Small and mid-size manufacturers don't always have the budget to sign on with analyst and advisory firms. But they also don't often have the staff resources to perform services that research and advisory firms offer, such as vendor selection, vendor financial assessment, technology validation and keeping up with emerging technologies.
"The price point for entry could be a barrier," agrees Rick Davis, senior manager for information services sourcing and administration at Valero Energy Corp., a $33 billion refiner based in San Antonio, TX "But in some ways, [smaller manufacturers] need these services more than we do."
In the last year, Valero has increased its use of analyst resources because of its fast rate of growth through acquisition. That means less time for the IT staff to keep up with technology changes, Davis says. But even a large company like Valero is conscious of getting hard benefits for the money spent. Here's how Davis, like many other senior managers across Corporate America, uses industry analyst firms to:
Validate information. "Sometimes we have the information but need someone to validate that we're doing the right thing," Davis says.
Keep on top of technology directions, like where virtualization is going and who the leaders are in that arena.
Benchmark hardware pricing. "If you want to go with a single hardware provider, it's almost necessary to have a benchmark because there's nothing else to guide you," he says.
Attend seminars, which expose the company to industry experts.
Davis warns that analyst firms can't do everything you might want or expect them to do. For instance, when he was recently troubled with a particular contractual term, he asked for help in getting a general sense of whether it was generally accepted in the industry. He was told that it was too specific of a request and that the firm didn't have that type of visibility. "They of course can't solve every problem," Davis notes.
Valero also relies more on its staff resources and peer networking for its research into vendor financial status and selection.
Davis also advises companies to always remember that they know their business better than any analyst firm. "You've got to make sure the analyst firm becomes a part of your management team but that you're still making your own decisions," he says.
Here's an alphabetized look at some of the most well-known industry analyst firms that focus on the manufacturing industry.
AMR Research
AMR Research (Boston) is an advisory firm focused on supply chain, enterprise applications and next-generation infrastructure. It offers advisory services as well as peer networking opportunities to supply chain and technology executives in the consumer, life sciences, manufacturing and retail industries.
AMR's research management group focuses on providing independent research studies that result in actionable advice and quantitative data on critical business initiatives, industries and strategic technologies. To ensure the integrity and objectivity of its published research and advice, AMR has set guidelines and policies such as not creating marketing materials like white papers that endorse companies or technologies. In addition, the company says it doesn't provide custom quotes or testimonials for vendors.
Through its technology briefing seminars, telebriefings, webcasts and conferences, IT executives can discuss common business and IT issues, network with peers and hear the latest market findings and analysis on the issues, trends and developments within the enterprise applications space. For instance, its Executive Leadership Conference in Boston this fall will feature Dr. Alan Greenspan as a keynote speaker and will focus on the future of innovation in the U.S. software industry.
Aberdeen Group
Aberdeen Group (Boston) provides fact-based research focused on the global technology-driven value chain. The research is aimed both at technology buyers and technology providers. The company also helps vendors with their go-to-market strategies and campaigns.
Aberdeen clients can access an online research library containing thousands of publications and hundreds of benchmarks, KPIs and metrics across all vertical markets. They can also obtain over 50 primary research reports per year; participate in peer group custom benchmarking and research studies; access Aberdeen analysts; participate in interactive online conferences on research findings; and propose research studies.
Aberdeen dedicates a portion of its research efforts toward the midsize market, with its Midsize Enterprise Insights.
To ensure research depth and quality, Aberdeen surveys hundreds of companies in its research studies, and it says it takes measures to ensure its analysts aren't influenced by the underlying economics of its client relationships.
ARC Advisory Group
ARC Advisory group (Dedham, MA) is a research and advisory firm that focuses on manufacturing, logistics and supply chain solutions. Its coverage includes technology from plant floor sensors and automation to production, design and business systems.
The company's Strategic Advisory Services Group delivers a portfolio of products and services to keep clients apprised of the latest industry dynamics, enterprise applications and plant systems. The group advises manufacturers on strategic planning, supplier selection and technology assessment. The Advisory Services Group is divided into three areas: corporate, enterprise and manufacturing. All three offer the following services:
- Direct access to top ARC analysts
- Weekly Insights and Monthly Strategy Reports
- Industry Benchmarking Survey Results
- ARC Forum Tickets
- ARC Presentations on Current Hot Topics
- Password to MyARC Client Website
ARC's Consulting Services Group offers technology/architecture planning; project planning and procurement support; workshops/training; and benchmarking.
