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This playbook, developed in collaboration with the World Economic Forum and Accenture, provides manufacturing executives with strategies for business model innovation amidst evolving industry challenges. It highlights the importance of adopting new technologies to address issues such as decarbonization, supply chain resilience, and workforce development. The document emphasizes the need for organizations to prioritize innovation to maintain competitiveness and outlines key technologies that can facilitate this transformation.

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0% found this document useful (0 votes)
34 views66 pages

USC4AM Innovation+in+Advanced+Manufacturing+Playbook+ (Download+Report) +2024

This playbook, developed in collaboration with the World Economic Forum and Accenture, provides manufacturing executives with strategies for business model innovation amidst evolving industry challenges. It highlights the importance of adopting new technologies to address issues such as decarbonization, supply chain resilience, and workforce development. The document emphasizes the need for organizations to prioritize innovation to maintain competitiveness and outlines key technologies that can facilitate this transformation.

Uploaded by

Prasad T
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 66

In collaboration with

the World Economic


Forum and Accenture

Playbook January 2024

Enabling Business Model


Innovation in Manufacturing
01 02 03
Introduction Imperative for Business Innovation Opportunity
Model Innovation
01 Foreword
02 Executive Summary 01 The Imperative for Innovation 01 The Grand Manufacturing Challenges
02 Defining Business Model 02 Technological Opportunities to Address
Innovation Manufacturing Challenges
03 Barriers to Deploy Technologies

p. 04 - 07 p. 08 - 15 p. 16 - 69

What’s
Inside 04 05

Enabling Business Model Innovation in Advanced Manufacturing


Strategies to Unleash Innovation Future-Proofing Innovation
& Unlock New Business Models
01 Setting the Foundation 01 Enablers of Innovation
02 Building the Capabilities 02 Embracing a Culture of Continuous
03 Implementing Technologies to Drive Innovation
Business Model Innovation 03 Document Takeaways

p. 70 - 111 p. 112- 125

3
Introduction Imperative Opportunity Strategies Future-Proofing

This playbook was


built inside out

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

Enabling Business Model Innovation in Advanced Manufacturing


backdrop of evolving industry and industry round-table
dynamics, this playbook is a discussions. These discussions
strategic compass to guide explored a wide range of
discussions about transformative topics, including; the catalysts
technologies and innovative talent driving the need for business
strategies that are imperative model transformation, priority Cynthia Hutchinson
for shaping the future of technologies to enable business CEO,
manufacturing. model innovation, opportunities, US Center
challenges, and barriers that keep for Advanced
Over a span of twelve months, innovation just out of reach. Manufacturing
the US Center for Advanced
Manufacturing, in collaboration
with the World Economic Forum,

5
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.

• Manufacturers face a number of industry-wide challenges, including; decarbonizing manufacturing


The goal This playbook aims to equip to achieve business model operations, enhancing supply chain transparency and resiliency, speeding up scale up of new
manufacturing executives innovation. The playbook technologies, securing the future of the manufacturing workforce, and linking business value with
and their teams with the tools explores a wide variety social and environmental responsibility.4
and philosophies to build of topics relevant to
robust, repeatable innovation manufacturing leaders. • New and evolving technologies are positioned to address these challenges, including; digital twins,
programs, connected worked platforms, intelligent asset management solutions, blockchain and supply chain
collaboration tools, plant control towers, robotics and autonomous guided vehicles.

• 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

Enabling Business Model Innovation in Advanced Manufacturing


external partnerships. Partnerships with universities help organizations establish an on-campus
presence, connect with students, and can be used to shape curriculums to provide the next generation
of talent with in-demand skills.

• 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.

7
The Imperative
for Business
Model
Innovation

Enabling Business Model Innovation in Advanced Manufacturing


What this section covers 01 The Imperative for Innovation

02 Defining Business Model Innovation

9
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

Enabling Business Model Innovation in Advanced Manufacturing


measure of economic, social, and other factors show leaders and organizations to understand the common dynamic market. manufacturing environment of the future.
levels of technological disruption increased 200% obstacles facing innovation and how to bypass them.
from 2017 to 2022.1 In large part triggered by the Numerous technology providers compete for attention
COVID-19 pandemic, organizations around the world in the industry, making it difficult for manufacturers
are experiencing unprecedented technology adoption to navigate the noise and understand the right path
and consolidation cycles, known as the “S-curve,” that for their organizations. The global, technological,
show no sign of slowing. In a world where digitization, and societal environment is evolving rapidly, creating
automation, and artificial intelligence (AI) are challenges for manufacturers to stay competitive, Scott Ellswoth
reshaping the foundations of manufacturing, relying meet changing consumer expectations, maintain Managing Director,
on legacy technology equates to falling behind. Over profitability, and embrace sustainability. Accenture
93% of companies are expanding their technology
infrastructures, and half plan to invest in AI and cloud
services in the near term.1

11
Introduction Imperative Opportunity Strategies Future-Proofing

Organizations who innovate, and use new


technologies well, see real benefits
In a robust study of 1,200 executives at global industrial companies,
organizations deemed as “speedsters”, or those most successful
implementing innovation, are the most profitable and forecast higher
profitability in 5 years.2

Average EBIT Margin2

Previous 5 Years 12.0% Speedsters

FY20 14.2%

Next 5 Years 18.0%

Previous 5 Years 10.6% Accelerators

+16.3%

Enabling Business Model Innovation in Advanced Manufacturing


FY20 12.8%

Next 5 Years 15.8%

Previous 5 Years 10.3% Starters

FY20 12.2%

Next 5 Years 14.9


13
Introduction Imperative Opportunity Strategies Future-Proofing

Defining Business
Model Innovation
Gain a competitive advantage through
organizational expansion of diversified
and compelling value propositions.

This can mean new to


the world overall, the
organization, or the
Business Model Innovation is consumer.

the creation of a new way to


generate, deliver, and capture
The iterative process of ideation,
creation, and delivery to create new
value and realize benefits.
substantially more value.

