Trends To Watch For 2011

2011 will hopefully mark the beginning of a robust recovery for recession-weary manufacturers who have endured stagnant-to-slow market growth and increased global competition. Many new technologies have matured and may aid in manufacturers’ efforts to regain their competitive footholds in the global market. Let’s take a look at some of these new technologies and initiatives that hold promise to make companies more lean, mean and, as a result, more competitive in the coming year.

A good year for PLM software. Most companies have cut their operating and labor costs to the bone throughout the recession. Many are also starting to realize that the only way to make it out of the recession stronger is to implement technology that will enable them to compete more efficiently. According to research by the Aberdeen Group, manufacturers looking to cut development schedules, reduce product costs, and facilitate collaboration with their supply chain and outside development stakeholders, will turn increasingly to PLM technology adoption.

The Aberdeen study indicates that among the “Best-in-Class” PLM implementations, companies were: nearly eight times more likely to meet product cost targets and to stay within product development budgets; almost five times more likely to launch products on time; and were able to reduce time to product launch by 21%. These companies were also twice as likely to include product development fundamentals in their initial PLM deployment; more likely to support PLM with IT budgets; and were 80% more likely to maintain a forward thinking plan for the PLM system.

Companies need to be more social. Social computing, not Facebook, or Twitter, or LinkedIn, but the technologies and principals behind them will be implemented across and between all organizations to boost productivity and economic growth.

All social computing technologies will gain momentum in 2011 so look for enterprises to merge their internal communications and collaboration, and public social site initiatives into one coordinated strategy.

Enterprises are increasingly turning to social networks as part of their marketing mix to strengthen their communication with their customers, understand pain points, and to create an attractive value proposition for potential customers. Using multiple channels to listen, act, engage and promote will become increasingly important for companies to remain relevant in 2010.

In addition, as design teams become globally dispersed, these social networks become vital connectors for sharing data and knowledge with colleagues.  For example, if a product development engineer is working on a complex assembly with which he has little expertise, he could use the internal social network to send a query out to find out if anyone inside the company has experience with it. Within minutes, that engineer can find answers or guidance perhaps using a shared screen session, whether that co-worker works in the same building or across an ocean.

Social networks can also be used as a valuable tool for companies as it allows engineers, project managers, and other product-development professionals to reach out to a broader network to gain knowledge and form new interest groups or communities. To investigate internal social network technology, check out solutions available through Yammer, MS SharePoint, PB Works, Zoho, and Google Docs.

Mobile is exploding. Everyone can see this. According to the Gartner Group, by year-end 2010, 1.2 billion people will carry hand-held, computing devices, providing a rich environment for the convergence of mobility and the Web.  A huge percentage of employees are bringing personal quick-access storage devices to work and putting sensitive documents and e-mails on them. Another game changer was the introduction of the Apple iPad and a slew of competing tablets (over 30) that were announced or delivered in 2010. Gartner Group predicts that by 2013, 80 percent of businesses will support a workforce using tablets.

Support requirements for media tablets will vary across and within enterprises depending on usage scenario. At minimum, in cases where employees are bringing their own devices for convenience, enterprises will have to offer appliance-level support with a limited level of network connectivity, which will likely include access to enterprise mail and calendars, and help desk support for connectivity issues.

The question for manufacturers is how do they assure the security of data when engineers and designers are working remotely using mobile devices. Vendors are hearing that concern and are adding increased security features, as evidenced by Apple beefing up the encryption capabilities on the iPhone 3GS. According to a new Forrester Research report, 29% of companies in North America and Europe now support the iPhone. That figure will continue to blossom as Apple’s improved security lays the groundwork for iPhones and Ipads to push even deeper into the enterprise.

Mass Customization is not an oxymoron. As customers become more finicky, mass production may soon be replaced by more nimble production methods capable of creating products tailored specifically to consumer’s individual needs. Mass customization is a new paradigm that encompasses the technologies and systems needed to deliver products that meet individual customers’ needs with near mass production efficiency.

In order to remain competitive, companies must adopt a flexible, demand-oriented strategy to provide a range of custom options. Efficiency is a key standard in mass customization strategies. Although introducing a level of customizability into any product typically increases costs, made-to-order products can actually reduce waste by basing production costs upon actual demand. Design and tooling costs have also decreased in recent years, making it more practical to produce smaller product batches or prototypes.

Flexibility in manufacturing processes and open communication with customers are two critical components of effective mass customization. In fact, maintaining close contact with customers to gauge their needs and receive feedback about a customized product is crucial in the mass customization process, and can also assist with innovation and new product development.

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