Products in the automation industry have traditionally been sold with “cost-based” pricing—selling price is based on manufactured cost, with target gross and net profit margin multipliers.

  A select group of industrial equipment companies are executing a formula for success that peers may want to take note of, if they plan to remain competitive in the emerging global market.

 When I laid out the plan for this series of special reports on wireless technologies in manufacturing last summer, I anticipated that there would be many successful applications that we could share, along with tips for success from the pioneers.

  In order to improve your manufacturing performance, you should put in a manufacturing execution system (MES) system and integrate to your enterprise resource planning (ERP)—right?

  Somewhere between enterprise resource planning (ERP) and supervisory control and data acquisition (SCADA) you will find the manufacturing execution systems (MES) layer.

  In order to reach their maximum potential, manufacturing companies must be efficient at coordinating and controlling personnel, materials and equipment across different operations and control systems.

  Research shows that globally integrated operating models are the key to value creation and high performance in the industrial equipment industry.

 Organizations that have adopted a Lean Manufacturing methodology continue to identify elements of their organizations that have diminished in terms of their strategic value.

 When it comes to minimizing waste and rejections, keeping up with the latest technology advances can look like a costly proposition.

 When we started Automation World, my mantra was that we covered intelligent use of automation. Our marketing people devised the tag line “intelligence for the business of automation.” When I was meditating on the technology trends in automation along with this month’s theme, it struck me as interesting that intelligence was the recurring theme.

 Pricing for profit may seem to be elusive, but it’s plainly within reach—and well worth the effort in the interest of gaining a competitive advantage.

  In response to criticism about his famous saying, “Winning isn’t everything; it’s the only thing,” American football coach Vince Lombardi eventually offered a repudiation, implying that what he meant to say was, “Winning is not everything—but making the effort to win is.”

  When I wrote my July editorial on wireless sensor networking, “Hype or Reality,” I was somewhat frustrated trying to discover what was happening after the release of products into users’ hands following a year of talk.

 Organizations that excel in developing their people also tend to be high-performance businesses that dominate their markets.

 Sometimes, progress in the automation market takes a while.

  Service-Oriented Architecture (SOA) is one strategy that addresses the growing need for more integration both inside and between global businesses. Its popularity has to some degree overshadowed industry standards, but in fact, SOA needs standards to be successful. Standards that define the communications between businesses and products are critical, but do not eliminate complex and expensive integration mappings, especially when multiple standards and products must be used. The Core Component standards effort of the United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT) addresses this issue at the data level, and is helping to unify data models.

  Everyone knows that emerging countries—India, China and many others—are starting to grab significant market share in U.S. and world markets.

  In manufacturing, as in other industries, human resources must be effectively deployed for optimal utilization and effectiveness in order to drive accelerated growth and profitability.

  Lean manufacturing initiatives, much like diets, are designed to trim fat and make you fitter, faster and more competitive—in short, a high performer.

  Automation, compliance and reporting functions are unlikely candidates for centralization.