Aim for exponential delivery of

Enabling Business Model Innovation in Advanced Manufacturing


value (e.g. 10x) to fuel new ways
of thinking and deliver value Generate and adopt new
that requires bold action. value for consumers, the

A consistent definition of “business model enterprise, or the supply


network at scale.

innovation” provides a shared understanding,


a shared understanding to inform the following
content.
15
The Innovation
Opportunity for
Manufacturers

What this section covers 01 The Grand Manufacturing Challenges

Enabling Business Model Innovation in Advanced Manufacturing


02 Technological Opportunities Addressing
Manufacturing Challenges

03 Barriers to Deploying Technologies

17
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.

03 Speeding up the scale-up and 04 Securing the future of the


deployment of new technologies manufacturing workforce
Innovation in manufacturing faces dual challenges: Manufacturers face pressing workforce challenges.
scaling new technologies and accelerating the While new technologies create jobs and
deployment of existing ones. Adoption barriers debunk the “jobless future” myths, they demand
hinder firms from using valuable technologies, advanced, multidisciplinary skills. Despite ample
especially those integrating digital technologies into

Enabling Business Model Innovation in Advanced Manufacturing


opportunities, talent attraction is being hindered
legacy systems. from outdated perceptions, retiring workers, and
fragmented education systems.
Adopting new technologies addresses
05 Linking business value with social and
environmental responsibility manufacturing issues, enables new
Organizations must balance corporate social
responsibility costs with profitable opportunities.
Beyond environmental responsibility,
business models, and allows for resiliency
manufacturers face pressures for open governance,
social development, and workers’ rights. in the face of constant change.

19
Introduction Imperative Opportunity Strategies Future-Proofing

Leaders are prioritizing investments in 6 technologies are positioned to help


tech to compete address manufacturing challenges

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

opportunities for the future.14

Dr. Samit Ghosh, Senior Managing


Director, Accenture
02 05

Enabling Business Model Innovation in Advanced Manufacturing


Connected worker platforms for Plant control towers

#1 96% workforce enablement

Globally, the C-suite’s top concern of executives agree that the


going into 2024 is adapting to
advancements in technology and
innovation.3
convergence of digital and physical
worlds over the next decade will
transform their industry.3
03 06
Intelligent asset management for Robotics and automated guided
improved asset health vehicles to enhance productivity
and safety on the floor

21
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

Grand Manufacturing Challenges Grand Manufacturing Challenges (continued)

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

Increased resiliency of supply Shortened time-to-market Improved worker


Increased efficiency and
Factory Digital Twin reduced material consumption
chains through real-time through simulations and performance through real
transparency enabled by IoT optimization time decision making

Enhanced worker training


Connected Workers Increased worker productivity
to rapidly and continuously
Enablement Platforms enabled by data
Manufacturing Technologies

upskill tomorrow’s workforce

Better asset monitoring and Improved asset reliability


Intelligent Asset emissions management through intelligent forecasting
Management Solutions through analytics and predictive maintenance

Emissions reductions Increased traceability of


Blockchain and Supply through increased supply
Transparency across the supply
raw inputs allows for more
Chain Collaboration Tools chain allows for better planning

Enabling Business Model Innovation in Advanced Manufacturing


chain transparency ethical sourcing

Reduction in energy, emissions Reduced time to implement Empowered worker


Plant Control Towers and waste due to end-to-end new applications across the collaboration and interaction
plant visibility plant with complex factory systems

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.

23
Introduction Imperative Opportunity Strategies Future-Proofing

Digital Twins for Simulation-


Based Decision Making
Value Proposition for Digital Twins

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.

Enabling Business Model Innovation in Advanced Manufacturing


Grand Manufacturing Challenges Solved

01
Decarbonizing manufacturing operations,
products, and supply chains Barriers to Implement Digital Twins

Enhancing supply chain transparency Siloed data systems

Speeding up scale-up and deployment of new


Outdated infrastructure
technologies

Securing the future of the manufacturing


Limited partnerships
workforce

25
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

Enabling Business Model Innovation in Advanced Manufacturing


opportunity digital twins create to improve efficiency and reduce changes in a plant to understand the
at your organization: downtime? impact a change would have?

27
Introduction Imperative Opportunity Strategies Future-Proofing

Connected Worker Platforms

Value Proposition for Worker Platforms

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.

Enabling Business Model Innovation in Advanced Manufacturing


02
Grand Manufacturing Challenges Solved Barriers to Implement Worker Platforms

Securing the future of the manufacturing


Resistance to change
workforce

Speeding up scale-up and deployment of new


Inadequate workforce upskilling
technologies

29
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

in Action wearable smart devices to warn


workers about entering dangerous
areas and then shuts down machines
when risks are possible.
uses RFID scanners on parts bins to
ensure operators obtain correct parts
for product assembly, providing visual
indicators for successful component
selection.

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

Enabling Business Model Innovation in Advanced Manufacturing


the opportunity connected with technology to help them learn solutions improve safety conditions at
worker platforms create at your new skills and enhance their training a manufacturing site?
organization: opportunities?

31
Introduction Imperative Opportunity Strategies Future-Proofing

Intelligent Asset Management


for Improved Asset Health
Value Proposition for Asset Management

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.

Enabling Business Model Innovation in Advanced Manufacturing


03
Grand Manufacturing Challenges Solved Barriers to Implement Asset Management

Decarbonizing manufacturing operations,


Difficulty demonstrating value at scale
products, and supply chains

Enhancing supply chain transparency Inadequate workforce upskilling

33
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-

in Action management applications to identify


open capacity across their assets
to determine availability for new
business.
precision turbine blade machining
uses connected cameras to
capture and alert production teams
to dimensional trends to adjust
processes before parts are built out of
specifications.

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

Enabling Business Model Innovation in Advanced Manufacturing


opportunity intelligent asset physical assets in my plant? asset issues?
management creates at your
organization:

35
Introduction Imperative Opportunity Strategies Future-Proofing

Blockchain and Supply Chain


Collaboration Tools
Value Proposition for Blockchain & Collaboration Tools

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.

Enabling Business Model Innovation in Advanced Manufacturing


04
Grand Manufacturing Challenges Solved

Decarbonizing manufacturing operations,


products, and supply chains Barriers to Implement Blockchain & Collaboration Tools

Enhancing supply chain transparency and


Resistance to change
resiliency

Linking business value with social and


Inadequate workforce upskilling
environmental responsibility

37
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

in Action blockchain to share data across the


supply chain, garnering extensive
trust and protection for quality and
regulatory requirements.
uses blockchain to track and procure
ethically sourced cobalt for electric
vehicle batteries.

