Partner Article

Top five drivers to cultivate manufacturing innovation

John Hammann, Industry Principal for Manufacturing, SAP UK outlines the key considerations for UK manufacturers when it comes to promoting industry innovation

There’s no doubt manufacturing can play a vital role in the nation’s economy and its growth is integral to recovery from the recession. Somewhat of an ‘unsung hero’ the industry generates roughly 10% of the UK’s overall wealth, 60% of exports and 2.6 million jobs.

With that in mind, and against the backdrop of SAP’s recent Manufacturing Success report, below are five key points that I would advise all manufacturers to consider when fostering an innovative culture.

1.Be resilient

The manufacturing sector is very sensitive to economic fluctuations, and any downturn is likely to result in a sharp fall in demand for its products and reduced output. As a result, something of a siege mentality has developed amongst manufacturers in recent years, where their growth and ambition have been stored away, waiting to be unlocked. Rather than waiting on a belated economic recovery which has failed to arrive, manufacturers must instil a level of optimism in their own business ability where they can fulfil their ambitions for growth and change.

2. Plug the skills gap

One of the current challenges facing the manufacturing sector is the ever-widening skills gap. In order to support growth, organisations must have the right talent in place to help support increasingly complicated business processes. Despite the shortage in skills restraining potential growth, measures are being taken to ensure that those entering the workplace are trained and ready. Apprenticeship programmes must continue to form a solid basis for the manufacturing sector, and their role and benefits are as important as ever in today’s world.

3. Join the dots

Manufacturing is characterised by ever longer and more complex value chains. A product produced entirely in one country is now something of a rarity and manufacturers are aware that joining forces with others, whilst improving collaboration and knowledge sharing internally, can lead to increased efficiencies, enable access to new markets and technologies and provide a gateway to greater innovation. As such, SAP believes the future of manufacturing is dependent on optimising the whole network in which manufacturing operates.

4. Maintain control and visibility

When it comes to managing finances, manufacturers, like most UK businesses at this time, are focused on keeping their heads above the water. With the need to cut costs across the business, pressure is mounting on the manufacturing sector. In order to better manage this situation, companies require the ability to effectively plan in advance. In order to effectively plan further into the future and better manage this financial problem, companies require the right tools to have greater visibility over their business.

5. Build solid technology foundations

Technology is the common denominator for innovation – paving the way for greater process efficiency, visibility and collaboration. In the next 12 months, disruptive technologies, such as cloud, big data, social media and mobile, only serve to create further opportunities for manufacturers wanting to differentiate themselves. From conversations with customers and partners, it’s clear many see the convergence of these trends as presenting a key opportunity in 2013 and beyond.

In summary, the manufacturing spotlight is shifting to growth and companies now need to open up their boundaries and work collaboratively with others to conquer new markets and create new products and services. Dynamic manufacturers who put innovation at the forefront of their industries will be best placed to react to the changing marketplace and will emerge from the economic storm stronger than ever.

http://www.thinkbiggrowfast.net/manufacturing-success/

This was posted in Bdaily's Members' News section by John Hammann .