Globalization, connectivity, regulation, and demographics are reshaping the landscape for manufacturers. In this new world of work, the ability to create, share, and act on information from a myriad of internal and external sources can help manufacturers compete more effectively and operate more efficiently amid rapid change and relentless pricing pressure.

People are the critical factor to success in this environment. Only people have the agility and resilience to identify and act on new information quickly to meet challenges or capitalize on new opportunities.

By surrounding people with powerful tools and the right culture, manufacturers can bring innovative new products to market more quickly and mobilize a network of suppliers in deeper, more collaborative relationships. Software amplifies the ability of people to more rapidly adapt to challenges. In addition, software enables employees to take advantage of opportunities more quickly, to better understand customers based on insights derived from both data and communications, and to build better partnerships because they have the ability to collaborate more readily.

Furthermore, empowered people can drive operational excellence by constantly improving products, streamlining practices, and sharing knowledge. And they can work responsively with customers to build high-value relationships to drive business growth if they have access to the software and solutions that empower people to take the manufacturing business further. This article summarizes the Microsoft vision for the new world of work in the manufacturing sector.

Few industries have seen as profound a transformation as a result of globalization and technological innovation as manufacturing. Over the past decade, the practices and assumptions of more than a century have been turned upside down by the opening of borders and markets, global connectivity, and rapid changes in manufacturing, distribution, and logistics.

Manufacturers also face demographic and compliance challenges. While regulatory compliance poses a specific challenge for companies operating in highly regulated markets, the issue of transparency presents profound challenges for all companies. Not only governments, but customers, suppliers, shareholders, and workers increasingly expect greater visibility into, and interaction with, processes that concern them.

Every manufacturer has to assess these issues based on their unique business requirements. At Microsoft, we are taking a strategic perspective on the way that trends and technology will evolve over the next 10 to 12 years. We are thinking deeply about how software will enable people and organizations to continue to prosper in a fast-changing world. This article is a summary of a more detailed report of how we see people, technology, and global trends coming together for manufacturers.

Manufacturing has always been an area with a strong need and ambition to integrate data from the shop floor to the executive suite, and back, to improve operations and increase innovation. Until recently, advances in manufacturing software were highly dependent on proprietary investments by the manufacturers themselves. Now off-the-shelf software has developed to the point that common infrastructure software, from Microsoft Windows to the Microsoft Office system to standards-based middleware like Microsoft BizTalk, can be used to drive the development of innovative solutions from the factory floor to the supply chain to the master production schedule. We've seen the rapid maturing of software for manufacturing over the past six or seven years because of the emergence of standards like XML, Service-oriented architecture (SOA), and the enormous investments in secure implementations of Internet-based applications.

What's more, the pace of software innovation will accelerate over the next 10 years. The increasing sophistication, interoperability, security, and usability of software will enable manufacturers to transition from rigid, process-based solutions based on costly, custom-developed proprietary technologies, to role-based solutions using familiar, centrally managed platforms. These applications will give workers the ability to configure the interface and the application to fit the way they work, enhancing productivity.

As an example, Microsoft's platform for virtual collaboration is based on the familiar user interface of the Microsoft Office system and is deeply integrated with the company's enterprise-wide communications tool. The result is a comprehensive environment for creating, analyzing, and exchanging information, making decisions, and directing action. This collaboration environment, called Microsoft SharePoint, weaves together the essential elements that empower people to drive business outcomes.

In a fast-changing environment, the real key to capitalizing on new opportunities is empowering people in your organization to add new value, whatever their job role or skill level. Empowered people can make a difference at every level by:

• Innovating more quickly through better collaboration.
• Maximizing their value and contribution to the workforce.
• Managing supply relationships in a complex global market.
• Meeting demands for compliance and transparency at lower cost and less complexity.

Microsoft believes that people are the key to success in the new world of work. Our approach is to develop technology that strengthens the capabilities and connections of people in their work roles and lives, so that they can apply their unique insight and experience to solve problems effectively. In an environment of constant and substantial change, only empowered people can provide the flexibility and innovation that manufacturers need to adapt, compete, and win.

Working together with a global ecosystem of partners, developers, and IT professionals, Microsoft delivers the software applications and platforms that can help manufacturers become people-ready businesses.

The complete white paper, The New World of Work: The Next Generation of Manufacturing Innovation Through Software, is available here.

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