Manufactures today still continue to run IT in a project mode under project P&Ls. The cost of running IT within the manufacturing industry is therefore not efficient. This approach has led to building IT capabilities that are disparate and redundant. It inhibits business agility and a synergetic working model. Some of the top manufacturers are however an exception to this observation.
To stay competitive, be profitable and give the benefits of cost savings to customers, manufacturers need to change their “Approach to IT” and follow the practices set up by the best-in-class in the industry. Change is required in how IT components are assembled and the practices used to govern and run IT. In industries and enterprises that have embraced the change, the benefits observed have been significant in terms of cost of IT maintenance as well as cost of building new IT capabilities. In addition, the adoption of robust IT practices have enabled business agility and business integration, enhancing the efficiency and effectiveness of organization functional areas as well as core manufacturing operations.
To understand how to make this change and where to start in order to make the most of your IT investments, one needs rely on these foundational capabilities:
- Cloud technology
- Process integration through SOA
- Information management
- Application as a service
- Self-service models
- Rationalized enterprise application portfolio
My full article talks about these capabilities in more detail. Connectivity and collaboration of core manufacturing processes with customers and partners is required for manufacturers to add value. What do you think manufacturers need to do to make a shift in how they think about their IT? Write to me in the comments section below.