, which means solid experience from other similar industrial companies. Additionally, they know us well from before, which gives us the confidence of having a partner that gives sufficient priority and ensures that we make wise choices in an exciting but challenging upgrade project," says Nilssen.
Cloud ERP operations differ from on-premises
ENRX has chosen Infor's Cloud Suite Industrial Enterprise Manufacturing, a standardized, multi-tenant cloud solution containing a range of pre-configured settings tailored to manufacturing businesses.
The ERP cloud solution's functionality, security, stability, and reliability are driven by the needs and requirements of customers worldwide who use Infor's Cloud Suite Industrial Enterprise Manufacturing.
"This provides ENRX with confidence that the pre-configured settings are always relevant. With a service provider like Amazon Web Services behind them, they ensure an 'end-to-end' solution that meets stringent security, reliability, and stability requirements. These are 'common goods' the cloud solution provides access to via the internet," says Ramstad.
ENRX acknowledges that ERP operations in the cloud differ from on-premises, where ongoing decisions must be made regarding upgrades of pre-configured settings. "This means that we must work in new ways to reap benefits by enhancing our innovation and improvement projects, but also by realizing new business opportunities related to machine learning and being able to leverage AI-based applications," notes Nilssen.
Norwegian industry can thrive with standard solutions
Even with 20 locations in 19 countries, 8 production sites, and a relatively complex value chain, ENRX could theoretically manage with a standard cloud-based ERP solution from Infor.
"From the beginning, ENRX's strategy has been to invest in a standard ERP solution, and the Norwegian industry should learn from this. Infor has built its industry solutions on a few verticals, and my experience is that you must be exceptional if your needs aren't met through such a standard ERP solution," says Ramstad.
The Norwegian industry needs to transition to the cloud precisely because it offers more technology and better accessibility. AI and machine learning are integrated into the ERP solution with tailored solutions for industrial enterprises. "Time-consuming and risky customized ERP projects are not the way to go," says Ramstad.
"As we move into a purely cloud-based existence, the era of large, resource-intensive, and risky ERP upgrades will be behind us," says Nilssen.