USC4AM Innovation+in+Advanced+Manufacturing+Playbook+ (Download+Report) +2024
USC4AM Innovation+in+Advanced+Manufacturing+Playbook+ (Download+Report) +2024
p. 04 - 07 p. 08 - 15 p. 16 - 69
What’s
Inside 04 05
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Introduction Imperative Opportunity Strategies Future-Proofing
Insights from leaders The manufacturing industry has Purdue University, and In addition to input from industry leaders, this playbook manufacturing industry to elevate its competitive
for leaders been evolving at an unprecedented Accenture, engaged more than leverages findings from a number of detailed studies, edge and enable business model innovation. Starting
speed in recent years. To craft 30 manufacturing leaders to including Industrial Speedsters Study, and Rethink, with the successes and lessons hard-won by industry
this playbook, we delved inside build this playbook. Ranging Reinvent, Realize: How to successfully scale digital innovators, we’ve reverse-engineered their approaches
the minds of industry thought from plant managers to CEOs innovation to drive growth, as well as an examination to achieve the same.
leaders who are navigating the and encompassing a wide array of over fifty manufacturing technology trends. The
multifaceted challenges that of industry perspectives, the goal was to pinpoint technologies that empower the
define the current manufacturing playbook’s methodology involved
terrain. Developed against the conducting individual interviews
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Introduction Imperative Opportunity Strategies Future-Proofing
Executive
Summary This playbook includes the following key findings:
• Organizations who innovate, and use new technologies well, can expect real benefits, where
organizations who don’t, risk falling behind competitors. Innovation must be a priority now, due to
rapidly evolving technology, and industry headwinds.
• Within organizations, leaders face barriers to pilot and scale innovation, including; resistance
to change, outdated infrastructure, difficulty proving value to scale, limited partnerships, talent
shortages and inadequate workforce upskilling, limited cross functional collaboration, siloed data
systems, and lack of strategic planning.
• When considering innovation, be deliberate to honestly assess the organizations starting point and
digital readiness, to uncover capability gaps, predict challenges, and identify organizational strengths.
• Ensure the right capabilities for innovation are present, through hiring, talent development, and
• Run innovation through a structured process from idea to scale, with focus on rapid experimentation
to test hypotheses, governance structures with defined funding stage gates, quantitative value
tracking, and processes to scale successful pilots across the organization.
• Create a culture of innovation within your organization and continuously work towards amplifying
enablers of innovation in order to succeed in the above.
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The Imperative
for Business
Model
Innovation
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Introduction Imperative Opportunity Strategies Future-Proofing
The Imperative
for Innovation
Leaders in manufacturing stand at the crossroads The Fourth Industrial Revolution isn’t a distant future— Competition is fierce, and innovators who embrace For leaders in manufacturing, innovation may seem like
of tradition and transformation. They face a pivotal it’s here today. Leaders who seize opportunities to reinvention as a strategy gain a distinct advantage. a choice, but it’s not. Rather than thinking of innovation
decision: lean into innovation or defer investment and innovate position their organizations in the vanguard Whether it’s streamlining supply chains, adopting as discretionary, leaders must think of innovation as
maintain business as usual. of this revolution, ready to harness the full potential of sustainable production practices, or integrating smart necessary, to keep their organizations future-focused
cutting-edge technologies that optimize efficiency and manufacturing processes, innovation becomes a and relevant. Benefits extend beyond immediate gains,
While manufacturing continuous improvement is enhance productivity. strategic differentiator. Organizations that innovate shaping the trajectory of organizations, industries,
largely incremental, technology-led innovation, when now will not only accelerate ahead of peers, but set and the future of manufacturing itself. The time
focused, is disruptive and impactful. If it feels like the While challenging, innovation in manufacturing is industry standards, attract top talent, forge strategic for innovation is now, and leaders who answer the
pace is accelerating, that’s because it is. A composite achievable with the right approach. It’s important for partnerships, and establish positions as leaders in a call will not only survive but thrive in the changing
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Introduction Imperative Opportunity Strategies Future-Proofing
FY20 14.2%
+16.3%
FY20 12.2%
Defining Business
Model Innovation
Gain a competitive advantage through
organizational expansion of diversified
and compelling value propositions.
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Introduction Imperative Opportunity Strategies Future-Proofing
Grand manufacturing
challenges
In its The Future of Industrial Strategies: Five Grand Challenges for Resilient Manufacturing4 white paper, Addressing these challenges has Beyond novelties, manufacturers Companies with a strong digital
the World Economic Forum outlines challenges faced by manufacturing organizations amidst global the potential to usher in a new must have a strategic core grow their revenues faster
disruptions and technological advancements. It addressed five grand manufacturing challenges driving era of strategic solutions and understanding of how these than their less agile competitors,
the need for innovation and new business models: operational paradigms for the technologies can forge new and those who take advantage of
manufacturing industry. business models built around a AI and sophisticated data analytics
digital core where innovation is capabilities can find answers to
a competitive advantage. Such questions they didn’t know to ask.
organizations embrace the
01 Decarbonizing manufacturing 02 Enhancing supply chain transparency edge computing, cloud-native The convergence of technology
applications, and security by and strategy reveals a pathway
operations, production, and supply and resiliency
design. They embed a mindset to for manufacturers toward
chains Amid production shocks and inflation, balancing continually reinvent themselves in a future where efficiency,
Manufacturing is vital, but its emissions threaten efficiency and resilience is crucial. Manufacturing their cultures to not only increase sustainability, and resiliency
climate goals. Industrial reduction is complex is vital for national security and daily life. While lean stakeholder value but to become intertwine seamlessly.
because of diverse processes. Transitioning to practices increase profitability, they risk supply more resilient to disruption.
green technology can be costly and complicated but chain disruptions. Global events and cyberattacks
essential for creating a sustainable industry. necessitate adaptive, secure supply chains.
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Introduction Imperative Opportunity Strategies Future-Proofing
What that means Business leaders acknowledgment Manufacturing is on the threshold A study of 1,200 global executives 6 technologies were identified to
of the grand manufacturing of realizing substantial gains from in industrials identified help organizations overcome grand
challenges can be seen through state-of-the art technologies, technologies poised to drive cost manufacturing challenges.2
investment in, and focus on, yielding favorable outcomes reductions and time savings in
technology and innovation. for stakeholders, customers, the next 5 years for industrial The following section deep dives
employees, and the environment. organizations. Leveraging these into the specific technologies and
technologies, and layering in input explores their impact to solving the
from a group of North American grand manufacturing challenges.
manufacturing leaders,
94%
Of C-suite executives surveyed
anticipate increasing technology
spending in 2024.1
“
Leaders must prioritize investments in
digital manufacturing transformation
and technologies that reduce
production time, cost and create new
01
Factory digital twins for simulation-
based decision making
04
Blockchain and supply chain
collaboration tools
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Introduction Imperative Opportunity Strategies Future-Proofing
The 6 technologies identified can be used to What this means Manufacturers face a number
of grand challenges. Innovation
value to shareholders,
employees, customers and the
address the grand manufacturing challenges can address these challenges, environment.4
and create new opportunities
for manufacturers to provide
Decarbonizing manufacturing Enhancing supply chain Speeding up scale-up and Securing the future of the Linking business value with
operations, products, and supply transparency and resiliency deployment of new technologies manufacturing workforce social and environmental
chains responsibility
Robotics and Automated Increased asset efficiency, and Increased efficiency of Increased worker safety
Guided Vehicles reduction in carbon emissions launching new technologies through automation of high
risk activities
More information on grand challenges can be found in the World Economic Forum’s “The Future of Industrial Strategies” report.
