What's driving IT spending?
By Staff -- Manufacturing Business Technology, 10/1/2006 12:00:00 AM
With the July 2006 deadline for RoHS (Restriction of Hazardous Substances) compliance behind them, manufacturers face possible revenue loss—or at the very least, disrupted revenue—when countries begin enforcing electronic-equipment recycling laws, says electronic-waste solutions management vendor M-Cubed. What's needed, says the vendor, is a “design for the environment” on the R&D side of the product life cycle, as well as product declaration, certification, and take-back on the manufacturing/production side through product end of life.
Boston-based AMR Research says the human capital management (HCM) market ties with CRM as the fastest-growing enterprise application segment, showing 10-percent growth rates in 2006. HCM interest apparently is fueled by the need to automate personnel-related processes, while the CRM market is growing as a result of new delivery models, such as software-as-a-service. By comparison, the core ERP market is expected to grow at only 3 percent.
Wireless technology, now the networking backbone in offices worldwide, is about to see widespread adoption in areas where it may have its most profound impact: on the plant floor and out in the field, says Dedham, Mass.-based ARC Advisory Group. The market, reported at $325.7 million in 2005, is forecast at $1 billion-plus in 2010. Process manufacturing stands to see the greatest impact, given new sensor networking and WLAN developments that will enable visibility into hidden processes, assets, and activities. Wireless also offers a more cost-effective means of monitoring plant equipment and production processes for real-time decision-making to head off maintenance issues before they interrupt production.
A recent survey indicates 80 percent of manufacturers already have a Lean Six Sigma program in place, but in reality, most of these projects have stalled. So says Rockwell Automation, which offers the Power Lean program—encompassing what the vendor calls a more practical approach toward understanding where companies are in a Lean Six Sigma transformation. Combining the strategies of lean manufacturing, Six Sigma, total productive maintenance, and energy management, the program gives customers flexibility when implementing a lean Six Sigma program because they choose their own level of improvement.
Boston-based analyst firm AberdeenGroup cites these top five drivers for improving sales & operations planning processes:
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Rising order fill rate expectations;
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Demand for better return on net assets;
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Shrinking profit margins;
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Customer retention pressures; and
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Extended lead times stemming from global sourcing.
To evolve toward integrated business planning, Aberdeen recommends a step-by-step plan, which can be accessed in the report, Technology Strategies for Integrated Business Planning Benchmark, at www.aberdeen.com.
