Monday, April 11, 2011

Digital Infrastructure, Cloud Computing Transforming Fragmented Manufacturing Industry Value Chain

New technology advancements available in a digital infrastructure, such as cloud computing and social computing, are transforming manufacturing industry value chains, according to a survey.

The survey revealed a need to better integrate collaboration tools with business systems (47.4 percent) and to improve access to unstructured data and processes (36.2 percent). Almost 60 percent see an industry wide collaboration that includes manufacturing products and services providers, IT providers, systems integrators and in-house business analysts as most capable of bringing about these improvements.

The survey found that the biggest benefit of cloud computing is lowered cost of optimizing infrastructure, according to 48.3 percent of respondents. This was followed closely by efficient collaboration across geographies(47.7 percent) and the ability to respond quickly to business demands (38.4 percent).

Comment from Sanjay Ravi, managing director, Worldwide Discrete Manufacturing Industry for Microsoft: Globalization has fragmented industry value chains, making them more complex and unable to quickly respond to increased competition and shorter product life cycles. Cloud computing is empowering today's global manufacturers to rethink how they innovate and collaborate across the value chain. As a result of these increasingly rapid changes in technology and business, manufacturers are seeking guidance on how to best plan and deploy these powerful technologies in concert with their business strategies and priorities and how to achieve greater competitive differentiation. The survey shows current cloud computing initiatives are targeted at cost reduction, but a growing number of forward-looking companies are exploring new and innovative business capabilities uniquely delivered through the cloud. Manufacturers are exploring ways to improve product design with social product development, enhance visibility across multiple tiers in the value chain, and create new business models and customer experiences based on smart devices connecting to the cloud.

Microsoft has created a Reference Architecture Framework for Discrete Manufacturers Initiative (DIRA Framework) to drive solutions based on cloud computing across manufacturing networks while helping integrate processes within and across the enterprise, extend the reach of the network to more companies globally, and connect smart devices to the cloud. Microsoft partners involved in the initiative currently include Apriso Corp., Camstar Systems Inc., ICONICS Inc., Rockwell Automation Inc., Siemens MES and Tata Consultancy Services Ltd.

About the survey: The Manufacturing Cloud Computing Survey 2011 polled 152 IT and business decision-makers within automotive, aerospace, high-tech and electronics, and industrial equipment manufacturing companies in Germany, France and the United States. The survey was conducted by Microsoft Corp. and released at HANNOVER MESSE 2011 in Hannover, Germany.

Contact: http://www.microsoft.com

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