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Introduction Imperative Opportunity Strategies Future-Proofing
What is a digital twin? A digital twin is a virtual replica of Context note: A study of 1,200
a physical object or system, that executives at global industrial Better Workforce Decision Making Continuous Improvements
uses real-time data to simulate companies found that digital twins Digital twins present real-time simulations, offering With digital twins, autonomous systems learn and
outcomes. helped “speedsters”, defined as workers intuitive visualizations and enhancing adapt, forming intuitive closed-loop systems that
organizations with the highest decision making. Workers receive actionable data can predict and respond to human behavior. As
Digital twins can help organizations level of cost and time reductions promptly, allowing swift and informed actions. the technology matures, operators can focus on
to simulate manufacturing in the past 5 years, realize 3.8% more complex tasks while routine operations are
processes to optimize production production time savings over the streamlined, fostering an environment of continuous
improvement.
efficiency, reduce waste, minimize last five years, and are forecasted
downtime, and identify problems to save another 4.3% in the next
before they occur. five years. Similarly, digital twins
saved 3.2% of production costs in Predictive Analytics
the last 5 years, and are forecasted
Predictive analytics can guide actions to make
to save another 2.6% of production
smart decisions about machines, production, or
costs in the next five years.2 maintenance and reduce costs and downtime.
01
Decarbonizing manufacturing operations,
products, and supply chains Barriers to Implement Digital Twins
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Introduction Imperative Opportunity Strategies Future-Proofing
Digital Twins in
Action Sample use cases of this
technology in manufacturing:
Example 01:
An automotive OEM uses a digital twin
Example 03:
A food manufacturer uses a digital
of its manufacturing processes to test twin to simulate major agricultural
the effect of new tooling technologies events and weather-pattern effects on
on overall shop throughput to make crop supply to manage warehousing
faster production decisions. levels and schedule product runs.
Case Study: The Future of Mars, a global leader in food, pet time, leading to a 50% reduction in Example 02:
Manufacturing: Insights- care, and confections, faced overfilling. Mars is now using digital A digital twin helps a toy manufacturer
Driven Factories Powered by challenges overfilling packages. twin technology globally to develop to predict product demand and
Digital Twins Mars implemented a digital an insights-driven “factory of the simulate raw material supply chains to
twin, which fed sensor data into future.”5 optimize order timing and quantities.
a predictive analytics model,
allowing operators to monitor and
adjust the filling process in real
Take a moment to reflect on the How might we use digital twins How might we virtually simulate
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Introduction Imperative Opportunity Strategies Future-Proofing
What is a connected worker Connected worker platforms Context note: A study of 1,200
platform? helps to enable workers with executives at global industrial Remote Assistance Enhanced Learning
data insights via portable tech to companies found that warehouse Embrace the “over-the-shoulder” paradigm, where Redefine the boundaries of workforce education by
enhance productivity, safety, or extended reality tools saved field workers receive real-time, remote support. providing workers on-the-job coaching and training,
reduce errors. Connected workers “speedsters”, defined as This interactive guidance ensures swift and increasing productivity and reducing nonproductive
platforms can take many forms, organizations with the highest level dependable resolution of challenges. learning time.
including handheld devices, of cost and time reductions in the
wearables, or extended reality past 5 years, 6.1% in distribution
technology. time in the last five years, and are
forecasted to save another 6.1%
in the next five years. Similarly,
warehouse AR/VR tools saved 4.6% Quality Control Plant Safety
of distribution costs in the last 5
Transcend traditional quality checks. Allow a digital- Infuse digital prowess into safety protocols. With
years, and are forecasted to save
first approach that refines assurance, audit, and advanced digital reporting mechanisms for incidents
another 5.0% of distribution costs inspection protocols, reducing errors and the need and near misses, coupled with digital checklists,
in the next five years.2 for rework. it’s possible to reinforce compliance and preempt
potential risks.
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Introduction Imperative Opportunity Strategies Future-Proofing
Connected
Worker Platforms Sample use cases of this
technology in manufacturing:
Example 01:
A chemical manufacturer uses
Example 03:
A manufacturer of consumer goods
Case Study: Transforming Cummins, an American This new platform has promoted Example 02: Example 04:
Global Safety With a multinational corporation safety, improved efficiency, A manufacturer who provides A large machinery manufacturer’s
Connected Worker Solution specializing in diesel and and motivated proactive safety post-sales service uses connected product development team uses
alternative fuel engines and changes with an overall 90% video cameras to allow field service virtual reality headsets to simulate
generators, leveraged Anvl’s adoption rate across 5,000+ technicians to connect with service challenging installation operations.
centers for unknown or unfamiliar
mobile app to design smart employees. As a result, leaders
repairs, reducing rework and quickly
workflows, allowing technicians are now able to use Anvl’s data
upskilling field employees.
to communicate easily with to ensure compliance, make
managers about safety questions continuous improvements, access
or concerns. actionable metrics and analytics,
and make informed, data-driven
safety decisions.6
Take a moment to reflect on How might we augment workers How might connected worker
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Introduction Imperative Opportunity Strategies Future-Proofing
What is intelligent asset Intelligent asset management Context note: A study of 1,200
management? uses a combination of Internet executives at global industrial Maintenance Productivity Production Throughput
of Things (IoT) sensors, data, and companies found that connected Monitoring assets with IoT sensors and predictive Unplanned downtime significantly affects overall
analytics to unlock trapped value machinery saved “speedsters”, analytics reduces downtime and can make equipment effectiveness. Increasing equipment
from assets. Data is the bedrock defined as organizations with maintenance activities more productive. The uptime through better monitoring results in
of key enterprise initiatives, but the highest level of cost and time ability to anticipate wear on machines allows increased throughput and decreased waste.
successful adoption of intelligent reductions, 4.6% in production organizations to schedule maintenance and
asset management requires focus time in the last five years, and are workforce requirements for repairs. Predicting
asset failures in advance reduces reactive
on the right data elements linked to forecasted to save another 4.2%
maintenance costs and contractor costs.
prioritized use cases. in the next five years. Similarly,
connected machinery saved 2.0% Energy Usage and
of production costs in the last 5 Asset Sustainability Emissions Management
years, and are forecasted to save
Effective asset management means better Asset monitoring and analytics to detect energy
another 2.6% of production costs
capital allocation for sustainable management of usage increases visibility of greenhouse gas
in the next five years.2 infrastructure and asset portfolios. Sourcing energy- emissions across the value chain and equipment-
efficient assets reduces energy overhead and drives level optimization to reduce energy intensity.
resource efficiency. Reducing emissions minimizes the environmental
impact of manufacturing plants.
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Introduction Imperative Opportunity Strategies Future-Proofing
Intelligent Asset
Management Sample use cases of this
technology in manufacturing:
Example 01:
A small job shop uses intelligent asset
Example 03:
A manufacturer that performs high-
Case Study: Preventative Automotive supplier Marelli teams to more effectively schedule Example 02: Example 04:
Maintenance implemented a innovative program maintenance activities around An industrial manufacturer uses A manufacturer of consumer
within their factories to enhance asset health, rather than fixed intelligent connected tooling to packaged goods uses intelligent
capabilities and monitor asset schedules.107 predict machine failures, allowing asset management applications
efficiency. By doing so, Marelli maintenance to preorder replacement to allocate capital investment to
components and schedule resources, lowest performing assets rather than
empowered their manufacturing
reducing spare parts inventory levels focusing on asset age, run rates, or
and shop downtime. product lines to maximize the impact
of investment decisions.