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

Enabling Business Model Innovation in Advanced Manufacturing


the opportunity supply chain transparency across our supply chain? collaboration tools to optimize
collaboration tools create at your tracking and logistics processes?
organization:

39
Introduction Imperative Opportunity Strategies Future-Proofing

Plant Control Towers

Value Proposition for Plant Control Towers

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.

Enabling Business Model Innovation in Advanced Manufacturing


05
Grand Manufacturing Challenges Solved Barriers to Implement Plant Control Towers

Decarbonizing manufacturing operations,


Siloed data systems
products, and supply chains

Speeding up scale-up and deployment of new


Limited cross functional collaboration
technologies

Securing the future of the manufacturing


Outdated plant technology infrastructure
workforce

41
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

Enabling Business Model Innovation in Advanced Manufacturing


the opportunity control towers across the factory? speed to rapidly solve problems on the
create at your organization: plant floor?

43
Introduction Imperative Opportunity Strategies Future-Proofing

Robotics and Automated Guided


Vehicles to Enhance Productivity
and Safety on the Plant Floor Value Proposition for Robotics & Automation

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.

Enabling Business Model Innovation in Advanced Manufacturing


06
Grand Manufacturing Challenges Solved Barriers to Implement Robotics & Automation

Decarbonizing manufacturing operations, Outdated plant tech infrastructure and brownfield


products, and supply chains space constraints

Speeding up scale-up and deployment of new


Lack of strategic planning
technologies

Linking business value with social and


Resistance to change
environmental responsibility

45
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

in Action speed up delivery and improve the


quality of fuselage assembly.
uses autonomous material-handling
robots to transfer finished products
from warehouse shelves onto delivery
trucks, improving order-fulfillment
accuracy.

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

Enabling Business Model Innovation in Advanced Manufacturing


opportunity robotics create at to improve plant safety? to move supplies around a plant?
your organization:

47
Introduction Imperative Opportunity Strategies Future-Proofing

Driving business model The six technologies outlined above are


poised to impact the future of manufacturing,

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

opportunities for opportunities, such as:

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

Anticipating and meeting


customers’ new needs Developing new revenue models

Enabling Business Model Innovation in Advanced Manufacturing


Consistent quality ensures that evolving customer Data and experience from advanced operations can
standards are met. Shorter lead times, driven by im- be monetized, introducing insights-as-a-service
proved worker productivity, enable quicker produc- to other manufacturers. Reduced downtimes offer
tion and time to market. Technology-driven insights excess capacity services. Improved productivity and
facilitate trend spotting, keeping manufacturers quality can unlock premium markets or new custom-
ahead in predicting and meeting emerging customer ization options, facilitating innovative pricing models
demands.11 and new business opportunities.11

49
Introduction Imperative Opportunity Strategies Future-Proofing

Innovators capture value


through technologies,
via cost reductions and
increased speed to market
Digital twin in distribution As an illustration, when digital As an illustration, when digital
twin technology is applied twin technology is applied
correctly by manufacturers, correctly by manufacturers,
it is shown to improve cost of it is shown to improve cost of
production as well as speed to production as well as speed to
market of new products. market of new products.

8.1%
6.9%

5.9%

Enabling Business Model Innovation in Advanced Manufacturing


5.0%
Cost Reductions

Time Savings

4.6x

N/A
7.3x 11.1x

1.8%
0.7% 0.5%
0.0%

Digital Twins Digital Twins Digital Twins Digital Twins


Last 5 Years Next 5 Years Last 5 Years Next 5 Years

Source: Industrial Speedsters Study2


Note: Speedsters are organizations who realized the highest Speedsters Starters
level of time and cost savings over 5 years
51
Introduction Imperative Opportunity Strategies Future-Proofing

8 barriers impeding The pursuit of technological innovation is


both a driving force and a daunting challenge,
particularly in manufacturing. The complex
existing manufacturing frameworks. Whether
grappling with the complexities of digital twin
implementation, navigating the intricacies of

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.

01 Workforce 02 Outdated 03 Difficulty Proving 04 Limited


Resistance to Change Infrastructure Value to Scale Partnerships
Reluctance to fully embrace digital Brownfield sites with outdated systems Implementing new technologies comes Platforms and external partnerships
transformation can impede the adoption of hinder the integration of advanced with many unknowns. While success may be are needed to build expertise in various
business models that take full advantage of technologies and innovative processes, achieved in a pilot, additional challenges can technologies and capabilities. Doing
emerging technologies. impeding the adoption of modern surface when scaling innovation programs. everything in-house can cause challenges
manufacturing practices. and delays for organizations.

Enabling Business Model Innovation in Advanced Manufacturing


05 Inadequate 06 Limited Cross- 07 Siloed Data 08 Lack of
Workforce Upskilling Functional Collaboration Systems Strategic Planning
The rapid evolution of technology requires a Siloed organizational structures hinder Inconsistent data formats and siloed Manufacturing organizations often
skilled workforce, and there is a shortage of collaboration across different functional information systems can impede the efficient prioritize short-term goals and immediate
people with the necessary expertise. With groups and plants, which is important for flow of information across the manufacturing returns over long-term strategic
large groups in the workforce approaching effective communication and breakthrough value chain. This makes accessing and investments.
retirement, institutional knowledge is at risk, innovation. analyzing data difficult, which limits the
and it is becoming more difficult to attract effectiveness of data-driven decision making
new talent. and hinders innovation.

53
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

Enabling Business Model Innovation in Advanced Manufacturing


next generation of cost and
throughput improvement in
manufacturing.14

Keith Gargiulo, Vice President, PTC


via USC4AM Community Interview

Digital transformation is necessary,


and manufacturers that lack agility can
experience problems.
55
Introduction Imperative Opportunity Strategies Future-Proofing

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

Enabling Business Model Innovation in Advanced Manufacturing


Brownfield sites are often and embrace the systems of Interview
deprioritized with investments tomorrow.

