In 2010, manufacturing firms are recovering from a period of economic conditions unlike any manufacturing management has ever experienced in its tenure. The new focus is now on completing core activities more efficiently and a return to driving sustainable growth, rather than fighting for survival as it was only a year ago. Depending on the manufacturing subsector, a combination of different strategies will need to be employed. It is against this backdrop that Gartner's Manufacturing Industry Advisory Service has revised the focus and extent of its manufacturing Key Issues. We have maintained the unified approach to our individual-sector Key Issues and maintained a consistent format, supporting five key manufacturing topics that support the needs of manufacturing companies to run, grow and transform their businesses.
The five key manufacturing topics are split into three focused research notes that address the needs of manufacturing companies to run, grow and transform their businesses. The three Key Issues research notes covering manufacturing are as follows:
Given the required compliance with governmental regulations and the requirements that customers place on their suppliers, manufacturers must strive to operate and run their businesses cost-effectively. To be competitive commercially, manufacturers must also run their supply chains as effectively as possible. In addressing these topics, this note covers the following two key areas:
"Key Issues for Growing a Manufacturing Business, 2010"
Manufacturing companies view technology and business innovation in products and processes as key to driving profitable growth in their organizations. In addition, sales, marketing and channel effectiveness are all key areas that manufacturing companies are focusing on as they try to return to growing their businesses. In addressing these topics, this note covers the following two key areas:
"Key Issues for Transforming a Manufacturing Business, 2010"

Key Issues: Product Life Cycle and Manufacturing Innovation
Background and Context of the Key Issues
Manufacturing companies view technology and business innovation in products and processes as key to transforming their organizations. In 2010, product life cycle and manufacturing innovation will be one of the key areas that we will examine. The application of IT for creativity and innovation in manufacturing has a greater potential than what has been realized across the manufacturing industry in general. Success in an increasingly competitive and disruptive global manufacturing marketplace will depend on innovation, with IT advancing value-added initiatives from the research laboratory, the product design team and the manufacturing operations. Everyone involved in the product creation process, from ideation through retirement, can make valuable contributions. Product life cycle management (PLM) is one such manufacturing initiative and is a diverse set of software categories that addresses how to involve cross-functional teams in the design of innovative, collaborative value networks. Manufacturing process management (MPM) is another initiative that deals with the intersection of PLM and the physical manufacturing plant itself, as well as offers opportunities in manufacturing process innovation. In life sciences, e-clinical processes are streamlining clinical study innovation processes and leveraging the contribution of global participants, while clinical data consolidation into repositories is bringing data within reach of a global network of researchers. IT innovation in customer relationship management can lead to new customer experiences and distribution optimization. The Key Issues that manufacturers are seeking to answer in this context are:
What strategies, technologies, techniques and suppliers should manufacturers leverage to accelerate product innovation?
What innovative product opportunities exist for manufacturers?
What are innovative new manufacturing business models?
Some questions that manufacturers are seeking to answer in this context are:
How can technology innovation help to create new product and service offerings and speed them to commercialization?
What information technologies, applications and programs should a manufacturer pursue to advance its product development objectives (including packaging)?
How can a manufacturer maximize the commercial value of information related to production processes and products?
How should a manufacturer manage its knowledge and digital content with its PLM suite of applications in relation to specialized functions?
How will virtual prototyping and simulation affect the evolution of product development activities?
What process interfaces and application integration with CRM can bring client value to a manufacturer's PLM initiatives?
Which PLM technology providers should a manufacturer favor to meaningfully involve the various members of its value chain in product decisions?
What strategies, technologies, techniques and suppliers should manufacturers use to drive productivity and efficiency within their manufacturing operations and across their global networks?
What strategies, technologies, techniques and suppliers should manufacturers leverage for automotive innovation and strategy creation?
What innovative go-to-market and promotional strategies, including predictive modeling and simulation, can be used to effectively steal market share from competitors?

The research on this key area of manufacturing innovation will affect clients by providing concrete examples of how PLM, MPM, CRM and other IT and operational technology (OT) initiatives can reduce time to market, increase market share and make innovation a core competency. Manufacturers that fail to master innovation will ultimately fail economically.

Summary of the Planned Research
During 2010, we will publish research to provide decision-driven insight addressing this key area, covering further cross-manufacturing research on product and process innovation related to PLM; a MarketScope for PLM in apparel, footwear and accessories; PLM vendor-specific focus and rating notes; a PLM Hype Cycle; and research related to leveraging PLM in new product development and introduction. In addition, we will publish further cross-manufacturing research related to lean techniques and how they enable innovative organizational transformation. We will also publish sector-specific research about innovative new business services, such as in-vehicle information and communications-based services that automotive companies are introducing to attract customers; new products and services in consumer electronics within our consumer goods sector coverage; and for life science companies, research into leveraging clinical data, conducting clinical studies while reducing cost, and managing through regulatory processes that are vital to bring new life science products to market.

Summary of Relevant Published Research
During 2009, we published research that addressed this key area of manufacturing innovation, as follows:
Additional relevant published research in 2009 includes the following:

Key Issues: Sales, Marketing and Channel Effectiveness
Background and Context of the Key Issues
Sales, marketing and channel effectiveness are all key areas that manufacturing companies are focusing on as they try to grow their businesses in 2010 and make up one of the key areas that we examine. The Key Issues that manufacturers are seeking to answer in this context are:
What strategies, technologies, techniques and suppliers should manufacturers use to increase the visibility, accountability, and value of sales and marketing efforts? Examples for consumer goods include category management, shelf management, retail execution and monitoring, point of sale (POS) data management, trade promotion management, and promotion optimization. In life sciences, examples include sales force automation, the changing role of a sales force, physician peer channels, and engagement with pharmacy and payer networks.
What strategies and technologies should manufacturers use to improve the effectiveness of and collaboration with channel partners? Examples include leveraging channel information to create visibility to operations and trading partner activity, achieve higher performance when managing distribution networks, and manage programs and customer relationships in a multichannel environment.

The research on this key area of sales, marketing and channel effectiveness will help clients leverage technology to engage with customers both directly and via their channels to avoid loss of market share. During periods of economic recovery, gaining market share can effectively position a company as a leader in its segment and provide a long-term competitive advantage.

Summary of the Planned Research
During 2010, we will publish research to provide decision-driven insight addressing this key area by providing sector-specific research related to growing the business through more-effective sales and marketing activities, with published research related to trade promotions management and manufacturer-retailer relationship management in the consumer goods sector. For life science companies, research will be related to the manufacturer-wholesaler/distributor relationship, implementing sales/marketing and other programs in the channel, controlling product in distribution, and supporting commercialization and promotional efforts. We will provide research that addresses the specific needs of dealer relationship management from the perspectives of the manufacturer and the channel.

Summary of Relevant Published Research
During 2009, we published research that addressed the key area, as follows:
Additional relevant published research in 2009 includes the following:

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