Take a moment to reflect on the How might we get the most out of the How might we monitor and address
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Introduction Imperative Opportunity Strategies Future-Proofing
What is blockchain and supply Blockchain helps to maintain Supply chain collaboration tools
collaboration tool? records of transactions to allow for better upstream and Connected Supply Chains Verification of Raw Materials
allow real-time access to data downstream communication, Leveraging blockchain and multi-party systems Shared data constructs improve transparency and
on a decentralized leger. The planning, and feedback. This allows enables the move from a linear supply chain to traceability across the entire supply chain—from
distributed nature of blockchain organizations to more efficiently collaborative, many-to-many networks. Blockchain producer to consumer. This allows manufacturers to
ensures that revisions or deal with suppliers and time input also enables multi-party collaboration and better understand where inputs come from and to
alterations cannot be made delivery. partnership around a single source of truth. assess sustainability and ethical sourcing.
without updating other records,
providing a layer of security and
trust not found in centralized
systems. Improved Logistics and
Transaction Processes
Greater visibility on dispatch, transport, and
delivery of goods ensures less disputes, and
reduces documentation for regulatory and financing
purposes.
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Introduction Imperative Opportunity Strategies Future-Proofing
Supply Chain
Collaboration Tools Sample use cases of this
technology in manufacturing:
Example 01:
A pharmaceutical manufacturer uses
Example 03:
An automotive battery manufacturer
Case Study: Enhancing Renault partnered with IBM real-time compliance information, Example 02: Example 04:
Automotive Supply Chains Blockchain Services to implement all while reducing manual efforts A luxury good manufacturer uses An auto OEM uses supplier
With Blockchain the eXtended Compliance End- related to data storage, transfer, collaboration tools to match collaboration tools to synchronize
to-End Distributed (XCEED) and use.78 customers to their orders, ensuring delivery of inputs, reducing
blockchain project. At one plant, transparency and authenticity of its warehousing costs.
luxury products.
this solution archived more
than 1 million documents at 500
transactions per second.
This solution allows customers
to know that their vehicles meet
regulations and provides regulators
Take a moment to reflect on How might blockchain promote How might we use supplier
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Introduction Imperative Opportunity Strategies Future-Proofing
What is a plant control tower? A plant control tower helps to Context note: A study of 1,200
monitor, analyze, and optimize executives at global industrial Identification of Issues Before They Improved Collaborative Work
plant performance. Leveraging the companies found that control Affect Performance An increase in visibility of plant data across multiple
contextualized view enabled by towers saved “speedsters”, defined Using available data, it’s possible to establish teams and functions allows teams to have real-time
digital twins, it allows companies as organizations with the highest baselines and track performance to quickly detect access to data, resulting in stronger cross-functional
to break data silos, get real-time, level of cost and time reductions, and diagnose early warning signs. collaboration.
end-to-end visibility across their 3.9% of production time in the last
process performance, and equip five years, and are forecasted to
production supervisors with the save another 4.9% in the next five
tools to drive issue resolution and years. Similarly, control towers
operational improvements. Using saved 2.9% of production costs in
a plant control tower, it becomes the last 5 years, and are forecasted Improved Sustainability
possible to rapidly identify issues to save another 3.3% of production
Control towers enable high-level, end-to-end
in production, perform root cause costs in the next five years.2
visibility of plant operations to optimize operations
analysis, and collaborate with for production by reducing energy, emissions, and
colleagues to resolve the issues. waste.
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Introduction Imperative Opportunity Strategies Future-Proofing
Control Towers
in Action Sample use cases of this
technology in manufacturing:
Example 01:
A consumer appliance manufacturer
Example 03:
A unionized farming equipment plant
uses control towers to navigate uses a control tower to view machine
the microchip crisis caused by the statuses in real time, allowing rapid
COVID-19 pandemic by preemptively deployment of skilled workers when
identifying shortages from suppliers downtimes occur.
and shifting production plans.
Case Study: End to End Due to heightened supply chain better respond to changes in the Example 02: Example 04:
Supply Chain Control Tower uncertainty, Johnson & Johnson supply chain, optimize production A material planning and logistics team Aircraft manufacturers use control
to Orchestrate and Optimize connected their siloed data decisions, and identify obsolete at an automotive OEM uses a control towers to track real-time progress of
Across the Value Chain sources to gain visibility across inventory.9 tower to monitor stock levels of all airplane production to ensure on time
the value stream. This solution subassemblies lineside to coordinate delivery of new fleets to airlines.
material delivery through a fork truck
allowed Johnson & Johnson to
network.
Take a moment to reflect on How might we improve data visibility How might we increase our response
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Introduction Imperative Opportunity Strategies Future-Proofing
What is robotics? Robotics automate tasks typically Context note: A study of 1,200
performed by humans. Robotics executives at global industrial Increased Safety OpEx Reduction
have diverse applications ranging companies found that AGVs Autonomous robots can maneuver through The implementation of robots will often lead to
from automated guided vehicles saved “speedsters”, defined as manufacturing sites with ease, helping workers faster and more efficient operations and quicker
(AGVs) to cobots, or collaborative organizations with the highest level avoid dangerous situations. turnaround times, leading to significant cost
robots, which are designed to of cost and time reductions in the reductions.
work alongside humans to assist past 5 years, 4.9% in production
in repetitive work. time in the last five years, and are
forecasted to save another 5.4% in
the next five years. Similarly, AGVs
saved 3.1% of production costs in
the last 5 years, and are forecasted Improved Consistency and Quality Efficiency
to save another 3.4% of production
Functions and processes in manufacturing can be Cobots that work side by side with humans can
costs in the next five years.2
automated, leading to reductions in error rates and improve efficiency, reduce mistakes, and allow
the need for rework. humans to focus on more strategic and mentally
stimulating work.
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Introduction Imperative Opportunity Strategies Future-Proofing
Robotics and
Automation Sample use cases of this
technology in manufacturing:
Example 01:
A jet manufacturer uses robotics to
Example 03:
A packaged foods manufacturer
Case Study: Advancements in Qualcomm leverages 5G and AI to 5G and AI enable new robotics use Example 02: Example 04:
the Development of Smarter enable more effective robotics. 5G cases, such as robots traveling in A furniture manufacturer uses A manufacturer uses vision systems
and Safer Autonomous Robots allows for real-time, high-volume traffic, air mobility, and autonomy collaborative robots (cobots) to and robotics to pick and sort defective
data sharing, enabling AI to guide in factory settings.810 help partially automate repetitive or parts from production process,
robots. difficult tasks, increasing ergonomics improving first time through metrics.
and speed.
Take a moment to reflect on the How might we use collaborative robots How might we use autonomous robots
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Introduction Imperative Opportunity Strategies Future-Proofing
innovation creates
and provide a starting place for leaders to
think about improvements to their operations.
