Top 10 ticker: IDC’s predictions for 2009 put the onus for payback on IT

The consensus of Framingham, Mass.-based IDC Manufacturing Insights analysts is that IT investments will return to zero-based budgeting, demanding faster payback aligned more tightly with the business strategy.<br/>

01/13/2009



Manufacturing in 2009 is going to be rough, but there are reasons for hope and opportunities to be seized, according to a team of analysts from Framingham, Mass.-based IDC Manufacturing Insights .

From IDC’s annual Webinar, Top 10 predictions for Manufacturing —which took placemore important than ever.

“Manufacturing is sexy again,” says Bob Parker, IDC’s VP of research.

The federal injection of capital to boost credit liquidity and to aid the automotive industry—and the potential infusion of hope inspired by the new administration—offer some relief from the oppressive fall of market confidence in the closing quarter of 2008.

“There is a psychology to every recession, and Obama showed the ability to inspire people through the election,” Parker says, and “hopefully (that ability) can be applied to the recession.”

Here is IDC’s Top 10 2009 list:

1) Exploiting tangible and intangible assets

Leading the list is the belief that companies will exploit existing tangible and intangible assets to weather the recession and best position themselves for recovery. The trend to remove assets from the ledger to boost margins that drove outsourcing during the previous decade—what Parker deems “asset arbitrage”—will be replaced by seeking to reap peak asset performance, achieve greater inventory optimization, and leverage the intangibles of brand equity and intellectual property to the maximum.

2) Zero-based IT budgets with shorter ROI
IT budgets may well come under severe review, with hardware purchases being delayed; and software projects being focused on emphasizing information over mere data to provide a more common global view that results in better, faster decisions. “Companies will want to run IT as a business,” Parker states.

3) Right-sized supply chains for “Profitable Proximity”

Companies will rethink supply chain strategies that have been driven primarily by low-cost labor metrics to better accommodate total landed costs, moving to geographically rebalance supply and demand chains.

4) Supply chain strategies support standard business approaches, modernization of decision-making

Partners and customers will be more demanding, and companies need to manage service levels and risks that threaten them—including assisting suppliers with risk management.

5) Product life-cycle emphasis on value, reuse

Innovation once driven by a focus on single products will evolve toward greater product portfolio management that stresses reuse to reduce inventory and manufacturing retooling costs.

6) Broadly harmonized product information
Companies will seek to make more holistic product decisions that draw not only on design, but after-sales support and customer satisfaction. Greater emphasis needs to be put on harmonizing systems to standardize IT semantics and taxonomies.

7) Successful management of manufacturing assets

“Going forward, managing manufacturing assets can become quite a competitive weapon,” Parker states. “Manufacturing is sexy again.”

8) Support for the factory network of the future

Convergence of investments in digital manufacturing, modern execution platforms, and manufacturing intelligence will begin to support the factory network of the future. Lean will be baked in. Tighter integration, data standards, and better intelligence will modernize data acquisition that supports global decisions.

9) Web 2.0 tools to drive knowledge management
Better training to address aging and other workforce challenges, and the need for greater reuse of information will take advantage of low-cost, quick-return Web 2.0 tools that can contribute to long-term benefits.

10) Sustainability with focused metrics to aid benchmarking
Sustainability will increasingly become a profitability issue where‘green’ will be measured by contribution to revenues.





• Virtualization

• Unified communications

• Data mart/portal consolidation

• Open source

Four ways to save business costs with IT:

• Energy management

• Health Insurance

• e-Government

• Financial services

Source: IDC Manufacturing Insights





No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2013 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
The true cost of lubrication: Three keys to consider when evaluating oils; Plant Engineering Lubrication Guide; 11 ways to protect bearing assets; Is lubrication part of your KPIs?
Contract maintenance: 5 ways to keep things humming while keeping an eye on costs; Pneumatic systems; Energy monitoring; The sixth 'S' is safety
Transport your data: Supply chain information critical to operational excellence; High-voltage faults; Portable cooling; Safety automation isn't automatic
Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Plant Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.

Maintaining low data center PUE; Using eco mode in UPS systems; Commissioning electrical and power systems; Exploring dc power distribution alternatives
Synchronizing industrial Ethernet networks; Selecting protocol conversion gateways; Integrating HMIs with PLCs and PACs
Why manufacturers need to see energy in a different light: Current approaches to energy management yield quick savings, but leave plant managers searching for ways of improving on those early gains.

Annual Salary Survey

Participate in the 2013 Salary Survey

In a year when manufacturing continued to lead the economic rebound, it makes sense that plant manager bonuses rebounded. Plant Engineering’s annual Salary Survey shows both wages and bonuses rose in 2012 after a retreat the year before.

Average salary across all job titles for plant floor management rose 3.5% to $95,446, and bonus compensation jumped to $15,162, a 4.2% increase from the 2010 level and double the 2011 total, which showed a sharp drop in bonus.

2012 Salary Survey Analysis

2012 Salary Survey Results

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.