Abstract
Overview
Introduction
Manufacturers are experiencing a number of market pressures that are forcing them to link their plant-floor automation systems with other enterprise systems. The market for MES, a key enabling technology, is growing rapidly as a result. So far, there are no clear leaders but some are starting to emerge as the market continues to consolidate.
Scope
- Linking Plant-floor and Enterprise Systems for Greater Manufacturing Agility (Review Repo
- Looks at market pressures, resulting strategies and the technology implications of linking plant-floor and enterprise systems.
- Covers the global manufacturing industry as it tries to react to changing industry dynamics.
Report Highlights
While the traditional model of investment decisions being made at plant level may have worked in the past, many manufacturers are now finding it to be a disturbingly inefficient method of implementing technology.
Reasons to Purchase
- Get the full picture of how the plant-floor to enterprise market is evolving.
- Assess the market opportunity for MES software and services.
Table of Contents
- Overview
- Catalyst
- Summary
- Methodology
- Executive Summary
- Introduction
- Identifying the divide between the plant-floor and the enterprise (Market Focus)
- Strategies to link plant-floor and enterprise systems (Strategy Focus)
- Deciphering the MES landscape (Technology Focus)
- MES in the ... manufacturing industry (Databook)
- Table of Contents
- Table of figures
- Table of tables
- Identifying the divide between the plant-floor and the enterprise (market
focus)
- Summary
- Manufacturers are looking to improve market agility as down-stream
dynamics shift
- Changes in customer demand are forcing manufacturers to react quicker
or lose business
- Customers want newer products faster
- Larger customers and competition are putting significant pressure on prices
- A trend for shorter production runs while maintaining scale is becoming a headache for manufacturers
- Changes in competition continue to hound manufacturers
- Natural and other unforeseen disasters occurring are forcing manufacturers to assess their agility
- Changes in customer demand are forcing manufacturers to react quicker
or lose business
- Manufacturers are experiencing rising cost pressures
- The basic cost of materials is increasing and squeezing profits
- Overhead costs such as energy are also increasing
- Regulatory compliance requires a rapid response
- Track and tracing is heavily affecting the batch manufacturing industry
- Implementing a compliance strategy is only one step towards total compliance
- Manufacturers need to ensure that they are meeting regulatory compliance at an operational level
- Documentation and proof of compliance needs to be managed effectively
- Strategies to link plant-floor and enterprise systems (Strategy Focus)
- Summary
- Manufacturers are trying to link their plant-floor and enterprise systems
- The majority of manufacturing companies are either planning or acting on a linking strategy
- Manufacturers expect a range of benefits from linking the two disparate environments
- Reporting on key performance indicators is a core component for manufacturers
- Different systems have different priorities for closing the gap
- Plant-floor systems require significant work to integrate with enterprise systems
- ERP is the most common enterprise technology being integrated with the shop-floor
- Standardizing MES and automation technology is an emerging strategy
- Implementing dedicated technology can assist manufacturers
- Traditional manufacturing execution systems provide significant
functionality
- The definition of MES is very clouded
- Key processes are supported by MES technology
- Newer manufacturing intelligence technology is becoming popular
- Traditional manufacturing execution systems provide significant
functionality
- Deciphering the MES landscape (technology Focus)
- Summary
- MES technology is evolving towards manufacturing intelligence
- A shift towards more intelligence-driven data is driving technology development
- There still exists demand for traditional MES, particularly around
execution
- Those vendors focusing on traditional MES will need to develop MI functionality
- MI vendors need to differentiate themselves from traditional MES
- Services vendors should seek out traditional MES vendors with a focus on MI
- Manufacturers are looking for greater visibility and more advanced
analytics
- Traditional MES vendors need to focus on creating better MI capabilities to compete
- Innovation should be a key strategy for MI vendors
- Services vendors with skills around BI have an inherent advantage
- MES investment is becoming a more corporate initiative
- Vendors will need to target their go-to-market strategies accordingly
- Competitive dynamics are changing rapidly
- Three key vendor types play in the MES and MI market
