Best Practices: Asset-Oriented Value Chain 2010 Industry Outlook and Budget Guide

This IDC Manufacturing Insights report provides analysis of trends in the asset-oriented value-chain (AOVC) segments based on our Global Performance Index. The report outlines the key business objectives, resulting initiatives, and key IT investment areas. The report also includes survey-based spending data that can be used for benchmarking.

Asset-oriented value chains are characterized by segments that invest heavily in manufacturing plants that produce large volumes of base materials such as chemicals, metals, and pulp/paper. Demand tends to vary, based on overall economic growth, and profitability levels are influenced by the cost of natural resources (feedstocks) such as oil, metal ore, and lumber. Further, large capital investments and the high operating costs of sophisticated plants make asset performance a high priority. The current economic situation continues to have a noticeable impact on companies and how they allocate IT dollars.

"A key priority for asset-oriented manufacturers is to drive profitable growth. They need to find a balance between a cost structure built around the operating efficiencies of existing assets with fluctuating raw material costs and growth in an increasingly global market with demand for product innovation. IT investments play an important role in helping companies face the complexity of this industry's challenges," says Kimberly Knickle, practice director, Emerging Agenda, at IDC Manufacturing Insights.