Technology ... Technology ... Technology
When we think about what's going on in the manufacturing sector today,
technology immediately comes to the forefront. Many manufacturers are
investing more in technology compared to other types of companies to
gain efficiencies, thus making them stronger competitors in their industries
(Small Business: Big Challenge, A Survey of Small Firms in Upstate
New York, Federal Reserve Bank of New York, January 2002).
According to the U.S. Small Business Administration, manufacturing
enjoyed a 5.9 percent increase from 1999 to 2000. The administrative
side of business is also being upgraded with manufacturers streamlining
those operations by using increasingly sophisticated software that tracks
inventories, costs, shipments and much more.
As the product goes out the door to the customer, manufacturers are
shipping to new customers located in new markets—often overseas—and
this is happening through web sites and other uses of technology. This
is a particularly attractive opportunity for rural manufacturers. As
noted in The Main Street Economist (September 2001), "E-commerce
opens a whole new avenue for rural businesses to overcome the limitations
of small size and remoteness" (albeit there are issues that rural
communities face that their urban counterparts do not, i.e., access
to broadband, training, financial resources).
In addition, leaders within the manufacturing sector are using technology
to understand their industry; the local, regional, national, and international
economies; and the myriad issues and concerns they have about their
business. Knowledge management is revolutionizing the way business and
industry leaders see their companies, their employees and the possibilities
for both.
Harnessing knowledge is much more than just tracking your customers
in databases and using the Internet to find information. According to
a recent study by the
American Society for Training and Development (ASTD), knowledge management
is turning information into knowledge that you can use in your business
everyday. For example, capturing what your employees have learned through
their customer contacts and building best practices with this and other
knowledge can ensure better product quality, more efficiencies and better
employee relations.
In the competitive arena, many small companies fail to see the importance
of a formal knowledge management system. Leaders often prefer to trust
their intuition and judgment alone rather than spend the resources on
developing and maintaining a system that would allow them access to
critical information. It's important that leaders of small companies
understand what is going on while remaining open to new ideas and letting
go of previous paradigms. That flexibility can mean the difference between
success and failure in a rapidly changing market and industry.
These current trends toward the use of technology in the manufacturing
sector pose opportunities and challenges for company leaders in both
rural and urban locations. Knowledge management will help leaders uncouple
and reconnect strategic bits of information into systems that build
and grow companies with ever larger markets and potential.
Sources:
The Main Street Economist, September 2001.
Small Business: Big Challenge, A Survey of Small Firms in Upstate
New York, Federal Reserve Bank of New York, January 2002.
Trends in Workplace Learning: Knowledge Management. American Society
for Training and Development, 2001.
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Authored by: Gwen Richtermeyer, Ph.D., Director
of Primary Research, BRIDG, University of Missouri-Kansas City
Source: Creating Quality Newsletter, Volume 11,
Number 6, June 2002
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