The Work Ahead in Manufacturing: Fulfilling the Agility Mandate

According to our research, manufacturers are well ahead of other industries
in their IoT deployments and fully aware of the power of applying AI, analytics
and automation to their processes and operations. However, they need to
marshal the level of investment required to meet today’s intensified demands
for business resilience.
The Work Ahead
in Manufacturing:
Fulfilling the
Agility Mandate

The Work Ahead
Executive Summary
The pandemic opened manufacturers’ eyes to how
advanced technology, digitized processes and real-time
intelligence could protect operations in a world full of
risk, uncertainty and emerging regulatory burdens.
2
The Work Ahead in Manufacturing: Fulfilling the Agility Mandate

The Work Ahead
When the pandemic hit, the manufacturers that executed quick business pivots drew headlines.
There were the sportswear manufacturers that produced personal protection equipment for
healthcare workers with the help of 3-D printers, and the electronics companies that rapidly
repurposed their supply chains to make ventilators, using technical designs co-shared across
disparate value chains.1,2
Advanced technologies and new ways of working were essential when
the world went dark.
For others, however, it was a different story: mandatory
closures of factories that required on-site staff to
run them; disruption of global trade routes impacting
product supply; scarcity of key materials, like the
semiconductors needed in the manufacture of
everything smart, from cars to phones. The pandemic
opened manufacturers’ eyes to how advanced
technology, digitized processes and real-time
intelligence could protect operations in a world full
of risk, uncertainty and emerging regulatory burdens.
It also laid bare the gap between technology laggards
and more advanced companies that were already
moving toward the vision of the Fourth Industrial
Revolution, with intelligently networked and fully
integrated production environments, and real-time
data analytics optimizing manufacturing processes
end-to-end.
To understand the changing nature of work for
manufacturers in a world dominated by digital and
disrupted by COVID-19, we surveyed 4,000 global
executives globally, of which 285 were from the
manufacturing industry. We found an executive class
fully aware of the power of digitizing manufacturing
processes but perhaps reluctant to marshal the
level of investment required by the Fourth Industrial
Revolution, not to mention the climate crisis and
related legislation.
3

The Work Ahead
Five key themes emerged from our research
and analysis:
1 Manufacturers are lagging other industries in
tech investment. The pandemic demonstrated
why digitizing manufacturing processes matters.
However, tech investment (as a percentage of
revenue) among manufacturers is relatively low,
especially outside of R&D, although European
respondents are predicted to outspend their U.S.
and Asian counterparts between now and 2023.
2 Scaled IoT deployments underpin the shift to
digitized manufacturing. While manufacturers
have been ahead of other industries when it comes
to IoT deployment, the challenge lies in scaling
these implementations. The explosion of data
now surrounding processes and products offers
the tantalizing prospect of instrumenting value
chains and process flows end-to-end. However,
realizing the full value of IoT investments requires
automation tools to sift and sort through the vast
quantities of data from business and engineering
systems and converting the information into
dashboards and tools that the workforce can utilize.
3 Data mastery will require greater uptake
of analytics and AI. To maximize the impact
of IoT, manufacturers will need to combine
these implementations with other advanced
technologies. Unfortunately, only 6% of
respondents have implemented machine-learning
technologies at any significant scale, which is
misaligned with the volume of sensor data yielded
by IoT. Applying technologies such as machine
learning, augmented reality and even speech
recognition can fuel a step-change in how people
and machines work together post-pandemic.
4 Employee jobs are changing as production
tasks digitize. A subset of manufacturing
respondents who are involved with innovation, R&D
and product development functions are in nearly
universal agreement that work tasks will specialize,
process flows will accelerate, and collaboration
between teams will rise as manufacturing work
digitizes and changes. The workforce of the future
will need to raise its digital quotient, with workers
on the factory or plant floor increasingly tasked
with troubleshooting production lines, handling
errors and providing flexibility when needed.
Knowledge networks will harness the best workers
to drive innovation into operational work.
5 New worker competencies are needed. Expect
to see new interplays between people and
machines, with the ability to exploit data, analytics
and machine learning as critical competencies for
the future workforce. Requirements for analytics
and decision-making skills are front and center,
according to respondents, as leaders look to
transform their best workers into value generators
who augment technical process work and spread
knowledge throughout the organization.
Requirements for analytics and
decision-making skills are front and
center as leaders look to transform
their best workers into value
generators who augment technical
process work and spread knowledge
throughout the organization.
4