New business models, enabled by technology,
can help organizations to unlock new
organizations
Leveraging technology to address Enabling agile, co-created innovation for
market or climate change disruptions new products, processes, and services
Enhanced productivity and plant efficiency enable Boosted efficiency and productivity afford leeway
swift adaptation to market shifts. Improved asset for experimentation. Optimal asset health ensures
health ensures resilience against disruptions machinery readiness for innovation. Continuous
like climate or geopolitical events. Despite rapid tech-driven feedback loops foster co-creation,
changes, consistent production quality maintains engaging workers, stakeholders, and customers in
product integrity, while reliable worker safety collaborative innovation processes.11
ensures minimal downtime, enhancing overall
operational resilience.11
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Introduction Imperative Opportunity Strategies Future-Proofing
8.1%
6.9%
5.9%
Time Savings
4.6x
N/A
7.3x 11.1x
1.8%
0.7% 0.5%
0.0%
technology-led
landscape hinders the seamless integration intelligent asset management, or ensuring the
of cutting-edge technologies within the seamless coordination of connected worker
manufacturing process. From systemic platforms, the barriers must be understood
challenges to organizational hurdles, and dismantled to pave the way for a future
understanding and dismantling these barriers where these technologies redefine the
innovation
is crucial for unlocking the full potential of manufacturing landscape.
technological innovation in manufacturing.
However, navigating through these barriers Manufacturing executives participating in
requires a nuanced understanding of the this program identified 8 significant barriers
intricate interplay between technology and impeding technology-led transformation.
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Introduction Imperative Opportunity Strategies Future-Proofing
Workforce Resistance
to Change
66% 30%
Deep dive With the global push for digital the time a transformational effort Key statistics
transformation, stakeholders, key is approved, funded, and fully
investors, and organizations are scaled, the authorized technology
exerting pressure to adopt new is already becoming obsolete.
of manufacturers say digital of manufacturers globally are
technologies. However, these
transformation is a priority.12 facing technology paralysis due
conversations are often complex, Manufacturers making
to the wide range of available
with many manufacturers investments into these
hesitant to fully embrace digital transformations are investing systems and platforms.13
transformation. Those who in their future to remain
choose to stay the course and competitive, increase future
invest in technology only when ability to innovate, develop new
“
necessary risk being overtaken by offerings, and create the next
10%
their competitors, falling behind frontier of manufacturing.
on innovation, and becoming
unable to generate new value. The
pace of technological change is of North American process Prioritizing pragmatic
accelerating, and manufacturers and discrete manufactures digitization is the single
that struggle to execute have completed digital mindset change that an
transformational strategies risk
transformational projects.12 operations team needs to
being left behind. For many, by
build the foundation for the
Outdated
Infrastructure
88% 55%
Deep dive “If it’s not broken, why fix it?” targeted at new technology. Key statistics
is a common sentiment about Additionally, greenfield sites are
legacy infrastructure and systems being brought online and using a
among many manufacturers. mix of new and old technologies of executives plan to slightly of executives are planning
The drive to replace what’s in an attempt to bridge the gap
increase technology spending to prioritize investments in
already functioning, however between sites. This results in
as a percentage of revenue in developing digital cores (e.g.,
inefficient, has been low and mixed performance with neither
difficult to move forward. For the brownfield or greenfield
the next year as compared with cloud, data, AI, platforms, and
many, justifying investments infrastructures running at their last year.15 security).15
in brownfield sites is hard, full potential and no two plants
resulting in siloed infrastructure being identical in technology and
“
across plants. Holding on infrastructure.
91%
to legacy infrastructure is
hindering integration of new Manufacturers need to develop
technologies, limiting innovation, strategies to activate use cases
and impeding the adoption of that use new infrastructure for of industry leaders say Do not leave your brownfield
modern manufacturing practices. both brownfield and greenfield sites behind.14
technology is a key element of
While older infrastructure may sites. A world of possibility and
the competitiveness.15
be getting the job done, it can opportunity waits for those who Scott King, Information Technology,
limit the success of innovation. let go of yesterday’s systems Ford via USC4AM Community
Difficulty Proving
Value to Scale
80% 83%
Deep dive A major hurdle manufacturers However, manufacturers are Key statistics
face when pursuing innovation is experiencing mixed results
gaining support and investment when scaling from pilot to full
for a new technology. Key deployment as the manufacturing
of surveyed manufacturers of surveyed manufacturers
stakeholders want technology environment becomes more
cited scalability as a challenge who have a smart factory
investments to solve a business complex.
to executing strategies.16 strategy and different
challenge, help grow the business,
and create new value for the Each manufacturer and plant is technology use cases to
organization. To gain adoption, unique, meaning a technology support their sites reported
the technology solution needs to graduation and scaling program that technology and solution
be usable and prove it adds value must be bespoke. Brownfield and immaturity are challenges.16
“
that leads to new profit. legacy infrastructure that are
decades old create additional
When implementing new complications and considerations
technology, manufacturers face for capturing value at scale.
a variety of unknowns that they When planning greenfield sites, Focusing on the value and the
must navigate when piloting concessions are often made ‘why’ helps your organization
projects. Demonstrating proven by scaling back on the amount move faster.14
value on a small scale will help of new technology employed
illustrate the savings that can be because of difficulties in scaling Elizabeth Hoegeman, Executive
Limited
Partnerships
94%
“
Deep dive As manufacturers grow their focus back to core activities, Key statistics
operations, they often add new leveraging partners to fill hard
solutions on top of existing to address capability gaps.
applications and infrastructure. These partnerships can provide
of tech industry executives Industry and universities need
Over time, this can lead to stability, platform cohesion, and
consider innovation to come together and build
disconnects between platforms, improved efficiency, paving the
partnerships a necessary curriculum to help shape the
inconsistent information, and way for growth and new business
inefficient, manual verification developments. strategy.2717 workforce of the future.14
of data. Additionally, maintaining
Matthew Wallace, DXM, CEO via
this infrastructure, including Manufacturers who set out to
USC4AM Community Interview
“ “
custom solutions, can become pursue innovation on their own
increasingly risky and costly when are missing out on opportunities
relying on a handful of personnel to experiment with technology
to effectively troubleshoot and and influence the workforce of
resolve issues. the future through strategic Strategic partnerships Ford leverages Google Services
partnerships. By not pursuing are critical for technology and Google Cloud to accelerate
With the rapid acceleration of strategic partnerships,
adoption. Somebody has deployment and improve
technological advancements, manufacturers are placing
to lead the change. Most sustainability.14
maintaining expertise across themselves at a competitive
companies are not self-
multiple technical domains has disadvantage with other
starters and need help.14
Inadequate
Workforce Upskilling
25%
“
Deep dive Attracting new talent to required for specific functions. Key statistic
manufacturing is becoming Manufacturers are finding
increasingly difficult in North themselves at a loss when this
America. In contrast, a career workforce retires because The challenge is not only trying
of the manufacturing
in manufacturing for European these skillsets and institutional
workforce is over 55 years to fill the existing job openings
university graduates is highly knowledge are difficult to replace.
old.1718 but also rethinking new career
desirable. There, people look As a result, the industry is facing
forward to being on an assembly a shortage in the number of
models involving a high degree of
line or helping manufacture a workers who have the relevant automation, robotics, and AI.14
new product for society’s benefit. skills and expertise needed to Camille Prost, Managing Director
North America’s unfavorable operate manufacturing systems Industry X Workforce Transformation,
perception of the industry must with the rapid evolution of Accenture via USC4AM Community
change to showcase the benefits technology. Interview
of a career in manufacturing and
how employees can take part in Manufacturing organizations can
driving meaningful change. partner with universities to build
well-rounded curriculums and
Decreased interest in apprenticeship programs that can
manufacturing jobs combined provide the future workforce with
with workforce retirement practical experience. Additionally,
Limited Cross-
Functional Collaboration
44% 40%
Deep dive Lack of collaboration across proposed and that technologists Key statistics
different segments within an understand the challenges of the
organization is a major inhibitor to manufacturing environment.
