by [TC]²
A monthly column of technology rambling, rumination and reality
By: Jud Early, Corporate Vice President, Research, [TC]²
June 2004 Edition
Notes From The Field
We're somewhere between Atlanta and San Francisco , winging above the clouds on the second leg of a journey that will include stops in Korea , Hong Kong , Taiwan , and China . Seeking new technology developments is what draws us to this part of the world. Mike Fralix , President of [TC]² and I will log more than eighteen thousand miles in the next eighteen days.
I'll be reporting on what we see, unless protected as confidential. Some of the trip will be so, but much should be open and provide insight into this fast changing field.
May and early June found this writer in New Orleans for the SAP Sapphire Conference, Miami for SPESA / Material World, and Washington DC to assist an associate organization with IT planning.
Each of these trips holds a story.
SAPPHIRE ‘04
Last year I reported on Sapphire '03, the annual event that brings together customers, third party suppliers, partners and of course curious technologists, reporters and financial analysts. Last year was very impressive, stimulating and interesting, giving me pause to wonder if the event this year would measure up. The event in New Orleans tops the last one in Orlando . Occupying at least a half mile length of the convention center, the presentations, content and organization topped last year, hands down.
A roundtable discussion opened the event, with Stuart Varney moderating, and a panel that included James Carville, Todd Bucholz and Ben Stein. Karen Hughes was also listed as a roundtable participant, but was unable to arrive from Washington in time to participate.
Net Weaver was once again center stage. This new and still evolving architecture will provide the platform for connectivity between user, applications, and output through a browser window using the Internet to provide linkage in a seamless fashion. Through this common layer, connectors and adapters will no longer be written by third party middle ware providers. SAP has developed the standard and has made it open to developers, simplifying the life of IT professionals, and allowing for narrower accountability for functionality and interoperability.
Some quotes from keynotes include:
“Fear of loss of resources drove the adoption of technology. Process execution went from days to minutes. Product innovation is no longer a sustainer for growth.” – Shai Agassi
“New capabilities require new thinking” Speaking of how SAP responds to customer needs, “Now in development – the subject must be debatable, owners must be temporary, must turn loose in the near term” “User architected” – Hasso Plattner
“We are moving from rip-and-replace to innovate and leverage” – Henning Kagermann
Attendees were plied with wave after wave of food, drink, snacks and very personal treatment. The press and analysts were treated to special receptions and dinners, served with New Orleans style. Exhibitors were kept busy, many with lines waiting to discuss the latest development. AMD showed a new four-way server using the Opteron chip, with architecture that is not limited by the traditional bus and north bridge architecture. Microsoft, Hewlett Packard Accenture, and many other notable partners displayed the evidence of partnerships with SAP. Announced at the conference was a joint development agreement with Microsoft, with a taped address from Bill Gates, expressing excitement over the new relationship. Interviews were scheduled with users who have implemented SAP and members of the press. I'll report in a future newsletter how technology is being used to ensure smooth flow of refined sugar to your table or kitchen.
As is usual, the conference closed with a high energy party, featuring Motown, blues and rock entertainers. Alas, this reporter had to leave the afternoon prior to the evening event.
SPESA Expo / Material World enjoyed good attendance in Miami . Held at the Miami Beach Convention Center , three of the four halls were in use, as well as a number of seminar rooms, where for two and one half days, a varied menu of topics were presented.
Billed as a triennial show, in rotation with JIAM in Japan , and IMB in Cologne , the equipment manufacturers occupied one of the three halls. A Technology Solutions area housed software and systems suppliers. With today's global trade, this area is more important than ever, providing solutions to specify, source, track, and manage production from any corner of the world. The fabric, trim and supplies section almost filled the third hall.