Just because legacy infrastructure is


sufficient today, doesn’t mean it will be
tomorrow.
57
Introduction Imperative Opportunity Strategies Future-Proofing

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

Enabling Business Model Innovation in Advanced Manufacturing


achieved on a full implementation. throughout the organization. Director of Global Manufacturing,
Cummins via USC4AM Community
Interview

Manufacturers experience mixed results


when scaling from pilots, leading many to
make concessions at scale.
59
Introduction Imperative Opportunity Strategies Future-Proofing

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

Enabling Business Model Innovation in Advanced Manufacturing


become difficult. Partnerships industries.
enable manufacturers to shift Keith Gargiulo, Vice President, PTC Scott King, Information Technology
via USC4AM Community Interview Program Leader, Ford via USC4AM
Community Interview

Manufacturers that try to keep up with


technology by themselves lose core focus
and miss opportunities to experiment and
influence the future.
61
Introduction Imperative Opportunity Strategies Future-Proofing

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,

Enabling Business Model Innovation in Advanced Manufacturing


has created a job gap across prioritizing investments in
the industry. A knowledgeable training for current employees to
manufacturing workforce is a obtain the necessary skills and
core component of efficient knowledge can strengthen their
operations, with refined skillsets, job performance.
on-the-job experience, and
deep manufacturing knowledge
Take steps now to fill workforce gaps
caused by groups approaching retirement
and challenges in hiring.
63
Introduction Imperative Opportunity Strategies Future-Proofing

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

Enabling Business Model Innovation in Advanced Manufacturing


April Stevens, Global Director
of Manufacturing Operation
Excellence, Ford via USC4AM
Community Interview

Innovation requires cultural change


throughout manufacturing organizations to
increase and incentivize collaboration.
65
Introduction Imperative Opportunity Strategies Future-Proofing

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

Sudarsan Rachuri, Federal Program

Enabling Business Model Innovation in Advanced Manufacturing


Manager, Advanced Manufacturing,
US Department of Energy via
USC4AM Community Interview

Manufacturing leaders must invest in


technology to free the flow of information
and unleash data-driven insights.
67
Introduction Imperative Opportunity Strategies Future-Proofing

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

Enabling Business Model Innovation in Advanced Manufacturing


investments.14

Anthony Graves, Global Segment


Lead, HP via USC4AM Community
Interview

Manufacturers must embrace the long view


and prioritize innovation, while balancing
short-term, quick wins.
69
Strategies to
Unleash Innovation
& Unlock New
Business Models
Manufacturing leaders 01 Setting the Foundation
need to answer key
business questions to What is the future of manufacturing, and how do I
get there? Can I understand the capability needs and
define transformation
gaps across my manufacturing network?
goals, starting point and
innovation strategy

02 Building Capabilities

Enabling Business Model Innovation in Advanced Manufacturing


How can I enable innovation with the right skills and
capabilities, both internally and externally?

03 Implementing Technologies to Drive


Business Model Innovation

How can I run and evaluate experiments? How can I


scale innovation within the organization? How can I
communicate change?

71
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

Enabling Business Model Innovation in Advanced Manufacturing


new business models. We navigate It is an exploration of possibilities,
beyond the hurdles discussed a guide for clear-eyed leaders
earlier, seeking inventive pathways ready to embrace the dynamic
that lead to a paradigm shift in landscape of manufacturing with
manufacturing. renewed vigor and ingenuity.

73
Setting the
Foundation


What this section covers 01 Knowing where the organization sits from
an innovation perspective, beginning with

Enabling Business Model Innovation in Advanced Manufacturing


a manufacturing technology readiness
Being more customer-centric, and capability framework
sustainability, are the clear “why”
for innovation.14

Matthew Wallace, CEO, DXM via 02 Setting an innovation North Star and target
USC4AM Community Interview state for the production network

03 Creating a roadmap for innovation, leveraging


modern approaches in manufacturing

75
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

Enabling Business Model Innovation in Advanced Manufacturing


fundamental innovation endeavors innovation initiatives? capabilities and gaps, and set the business priorities their organizations before embarking on innovation
and strong organizational inertia to align with innovation objectives. This internal programs. This guides leaders to understand where
to chase quick wins over long- Meaningful technology assessment can identify both where innovation is innovation is needed and where innovation will face
term opportunities. Innovation is a implementations in a needed and strong internal capabilities that will help major hurdles.
challenge to justify in terms of ROI; manufacturing environment deliver innovation.
however, it also holds the keys to require years of deliberate effort
unlock and enable growth. to realize the full potential across
complex manufacturing networks.
In a study of 1,350 global industrial Early implementation efforts can
leaders, it is estimated that fail if manufacturers fail to address
disconnects between top and foundational challenges with a
middle management in scaling clear view of existing enterprise
innovation contribute to a 8.4 capabilities.

77
Introduction Imperative Opportunity Strategies Future-Proofing

How to organize a digital Elements of a successful technology readiness capability framework:


manufacturing readiness framework
Focus Area Sample Questions to Ask Risks of Not Assessing

• What are our current team and workforce structures?


• How do we approach change management, and where do Innovation is perceived as forced,
Organization we see success / challenges? and organizations face challenges
Review your • How do we manage future manufacturing skills within the in adoption and scaling, such as
organizational readiness organization? lack of required skills, limited
for innovation • Do we have agility in organization and design processes? change capabilities, or difficulty to
• How able are we to scale and sustain innovation within the
sustain innovation.
organization?

• What are our Innovation success metrics and KPIs, and do


Innovation lacks direction, clear
Governance these accurately reflect success?
leadership, and roles to drive
• How is innovation funded, and what are the funding stage-
Examine existing gates? success. Funding is not tied to
governance frameworks • How do we deliver and manage innovation, from idea to outcomes, and less promising
around innovation scale? programs are not cut early,
initiatives • Do we have clarity of roles and decision-making costing time and money.
responsibilities?

• 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.

