Optimizing technology innovation in manufacturing

Manufacturing is a capital-intensive organization within the enterprise. It demands a continuous investment and high maintenance budget on a routine basis. Often this requirement is so focused on capital equipment and projects that the supporting information technology (IT) infrastructure suffers for equal priority. Also, the information systems that are deployed within the manufacturing division tend to be operations driven, while the rest of business is rapidly leveraging strategic application of information technology for management decision support and to create a competitive advantage in customer service. Compounding this condition, technology is changing at an extraordinary rate much faster than the normal amortization cycle of manufacturing capital equipment. Therefore, as most capital investments are made, the opportunity to introduce new technology must await the next replacement cycle. Additionally, technology changes seldom have a traditional ROI model, making capital justification more difficult. information technology (IT) management can be much different-much more predictable, cost-effective, and beneficial to the enterprise. With effective systems integration techniques and managed life cycles for applications, new information technology can be introduced in a step-wise routine process, allowing manufacturing divisions to leverage advances in technology that result in strategic advantages for the entire organization. This paper helps manufacturing management and systems management establish plans and organize systems so new technology can be introduced selectively on an annual capital planning schedule.