How does a manufacturing company embrace the future of technology? When it comes to applications and the systems they run on, should you start from scratch and embrace a new technology paradigm or is there a way to capture the benefits of new technology in incremental steps?
To some extent, these questions invoke an age-old choice: revolution or evolution? Putting the question this way is, admittedly, something of a setup. Rarely are choices so stark, so black-and-white. Could there be a middle ground — let's call it "accelerated evolution" — that would be a better approach?
These questions are a clear and present concern for manufacturers because many companies are trying to develop sound strategies for dealing with old and inflexible legacy systems that are hampering their ability to effectively manage their operations and compete in their markets.
Many organizations, particularly those that have been built through acquisition, are also dealing with multiple, incompatible systems. It is not unusual for MA's editors to hear of companies with 10 or more ERP systems, for example, or even dozens of CAD or CRM systems. We published a story recently that identified a company with 600 CRM systems. Imagine that.
Add to this the decentralized technology purchasing patterns that have predominated in many companies over the years and what you end up with is a tangled mess of technology.
In the end, technology is all about a few basic business considerations: accurate and consistent information, the ability to respond to changing conditions, efficiency, and sound use of financial resources, to name the most obvious.
Today, a number of established technology suppliers are urging manufacturers to take that accelerated middle path toward future technologies that will provide greater agility, flexibility, consistency, and efficiency. Witness IBM's announcement on Feb. 26 of a new mainframe computer — yes, a mainframe — that the company claims will improve performance by up to 100% over previous systems.
IBM says it new 64-processor z10 mainframe, with power equal to nearly 1,500 x86 servers, will help companies "transform to a new enterprise data center" by dramatically improving performance and reducing power, cooling costs, and floor space requirements.
A few weeks earlier, Software AG introduced webMethods Application Modernization Suite to enable the management of mainframe assets within an enterprise services-oriented architecture (SOA) model. Applications modernization has also captured the attention of such companies as EDS. The services giant calls it "the challenge of the decade" and is stepping up its offering to help manufacturers integrate legacy and new systems via SOA.
The modernization movement, with its message of accelerated evolution, will surely appeal to manufacturers that believe they can't throw out what they have and immediately embrace new technology wholesale, whether the new tech is Web-based, component applications, or even functionality delivered via the software-as-a-service model.