Managing Automation - January 2009 - (Page 34) [SPECIAL REPORT] a ma pollgility CHIEF AGILITY DRIVER SWITCHES TO COST REDUCTION Q: What’s driving the need for business agility? 15.1% Competitive factors 11.3% 12.5% 10.2% 62.9% 57.2% 64.2% 53.7% 38.5% 39.7% 40% 46.7% 46.3% 46.6% 49.2% 57.8% 22% 31.6% 23.2% 36.1% 49.2% 47.9% 53.6% 47% 47.1% 44.9% 42.6% 35.5% 2009 2008 2009 Europe 2009 2008 2009 Europe 2009 2008 2009 Europe 2009 2008 2009 Europe Reducing time to market 12.2% 12.4% 6.4% Cost reduction 6.3% 6.6% 8.6% Changing market requirements 8% 6.6% Low = Medium = High = THIS YEAR, DEMAND SIGNAL RESPONSE IS KEY AGILITY FOCUS Q: What degree of emphasis is management placing on the following activities in relation to becoming more agile? 10% Ability to understand and 8.5% respond to demand signals 6.9% 11% 49.8% 51.6% 50.9% 55.9% 42.3% 52.2% 53.8% 52.6% 63.3% 64.7% 61.9% 73.5% 50% 50.5% 59.8% 59.7% 50.9% 60% 40.1% 39.9% 42.2% 33.1% 43.2% 34.2% 31.8% 31.9% 29.9% 23.4% 24.3% 18.8% 35.2% 36.6% 28.2% 29.3% 35.8% 32.2% 2009 2008 2009 Europe 2009 2008 2009 Europe 2009 2008 2009 Europe 2009 2008 2009 Europe 2009 2008 2009 Europe 2009 2008 2009 Europe Ability to design products 14.5% 13.6% 14.4% Managing the supply chain 15.5% 6.9% 12% Allocating labor 13.6% 7.7% 14.8% Production, assembly 13% 12% 11.1% Logistics, fulfillment 13.3% 7.8% Low = Medium = High = shift in mind-set. Cost reduction has reclaimed its position as the top priority for manufacturers after having taken a backseat to growth initiatives since 2006. But what is perhaps most surprising about this year’s poll is that the numbers aren’t off even more. While intentions about general spending plans have clearly taken a big hit, technology budgets seem to have escaped wholesale emasculation. To be sure, the percentage of those planning tech spending increases is off sharply from last year, but the numbers are still respectable, even encouraging. In the United States, for example, almost 30% of respondents indicate they will increase their technology budgets anywhere from 5% to more than 10%, compared with about 55% last year saying so. In Europe, nearly 34% of respondents plan an increase in that range. And only about onefifth in both the U.S. and Europe plan actual technology budget reductions. In the United States last year, for example, only 7% planned reductions. Things, as the saying goes, could have been worse. An indication of why tech budgets are keeping their chins up can perhaps be found in top management’s perception of the value of technology. In Europe, a strong majority, 56%, says that technology provides strategic value. In the U.S., 47% say this is the case. Key areas of purchase intentions in 2009 reflect trends seen in prior years’ surveys. Wireless communications, manufacturing intelligence software, business intelligence applications, and that old standby, ERP, top respondents’ shopping lists for 2009. Meanwhile, becoming more agile could not be more important as businesses hunker down during the storm. The challenge emerging from this year’s survey is that manufacturers, now focused so much on cost reduction, are saying that sustaining management’s focus on agility, collaborating with partners and customers, and quickly implementing process changes associated with agility are getting markedly tougher. Perhaps that’s to be expected as the economic lightning bolts continue to strike. But at some point, this storm, too, will pass. And manufacturers will need to be in a position to restart their engines. The good news is that a sizable number are continuing to invest in automation and to emphasize important business disciplines such as agility. Those that persist in doing so will be in a better position once the sunlight returns. n ma 34 2009 Percentages may have been rounded and may not equal 100%. January
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