A blog by Oleg Shilovitsky
Information & Comments about Engineering and Manufacturing Software

Business As Usual Is Not An Option For Manufacturers

Business As Usual Is Not An Option For Manufacturers
Oleg
Oleg
26 May, 2010 | 1 min for reading

An interesting research done by Economist Intelligence Unit, sponsored by Siemens PLM Software and Microsoft. You can get this report via this link. The fundamental outcome of the report is as following is that despite general optimism, manufacturers are very concerned about the future of their business and the overall impact.

  • Producers are confident in their ability to innovate—a central aspect of high-value manufacturing—but most acknowledge they will have to continue to boost their innovative capabilities. Over the past year, 40% increased their investments in research and development, while 19% took on board more highly skilled workers.
  • However, manufacturers cite some big obstacles to innovation and new product and service development, including costs (53% of respondents), uncertainty about customer demand (39%) and lack of appropriate in-house skills (38%). To overcome some of these hurdles, many are prepared to partner in the coming year: with suppliers (57%), large corporate clients (42%), technology providers (39%) and consumers (22%).
  • Almost one in five is even prepared to partner with a rival, to share resources in the face of competition, and two-thirds say that they are already actively engaged in “open innovation”, sharing ideas with third parties rather than trying to develop them entirely in-house.
  • Many manufacturers (36% of the survey sample) are now developing products for the green market, or making their processes more eco-friendly. In some cases, this is driven by consumer demand; in others by regulatory pressure.

What, in my view, software vendors can take from this? Manufacturers will continue to be challenged and will be interested to change the way they are doing business. The most important aspect is control over the product cost and material cost. To have a solution, here can be an interesting opportunity. In the meantime, there is nothing on the horizon.

Just my thoughts…

Best, Oleg

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