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

Recent Posts

Also on BeyondPLM

4 6
13 July, 2016

Historically, a business model of CAD, PDM and PLM vendors was to sell “seats”.  To sell CAD seats was a core...

9 July, 2012

I want to talk about the cloud today. However, I don’t want to speak about PLM cloud. I want to...

15 January, 2026

We are moving fast into the new year and I want to continue sharing some of my thoughts and ideas...

11 December, 2009

I got a comment on my blog yesterday stating “back to basics”. Why do we discuss advanced stuff at the...

25 February, 2010

I’m continuing to discuss various aspects of PLM on the Cloud and SaaS. The issue I wanted to discuss today...

8 March, 2026

AI harness is an interesting topic. Over the past year, most discussions about AI have focused on models. Which model...

4 December, 2022

Recessions offer major opportunities for everyone who likes to innovate. Engineering or sales, strategy, and tactic – there are usually...

19 December, 2016

Last year I’ve made a crazy prediction that your next PLM workflow manager will be a bot. As much as...

18 July, 2019

Have you heard about low-code development platforms? You better pay attention to low-code, since this cool buzzword and actually tools...

Blogroll

To the top