If there is one area in particular that has been most affected by global competition, it is the manufacturing sector. Manufacturing is generally the quickest route for developing countries to increase their wealth and increase the wages of their citizens. Further, business as a whole and manufacturing in particular know no national boundaries in the rapidly growing global marketplace.
For instance, several Asian countries have become major players in the automobile industry—competing heavily in the U.S., Australia/New Zealand, and European markets. Automakers (as well as manufacturers in a host of other industries) have been forced to become lean, automated, customer-focused, and efficient organizations in order to survive. Recent studies have documented marked improvements in productivity—particularly in the United States.
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In a survey of over 900 manufacturing executives in 35 countries, Deloitte and Touche identified five key strategic issues that manufacturers must address to compete 1 :
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Review Question Explain the five major competitive challenges facing manufacturing companies in developed nations. |
At the heart of each of these key success factors for manufacturing companies is a focus on information technology solutions. Information technology continues to become the primary vehicle for empowering employees, breaking down the organizational barriers to overall integration of production processes, and providing accessibility to key information needed to respond to changes in the marketplace in a timely manner. In the following section, we take a look at the rapidly growing market for software solutions for the issues discussed here.
Review Question How has global competition affected the domestic manufacturing environment? How can technology help domestic companies compete? |
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