The market for continuous improvement software—primarily programs for lean and Six Sigma—had total hardware, software and services revenues of more than $200 billion in 2005, and it will nearly double by the end of 2010, according to new research.

Research firm ARC Advisory Group forecasts a strong, compounded annual growth rate in the software industry, driven in part by competitive pressures and successes with software-driven continuous improvement efforts. Globalization has spurred manufacturers to adopt streamlined processes shaped by lean and Six Sigma programs, the firm reports.

“A corporation’s business processes are embedded in their software systems,” says Ralph Rio, principal author of the ARC report. “As they adopt lean manufacturing and Six Sigma, they increasingly need systems tailored to these programs.”

ARC’s survey found that 80 percent of manufacturers have continuous improvement programs, which are designed to increase business performance by involving a broad range of people, methods and technologies, compounding an improvement enterprisewide.

To read the report, visit www.arcweb.com/StudyPDFs/Study_ContImprvmtSys.pdf.

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