Investment in computer-integrated manufacturin9 ( CIM) often has to be justified on its operational benefits because they are easier to quantify than are the strategic benefits ~ . Bowin Desions, a Sydney manufacturer of 9as space heaters, has developed its own range of software for the computer-integrated manufacture of sheet metal z. The initial objective was to reduce work-in-process inventory by beino able to respond faster to the Kanban sysem used for shopfloor control in the assembly area. Subsequently, this development was viewed as an integral part of the company's strategic position, focusin9 on providin9 customers with quality products on short lead times usin9 a just-in-time (JIT) manufacturin9 system. Allen-Bradley in the US 3 and AEG in Germany 4 are two other examples among many worldwide where initial operational benefits have initially justified the project, and then strategic benefits have in addition been realized. In Australia the National Industry Extension, an industry support group within the Federal Government's Department of lndustry, Technology and Commerce, established a special interest 9roup on CIM. Any company which was interested in CIM could join the 9roup. All 12 members of the 9roup in Sydney were visited in 1989 (a brief description ~ff'these companies is oiven in Table 1). In addition, they completed an extensive questionnaire that was designed for the 1989 Australian manufacturin9 futures survey 5. This information is used to examine if the interest shown in CIM by these 12 companies is based on operational or strategic objectives.