are manufacturing companies ready to go digital?
DESCRIPTION
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.TRANSCRIPT
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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%