transformation in manufacturing
of workers’ skills will be of industrial manufacturers
and leads to siloed processes Manufacturers are seeing a
disrupted in the next five years, cite managing legacy
and technology. Obtaining buy- skillset disconnect across
estimated by employers.1819 processes and process re-
in for innovation requires an teams and functional areas
organization-wide culture change where a portion of the non-plant engineering as substantial
to increase and incentivize workforce doesn’t have visibility challenges.1920
collaboration. For example, into manufacturing processes.
when developing a solution for This gap leads to incomplete
“
workers, a data scientist needs solutions and creates tension
to collaborate with shop floor between organizational groups.
workers to understand the The lack of cross-functional
nuances of their roles and goals. skills and understanding within
Increasing cross-functional manufacturing organizations People who are doing data-
collaboration requires that creates a fractured system that related work need to be aware
frontline workers understand impedes organizational growth. of what is happening on the
why new technology is being
manufacturing floor.14
Siloed
Data Systems
87% 90%
Deep dive Many manufacturing making. Leading data systems Key statistics
organizations are dealing with propel transparency across the
inconsistent data formats and organization, allowing workers
siloed information systems to optimize performance and
of employees want leaders of global executives agree that
that hinder the efficient flow generate greater results. They
to reconsider the way they data transparency is becoming
of information across the value also create an advantage
think about technology in the a competitive differentiator for
chain. Due to fragmented data over competitors and enable
systems, leaders often have innovation in manufacturing. workplace.2021 their organizations.2122
unpredictable and limited access
to data, creating challenges in
making data-driven decisions.
“
Now more than ever, it’s crucial
for manufacturing leaders to
invest in the right technology
to enable data-driven decision
It’s not about having large data.
It’s about having the relevant
data.14
Lack of
Strategic Planning
43% 42%
Deep dive There are no shortcuts in the more cautious about investing in Key statistics
innovation journey; however, innovation. Finance poses a large
not all journeys yield immediate barrier to innovation, especially
returns. Manufacturing when there isn’t a central funding
of manufacturers cite budgets of industrial manufacturers
organizations struggle to source to accelerate its progress.
as a core constraint related to have difficulty providing
prioritize longer-term innovation
technology investments.19 justifications for investment.19
initiatives, instead opting for Quantifying innovation pursuits
quick wins against short-term is often a difficult task that leads
goals. In the immediate future, to deprioritizing these efforts.
“ “
these quick wins might generate Manufacturing organizations
temporary gains, but over time, need to shift their perspectives
they can lead to fractured to understand that many
infrastructure, incompatible investments can be justified
systems, and set organizations by hard business cases, but Companies can cancel projects You’re either looking at a
behind their competitors. investment in long term that hinder hitting quarterly long-term investment or a
innovation pursuits can be hard to goals, even if they can be short-term profit, and the
When long-term investment is quantify. transformational over years.14 short term always wins... At
compared with short-term gains, some point in time, you need
investors frequently prioritize Matthew Wallace, DXM, CEO via
to give these companies some
the short term because they’re USC4AM Community Interview
breathing room to make these
02 Building Capabilities
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Introduction Imperative Opportunity Strategies Future-Proofing
Eyes
Wide Open
Given the impediments to As we explored the challenges This section explores the
technology driven innovation that impede the path of innovation theoretical frameworks
highlighted in the prior chapter, as well as the promising and tangible strategies that
we explore strategies for technological opportunities that manufacturers can adopt to build
manufacturers to realize change can propel organizations towards an innovation forward organization,
and innovation. a transformative future, we now leveraging technological
transition into examining proactive advancements and adopting new
strategic initiatives, aiming to business models.
unleash innovation and unlock
73
Setting the
Foundation
“
What this section covers 01 Knowing where the organization sits from
an innovation perspective, beginning with
Matthew Wallace, CEO, DXM via 02 Setting an innovation North Star and target
USC4AM Community Interview state for the production network
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Introduction Imperative Opportunity Strategies Future-Proofing
Understanding the
current state
Technology readiness The development of new business percentage point gap from the It’s crucial for leadership teams to begin the Brownfield sites pose unique challenges to support the
capability frameworks help models and adoption of new total return on digital investment innovation journey by introspectively examining the technology and data outputs from legacy generation
leaders objectively evaluate
technology is a continuous (RODI) opportunity. A similar 8.4 current state of the organization. To enable this, assets, and as a result, can be sidelined from new
their innovation starting
challenge for the manufacturing percentage point gap can be it’s incumbent on the manufacturer to initiate a technologies. Innovative manufacturers don’t solely
position before planning or
industry. Insights gathered from attributed to gaps in technology “technology readiness capability model activity” to focus on new technology at greenfield sites—they seek
implementation
North American manufacturing and architecture.22 understand the organization, business, technology, to innovate at all sites.
leaders for this playbook and internal processes. By understanding the internal
underscore the difficulty in Against these headwinds, how can manufacturing environment, manufacturers can then A digital manufacturing readiness framework helps
securing stakeholder buy-in for manufacturers gain support for identify the future vision, understand technological leaders understand the current state of play within
77
Introduction Imperative Opportunity Strategies Future-Proofing
• Where are there bottlenecks, inefficiencies, and areas Innovation is not targeted
where manual processes are affecting fundamental towards areas that need
Operations operations within manufacturing operations? improvements, and may focus
• What is the digital maturity of production processes and
Assess operational on what’s easy, rather than
capabilities?
practices worthwhile. Workers, processes,
• What digital worker enablement tools are in use?
• How automated and flexible are assets or processes? and capabilities are not
equipped to support innovation.
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Introduction Imperative Opportunity Strategies Future-Proofing
Identifying
Innovation Dimension Prompting Question Example
Expansion of core How can we encourage growth in Porsche used 3D printing to create an
activities our current markets and offerings? innovative full bucket seat. The bucket
seats can be personalized to the driver,
an Innovation
helping improve the driver experience.23
Net new growth How can we realize growth through CAT launched a telematics solution, as an
North Star
opportunities new markets and offerings? opportunity for new growth, to help large
and small operations to better understand
machinery, perform preventative
maintenance, correct operator behaviors,
and improve decision making.24
New operating models How can we transform internal CVC Technologies, a manufacturer of
functions for greater efficiency and packaging for pharmaceuticals, wanted to
enable new capabilities? improve safety, optimize production, and
create a digitized machine network. The
company used solutions from Schneider
Electric to digitize 100% of its machines
to increase production output and reduce
human error.25
Based on the north star, • Clear about what needs to be For example:
After completing a digital An innovation North Star allows
81
Introduction Imperative Opportunity Strategies Future-Proofing
Innovation
is using an effort impact matrix:
Luxuries Strategic
Luxuries example: automating
83
Introduction Imperative Opportunity Strategies Future-Proofing
Evaluate innovation Innovation has clear IT and OT collaboration is Experimentation is Realistic innovation Short-term gains, are
programs based on ownership, and the right a priority encouraged, and losses timeframes balanced with long-term
impact to the business groups must support it are cut often and quickly value pursuits
By identifying a north star and Innovation at an organization Both information technology and It’s important to realize that Innovation in manufacturing, Strike a balance between
85
Build
Capabilities for Innovation
87
Introduction Imperative Opportunity Strategies Future-Proofing
“ “ “
Eric Waters, Director of Planning and Logistics, Rich Garrity, Chief Industrial Business Officer,
Cummins via USC4AM Community Interview Stratasys via USC4AM Community Interview
89
Introduction Imperative Opportunity Strategies Future-Proofing
Provide workers with less tenure opportunities to Digital knowledge repositories can capture valuable,
receive remote assistance from experts, enabled institutional knowledge, to be shared across the
To mitigate risk of knowledge workforce approaching retirement,
through technology. Remote assist roles are an organization, before it’s lost through retirement.
