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Recent developments in information technology such as the Internet, enterprise resources planning systems and knowledge management systems necessitate the use of these technologies in order for the next generation manufacturers to co‐evolve and survive on the new business landscape. The purpose of this paper is to examine the impact of these technologies on managing next generation manufacturing, (NGM), and the benefits that can be reaped by effectively utilising these technologies. We present a model on how NGM companies develop, implement and manage these technologies to support their manufacturing operations. Our model is an extension of Youssef’s agile manufacturing model. The implications of this new model are discussed in detail. Our analysis indicates that perceived benefits, as well as potential business opportunities for next generation manufacturing companies, are likely to become key drivers for the use of electronic business.

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