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Home : Leadership & Strategy : Best Practices : Manufacturing 2.0

Manufacturing 2.0

Manufacturers are looking beyond the buzz and discovering real business value in the latest set of IT tools.

By Brad Kenney

July 1, 2007

These days, the "2.0" label carries enough buzz to power a small city, and has been applied so often and so indiscriminately that, like so many buzzwords before, it has been rendered virtually meaningless. However, underlying this overexposed 2.0 term is a set of valuable collaborative tools that leading manufacturers are using to make an impact today, as well as building their future around to build the workplace -- and the products -- of tomorrow.

Because most 2.0 tools originate in the consumer sphere, they often score high in simple usability. Many are based upon a "drag and drop" model that directly contrasts with the high learning curve and resource-intensive creation, installation, adoption and training process involved with most business software.

For instance, enterprise software giant SAP is not normally known for ranking high on the ease-of-use scale. However, vice president Doug Merritt, who manages SAP's business user groups -- itself a collaborative network of software experts -- says that the reason SAP has gotten with the 2.0 program is simple: No matter where they are applied in the company flowchart, 2.0 tools can integrate structured and unstructured data into a cohesive, functional whole.

"Tools like widgets, wikis, blogs and social networking are good for the whole organization," Merritt observes. "Whether you're an information worker or on the plant floor, these tools can help you access information, make better decisions and get work done more effectively."

Why Are Companies Adopting 2.0 Technology?

  • Business efficiency improvement: 74%
  • Competitive pressure to do so: 64%
  • Specific problem solution: 53%
  • Partner recommendation: 53%
  • Employee request: 45%
  • Bundled services: 25%

Source: Forrester Research

Analysts are finding that companies are using these technologies for everything from customer-facing blogs and product podcasts to internal projects and knowledge sharing. Just over half the executives polled in a recent McKinsey & Co. survey say they use one or more 2.0 technologies for knowledge management, and just under half use these tools for designing and developing new products.

In short, many forward-thinking managers have already integrated 2.0 tools both to solve present business problems and also to prepare their workplaces to meet the expectations and, more importantly, best utilize the skills of next-generation employees.

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