• How is data collected, stored, and used across OT and IT


Data is not structured in a
systems?
Data way that supports certain

Enabling Business Model Innovation in Advanced Manufacturing


• Are data security measures and compliance modern and
innovation. Data insights
Where to start To conduct a successful Without a clear understanding Assess data robust?
• How are analytics leveraged throughout the organization? aren’t leveraged, and OT and
transformation, manufacturers of these critical aspects, management practices
• What capacity exists to simulate and predict outcomes? IT systems don’t communicate
require an honest assessment implementations are at greater with each other.
about where they are starting from, risk of failure due to incorrect
and what foundational capabilities assumptions of the manufacturers
are missing. baseline infrastructure. As an • How efficient, easy to integrate with, and scalable is Technology architecture
example, clearly defined data Architecture current factory technology infrastructure? doesn’t support new tools. The
governance models are necessary • What is the organizations technological readiness, and organization isn’t ready to adopt new
Conduct comprehensive adoption of Industry 4.0 technologies + digital tools?
technologies, and the ones in place
to facilitate meaningful analytics, technology audits • What technologies are outdated and hinder productivity
that provide downstream benefit to and innovation?
are outdated. Areas where innovation
the organization. can upgrade existing technology
stack are not understood.

79
Introduction Imperative Opportunity Strategies Future-Proofing

Elements of a successful innovation North Star:

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

Enabling Business Model Innovation in Advanced Manufacturing


structured opportunity solved, leaving no room for
manufacturing readiness organizations to simply articulate statements can be created, to uncertainty Our Toledo plant has had more
framework, a defined innovation innovation ambitions. The articulate the case for innovation • Open for multiple solutions, downtime than anticipated this year
vision guides future programs. following dimensions are a starting in specific areas. These rather than focused on one
point to develop a north star: statements must be: solution Due to material shortages
• Backed by data, to support the and incomplete preventative
challenge faced maintenance, our Toledo plant
• Root-problem focused, and has decreased operational and
articulate the outcome of equipment efficiency, including a
solving the issue at hand. 12% increase in total downtime,
resulting in $36 million in lost
production. If we can use new
technologies to reduce downtime,
we can expect to restore $3 million
for every 1% improvement in uptime.

81
Introduction Imperative Opportunity Strategies Future-Proofing

Creating an Step 01:


Initially prioritize innovation
opportunities. One way to do this

Innovation
is using an effort impact matrix:

Luxuries Strategic
Luxuries example: automating

Effort (Complexity, Cost)


Roadmap
infrequent, complex processes

Strategic example: collaborative


robotics applications

Targeted example: small scope


vision systems Targeted High Value

High value example: connected


worker enablement program

Impact (Value, Importance)

Where to go A prioritized roadmap initiatives helps to drive Step 02:


Once opportunities are
of innovation programs the innovation strategy. prioritized, create an Sample Corporate Strategy Pillars 2024 2025 2026
provides a path to achieve Without prioritization and innovation roadmap in
innovation. road mapping activities, service of the overall Automate
Goal: address challenges

Enabling Business Model Innovation in Advanced Manufacturing


faced from manual input in
organizations can organizational strategy, Processes processes
a sample roadmap
Once there is a shared view misallocate funds, focus on could look like: Modernize Data Goal: provide access to data
of the current state from non-priority opportunities, Systems
across the organization
across IT and OT systems
the technology readiness and misidentify Goal: empower the
Enable the
capability framework, and dependencies rolling out Workforce
manufacturing workforce
with digital technologies
an agreed upon innovation innovation.
Goal: support other
north star, a prioritized Other
manufacturing innovation
roadmap of innovation opportunities

83
Introduction Imperative Opportunity Strategies Future-Proofing

Best practices for forging a


path to innovation
The path to innovation isn’t a straight line, but similar themes exist at
organizations that succeed.

After a digital manufacturing readiness activity is complete, high-level


opportunities are identified, and an innovation roadmap is developed, it’s
important that the momentum for innovation continues through dedicated
teams. Top innovation programs are tailored to the specific needs of an
organization, dynamics of an industry, and existing internal mandates.
Manufacturing organizations that successfully innovate generally exhibit a
few themes. Consider the following as you reflect on how your organization
is managing innovation:

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

Enabling Business Model Innovation in Advanced Manufacturing


overarching opportunities, can fail for a number of reasons, operational technology teams some innovation programs especially in the plant delivering value quickly, and
manufacturers can direct and organizations that innovate must work together, with shared won’t succeed, but they need to environment, can take significant pursuing long term high value
innovation. Prioritize innovation successfully generally have clear data sources to allow for real-time, be tested to find out. Embrace time and effort, and setting programs, show success while
programs based on metrics that ownership of innovation, which the data-driven decision making. rapid testing of hypotheses realistic timeframes allow focusing on big picture value.
are relevant to the business—for required stakeholders support to while framing failed programs as organizations to plan for innovation
example, ROI (where possible), ensure collaboration across the learning opportunities to allow roll-out.
workforce outcomes, quality, or organization. for a test-and-learn approach to
efficiency. innovation.

85
Build
Capabilities for Innovation

Enabling Business Model Innovation in Advanced Manufacturing


44% What this section covers 01 Upskilling, attracting, managing
innovation talent
of worker’s skills will be
disrupted in the next five years,
employers estimate.18 02 Creating ecosystem partnerships for
access to talent and capabilities

87
Introduction Imperative Opportunity Strategies Future-Proofing

Develop the New


Actions to develop a manufacturing
workforce for the future:

Manufacturing Identify Opportunities for Employee


Upskilling
Accelerate Skills Development

To expedite employee reskilling and upskilling,

Workforce Gather input from employees and management


across all functions to build a comprehensive view
on the upskilling needs of each area. Cross training
of office employees in plant processes can help
identify internal champions in technologies
and foundational skills to conduct peer to peer
coaching. These programs encourage mentorship,
team cohesion, and help to transfer institutional
non-production staff to better grasp the plant knowledge.
environment.

