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Looking back over recent industrial history the limitations of the mass manufacturing business model and the adoption of lean manufacturing models appears a logical response to the industrial environment. To anticipate competitive strategies we need to develop our manufacturing models ahead of widespread industrial practitioner adoption. This requires new and appropriate enterprise models. The analysis and interpretation of political, economical, social and technological trends gives insights to the characteristics of these future, more effective forms of organization. This is the approach adopted in this article.

In this paper, we consider the difficulties faced by manufacturing companies and their response in terms of the emergence of the Extended Enterprise. We argue that the Extended Enterprise represents the context within which manufacturing systems research must be conducted and we identify what we consider to be the key topics for future manufacturing systems research and development. 1. THE MANUFACTURING SYSTEMS ENVIRONMENT Today's manufacturing enterprise operates in a tremendously competitive environment. This competitive environment arises from a series of underlying realities viz: Global markets Customers demanding high quality, low cost and fast delivery of increasingly customised products-mass customisation. The need to develop environmentally benign products and processes.

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