are manufacturing companies ready to go digital?

Post on 29-Nov-2014

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Manufacturing companies have traditionally been slow to react to the advent of digital technologies and their related impact across the manufacturing value chain and operating model. While there are a few manufacturing companies that have made rapid advances in deriving significant benefits from digital, their number is still small. For instance, in a recent industry survey, only 25% of the interviewed executives believed that the manufacturing sector would be highly impacted by digital transformation over the next five years. Our study found that digital innovation is critical when it comes to addressing manufacturers’ key business drivers and creating value.

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Reach out: Interested in reading the full report? Head to http://www.capgemini-consulting.com/are-manufacturing-companies-ready-to-go-digitalFollow us on Twitter @capgeminiconsul or email dtri.in@capgemini.com

Manufacturers are not digitally mature

Digitizing Manufacturing End-to End

Accelerates productdevelopment

Builds agility and efficient processes

1. Oxford Economics (2011): “The New Digital Economy – How It Will Transform Business”, global survey of 363 business executives across industries 2. Crowd Sourcing, “GE’S ECOMAGINATION CHALLENGE BREAKS OPEN INNOVATION RECORDS”, 20123. Carbon Design Systems case study on Samsung4. 3ds.com: “Virtual Ergonomics Solutions”, 20105. Journal of the Microsoft Global High Tech Summit, “Value Chain Partnerships Adding Value to the Value Chain Agility”, 20076. Caterpillar, “Now you see me…”, 20087. eBridge case study8. Word of Mouth Marketing Association Case Study9. Telligent, “Texas Instruments Case Study”, 2013

Drives Innovation

Helps predict performanceand avoid the risk ofbuilding real prototypes

Cuts engineering and manufacturing costs

Allows integrated monitoringof product performance andpredictive maintenance

Traces product quality in real-time

Creates efficient andtransparent logistics processes

Helps targeted marketing toglobal consumers at effective cost

Marketing insights help buildprofitable customer relationshipswhile generating new revenuestreams

Dynamically integratesexternal suppliers andoutsource entire functionsof the value chain

Digital product design

Digitizing the factory shop-floor

Digitizing the supply chain

Digitally customizing marketing,sales and services

ABB’s collaborationapplication helped improve spend transparency to

Caterpillar’sCloud Supply Chain Visibility solution increased visibility

Minimizes time-to-market andmanufacturing lead time

BMW used eBridge- a digital marketing tool toincrease the conversion rateto sales

3,000 ideas

0% to 65% 90%

Are ManufacturingCompanies Readyto Go Digital?

Onlyof executives believe thatmanufacturing sector willbe highly impacted by digital transformationover the next 5 years

Samsung’s virtual prototyping

> 50%platform resulted in improving performance by

GE’s crowdsourcing projectreceived over

Bombardier’s digitalfactory models reduce the sizeof the factory by compared to previous standards

50%

Sources:

of manufacturers believedigitization can helpimprove market share

Less than 10% ofmanufacturers leveragedigital technologies totransform

expect digitization todrive revenue growth

from

Minimizes inventory costs

37%

38%

Only25%

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