IT market research agency IDC has shared its trends and predictions for the manufacturing and retail sectors for 2014.
IDC predictions for manufacturing in 2014
IDC says manufacturers will begin to build 3D value chains.
Operational, information, and consumer technology converge to reshape approaches to technology management.
Operational resiliency will be the focus of supply chain strategies in 2014 and beyond.
Supply chain technology investment will involve modernizing existing systems, while also trying new approaches.
The modernization of the underlying B2B commerce backbone becomes an investment priority for IT.
Product lifecycle management (PLM) strategies become increasingly global, multidisciplinary, innovation-based, and customer-focused.
PLM initiatives will focus on value realization.
Servitization optimization will be core to future profitable revenue growth and leading manufacturers will make the necessary investments to enable these strategies.
On their way towards the factory of the future, 2014 will set the stage for a new manufacturing renaissance.
Plant floor IT investments will continue to become a higher share of the overall technology investment portfolio.
Robert Parker, group vice president and general manager, IDC Manufacturing Insights, suggested that companies should put together a set of business initiatives across critical line of business areas such as supply chain, factory operations, product management, and customer experience/aftermarket services, and follow a progression toward the principles of the ‘3D’ value chain in 2014.
IDC predictions for retail industry for 2014
In 2014, fast-followers will chase the 50 global retailers already transforming store, mobile, and ecommerce channels, supply chains, merchandising, and marketing for the omni-channel customer experience.
Business transformation will drive ERP, core merchandising, FAR, and planning investment to a 9 percent compound annual growth rate (CAGR) through 2015.
By 2016, leading retailers will improve same-shopper sales with immersive commerce driving additional revenue growth of 1.5 percent and margin growth of an additional 3 percent.
By 2017, marketing and advertising technology investment will increase by 50 percent.
Retailers will narrow and enable big data and analytics (BDA) projects in 2014 as 20 percent-30 percent of projects fell short in 2013.
Emerging consumer privacy concerns will force 50 percent of early adopters to revisit hyper-personalized promotions by 2015.
E-commerce and store platform replacements that enable mobile, integrated, and interactive experiences will support a 10 percent CAGR in commerce investment through 2017.
As product assortment refresh cycles quicken, 25 percent of mid-sized retailers will initiate new product lifecycle management (PLM) or sourcing projects in 2014.
Retailers will double the rate of industry supply chain investments in 2014, as compared to 2013.
By 2016, 50 percent of national retailers, will invest in distributed order management, enterprise inventory visibility, and workforce management to enable same day fulfillment.
Robert Parker, IDC Retail, Energy and Manufacturing Group Vice President and General Manager, said that the retail industry will reinvent itself as omni-channel leaders reach for customer relationship, relevancy, and reciprocity in the next three years.