To deliver innovation their current workforce. If left


Create Pathways For Employee
successfully, and adapt to unaddressed, organizations will fall
Develop Digital Skillsets Progression
Industry 4.0 changes, develop the behind in Industry 4.0 skills, and
skills of the current workforce. limit competitiveness in the market. Prioritize equipping employees to manage both As the manufacturing industry continues to evolve
A study of 1,350 industrial leaders physical processes, and digital applications. and leverage new technology, the fundamental
There is a growing disconnect estimates that the industry wide Becoming fluent in both physical and digital skillsets for employees expand. Identify required
and skills gap emerging across return on digital investment (RODI) operations will empower a more dynamic, adaptable, skillsets for each position with a guide for career
manufacturing, between core achieved despite a gap in innovation and capable workforce. In the future, leaders and progression. Encourage employees to share their
manufacturing skills and new skills is 9.7%, whereas the RODI the workforce will be increasingly required to career aspirations and goals and have ability to
digital skills. In addition to hiring opportunity by overcoming skills blend functional manufacturing skills (ex: injection pursue growth opportunities.
for new technical skills, focused gaps is 16.2%. In other words, 6.5 molding), with new technical skills (ex: analytics).
upskilling programs and initiatives percentage points of RODI are at
help broaden the skillsets of stake due to the skills gap.22

“ “ “

Enabling Business Model Innovation in Advanced Manufacturing


Jobs remain the same but roles are Factories are not usually in beautiful locations and Work to create a more macro type of certification
changing. Digital skills are required in some of the roles that had been traditionally viewed program in U.S. Paint manufacturing, in a new light,
the roles more and more.14 as site roles are no longer required to by physically with the impressive technologies factories have to
present to perform their jobs. Opening HUB offices offer and expose the next generation of workers to
Dr. Ragu Athinarayanan, Purdue in cities where it is easier to find and attract talent additive manufacturing. As an industry, we should
University via USC4AM Community has allowed a regional organization to support drive more campaigns and gamify experiences.14
Interview multiple locations in a hybrid-consulting model.14

Eric Waters, Director of Planning and Logistics, Rich Garrity, Chief Industrial Business Officer,
Cummins via USC4AM Community Interview Stratasys via USC4AM Community Interview

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Introduction Imperative Opportunity Strategies Future-Proofing

Technology is poised to help mitigate adverse


Use technology to support outcomes from retiring workers, including:

employees close to retirement


Remote Assist Digital Knowledge Repositories

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

Long tenured workers provide


significant value to manufactures,
who benefit from their knowledge, Generative AI for Search Extended Reality Training
experience, maturity, and low
turnover rate. With a large Generative AI applications can help organizations Integrative training technologies allow organizations
search through large amounts of data for answers. to provide immersive training experiences, and the
portion of the manufacturing
Generative AI can be used to support less- ability to explore unique training scenarios, allowing
experienced employees, and allow for easy access to organizations to upskill workers not approaching
knowledge stored across the organization, playing a retirement, to mitigate knowledge loss from retiring
portion of the role of an experienced mentor. employees.

“ 78% Ergonomic Job Design

Enabling Business Model Innovation in Advanced Manufacturing


of organizations surveyed were Enterprises can implement technologies such as
Providing training opportunities to the
concerned about their aging cobots or other job aides to reduce the demand
existing workforce is very important.
on workers nearing retirement. By investing in the
Using XR-based headsets for virtual workforce.26
current workforce, careers can be extended.
training creates more immersive and
engaging training experiences.14

Savi Soin, Senior VP, Qualcomm via


USC4AM Community Interview

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

Enabling Business Model Innovation in Advanced Manufacturing


Partner with universities to develop Create internship opportunities
tailored programs and build specific where young minds can experience 03 For the candidates
curriculums by industry.14 what it’s like to work at a plant
and be exposed to the emerging • Enhanced opportunities to interact with leading
Matthew Wallace, CEO, DXM via automation technology they would manufacturers
USC4AM Community Interview have the opportunity to work with • Hands-on practical application and exposure of
as they embark on a career in the new technology reshaping manufacturing
manufacturing industry.14 • Co-op placements, internships, and post
graduation job opportunities
Tom Clary, Strategic Alliances &
Partnerships Lead at Schneider
Electric via USC4AM Community
Interview

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Introduction Imperative Opportunity Strategies Future-Proofing

Case Study: Purdue Overview of the partnership In 2019 Purdue University


began to collaborate with U.S.
1. Purdue Smart Manufacturing
Facilities, including a Smart

University Smart manufacturing leaders and


industry experts to address the
growing skills gap emerging
Factory, Smart Foundry,
Industrial IoT Laboratory, and
Intelligent Continuous Process

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

Enabling Business Model Innovation in Advanced Manufacturing


potential employers. manufacturing environment,
with Industry 4.0 technology
For students, the joint experience.
collaboration between Purdue
and their manufacturing Learn more about the Purdue
partners has rejuvenated Smart Manufacturing Lab here.
interest and excitement
Purdue, and industry partners, created a best- around manufacturing, while
giving students hands on

in-class partnership, which can be replicated experience with next generation


technologies.

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:

Build ecosystem partnerships overcoming a partnership gap is


to augment talent acquisition 15.7%, meaning 6.0 percentage • Gather input from stakeholders throughout the organization to understand needs for a
and development activities, for points of RODI are at stake due to partnership, and impacts to the plant environment
access to in demand skills and the partnership gap.22
capabilities. • Define clear objectives, outcomes, roles and responsibilities for ecosystem partners
Partnerships enable manufacturers and understand how they will interplay into the new organizational dynamics
Ecosystem partnerships, when to access specialized skillsets
built correctly, can become without having to hire full time • Communicate changes to all relevant parties, to reduce disconnect about the goals of
innovation accelerators for employees, expand infrastructure the partnership
manufacturers, and provide capabilities, or facilitate access
tangible benefits. A study of 1,350 to new markets, opportunities, • Understand how the new partner will collaborate with existing partnerships, teams, and
industrial leaders estimates that and ideas. Partnerships also allow processes
industry wide return on digital manufacturers to shift their focus
investment (RODI) achieved back to their core business and
despite a partnership gap is 9.7%, transfer ownership, maintenance,
whereas the RODI opportunity by and risk from specific capabilities to
their ecosystem partners.


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

Enabling Business Model Innovation in Advanced Manufacturing


Be open with partners on how you the Next Phase of the Fourth technologies in manufacturing
operate to avoid surprises.14 Industrial Revolution with a platform that develops,
replicates, and scales innovations
Eric Waters, Director of Planning in manufacturing. The network
and Logistics, Cummins via USC4AM includes 132 sites from across 30+
Community Interview countries across many industries,
as of December 2023.

97
Implement
Technologies to Drive Business
Model Innovation

Enabling Business Model Innovation in Advanced Manufacturing


What this section covers 01 How to experiment for innovation

02 How to scale innovation programs

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Introduction Imperative Opportunity Strategies Future-Proofing

Implementing
Innovation, Step by Step Illustrative example:

01 A semiconductor manufacturer identifies several


opportunities, including the use of VR training to
reduce defects. A business case is created and a
team is funded to investigate.

