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2.3 Drivers and enablers for adoption

Computer chips and their increased connectivity have become the key element in many automated and semi automated business processes. This has been driven by the rapidly falling price of integrated circuits, the speed with which ideas can be turned into action and a seemingly endless scope of consumer and industrial applications.

The miniaturisation of computer processors, the availability of electronic (and more recently photonic) sensors, and increased processing power, together with the development of specialised manufacturing software, has meant that ICT has become an integral element of production equipment and machinery. Computers and production machinery in a modern manufacturing environment can no longer be identified and described as separate pieces of equipment.

This descriptive overlap between computers and production machinery makes the statistical separation between ICT and non-ICT equipment highly artificial and can understate quite significantly the level of ICT use in manufacturing. Miniaturisation and software has, for example, enabled machine tools to be programmed and to perform highly complex industrial design functions with minimal human intervention. They have also reduced error margins.

Stand alone computers are, nonetheless, present in a manufacturing environment and are used to collect, store and analyse machine process data as well as linking with corporate systems in relation to order fulfilment, inventory management and reporting.

The interviews demonstrated how ICT is embedded in tools and equipment used for cutting, moulding and joining. In many of these areas, the high levels of accuracy and precision required in cutting, shaping, moulding and welding can only be achieved by machinery that has embedded ICT design and control systems. Stereolithography machines are used for cutting scale models for power boats at boat builders Whitley Marine, whilst ICT enabled welding equipment is used by Bluescope Steel for joining sheet steel at its Port Kembla steelworks. These activities are described in more detail in the case study documentation accompanying this report.

The interviews also indicated that the Internet has transformed the ways in which many firms communicate, undertake transactions and exchange information. It improves operations through the exchange of information about distant manufacturing processes, delivers information about the manufacturing process itself and facilitates project management of geographically-dispersed teams. Snap Printing, one of the companies included in the study noted the way in which the Internet allows customers to input into design, ordering and print production.

Developments in telecommunications based on optical fibre technologies have allowed for a huge expansion in the volume of data that can be transmitted around the world at a rapid speed and high quality. This capability is supplemented by data compression technologies that allow for the continued use of the copper wire technology in home and small business establishments. Designers and engineers at Bosch Industries, a company also interviewed for this study, collaborate in real time in product development from company locations around the world.

These developments in technology have provided small companies with an opportunity to take a major role in industrial and technological innovation. In particular, small manufacturing companies are generally able to afford to purchase the computing power that was previously only available to large companies, and yet retain the flexibility, responsiveness, and creativity that is a characteristic of many smaller firms (Howard and Johnston 2001).

In addition, the falling cost of ICT and its expanding functionality makes it possible for small companies to compete against large companies in global markets (Bryan, Fraser, et al. 1999; Howard and Johnston 2001). Connectivity through ICT enabled networks allows small companies to work as technology suppliers and/or innovators to larger manufacturing enterprises in science and technology clusters (Bresnahan and Gambardarella 2004; Humphreys 2004; Singelton 2004).

Evidence of technology clustering effects reinforces the findings of the ICT Framework for the Future Report, Enabling Our Future (Framework for the Future Steering Committee 2003), which also identified the importance of connectivity and opportunities for SMEs in supporting global multi-national companies (MNCs).

In terms of developing new products, new processes and new business models, ICT is an important enabler of innovation in businesses. The technological possibilities offered by ICT play an important role in shaping the way in which business opportunities and problems can be defined, tackled and resolved. While ICT has a role as an enabler, management experience, creativity and talent are the key drivers of innovation.

In a business environment, boards of directors and executive management are responsible for making decisions concerning the way in which technology is adopted, applied and used. This study found that technology awareness and commitment from governing boards and senior management was associated with a high level of commitment to ICT enabled technological innovation.

 

 

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  • Last modified: 5 February 2008, 10:29am