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by Jeff Kaplan, Contributing Editor Posted on Friday, October 21, 2005 9:55:00 AM   | Abstract: | Manufacturers must first determine which internal IT, application and business management skills are truly "core" competencies and how much they can rely on third-parties without jeopardizing the quality of services delivered to internal users and business partners.
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As the pressures of today's economic climate intensify, manufacturing companies are challenged to fundamentally redesign their operating models to survive and succeed. This is particularly true when it comes to their information technology (IT) and supply-chain operations. A growing array of "managed service" alternatives have emerged that can significantly reduce costs and improve productivity. But, matching these alternatives to specific business requirements will be essential for your organization to successfully achieve its objectives. The macro-economic challenges facing manufacturers are daunting. Natural disasters and geo-political forces have combined to drive up gas and other raw material costs, as well as distribution expenses. These forces are having a belt-tightening effect on IT and other aspects of corporate budgets. As a result, the major IT research firms, including Forrester and International Data Corp., have reduced their forecasts for corporate IT spending over the next two to three years. (See "IT Buyers Curb Their Enthusiasm ..." and "Forrester Research Forecasts Significant Drop in IT Spending In 2007" for additional insights.) [Click to continue] |