In an industry fraught with change and unpredictability, contending with information technology programs where outcomes are unclear only adds to the complexity. In future-ready resources industries and process manufacturing enterprises, technology needs to deliver business value – whether it’s serving as a catalyst for collaboration, extracting insight from information or harvesting efficiency with sourcing engagements.
The contours of the industry’s landscape have been reshaped by unprecedented levels of consolidation, restructuring, cyclicality, surging commodity prices, environmental concerns, shifting demographics and changing laws — making it difficult to predict value realization. To build for tomorrow, manufacturers need to take stock of volatile macroeconomic conditions and identify areas where drilling deeper can uncover value.
Changing business dynamics: As new products and markets emerge with new price points, there is significant M&A (Merger & Acquisition) activity which necessitates vertical and horizontal integration. With end consumers becoming highly environmentally conscious, creating sustainable products is not just a business imperative — it can also create a competitive edge.
Cost rationalization: Consistent fluctuations in availability of energy and input costs necessitate control on total costs. The cost must be optimized for emerging markets and fixed costs need to be changed to operating costs for better visibility and scalability.
Getting closer to end consumers: With the surge in social media usage, customer intimacy and brand building is critical. Leveraging products and services that add service revenues to complement product revenues is emerging as a key strategy for manufacturers.