Research within 15 major European companies in sectors from retail to the automotive industry suggests that manufacturers taking a lean approach - and focusing clearly on customer needs - are more likely to thrive than those putting too much resource into e-business.
A group of senior managers from the Manufacturing Leaders Programme, run by Cambridge University's Institute for Manufacturing, recently visited companies in the UK, Italy and Germany, including Pirelli, Siemens and Tesco, to investigate the relative importance of adopting 'lean' and 'e' approaches.
The group says that majority of the businesses it talked to felt pressure to move ahead with e-business strategies coming from shareholders, customers and workers. Nearly one third of those asked said they feared being left behind if they did not adopt this approach. Citing societal changes such as increased customer connectivity and the call for a 'twenty-four seven' working environment as key drivers, the companies asked tended to feel the need to change more keenly in areas where they operate close to the customer. However, it was widely felt that the educational and legal systems are not necessarily in place to support the speed of change demanded.
The conclusion drawn by the group was that, while the Internet has an important role to play in the development and value of businesses, at the moment web based applications remain less important to success than factors such as human skills and process technology. Using these conventional resources to focus on customer demands eliminates waste and creates a more competitive enterprise, they say.
"Fundamentally it is about identifying your desired position ion in the value chain and taking a very pragmatic route to achieving that," says group member Sue West, director of logistics at GlaxoSmithKline.
Rob Daniels, the leader of the programme, emphasises this approach, "The drive for e-business at any cost is waning, as people question where the value is for their operation. We have found that linked supply chains can be a barrier to companies realising the potential benefits of e-business, and envisage the growth of supplier networks, where there is free flow of information, superseding the traditional chains."
Other experienced commentators concur with the study group's conclusions. Emil Weekers, president at Celerant Consulting - the new name for Cambridge Management Consulting - is in charge of the group's manufacturing arm. He is adamant that most manufacturing companies are in a position to gain huge benefits from the application of well-established tools and management methods. "When I go into most companies, I am amazed by the potential I find there. It really is just a case of grabbing the bull by the horns and making some changes."