In the research arena, ARC's Market Studies cover enterprise solutions, manufacturing applications, automation products and related services. Research includes market size numbers, vertical-industry breakdowns, growth rate projections and executive summaries of current and emerging technologies.
ARC also organizes, participates in a variety of standards setting organizations and speaks at a variety of forums, conferences and webcasts, focused on the cutting-edge issues in manufacturing.
ChainLink Research
ChainLink Research is a research and consulting organization focused on supply chains and supply chain transformation. Its services range from subscription-based advisory services to custom consulting and research projects.
The firm offers complimentary research available through registration, as well as webinars. Paying clients can access the entire database of research reports, engage in online dialogues with ChainLink analysts and get discounts on e-learning programs.
In its research, the firm concentrates on virtual business models that are driving the next generation of networked supply chain architectures. Its primary research is conducted via direct, extensive interviews with end users and through its consultants' own project work. The company has a strong RFID focus.
ChainLink also publishes a monthly magazine, A Parallax View, available to clients and also available by subscription, that includes mini research reports and articles on key supply chain technologies and issues. Subscribers can also attend ChainLink-hosted events.
Gartner
The longest-standing and largest advisory firm of the group, Gartner (Stamford, CT) provides research and technology-related insights to CIOs, senior IT executives, technology companies and the investment community. The company consists of four elements:
- Gartner Research: Offers analysis and advice for technology users and vendors.
- Gartner Executive Programs: A membership program for CIOs, senior IT managers and their direct reports. The program combines the insight of Gartner research with the shared intelligence of a large IT executive community.
- Gartner Consulting: An independent consultancy helps clients define key strategies, manage major technology initiatives, optimize operations and achieve high returns on their IT investments. This area also does benchmarking, performance optimization and risk management.
- Gartner Events: Provides IT conferences that distill the latest Gartner research into applicable advice and forecasts. This is augmented with technology showcases, Peer Exchange Workshops, Analyst One-On-One meetings, Consulting Diagnostic Workshops and Keynote interviews with technology's top leadership.
Gartner's research offerings are the foundation of most client relationships at the firm. There are two service options: Reference and Advisor. Reference gives clients self-serve access to the company's research, including focus area topics, Gartner blogs, Gartner Fellows and its well-known Magic Quadrants and Hype Cycles. With the Advisor option, clients get direct contact with analysts. Additionally, the company's Industry Advisory Services provides clients with research that's specifically within the context of their particular industry.
Gartner offers a guarantee that its analysts are free from commercial interests and that their research and advice is uncompromised by commercial interests.
Industry Directions
Industry Directions (Boston) is a market research firm that provides project-based, go-to-market services for application system and service providers serving manufacturing-supported business networks. The company delivers vertical-market expertise and personalized services through its analysts' knowledge of industry-specific issues and drivers, business processes, challenges and IT solution requirements.
Industry Directions conducts primary and secondary market research, market validation and customer studies to understand the specific business and operational requirements of a given market. Mid-market companies are a major focus. (Disclaimer: William Brandel, the author's husband, is a principal in this firm.)
Manufacturing Insights
Manufacturing Insights, an advisory and research arm of International Data Corp. (Framingham, MA) provides business and IT decision makers with benchmarks, best practices and business cases for using information technology to improve manufacturing processes. It closely follows processes associated with the design, development and distribution of goods across a variety of markets.
The company is well-known for its fact-based research on manufacturing issues, such as lean/Six Sigma, RFID, warranty, China operations and compliance. It regularly holds Web conferences to disseminate its research findings and analysts' views.
Manufacturing Insights' stated goal is to provide strategic business technology and application advice for the manufacturing industry. In addition to research, the company's advisory services area concentrates on the following areas:
- Business processes such as supply chain, demand management and product development.
- Coverage of discrete and process manufacturing sub-industries.
- IT trend information on key issues.
- Details on best practices and actual business cases.
- Benchmarking research and expert analysis.
For technology vendors, the company also offers multiclient studies, consulting/custom services and go-to-market services.