We started off the year by predicting which technologies would grab your attention in the coming months. (We were right about RFID). Well, the prognosticating is over. The results are in. Here are the technology trends that left an indelible mark on 2004:

RFID moves beyond its own hype. This was the year that many stopped merely talking about RFID (radio frequency identification) and started trying to implement the product-tracking technology. By setting 2005 mandates for its deployment, the U.S. Department of Defense, Wal-Mart and other major retailers made 2004 the year of RFID implementation. While cost and a lack of standards continue to faze many firms, most suppliers are now getting a move on it.

E-commerce settles in. While 1994 through 2001 could be dubbed as the infancy period of e-commerce, 2004 is the first full year we're seeing its mature form, says a recent eWEEK article. Consumers and corporate buyers have become completely at ease about making Web purchases. Almost all major retailers are utilizing the Internet to boost sales. And in the industrial market, portals are gaining ground. For example, most automotive OEMs are relying on their own portals to connect with their main suppliers, particularly when they need to purchase direct materials (e.g. vehicle parts), says a recent Industry Week article.

Business intelligence software raises manufacturers' IQ. This year, many manufactures harnessed the power of information technology to better manage their daily operations. A new breed of software is helping them boost efficiencies by tracking daily operations as well as identifying anomalies, analyzing performance and activating adjustments. Once dubbed executive information systems (EIS), business intelligence software is making key production data available to not only executives but operators as well. "It's very useful for management as well as those on the shop floor to be able to see what's happening with production and overall performance on a real-time basis," John Hagerty, analyst covering enterprise manufacturing intelligence at AMR Research in Boston, tells Industry Week. Leading vendors include Business Objects, Hyperion Solutions, Cognos and Microstrategy.

PLM expands its market. Product lifecycle management (PLM) software is no longer just for large manufacturing companies; this year, a growing number of small and midsize companies turned to the technology to improve product and process. The reasons? They are not only more aware of the technology, businesses of this size can deploy it strategically. What's more, many solutions are now designed for quick and easy implementation, with a rapid return on investment. "Now with PLM solutions better, faster and lower in cost, there are fewer reasons why smaller organizations can't reach for the dramatic benefits reported by the traditional early adopters—those behemoths of aerospace, automotive and shipbuilding," says IBM Corp.'s John Lindner to Industry Week.

Flexibility defines machines and tooling. At this year's International Manufacturing Technology Show (IMTS) in Chicago, greater speed was a recurring feature in all of the hardware. But flexibility grabbed the spotlight, becoming the primary focus for both machines and tooling. In particular, today's manufacturing hardware can perform more jobs and allow for rapid reconfiguration. What's more, they can reduce the need for setups, work handling and tool inventory. In fact, multitasking or multi-process machine tools may start to blur the lines between traditional machine tool categories. The paramount need for flexibility also underpinned a trend in five-axis machine tools—an increased focus on their ability to save labor on unpredictable part designs by taking care of more faces of the part.

Sources:

IMTS Reflects Growing Manufacturing Revival
IMTS.net Exhibitors' Corner, September 2004
www.imts.com/clientFiles/clientPages/staticPages/Exhib/exh_kit/imts_update/sept04_story1.esp?_sc=imts_02&_pt=exh&_ms=2

Small Is Beautiful
John Teresko
Industry Week, November 11, 2004
www.industryweek.com/CurrentArticles/asp/articles.asp?ArticleID=1695

Manufacturers Get Smart
Doug Bartholomew
Industry Week, October 1, 2004
www.industryweek.com/CurrentArticles/asp/articles.asp?ArticleID=1683

A Year-End Look at Retail
Evan Schuman
eWEEK, November 25, 2004
www.eweek.com/article2/0,1759,1731545,00.asp

Procurement's New Role
Doug Bartholomew
Industry Week, September 1, 2004
www.industryweek.com/CurrentArticles/asp/articles.asp?ArticleID=1672