loss due to retirement, use organizations must act now to opportunity to provide experienced workers with
technology to support employees prepare for, and mitigate challenges an opportunity for different career opportunities,
close to retirement to extend from, retiring workers. to share specialized knowledge, and provide less
careers, and capture institutional physically demanding roles.
knowledge
91
Introduction Imperative Opportunity Strategies Future-Proofing
Create Academic
Partnerships Desired outcomes from academic partnerships:
Organizations have the and core manufacturing skills, such To begin creating these
opportunity to create novel as stamping, injection molding, and partnerships, identify current, high
partnerships with academic machining together. yield talent pipelines, and reach out
01 For academic institutions
institutions, to shape to faculty at these institutions, to • On campus employer presence and higher
curriculums, and to access top When done right, partnerships with discuss what a mutually beneficial employment rates of graduates
talent, augmenting workforce academia are a win-win, and provide partnership may look like. • Industry support for on campus activities
development. mutual gains for the organization, • Integration of industry knowledge, insights, and
the university, and the students. experience into student curriculum
Partnerships between industry Together, manufacturers and
and academia address challenges academia can shift perspectives
manufacturers face attracting on the industry, position their
qualified talent. These partnership organization as a top employer on
can shape academic curriculums, campus, shape curriculum to focus
02 For the organization
to blend Industry 4.0 digital skills, on in-demand skills, and create
• Strengthened on campus employer brand and
such as analytics, architecture, unique educational experiences. access to top manufacturing talent with Industry
and application development, 4.0 skills
• New ideas and fresh perspectives
• Access to talent, faculty expertise, and test bed
“ “
environments to try new ideas
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Introduction Imperative Opportunity Strategies Future-Proofing
Manufacturing Lab
across the manufacturing Laboratory.
landscape, preparing the future 2. Bachelor of Science Degree
manufacturing workforce with in Smart Manufacturing
new knowledge, skills and Industrial Informatics (SMII),
technologies. This partnership featuring 12 new courses
enabled manufactures to and the development of
proactively partner with academia multiple facilities on campus
to inform curriculum to be showcasing Industrial IoT to
relevant to their operations. Smart Factory technology. The
new curriculum is anchored
Purdue partnered with around the integration of
organizations such as CAT, digital information technology
Microsoft, Accenture, and with physical operational
Rockwell, and built two major technology, leveraging IoT, AI/
opportunities for students: ML, Cloud/Edge Computing,
AR, Robotics and more.
Partnership outcome For the university, the results For manufacturing partners, the
of this partnership has helped partnership has created a new
position them as a leader in smart candidate pool of qualified and
manufacturing, as well as created trained applicants, ready to face
a strong on-campus presence of the challenges of the current
by other manufacturers.
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Introduction Imperative Opportunity Strategies Future-Proofing
Leverage Ecosystem
Partnerships Before embarking on a new ecosystem
partnership, the following must be considered:
“
Case Study: The World Economic The Global Lighthouse More information on the Global
Forum’s Global Lighthouse Network is accelerating a more Lighthouse Network here.
Network is Helping to Shape inclusive adoption of advanced
97
Implement
Technologies to Drive Business
Model Innovation
99
Introduction Imperative Opportunity Strategies Future-Proofing
Implementing
Innovation, Step by Step Illustrative example:
01 02 03 04
Identify Experiment Run Pilots for Successful Scale the
and Shape Experiments Solution
Identify hypotheses to 03 The team responsible for packaging is identified as
Leveraging the be tested, and work to For successful Take successful pilots, an area open to innovation, and a good early adopter
innovation north prove or disprove these initiatives, develop and scale these to
hypotheses. Test to
of VR training. The concept is piloted with this teams
star, and input from pilot programs to test other business units or
line managers.
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Introduction Imperative Opportunity Strategies Future-Proofing
Encourage
Experimentation Experimentation model:
01 02 03
Develop a Design the Run the Experiment &
Hypothesis Experiment Analyze Outcomes
Start with specific Define test objectives Evaluate the outcome of
questions around and KPIs, which will the experiment against the
that can be answered dictate success. KPIs defined.
through testing.
If confident with results,
move to 4a, otherwise,
move to 4b.
Run experiments, and transition Experimentation uses a scientific and incorporated in future pilots.
promising concepts to pilots, to approach to address critical
rapidly test hypotheses. business questions. If done The rise of experimentation within
correctly, experimentation can organizations has the potential
test hypotheses that underpin to transform organizational
opportunities for organizations, decision making, but needs to be
however if done incorrectly, can cost implemented correctly.
the organization time and money.
Companies that invest in disciplined
For experimentation to be experimentation can experience
worthwhile, focus on testing real advantages when adopting new
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Introduction Imperative Opportunity Strategies Future-Proofing
Disciplined Best Practice Description Steps Leaders Can Take to Achieve This
Best Practices
periodically, to ensure innovation
programs are building towards ✓ Tie innovation targets to business value
organizational value.
Create clear Inform experiments by budgets and ✓ Set indicative budgets and timelines,
success criteria timelines, but measure innovation but provide flexibility for teams to test
against clear success criteria. hypotheses
Experimentation can be Gain leadership Gain leadership buy-in though the ✓ Convene the right governance
difficult for manufacturers to buy-in experimentation process, to help committees, with representation from
get right. Focusing on value, accelerate buy-in required to scale cross-functional groups
creating clear success criteria, a solution.
gaining leadership buy-in, ✓ Have leaders share funding for
and prioritizing learnings innovation programs, to increase buy-in
can help organizations from the business
make experimentation more
successful.
