Driving Advanced Demand Solutions in Manufacturing (Strategic Focus)

Table of Contents

• Overview
  • Catalyst
  • Summary
• Key Messages
  • Economic uncertainty and planning process refinement are driving demand management
  • A number of demand management drivers are being seen in the market
  • The state of the market is mixed, with a low penetration of demand management technology
  • Investment in demand management technology will grow at a fast pace
  • Data siloing is still a dominant trend within systems used for demand management
  • Demand shaping is moving up the list of manufacturers' priorities
  • A lack of demand visibility is a challenge, but is increasingly easy to solve with technology
  • Vendors must target appropriate pain points within manufacturing companies
• Table of Contents
• Table of figures
• Table of tables
• Market Opportunity
  • Economic uncertainty and planning process refinement are driving demand management
    • The uncertain economic environment is forcing manufacturers to consider demand management
    • There is an increasing focus on linking operations with demand planning processes
  • Demand management means different things to different people
    • Demand management is not just forecasting
    • Demand management supports the organization of multiple plans to align supply with demand
  • A number of demand management drivers are being seen in the market
    • Deliver/return process priorities show demand management-related processes are ranked highly
    • Changes in production outsourcing and relocation are also affecting demand management
    • A reduction in inventory holding and production cycle sizes leads an array of demand management drivers
    • New product introduction cycles are shortening, causing complications in demand
  • The state of the market is mixed, with a low penetration of demand management technology
    • Not all manufacturing companies have developed formal demand management strategies
  • Investment in demand management technology will grow at a fast pace
    • North America will provide the most opportunity for vendors
    • The discrete industry will invest the most in demand management technology
    • The CPG industry is leading the discrete manufacturing industry
    • Both the pharmaceutical and food & beverage industries will invest in demand management technology
• Technology Evolution
  • Manufacturers will increasingly look to technology to support demand management
  • Data siloing is still a dominant trend within systems used for demand management
  • Manufacturers are trying to source customer data as close to the customer as possible
  • There is a marked shift from historically derived forecasts to predictive models
  • Integration with order management systems is becoming an imperative
  • Demand shaping is moving up the list of manufacturers' priorities
• Customer Impact: driving demand management processes
  • A lack of demand visibility is a challenge, but is increasingly easy to solve with technology
    • Better collaboration with customers is a rising priority for manufacturers
    • Supply chain channels severely complicate demand management processes
    • Demand management solutions can improve visibility
  • A difference between forecast and actual demand is costing manufacturers dearly
    • Inventory management is at the heart of the issue
    • Most manufacturers do not forecast at an appropriate level of granularity
• Competitive Landscape
  • A small number of vendors dominate mindshare for demand management technology
    • SAP accounts for more than half of the mindshare for future investment
    • HP and IBM sit at the top of the heap for the services market
  • SAS
  • Epicor
  • JustEnough
  • HP
  • Genpact
• Go to Market
  • CEOs are the technology investment decision makers, but LOB should still be a priority
  • Vendors must target appropriate pain points within manufacturing companies
    • There is significant variation between those manufacturers with differing degrees of globalization
    • The maturity of a formal demand management strategy will also affect which issues are important
• APPENDIX
  • Definitions
  • Methodology
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
  • List of Tables
• Table 1: Global investment in demand management technology 2007-13 ($m)
• Table 2: Regional investment in demand management technology 2007-13 ($m)
• Table 3: Global industry investment in demand management technology 2007-13 ($m)
• Table 4: Global discrete investment in demand management technology 2007-13 ($m)
• Table 5: Global batch investment in demand management technology 2007-13 ($m)
  • List of Figures
• Figure 1: General priorities for deliver and return processes
• Figure 2: Degree of production outsourcing or relocation among survey respondents
• Figure 3: Degree of production outsourcing or relocation among survey respondents (by region)
• Figure 4: Degree of production outsourcing or relocation among survey respondents (by industry)
• Figure 5: Identification of demand management-related issues affecting surveyed manufacturers
• Figure 6: Identification of demand management-related issues affecting surveyed manufacturers (region)
• Figure 7: Identification of demand management-related issues affecting surveyed manufacturers (industry)
• Figure 8: Relative maturity of formal demand management strategy among surveyed manufacturers
• Figure 9: Relative maturity of formal demand management strategy among surveyed manufacturers (region)
• Figure 10: Relative maturity of demand management strategy among surveyed manufacturers (industry)
• Figure 11: Global investment in demand management technology 2007-13 ($m)
• Figure 12: Regional investment in demand management technology 2007-13 ($m)
• Figure 13: Global industry investment in demand management technology 2007-13 ($m)
• Figure 14: Global discrete investment in demand management technology 2007-13 ($m)
• Figure 15: Global batch investment in demand management technology 2007-13 ($m)
• Figure 16: Degree to which surveyed manufacturers will look to technology for demand management
• Figure 17: Degree to which surveyed manufacturers will look to technology for demand management (region)
• Figure 18: Degree to which manufacturers will look to technology for demand management (industry)
• Figure 19: Degree to which manufacturers will look to technology for demand management (strategy maturity)
• Figure 20: Vendor mindshare for future investment in demand management software
• Figure 21: Vendor mindshare for future investment in demand management software (strategy maturity)
• Figure 22: Vendor mindshare for future investment in demand management services
• Figure 23: Vendor mindshare for future investment in demand management services (strategy maturity)
• Figure 24: Investment decision makers for demand management technology
• Figure 25: Investment decision makers for demand management technology (region)
• Figure 26: Investment decision makers for demand management technology (industry)
• Figure 27: Issue prioritization for manufacturers based on outsourcing or relocation activity
• Figure 28: Issue prioritization for manufacturers based on formal strategy maturity