[TC]² displayed it's new NX12 3D whole body scanner, a small footprint, lower cost model. The SizeUSA Survey drew much traffic, with interest from new product developers, and brand owners who wish to utilize the data to improve fit, or to adjust size range span to better accommodate the present day American demographic. 2D Patterns derived from 3D data by an automatic process also drew crowds. Techexchange, the parent of this newsletter held a drawing from names submitted for subscription to the newsletter, and two winners resulted. John Rodgers and Kimberly Losey were sent a book on The 21 Irrefutable Laws of Excellence. Thanks to all who asked to be added to the mailing list.
A Full Package Center was jointly sponsored by SPESA and [TC]² , with partners Gerber Technology, Lectra, Federal Express, Unimatrix, and BB&T Factors. The model of such a center, and how it might assist regional producers drew traffic from among producers of sewn product, various governmental and association officials.
There was much buzz about what to expect when quotas are removed beginning in 2005. Despite the buzz, the conclusion seems to be that no one knows what to expect, so plan for a flood of product from areas other than the Americas . It has been predicted that a lowering of apparel costs of 15 to 20% will occur, but there are also factors that will keep retail prices from being reduced. High fuel cost, and a shortage of container and shipping capacity are of concern, and may tend to keep apparel prices near current levels, although profits will suffer.
The Enterprise Competitiveness Council presented a panel who spoke on Next Generation Full Package Manufacturing. Rick Ludolph, incoming Chairman of the ECC, along with Patricia Medina assembled the panel around the topic, with presentations from Kirkor Barci of Liz Claiborne, Juan Balas of Kaltex Apparel, Scott Mosteller of Russell Corporation, and Franz Van Zeeland of VF Corporation. Each speaker had gems of wisdom for the audience, pointing out that as an industry, we have changed, we may not agree with the changes, but with the inevitability of change, you must be forward thinking, and prepare for the unexpected. Brands and brand management are also keys to global success.
The AAFA Executive Sourcing Summit was very well attended, with a number of late arrivals standing, or obtaining chairs from an adjacent room. Due to a commitment to speak in another venue, I was unable to stay for the entire summit, and in fairness to those who I didn't hear, I'll not present a partial review. Suffice it to say that the presenters were knowledgeable and presented some interesting views both in footwear and apparel sectors.
I'll close this note with an alphabet soup. Once upon a time there was the American Apparel Manufacturers Association, AAMA . In a parallel universe was The Footwear Industries Association, FIA . As each association saw its membership change in accordance with the times, so did the two associations. Merging, they became the AAFA , American Apparel and Footwear Association. The former AAMA had a large committee structure, ranging from finance to human relations, research, quality and technical advisory. The Technical Advisory Committee, TAC , covered technical topics of current interest, while the Apparel Research Committee, ARC peeped over the horizon to examine topics that might be five to seven years out. About six years ago, the ARC became the SPRC , Sewn Products Research Council. Times continue to change, and discussion ensued with regard to merging the SPRC with the TAC. A “test” meeting, with both committees in attendance was held at Rancho Bernardo CA. Also attending that meeting was the SCLC , Supply Chain Leadership Committee. With ongoing discussion between the chairmen of both committees, the leadership recommended the merger, and the vote was taken in Atlanta in the fall of '03. The new name, Enterprise Competitiveness Council, ECC was also adopted at that time. The TAC and SPRC were no more. Another Committee, the Apparel Quality Committee, AQC , had experienced flagging attendance at meetings. With so much of today's industry in a global environment, and with evolving needs to meet the global challenges becoming more common, the AQC was invited to merge with the ECC . At the spring meeting in Puerto Rico , the deed was done. No more AQC. The ECC now enjoys a renewed critical mass, and the enthusiasm of people meeting new people. The next meeting of the ECC will be this fall in New England . Hmmmm, I wonder if there are any more letters that can be added to this interesting alphabet soup?
Upon arrival in Seoul , Korea , we were greeted with torrential rain from the back side of the typhoon that struck Japan . Next month's newsletter will cover our travels in Asia . I wonder what else Mother Nature holds for us?
Jud