Managing Automation - January 2008 - (Page 21) again this year, cost reduction receded as the top business priority on manufacturers’ agendas. Last year, cost reduction slipped 14 points in terms of poll respondents identifying it as a high priority. This year again, the percentage of respondents characterizing cost reduction as a high priority declined, dropping to 42.9% of respondents from 47% last year and 61% in 2006. Cost reduction, a perennial business discipline, of course retains an important role on manufacturers’ agendas, but business activities related to growth occupy an equal, if not more impor tant, status, according to the poll’s results. When asked what emphasis their companies will place on better business execution, for example, 54.6% of poll respondents indicated that this was a top priority for them, the highest-rated activity in the poll. Not far behind were improving key business processes, at 46.5%; new market penetration, at 46.3%; and new production introductions, at 43.6%, results pretty much in line with last year’s. Interestingly, worker re-education and skills improvements, two areas that industry associations such as the National Association of Manufacturers and the National Association of Advanced Manufacturing have been hammering on for years, seem finally to be getting greater emphasis, although the overall numbers remain disappointing. This year, 28.8% of poll respondents indicated that such educational activities would be a high priority for their companies in 2008, compared with 22% last year. When it comes to technology activities on the boards for 2008, the usual suspects — integration projects, information architecture, and mobile systems — remain in force with a status that is pretty much equal to last year’s, although with a couple of notable changes. Information systems consolidation, which led the pack of activities with a 30% share last year, has dropped to only 23.2% of respondents indicating this as a high priority for their companies. Moving up slightly in emphasis is inter-enterprise collaboration, with 25.2% of respondents, even as integrating plant floor systems with business systems holds its ground, at 24.8% of the survey group. Fans of the digital factory concept — the integration of design and production — may have mixed feelings about the survey results on this tech activity. In response to this new question in the survey, only 15.4% of respondents indicated that the digital factory integration activity is a high priority for their companies in 2008, but another 55.7% said that their compa- t ma pollech priorities TECHNOLOGY BUDGET INCREASES HOLDING — AT LEAST FOR NOW Q: In 2008, what is your company’s plan for its technology budget? Cut budget more than 10%: 2.2% Cut budget 5-10%: 4.5% Don’t know: 8.1% Increase budget more than 10%: 12% Cut budget 5-10%: 6.6% Cut budget more than 10%: 3% Don’t know: 4.7% Increase budget more than 10%: 11.5% Increase budget 5-10%: 21.4% 2008 Keep it flat with prior year: 30.4% Increase budget 5-10%: 21.7% 2007 Increase budget up to 5%: 21.2% Keep it flat with prior year: 27.9% Increase budget up to 5%: 24.9% INTER-ENTERPRISE COLLABORATION, MOBILITY TOP TECH PRIORITIES FOR 2008 Q: Among the following technology priorities, what emphasis will your company place on the following activities in 2008? Integration of plant floor systems with business systems 24.2% 20% 19% 19% 17.6% 13% 29% 19.4% 17% 17.6% 18% 54.9% 50% 39.1% 40% 16% 17% 57.7% 54% 51% 53% 55.9% 58% 59% 60% 55.7% 63% 60% 59.2% 52% 40% 40% 50.7% 50% 26.2% 28% 24.8% 26% 25.2% 23% 23.4% 27% 15.4% 17.6% 22% 23.2% 30% 2008 2007 2008 2007 2008 2007 2008 2008 2007 2008 2007 5% 2008 10% 2007 10% 2008 10% 2007 2008 2007 Enabling inter-enterprise collaboration Developing the corporate information architecture Integrating design, production Embracing industry standards Information systems consolidation Outsourcing all or part of IT function Utilizing hosted application services or managed network services Making systems and people more mobile Low = Percentages may have been rounded and may not equal 100%. Medium = High = 21 January 2008
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