Track and share Define success for experiments ✓ Redefine success for the experiment away
learnings based on learnings, regardless of from proving the hypothesis, and towards
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Introduction Imperative Opportunity Strategies Future-Proofing
Use structured methodologies Innovation value can be difficult overcoming a measurement gap Manufacturing Excellence Manufacturing throughput
to quantitatively evaluate to quantify, however successful is 14.7%, meaning 4.1 percentage Improving manufacturing Process capability (Cp and Cpk)
innovation programs. organizations track impact from points of RODI are at stake due to capabilities Defect rates
innovation against overall strategic the measurement gap, underscoring Scrap & material consumption
pillars. Tracking innovation success the need for strong measurement Plant & machine downtimes
allows leaders to monitor value from frameworks.22 Carbon intensity
innovation, and provide a basis for
funding decisions. While innovation value metrics
will differ across industries and Digital Adoption and Adoption rates of new technologies
A study of 1,350 industrial leaders organizations, here is a sample of Modernization % of workforce with digital literacy skills
Adopting new technology and # of programs digitalized
estimates that industry wide return 4 major innovation strategy pillars,
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Introduction Imperative Opportunity Strategies Future-Proofing
Organizational gaps to
“
scaling innovation
Being able to scale is a major
When scaling innovation, is a major challenge. Few A recent study of 1,350 senior
component of an opportunity,
organizations who close gaps organizations scale innovation industrial executives identified which helps us determine which
achieve higher return on digital well, with only 22% of industrial a number of headwinds IoT partners to select.14
investment. companies researched to scaling innovation, and
achieving a return on digital quantified the incremental Brent Ruth, Lean Digital
Manufacturers express that investments that exceeded return on digital investment Transformation Leader,
scaling innovation programs, expectations.22 (RODI) at stake.22 Caterpillar via USC4AM
and extracting value at scale, Community Interview
Industry-wide RODI achieved Industry-wide RODI opportunity by Industry-wide incremental RODI at Industry-wide incremental RODI
Organization Gaps22
despite challenges (a) overcoming challenges (b) stake (percentage points) c = (b-a) at stake (multiple) d = b/a
Source: Rethink, Reinvent, Realize: How to successfully scale digital innovation to drive growth
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Introduction Imperative Opportunity Strategies Future-Proofing
Inform solution
Gaps to scaling innovation can
be addressed through playbook
assets, as follows: Positioned to close gap
Digital Manufacturing
Readiness Framework
Barriers to
Innovation Analysis
Roadmap,
Prioritization, North Star
Tools Provided in the Playbook
Innovation
Evaluation Scorecard
Technology Analysis
111
Future-Proofing
Innovation
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Introduction Imperative Opportunity Strategies Future-Proofing
Solving the right problem is critical to seeing success through innovation, and keeping
The right innovation spend targeted. A disciplined innovation process, where programs are tied to
problem to solve business value, incorporate end users in development, and take a test and learn approach
helps organizations deliver high value innovation programs.
Setting the right guardrails help to manage programs and increase ROI on innovation.
The right Strong governance structures will give innovation teams leeway to experiment, but provide
governance logical stage gates for funding, and hierarchies for decision making. Effective governance
structures structures will also help to prioritize and deprioritize programs early, saving investments in
unsuccessful opportunities.
Effective innovation leadership allows programs to be given appropriate priority and can
The right provide legitimacy when collaborating across the organization. Having both the right
leadership seniority of leadership, as well as representation across all relevant functions, helps
programs to gain momentum and buy in.
The right Value tracking, and performance metrics keep innovation programs outcome oriented.
framework Mature key performance indicator frameworks, that are routinely measured, evaluated, and
to track and reported on help to prioritize high value innovation programs.
measure value
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Introduction Imperative Opportunity Strategies Future-Proofing
Plant Workforce
“
Managers
Communicating
Change in Plants
“
Before they will give you buy-in,
employees want to understand
the value any change program will
bring them.14
“
Having data-backed success story
with key impacts (for innovation) is
very helpful.14
Tom Clary, Strategic Alliances & Eric Waters, Director of Planning and
Partnerships Lead, Schneider Electric Logistics, Cummins via USC4AM
Community Interview
Change, specifically in the plant via USC4AM Community Interview
environment, can be difficult to
get buy-in for, and long tenured
employees can be skeptical of
new technologies and shifts in
how work is performed.
When Engage workforce in Communicate change Frame change as an Identify and use change
communicating
change in plants, shaping the change in a way employees are opportunity to enhance champions
consider the used to it work
following best
practices:
When shaping, building, testing and Understanding how information is When discussing change, it’s important to Identifying and onboarding early
deploying innovation programs within transmitted on-site is vital to reducing emphasize that innovation isn’t targeted adopters, or “change champions” within
manufacturing organizations, put friction in change communications. to replace people with technology, the plant can help accelerate change.
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Introduction Imperative Opportunity Strategies Future-Proofing
Creating a Culture
for Innovation
“
The status quo is the biggest
hindrance to innovation.14
121
Introduction Imperative Opportunity Strategies Future-Proofing
Key Takeaways Define an Innovation North Star Identify and codify a north star and innovation roadmap, to guide
technology investments that drive new business value.
As manufacturers envision their organization’s future over the next 5, 10, 15 years, it becomes clear that
technology will play a pivotal role in defining the competitive landscape and enabling new business growth.
This playbook is designed to provide manufacturing leaders a starting point to think about how to harness
technology to enable new business model development.
Address Brownfield Sites When pursuing modernization, explore bringing legacy infrastructure
From navigating the technology landscape to shaping workplace culture, major playbook takeaways include: inline with new greenfield sites.
Innovation Isn’t Always Huge The term Innovation is often synonymous with large breakthroughs. For Keep Greenfields Green When building greenfield facilities, be wary of legacy infrastructure which
example; implementing a digital app to replace a tired paper-based system is outdated, and use the latest technology and digital systems to remain
may not seem innovative, however it is an important step forward towards competitive into the future.
a digital transformation and workplace culture shift.
Investigate New Technology Manufacturers need to stay up to date on the evolving technology Close Gaps & Build on Success As manufacturers better understand their operational landscape, it is
landscape, understand use cases, and explore how these technologies critical to not only identify the areas of improvement but also capitalize
are positioned to impact their business, production, and the competitive and build upon what is going well.
landscape.
Conduct Introspective Analysis Before pursuing innovation programs, manufacturers first must assess Experiment Often Encourage frequent experimentation, taking a hypothesis to proof of
technological capabilities, challenges, and opportunities within their concept, with appropriate checks and balances to cut experiments early
organization through a technology readiness capability framework, to when not meeting defined criteria.
identify capability gaps and opportunities.
123
DR
Introduction Imperative Opportunity Strategies Future-Proofing AF
T
Keep the Business Value Front While planning for, and delivering innovation programs, track and evaluate Navigate Challenges with When faced with challenges towards implementing innovation, encourage
and Center based on value to the business and customers. Resilience resilience, experimentation, and adaptability.
Meet Needs of Future From innovative technology to improved workplace programs and Develop Cross-Functional Enable a workforce that not only understands business operations but
Workforce offerings, manufacturers need to understand the drivers of the next Dynamic Teams responsibilities across teams and builds expertise in both OT and IT
generation workforce and make their organization attractive as an functions bridging skills from physical and digital worlds.
employer.
Upskill and Empower Current Use technology to support the current workforce to gain both core
Workforce manufacturing skills, and next generation digital skills, and use technology
to help workers be more effective in their roles.
Build Robust Talent Pipelines Focus on developing talent pipelines, including partnerships with
universities to shape curriculum and develop the next generation of
manufacturing workers and leaders.
Build Culture of Innovation When approaching change, focus on creating a strong culture of
innovation to encourage adoption of new technologies.
