Managing complexity is the next key for manufacturers
1 min read
As manufacturers look to recover post-recession, accepting that IT complexity is here to stay, and managing it accordingly, is essential to success, according to IDC Manufacturing Insights.
The analyst cites a recent survey of global CEOs, conducted by IBM, which revealed that the number one issue for executives in 2011 is complexity. While that is no surprise, IDC notes that the language has changed: rather than talking in terms of reducing complexity, CEOs are now talking about how to transform it for competitive edge.
As a result, 'capitalising on complexity' has been earmarked by IDC as one of the key manufacturing trends for 2011, says Bob Parker, group vice president of research for IDC Manufacturing Insights.
"Within industry there is a recognition that complexity is a fact of life," he explains. "Our big prediction for 2011 is that manufacturers will launch initiatives to better deal with complexity for competitive advantage."
He cites everything from managing complex supply chains t improving product lifecycle management as fair game.
"In recent years we've seen progression from low-cost country sourcing to what we call profitable proximity – getting the supply close to the demand," states Parker. "And while that has worked out well for manufacturers in terms of cost, it has also created complexity in how they manage their supply chains. Dealing with volatility in the materials market has also added to this."
And he continues: "The consensus among manufacturing executives is that recovery is under way, but a considerable amount of uncertainty exists regarding the degree and speed of that recovery.
"Manufacturing companies are creating competitive advantage by better managing complexity while better responding to volatility – and this is generally very good news for IT markets, since IT is where we go to deal with that type of thing."
Managing complex manufacturing and IT environments is an issue that will be top of the agenda at the Next Generation Manufacturing Europe Summit 2011, which takes place from 20—22 September in Vienna.
This closed-door summit, hosted by GDS International and with analysis from Parker's IDC Manufacturing Insights team, promises to bring together some of the leading voices in the European manufacturing sector, including Brian Chesterman, global head of supply chain management at BP, Gerald Weber, EVP operations at Airbus and Ton Guerts, chief procurement officer at AkzoNobel.