02 Limited tests are run with a minimum viable product


to determine if VR is feasible and worthwhile to be
used in this context.

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.

Enabling Business Model Innovation in Advanced Manufacturing


business units, identify prioritize opportunities at scale with a trial areas. Engage relevant
opportunities across which show promise group. This will study stakeholders when
the organization for and be focused around the effectiveness scaling innovation, and
innovation. Work capturing learnings. of the solution, and build around the input
with cross functional Update and repeat uncover considerations of end users of the
stakeholders to build experiments, until the for scaling across a technologies.
on the opportunities, opportunity is ready to larger segment of the
04 Once success has been observed in the experiments
move on as a pilot or
and pilots, funding is secured, a business case
determine funding, and organization.
create teams. be deprioritized and revised, and the product is developed, scaled, and
learnings are shared launched.
across relevant teams.

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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

Enabling Business Model Innovation in Advanced Manufacturing


hypotheses, with learnings as an technologies.
outcome. The goal of running pilots
in an experimentation model is to
validate if a proof-of-concept is likely
4a
to succeed at scale, but the overall
Iterate from Proof of
experiment is also considered a Concept to Pilot
success if learnings are recorded 4b
Refine Hypothesis and/or Continue to rollout
Test Parameters functionality as you test with
larger groups of users.
Restart the process
to continue to test Ensure to keep a hypothesis
hypothesis. driven mentality.

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Introduction Imperative Opportunity Strategies Future-Proofing

Disciplined Best Practice Description Steps Leaders Can Take to Achieve This

Experimentation Focus on value Keeping a close eye on value from


innovation is critical. Value must
be defined early on, and revisited
✓ Coach teams to think about value when
identifying opportunities, running
experiments, and scaling programs

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

✓ Use measurable success criteria to


evaluate experiments

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

Enabling Business Model Innovation in Advanced Manufacturing


if a hypothesis was correct. Share gathering learnings
learnings from experiments which
don’t prove a hypothesis, to avoid ✓ Involve cross functional teams
additional spend on this opportunity in experiment design, execution,
across other teams. and analysis to encourage diverse
perspectives

✓ Create ways to track and store learnings


for future teams to build upon or fine tune
as technology and capabilities expand

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Introduction Imperative Opportunity Strategies Future-Proofing

Innovation Sample Evaluation Scorecard


Measurement Illustrative Innovation Strategy Pillars Evaluation Metrics

Financial Outcomes Innovation ROI


Improving financial impact from Expected revenue
manufacturing operations Expanded product lines/capabilities
Expected costs
Diversification of revenue sources

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,

Enabling Business Model Innovation in Advanced Manufacturing


embracing digital skills Innovation program participation
on digital investment (RODI) achieved with corresponding innovation value
Process automated
despite a measurement gap is 10.6%, metrics:
whereas the RODI opportunity by

Workforce of the Future % of workforce enabled by connected


Supporting workers through change, worker applications
and enabling the workforce % of workforce with cross functional skills
Employee job satisfaction
# of hours lost due to accidents
Employee turnover

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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

Alignment: Lack of alignment between top and middle management on the


definition of digital value, and on the right ways to leverage talent, assets 9.4% 17.8% 8.4% 1.9x
and ecosystems to create the same

Infrastructure: Inadequacies in technology architecture which hinder


collaborative innovation or make it hard to manage complex integrations of 8.8% 17.2% 8.4% 2.0x
services with products

Enabling Business Model Innovation in Advanced Manufacturing


Skills: Lack of the skills required to identify, articulate, and innovate value
through digital technologies and platforms at scale
9.7% 16.2% 6.5% 1.7x

Partnership: Lack of a shared view on how to build and scale data-driven,


digital value among partners
9.7% 15.7% 6.0% 1.6x

Measurement: The absence of processes and metrics to systematically


track returns on digital investments and inform innovation decisions 10.6% 14.7% 4.1% 1.4x

Source: Rethink, Reinvent, Realize: How to successfully scale digital innovation to drive growth

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Introduction Imperative Opportunity Strategies Future-Proofing

Gaps to scaling innovation Legend

Inform solution
Gaps to scaling innovation can
be addressed through playbook
assets, as follows: Positioned to close gap

Gaps to Scaling Innovation22 Gaps to Scaling Innovation (continued)22

Alignment Gap Infrastructure Skills Gap Partnerships Gap Measurement Gap

Digital Manufacturing
Readiness Framework

Barriers to
Innovation Analysis

Roadmap,
Prioritization, North Star
Tools Provided in the Playbook

Innovation
Evaluation Scorecard

Innovation & Experimentation

Enabling Business Model Innovation in Advanced Manufacturing


Frameworks

Technology Analysis

Ecosystem & Academic


Partnerships

Change & Upskilling


Frameworks

111
Future-Proofing
Innovation

What this section covers 01 Enablers of Innovation

Enabling Business Model Innovation in Advanced Manufacturing


02 Communicating Change and Enabling a
Culture of Continuous Innovation

03 Takeaways and Next Steps

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Introduction Imperative Opportunity Strategies Future-Proofing

Enablers of Innovation inherently comes with change, and managing


change is an important factor to getting innovation right
Innovation To encourage innovation at an organization, there are a number of items for
manufacturers to ‘get right’.

How to get this right?

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.

Enabling Business Model Innovation in Advanced Manufacturing


Leadership may enable innovation; however, the team will drive innovation. It is
recommended that manufacturers focus on having people with the right innovation
The right people mentality, and skills from the domains impacted by innovation, to enable success. A mix of
and skills
traditional manufacturing knowledge, paired with next generation skills, such as analytics,
help keep programs grounded and aspirational.

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

Managing change across levels


Include all levels of the organization in shaping innovation, and
change management activities, helps increase solution relevance
and adoption rates.

Cross-Functional Project Functional Leaders


Teams
Engage leadership in programs
Cross functional innovation teams are to work hand-in-hand with
often the teams initiating or driving innovation teams, to guide solution
change programs. Team members development. It is necessary to have
who are well versed in innovation this buy in, so functional leaders
methodologies and human centered have ownership over the solution and
design, will design solutions that are have conviction in the larger strategy
adopted easier by the workforce. innovation drives. A model where
Include change management skillsets unit leads fully or partially fund
in delivery, to actively plan for rollout innovation programs helps to ensure
and adoption. leaders are invested in the program,
and will enable innovation to achieve
wider business goals.