- Automation vendors are strong in traditional execution-driven MES
- Pure-plays are doing surprisingly well in the MES and MI market
- Enterprise apps vendors are starting to push down, but with mixed MI or MES strategies
- Services vendors need to choose their options wisely
- Industry focus is still a strong differentiator in investment decisions
- Acquisition is a must for strong growth in this market
- Acquiring to enter an industry carries a relatively high risk level
- Geographical acquisition should be a low priority
- Technology acquisition can be a rewarding strategy
- Three key vendor types play in the MES and MI market
- The traditional MES market is set to experience strong growth
- The global MES market will more than double by 2012
- North America is the largest region for MES investment
- Batch manufacturers are outspending both process and discrete companies
- The semiconductor industry is the largest among the discrete industries for MES investment
- A focus on regulation is making the pharmaceutical industry the largest batch industry
- Chemical and oil & gas manufacturing form the bulk of the process industry
- MES in the German manufacturing industry (Databook)
- Introduction
- Definitions
- Total German MES investment by revenue type 2006-12 ($m)
- Total German MES investment by manufacturing type 2006-12 ($m)
- Total German MES investment by discrete industry 2006-12 ($m)
- Total German MES investment by batch industry 2006-12 ($m)
- Total German MES investment by process industry 2006-12 ($m)
- Introduction
- MES in the US manufacturing industry (Databook)
- Introduction
- Definitions
- Total US MES investment by revenue type 2006-12 ($m)
- Total US MES investment by manufacturing type 2006-12 ($m)
- Total US MES investment by discrete industry 2006-12 ($m)
- Total US MES investment by batch industry 2006-12 ($m)
- Total US MES investment by process industry 2006-12 ($m)
- Introduction
- APPENDIX
- Definitions
- Methodology
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
- List of Tables
- Table 1: Global MES software and services revenues 2006-12
- Table 2: Regional MES investment 2006-12
- Table 3: MES investment by manufacturing type 2006-12
- Table 4: MES investment by discrete industry 2006-12
- Table 5: MES investment by batch industry 2006-12
- Table 6: MES investment by process industry 2006-12
- Table 7: Manufacturing execution systems definitions
- Table 8: Total German MES investment by revenue type 2006-12 ($m)
- Table 9: Total German MES investment by manufacturing type 2006-12 ($m)
- Table 10: Total German MES investment by discrete industry 2006-12 ($m)
- Table 11: Total German MES investment by batch industry 2006-12 ($m)
- Table 12: Total German MES investment by process industry 2006-12 ($m)
- Table 13: Manufacturing execution systems definitions
- Table 14: Total US MES investment by revenue type 2006-12 ($m)
- Table 15: Total US MES investment by manufacturing type 2006-12 ($m)
- Table 16: Total US MES investment by discrete industry 2006-12 ($m)
- Table 17: Total US MES investment by batch industry 2006-12 ($m)
- Table 18: Total US MES investment by process industry 2006-12 ($m)
- List of Figures
- Figure 1: Increasing customer satisfaction is the most important priority for manufacturers
- Figure 2: Manufacturing regulations target multiple areas
- Figure 3: Most manufacturers have a strategy for linking plant-floor and enterprise systems
- Figure 4: Discrete manufacturers are leading the way for plant-floor to enterprise integration
- Figure 5: Production planning is seen as the greatest benefit of linking the two environments
- Figure 6: Plant-floor control systems are the top priority for manufacturers
- Figure 7: ERP remains the core enterprise application for integration work
- Figure 8: MES has eleven core components as set out by MESA
- Figure 9: Three types of vendors are playing in the MES market
- Figure 10: Global MES software and services revenues 2006-12
- Figure 11: Regional MES investment 2006-12
- Figure 12: MES investment by manufacturing type 2006-12
- Figure 13: MES investment by discrete industry 2006-12
- Figure 14: MES investment by batch industry 2006-12
- Figure 15: MES investment by process industry 2006-12
- Figure 16: Total German MES investment by revenue type 2006-12 ($m)
- Figure 17: Total German MES investment by manufacturing type 2006-12 ($m)
- Figure 18: Total German MES investment by discrete industry 2006-12 ($m)
- Figure 19: Total German MES investment by batch industry 2006-12 ($m)
- Figure 20: Total German MES investment by process industry 2006-12 ($m)
- Figure 21: Total US MES investment by revenue type 2006-12 ($m)
- Figure 22: Total US MES investment by manufacturing type 2006-12 ($m)
- Figure 23: Total US MES investment by discrete industry 2006-12 ($m)
- Figure 24: Total US MES investment by batch industry 2006-12 ($m)
- Figure 25: Total US MES investment by process industry 2006-12 ($m)
