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Christopher Holmes,
IDC: Asia's Manufacturers to Rely on Predictive Analytics to Counter
Supply Chain Risk in 2012
November 29, 2011
 Volatility
is without a doubt the watchword for the world economy today. With
rising costs, coupled with the devastating impact of the recent natural
disasters in the region, Asia/Pacific manufacturers are expected to
continue their focus on efficiencies, and are putting in greater efforts
to mitigate supply chain risks. This market phenomenon leads IDC
Manufacturing Insights to predict that in 2012, there will be greater
use of predictive analytics tools among the region's manufacturers. More
insights can be found in a forthcoming IDC Manufacturing Insights
report, “Asia/Pacific Manufacturing 2012 Top 10 Predictions”, which
presents the top 10 predictions for the manufacturing sector in the
coming year.
"2011 has been an interesting year, the cautious optimism that we
forecast at the beginning of the year morphed into volatility as we
reached the end of the year. This looks to continue into 2012, with
volatility the watchword for the world economy", says Dr. Christopher
Holmes, Head – International, IDC Manufacturing Insights.
"From a technology perspective, we will see companies moving to clearly
establish a link between technology and efficiency. These companies will
be focused on driving out cost and becoming even more productive with
the increased use of analytics and automation. To increase top line
growth, they will also be centering their efforts on satisfying domestic
demand within the region, and exploiting new business opportunities in
the after sales and support market," adds Dr. Holmes.
IDC's Manufacturing Insights top 10 predictions for the manufacturing
sector in 2012 are categorized into three areas -- those related to
macroeconomic and country trends; those related to manufacturing process
trends; and, generic IT trends.
Table 1: Three of IDC Manufacturing Insights Asia/Pacific's top 10
Predictions for 2012 (listed in no particular order)
Prediction
| The need
for better decisions at strategic and tactical levels will
drive the use of predictive analytics |
Asia/Pacific manufacturers are expected to continue their
efforts to counter supply chain risks in 2012. This market
phenomenon leads IDC Manufacturing Insights to predict that
in 2012, there will be greater use of predictive analytics
tools among the region's manufacturers. |
| The drive
to serve domestic consumption will lead Asia/Pacific
Manufactures to rethink their product and supply chain
strategies |
With
countries in the West battling sluggish economies and high
unemployment rate, IDC Manufacturing Insights predicts that
Asia/Pacific manufacturers will focus on producing goods
where there is demand and growth -- the Asia/Pacific region.
To do well, manufacturers will need to reconfigure their
product development and supply chains to meet local demand.
For some companies, this may be an opportunity to embark on
vertical integration. |
|
Investments in Business Intelligence (BI) and Analytics (BA)
will be used to improve manufacturing processes |
BI and BA
will be mainly used to support process improvements in
supply chain, manufacturing operations and product
development. |
Source: IDC
Manufacturing Insights, 2011
 Manufacturers
who wish to thrive in 2012 would do well by taking advantage of the
opportunities in the region and reconfiguring their product development
and supply chains to meet local demand. They should also review the new
technologies available to enhance their productivity.
For IT vendors, it is important to note that the region's manufacturing
sector is maturing, and companies are now looking to move beyond
enterprise resource planning (ERP). In 2012, IDC Manufacturing Insights
recommends that IT vendors should have a clear strategy on how they can
assist companies to move beyond ERP. IT vendors should also look at how
they can help manufacturers to capture, store, analyze and deliver data
across different functions to support decision making. |