Plant Workforce


Managers

Enabling Business Model Innovation in Advanced Manufacturing


Engage champions from the
Plant managers help to facilitate
plant workforce when designing
change across the workforce.
innovation programs, to design
Ensure managers are well versed Technology, its selection, and its
solutions in a human-centered way.
in the solution, and have a good deployment are usually not the biggest
Identify change champions to help
understanding of the purpose of the
drive the change across their peers. challenges. Understanding how you
change, to provide change support
within their teams. It is helpful to will change procedures at enterprise
frame the change to managers in scale so that people enjoy adopting the
terms of their teams success. technology-enabled ways of working is
usually your biggest challenge. This is
almost entirely a problem of will more
than skill.14

Keith Gargiulo, Vice President, PTC via USC4AM


Community Interview
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Introduction Imperative Opportunity Strategies Future-Proofing

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.

Enabling Business Model Innovation in Advanced Manufacturing


emphasis on the end user, to understand Employees used to receiving information rather to support and enhance the Onboard champions early, to create
how work is currently done, perceived in person during daily huddles, face work being performed. Framing buy-in to the value proposition, and
barriers to innovation, and where value challenges if communications come innovation in terms of value to workers create excitement about the rollout.
may be realized. When communicating through emails. Matching how employees can help to increase adoption, reduce It’s important these change champions
the change, it’s important to explain that want to receive information will help uncertainty, and generate positive hold influence, and are regarded as
this change was done with input, not dictate success of change programs. momentum. This is especially important knowledgeable by peers, as well as
despite it. in plant environments, when exploring their job expectations reflect this
automation. responsibility, allowing for adequate time
to support the 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

Rich Garrity, Chief Industrial Business


Officer Stratasys via USC4AM
Community Interview

To help innovation succeed


within in an organization,
develop a culture of innovation
at all levels.

Encourage Establish strong Invest in new Emphasize innovation


experimentation at all executive sponsors for technologies and led communication
levels innovation support adoption
The ability to experiment, at scale, By leading through example, leaders Investments in innovative technologies, Strong communications are required
and at pace, sets innovation leaders in can set an example for the culture they trainings and pilots shows leadership to change culture towards innovation.
manufacturing apart from the rest. It is want to see within the organization. support in innovation and continuous Message change with care, to illustrate

Enabling Business Model Innovation in Advanced Manufacturing


important for leaders to build a culture Establish formal executive sponsorship improvements. When these changes the need for change, and to outline
which encourages innovation, rewards through an executive or office tasked impact worker experience for the better, the benefits of such change. Strong
experimentation, and treats learnings as with overseeing the company’s emerging it can drive changes in workplace culture communications allow employs to feel
successes. A culture that only rewards technology agenda, such as a Chief towards innovation. aligned with changes, and empowered to
successful experiments can discourage Innovation Officer, to ensure there are make improvements themselves.
teams from transformative innovation sufficient time, resources, and cross
and refocus teams towards less team collaboration.
innovative, safer opportunities.

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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.

Enabling Business Model Innovation in Advanced Manufacturing


Address Barriers To Innovation Breaking free of the taboos plaguing the industry, manufacturers need to Balance Short Term Gains With Build a strategic roadmap that prioritizes lower effort, higher return
identify and address the various obstacles stifling growth and establish Long-Term Vision opportunities that build upon each other to enable the completion of
realistic innovation ambitions. higher effort, high return goals.

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.

Enabling Business Model Innovation in Advanced Manufacturing


Build Robust Partner Explore leveraging ecosystem partners to augment capabilities and
Ecosystems provide access to new opportunities.

Build Culture of Innovation When approaching change, focus on creating a strong culture of
innovation to encourage adoption of new technologies.

125
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

The Future of Industrial Strategies: Five Grand Challenges


for Resilient Manufacturing
Cynthia Hutchinson Kyriakos Triantafyllidis
Advanced Manufacturing: A New Narrative CEO, US Center for Head of Growth and Strategy,
Advanced Manufacturing Centre for Advanced
The Global Smart Industry Readiness Index Initiative: Manufacturing and Supply

Enabling Business Model Innovation in Advanced Manufacturing


Chains, World Economic Forum
Manufacturing Transformation Insights Report 2022

The Data-Driven Journey Towards Manufacturing Excellence

Measuring Digital Trust: Supporting Decision-Making for


Trustworthy Technologies

127
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

Enabling Business Model Innovation in Advanced Manufacturing


Initiative Specialist, General Motors US Department of Energy
Center for Advanced Manufacturing and Supply Chains • Douglas Stanguini, Director of Manufacturing • Sudarsan Rachuri, Federal Program
Engineering Manager, Advanced Manufacturing
Memia Fendri
Regional Manufacturing Agenda Lead, HP World Economic Forum
Center for Advanced Manufacturing and Supply Chains • Anthony Graves, Global Segment Lead • Francisco Betti, Head of Global Industries
• Antoine Colin, Global Head of Supply Chain Team
Stacey Weismiller Transformation & Resilience
Initiative and Community Lead, • Bruce Blaho, HP Fellow & Vice President
Center for Advanced Manufacturing and Supply Chains • Sarabjit Singh (Savi) Baveja, Chief Strategy
and Incubation Officer

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,

Enabling Business Model Innovation in Advanced Manufacturing


11 World Economic Forum, Unlocking Business Model Innovation Through Advanced Manufacturing, 2022: https://www3. Realize., 2023: https://www.accenture.com/content/dam/accenture/final/a-com-migration/manual/r3/pdf/
weforum.org/docs/WEF_Unlocking_Business_Model_Innovation_through_Advanced_Manufacturing_2022.pdf. Accenture-IXO-HannoverMesse-report-pdf#zoom=50.

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.

14 US Center for Advanced Manufacturing Community Interviews, 2023.

15 Accenture, “Accenture Pulse of Change”, Accenture, 2023: https://www.accenture.com/us-en/about/company/pulse-


of-change.

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