By Polly Raymond, 14 July 1998 16:56
NEWS Europe's leading hi-tech manufacturing firms spend 25 per cent less on IT than their less successful competitors, according to the latest Input research. The study revealed that successful manufacturers have a steadier IT adoption rate rather than spending millions on the latest innovations. Peter Lines, Input vice president and IT program manager, said: "Throwing money at IT problems just doesn't work." The key, according to Lines, is "excellent execution over innovation - it's not necessary to be the first to adopt new technology as it comes along. Companies must prioritise IT spending and incorporate it into business processes and automation technology. "Just look at General Motors - its technology spending is sky high but it's still struggling with profit margins," said Lines. He added that "things can escalate to disastrous proportions", citing the problems two years ago at Fiat's manufacturing plant in Turin, Italy, where robotics got so out of control that operations had to be closed down completely.
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