Manufacturing research has been focused on point solutions and technol
ogy-driven solutions, These have not delivered the step changes in per
formance needed, nor have they been adopted by wide sections of indust
ry so the total business benefit resulting has been modest. The author
s propose that manufacturing research must now place greater emphasis
on total manufacturing business systems development. Coupled with the
integration and communication technologies now becoming available this
is the best way to enable manufacturers to realise the competitive ga
in demanded by the market place. The primary pressures to which manufa
cturing will be subject are detailed. These are encapsulated in the co
ncept of customer-driven manufacturing business systems. In these syst
ems the customer increasingly becomes an integrated part of both the b
usiness systems and the engineering systems of the enterprise. Key pro
duct and process technological advances, environmental, and market pla
ce developments are described. Probably most significant are the chang
es in the value chain now emerging which transform manufacturing busin
ess systems and overturn both conventional manufacturing strategy and
existing manufacturing metrics. The institutionalisation of the Extend
ed Enterprise is one of the most tangible and has far reaching outcome
s. This will involve major structural changes in business organisation
. The basis of partnership within the Extended Enterprise is not yet w
ell understood but alternative operations models are likely to be indu
stry and market sector specific. Concurrent Engineering is becoming ac
cepted but understanding of best practice on how, when and in what ord
er to implement it is needed. The extension of tools to embrace enviro
nmental issues could offer significant benefit to small and medium siz
ed enterprises. The appraisal of manufacturing business options must b
e developed to match the changes in the business operations environmen
t described above.