Features

APEJ Manufacturing IT Spending to Reach USD 22 Bln in 2010

By Sophia Mayengbam

Manufacturing IT spending in Asia Pacific (excluding Japan) has been recovering and gaining momentum after the initial turnaround observed in 2004, reveals a recent report "Asia/Pacific (excluding Japan) Manufacturing IT Spending," by Manufacturing Insights, an IDC company.

According to the study APEJ manufacturing IT spending was valued at USD 15.0 billion in 2005 and is expected to reach USD 22.0 billion in 2010 at a compound annual growth rate (CAGR) of 7.7%.

The top three sub-industry segment within APEJ in terms of IT expenditure is high-tech, automotive and chemical. From a geographic perspective, the Greater China sub-region had the largest manufacturing IT spending, followed by ANZ and Korea.

Manufacturing Insights said 2005 has been a year plagued with external environmental uncertainties globally and notably in the Asian region, with high-profile events such as the repeated terrorists bombing in Bali; the Asian tsunamis and numerous other natural disasters across the region; the bird flu; rising oil price and ongoing geo-political tensions. Despite the above factors, the Asian region as a whole has continued its recovery and stabilization from the economic crises, which began in the late 1990s.

Tan Mang Teck, Research Director, Asia/Pacific Manufacturing Research, Manufacturing Insights said, "The APEJ region will continue to be a fast growing regional economic block, powered by the emerging economic engines of China and India.”

According to the study, manufacturers do not lag behind in terms of accessibility of information. What is impeding the growth of this sector is that few puts into implements the information to work to improve the efficiency and timeliness of decision-making.

Leading organizations are building complete control loops over their processes to connect strategic (risk mitigation), tactical (speed and agility), and operational (consistency and control) decisions. There are good opportunities for IT vendors to develop an integrated business & IT vision and roadmap for manufacturing clients extending beyond the four walls.

Manufacturing Insights suggests IT vendors to focus on value realization instead of new application investment. Doing this will allow IT vendor to provide the thought leadership in areas which are close to the hearts of manufacturing clients, as well as serve to 'gel together' and position your products, services and overall value proposition.

The study said that IT vendors should bring an understanding of manufacturing and its segments to market.

"Deploy sub-industry segment experts to speak the language and provide in-depth understanding of manufacturers business drivers, challenges and processes. Besides focusing on helping manufacturers realize value in terms of costs and speed, look for opportunities to help them realize the much valued 3 “As” in their businesses – Agility, Adaptability and Alignment. For example, building dynamic business processes enabled by dynamic IT," concludes Tan.


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