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Introduction Imperative Opportunity Strategies Future-Proofing
Where to go
from here
The World Economic Forum has been developing immersive pieces
of thought leadership to help guide manufacturing leaders on their
innovation journey. Below are some of the pieces that provide
additional context to the playbook topics:
Key Contacts
Unlocking Business Model Innovation through Advanced
Manufacturing
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Introduction Imperative Opportunity Strategies Future-Proofing
Contributers Acknowledgments
US Center for Advanced Manufacturing Project Team Accenture Project DXM
• Camille Prost, Managing Director • Matthew Wallace, Chief Executive Officer
Alison Trumble • Samit Ghosh, Senior Managing Director,
Program Director, US Center for Advanced Manufacturing Playbook Steering Committee Member* PTC
• Craig Melrose, Executive Vice President,
Caterpillar Digital Transformation Solutions
• Brent Ruth, Lean Digital Transformation • Keith Gargiulo, Vice President
Leader
Purdue University
Accenture Project Team Cummins • Ragu Athinarayanan, Professor and Director
• Elizabeth Hoegeman, Executive Director, of Purdue Smart Manufacturing Innovation
May Kovalchuck HSE and Global Manufacturing Center, Purdue University,
Innovation Consulting Senior Manager, Accenture • Eric Waters, Director of Planning and Playbook Steering Committee Member*
Logistics
Scott Ellsworth Qualcomm
Managing Director, Accenture, Ford • Savi Soin, Senior Vice President
Playbook Steering Committee Member* • April Stevens, Global Director of
Manufacturing Operation Excellence Schneider Electric
Spencer Barnes • Jason Ryska, Global Director of • Tom Clary, Strategic Alliances &
Innovation Consultant, Accenture Manufacturing Technology Partnerships Lead
• Kevin Kerr, Senior Directory, Global
Manufacturing Quality Stratasys
• Scott King, Information Technology Program • Rich Garrity, Chief Industrial Business
World Economic Forum Project Team Leader Officer
Benjamin Schönfuß
129
Endnotes
1 Accenture, Breakthrough Innovation, 2023: https://www.accenture.com/content/dam/accenture/final/capabilities/ 16 Simon Jacobson, “Focus on Capabilities Instead of Technology When Defining Smart Manufacturing Use Cases”,
technology/technology-innovation/imagery/Accenture-Breakthrough-Innovation.pdf. Gartner, 13 October, 2022: https://www.gartner.com/document/4019966?ref=so/rAll&refval=3818450608.
2 Accenture, Industrial Speedsters, https://www.accenture.com/content/dam/accenture/final/industry/industrial/ 17 NAM News Room, “New Report Dives Into Retaining The Aging Manufacturing Workforce”, Workforce, 31 July 2019:
document/Accenture-Industrial-Speedsters-Updated.pdf. https://nam. org/new-report-dives-into-retaining-the-aging-manufacturing-workforce-5579/?stream=workforce.
3 Accenture, Technology Vision 2023 When Atoms meet Bits, 2023: https://www.accenture.com/content/dam/ 18 World Economic Forum, Future of Jobs Report 2023, May 2023: https://www3.weforum.org/docs/WEF_Future_of_
accenture/final/accenture-com/a-com-custom-component/iconic/document/Accenture-Technology-Vision-2023- Jobs_2023.pdf.
Full-Report.pdf.
19 Alexander Hoeppe, Sohard Aggarwal, Simon Jacobson, “Smart Manufacturing Challenges Every Industrial Manufactur-
4 World Economic Forum, The Future of Industrial Strategies: Five Grand Challenges for Resilient Manufacturing, 2023: ing CIO Must Resolve”, Gartner, 02 September, 2022: https://www.gartner.com/document/4018331#/trends.
https://www3.weforum.org/docs/WEF_The_Future_of_Industrial_Strategies_2023.pdf.
20 Workfront, State of Work 2020, 2020: https://business.adobe.com/resources/reports/state-work-2020/thank-you.
5 Newsroom, Accenture Collaborates with Mars to Develop “Factory of the Future” Using AI, Cloud, Edge, and Digital html?faas_ unique_submission_id=A5022373-6A98-618E-87BB-BACEC8EE52E9.
Twins, 04 October 2022: https://newsroom.accenture.com/news/accenture-collaborates-with-mars-to-develop-fac-
tory-of-the-future-using-ai-cloud-edge-and-digital-twins.htm. 21 Accenture, Technology Vision 2023 When Atoms Meets Bits, 2023: https://www.accenture.com/content/dam/accen-
ture/final/ accenture-com/a-com-custom-component/iconic/document/Accenture-Technology-Vision-2023-Full-Re-
6 Cummins, Cummins Transforms Global Safety with Anvl: https://resources.anvl.com/hubfs/Resources/ port.pdf.
Case%20Study-Cummins.pdf?_gl=1*1g4bce3*_gcl_au*MTExOTQzODkyNS4xNjk5NTQzMTg2*_ga*NzA5ODg-
2MDA0LjE2OTk1NDMxODY.*_ga_JRS850P7YQ*MTY5OTU0MzE4Ni4xLjAuMTY5OTU0MzE4Ni4wLjAuMA..&_ 22 Accenture, Rethink, Reinvent, Realize. How to successfully scale digital innovation to drive growth, 2023: https://www.
ga=2.190609963.1614905546.1699543187-709886004.1699543186. accenture.com/content/dam/accenture/final/a-com-migration/manual/r3/pdf/Accenture-IXO-HannoverMesse-re-
port.pdf.
7 IBM, “Featured Case Study: Active International”, 19 December, 2023: https://www.ibm.com/case-studies/Renault.
23 Newsroom, “Porsche presents innovative 3D-printing technology for bucket seats”, 17 March, 2020: https://newsroom.
8 Qualcomm, “Qualcomm Advances Development of Smarter and Safer Autonomous Robots for Logistics, Industry 4.0, porsche.com/en/2020/products/porsche-3d-printed-bodyform-full-bucket-seat-concept-study-19996.html?p_Doc_
and Urban Aerial Mobility with Next-Generation 5G and AI Robotics Solutions”, 09 May, 2022: https://www.qualcomm. Ref=CVC_Technologies_story&_ga=2.78774932.1865768200.1690932551-946321030.1690932551.
com/news/releases/2022/05/qualcomm-advances-development-smarter-and-safer-autonomous-robots-logistics.
24 Dani Watson, “Get the Most from Your Machines with Telematics”, CAT, 19 May, 2021: https://www.cat.com/en_US/
9 Christian Titze, “Case Study: E2E Supply Chain Control Tower to Orchestrate and Optimize Across the Value Chain” , articles/ci-articles/increase-productivity-with-machine-telematics.html.
Gartner, 27 October 2022: https://www.gartner.com/document/4020512?ref=solrAll&refval=389236270&.
25 EcoStruxure, Digitization, May 2021: https://download.schneider-electric.com/files?p_Doc_Ref=CVC_Technologies_
10 Accenture, “Marelli: Smarter manufacturing”, 19 December 2023: https://www.accenture.com/us-en/case-studies/ story.
industry-x-0/marelli.
26 The Manufacturing Institute, “The Aging of the Manufacturing Workforce”, July 2019: Accenture, Rethink, Reinvent,
12 Andy Pickard, “Manufacturing’s Digital Transformation in Numbers”, Aptean, 28 March 2022: https://www.aptean.com/ 27 Paola Cecchi-Dimeglio, Taha Masood, Andy Ouderkirk, “What Makes Innovation Partnerships Succeed”, Harvard
en-US/insights/blog/manufacturing-digital-transformation-numbers. Business Review, 14 July 2022: https://hbr.org/2022/07/what-makes-innovation-partnerships-succeed.
13 Jerry Foster, “A Quest For Quality: Why Manufacturers Are Investing In Digital Transformation”, Forbes, 17 April 2023:
https:// www.forbes.com/sites/forbestechcouncil/2023/04/17/a-quest-for-quality-why-manufacturers-are-invest-
ing-in-digital-transfor mation/?sh=4157a8a4f748.
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