Contents:

CATALYST 1 SUMMARY 1 ANALYSIS 2 MES technology is evolving towards manufacturing intelligence 2 A shift towards more intelligence-driven data is driving technology development 2 There still exists demand for traditional MES, particularly around execution 2 Those vendors focusing on traditional MES will need to develop MI functionality 3 MI vendors need to differentiate themselves from traditional MES 3 Services vendors should seek out traditional MES vendors with a focus on MI 3 Manufacturers are looking for greater visibility and more advanced analytics 4 Traditional MES vendors need to focus on creating better MI capabilities to compete 4 Innovation should be a key strategy for MI vendors 4 Services vendors with skills around BI have an inherent advantage 5 MES investment is becoming a more corporate initiative 5 Vendors will need to target their go-to-market strategies accordingly 6 Competitive dynamics are changing rapidly 6 Three key vendor types play in the MES and MI market 6 Automation vendors are strong in traditional execution-driven MES 7 Pure-plays are doing surprisingly well in the MES and MI market 8 Enterprise apps vendors are starting to push down, but with mixed MI or MES strategies 8 Services vendors need to choose their options wisely 9 Industry focus is still a strong differentiator in investment decisions 10 Acquisition is a must for strong growth in this market 10 Acquiring to enter an industry carries a relatively high risk level 10 Geographical acquisition should be a low priority 11 Technology acquisition can be a rewarding strategy 11 The traditional MES market is set to experience strong growth 11 The global MES market will more than double by 2012 12 North America is the largest region for MES investment 13 Batch manufacturers are outspending both process and discrete companies 14 The semiconductor industry is the largest among the discrete industries for MES investment 15 A focus on regulation is making the pharmaceutical industry the largest batch industry 17 Chemical and oil & gas manufacturing form the bulk of the process industry 18 APPENDIX 20 Definitions 20 Methodology 20 Further reading 20 Ask the analyst List of Tables Table 1: Global MES software and services revenues 2006-12 12 Table 2: Regional MES investment 2006-12 13 Table 3: MES investment by manufacturing type 2006-12 15 Table 4: MES investment by discrete industry 2006-12 16 Table 5: MES investment by batch industry 2006-12 17 Table 6: MES investment by process industry 2006-12 List of Figures Figure 1: Three types of vendors are playing in the MES market 7 Figure 2: Global MES software and services revenues 2006-12 12 Figure 3: Regional MES investment 2006-12 13 Figure 4: MES investment by manufacturing type 2006-12 14 Figure 5: MES investment by discrete industry 2006-12 15 Figure 6: MES investment by batch industry 2006-12 17 Figure 7: MES investment by process industry 2006-12 18