Ten Predictions for Manufacturing in 2005

Table of Contents

• Table of Contents
• In This Study
• Situation Overview
  • Revenue Growth Will Come from New Markets
  • There Is Pressure to Improve the New Product Development Process
  • Productivity Gains Must Come from the Supply Chain
  • IT Matters in Manufacturing
• Future Outlook
  • Prediction #1: The CIO Will Become a Change Agent
    • Smart Companies Will Bring Continuous Improvement and New IT Investment Under Common Governance
    • Execution Will Focus on Balancing Demand for New Capabilities with the Resources Available
  • Prediction #2: Productivity Will Become the Supply Chain Priority
    • Projects That Deliver "Productive Fulfillment" Will Be Funded
    • Buyers Will Look Across Traditional Application Categories to Craft a Solution
  • Prediction #3: Demand Information Management Will Emerge as a High Priority
    • Product Data Synchronization Isn't Just for Consumer Packaged Goods
    • Demand Analytics Will Be Ripe for Investment
    • Interest in CRM Will Return, Particularly Around Specific Vertical Industry Functionality
    • Supply Chains Will Be Calibrated to Demand Information, Making the Aggregation, Organization, and Integration Critical to Success
  • Prediction #4: Companies Will Have to Do More with Less in Their New Product Development Processes
    • PLM Has Been a Market Without a Corporate Buying Title; That Will Change
    • Design for x Will Be a Key Theme for Engineering Functions
    • A Market for Product Life-Cycle Management Analytics, Led by Product Portfolio Management, Will Emerge
  • Prediction #5: RFID Hype Will Implode
    • Wal-Mart Will Keep a Stiff Upper Lip, But Other Retailers Will Begin to Lose Interest and Reallocate Resources
    • Generation 2 Technology Will Not Come Close to Resolving Issues That Have Surfaced in Pilots
    • As the Dust Settles, Narrow Business Cases Will Emerge
  • Prediction #6: China Will Refuse to Overheat
    • Wall Street Will Begin to Ask for More Detailed Numbers for Sales Activity in China
    • Products Branded by Chinese Manufacturers Will Begin to Have an Impact in Certain Markets in North America and Western Europe
    • There Will Be at Least One Scandal Involving Government Corruption or Intellectual Property Theft ? But That Still Won't Slow Down Activity
  • Prediction #7: The Compliance Burden Will Increase
    • Governments Will Demonstrate Even Less Ability to Assimilate the Information than Manufacturers Are Showing in Aggregating It
    • Smart Approaches Will Look Beyond Just Compliance and Create Opportunities for Cost Management and Higher-Quality Products
    • Companies Will Evaluate the Creation of a Dynamic Compliance Architecture to Address Multiple Compliance Requirements
  • Prediction #8: Lean Sigma Continuous Improvement Will Expand Its Influence
    • Lean Sigma Enterprise Initiatives Will Proliferate and Must Be Managed
    • Success Will Depend on the Ability to Effectively Set Priorities
    • Continuous Improvement Programs Will Come Under Common Governance with New IT Investment
  • Prediction #9: IT Spending Will Shift to the Business Function
    • The Allocation Among Cost Reduction, Integration, and New Function Will Shift Toward New Function, Reaching 60% of the New Project Portfolio in Five Years
    • Leading Manufacturers Will Have More than 75% of Their Internal Developers on New Business Function Projects
    • The Probability of Success for These Projects Will Be Higher When Business Unit Leadership Is Accountable for the Results
  • Prediction #10: Vendors Will Redefine Their Offerings
    • There Will Be Battles Among the SHOMI Vendors for Primacy at Customer Accounts
    • Point Solutions Must Align with at Least One of the Key Vendors
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  • Related Research
  • Synopsis