The consensus among manufacturing executives is that recovery is under way, but that business models will be fundamentally and permanently changed. What emerges are markets that adjust quickly -- an intelligent economy. What is needed from IT organizations are new investments that can provide information to executives that speed and improve decision making.

Each year, we put together our list of top ten predictions for the worldwide manufacturing industry and as expected, 2010 was particularly interesting on several levels. The impact of the severe economic conditions that began in late 2008 was considered as well as the consensus that the industry in recovery will be permanently changed and calibrated to new market realities. And, since 2009 was the end of a decade, we looked further back and forward when researching our predictions with manufacturing firms, technology vendors, and industry experts.

Our list of 10 predictions for 2010.

Prediction #1: Companies will transform business models to better meet the needs of increasingly demanding customers.

Prediction #2: IT Organizations will look for cost structures that are more variable as they assist in making technology a focal point of business strategies.

Prediction #3: Manufacturing companies will begin the process of fundamentally rethinking their supply chain structures, evolving from a fixed-cost-driven supply network to a variable-cost-driven value network.

Prediction #4: 'Dynamic Optimization' dominates capability investment to support redefining of the supply chain.

Prediction #5: Manufacturers will look to better align innovation with business strategy.

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