The Work Ahead
Shaping manufacturing in a post-COVID world
Over half of respondents (52%) expect to substantially
reconfigure their supply chains to create more ‘slack’ in
systems that were exposed as brittle and full of risk.
5

The Work Ahead
For manufacturers, the pandemic imposed a premium on the ability to seamlessly pivot, both to avoid
shortages of essential supplies and to ensure the health and safety conditions of the workplace (see
Figure 1). New approaches to supply chain resilience and the adoption of digital working practices are
also predicted to accelerate.
Remote working infrastructure will likely prove essential as
manufacturing employees return to work, enabled by the
convergence of emerging technologies like augmented
reality (AR), artificial intelligence (AI) and video collaboration
tools. Such interfaces are critical for safety in manufacturing
operations when applied to functions such as equipment
maintenance and packaging operations, with AR enabling
hands-off remote assistance, connecting those workers who
were unable to travel to factories during the pandemic with
skeleton crews that were.
For example, a German manufacturer in our study enabled
remote connectivity through a virtual automation commissioning
service.“Even during this crisis, we reduced engineering time,
and we’re offering services such as remote connectivity for
process industries,” the respondent told us.“We’ve started
online training to make the best use of the downtime and
production halts, and we’re working to optimize production
operations and synchronizing it as per demand levels.”
Over half of respondents (52%) expect to substantially
reconfigure their supply chains to create more “slack” in
systems that were exposed as brittle and full of risk. Executives,
it seems, plan on more stockpiling, excess capacity and
duplicated systems, and are willing to tolerate greater levels of
inefficiency to this end.“Just-in-time” models of manufacturing
and distribution — prominent for the last few decades — will be
superseded by a new focus on “just-in-case” approaches.
We will need
to pay more
attention to
workforce
safety
We will have
to redesign the
workplace to
accommodate safe
distancing
We need to
redesign our supply
chain to build in
greater resilience
to shocks
Employees will
work more in
flexible teams
than functional
departments
The pandemic
will accelerate the
destruction of many
traditional, non-digital
businesses
The pandemic
has accelerated
adoption of new
digital working
practices
62%
54% 52% 51% 50% 48%
Response base: 285 senior-level manufacturing executives
Source: Cognizant Center for the Future of Work
Figure 1
Post-pandemic dynamics underscore the change in work
Respondents were asked to rate their agreement with the following statements about the likely impact of the pandemic on their
workforce. (Percent of respondents who agree or strongly agree)
6

The Work Ahead
More tech investment needed
Spending on technology among manufacturing
respondents will rise from 5.5% of revenue currently,
to a predicted 8.5% of revenue by 2023, which is
below the cross-industry average.
7

The Work Ahead
Clearly, tech investment is critical to rebuilding systems and processes for the work ahead. However,
spending on technology among manufacturing respondents will rise from 5.5% of revenue currently,
to a predicted 8.5% of revenue by 2023, which is below the cross-industry average of 7.8% and 11.7%,
respectively (see Figure 2).
A closer look reveals stark regional differences. European
manufacturers lead the U.S. and APAC in terms of tech
investment, with spending levels closer to the average (7.3% of
revenue today and 11% by 2023). This compares with just 8%
for APAC manufacturers by 2023 and 6.5% in the U.S. in that
timeframe.
This spending gap isn’t surprising. Given the structure of
the European economy and its reliance on manufacturing
(particularly in Germany and Eastern Europe), these
manufacturers are attempting to enhance an expensive,
highly skilled technical workforce with automation. The
latest manufacturing plants in Europe are technologically
sophisticated and highly automated, leveraging 5G,
AI, augmented reality, IoT and robotics to enable rapid
development of high value-added activities.
For example, Procter and Gamble’s plant in the Czech Republic
now enables new levels of agility, where a quick swipe on a
production dashboard instantly changes the product being
manufactured, reducing costs by 20% and increasing output
by 160%.3
The dynamics surrounding tech investment at U.S.
manufacturers, however, are a little more complex. When we
asked respondents to predict how they would compare with
their competitors by 2023, over one-third of U.S. executives
(35%) said their technology investments would transform
business models, make production processes more efficient,
and put them ahead of their peers in that timeframe. Achieving
these goals will require a leap in technology investment beyond
current and predicted levels, in not only R&D but also supply
and distribution functions. The rhetoric fails to match the reality,
and there is a danger that U.S. manufacturers could fall behind
the rest of the world,for good (see Quick Take, next page).
By 2023
Today
3% 2%
64%
33%
5%
12%
3%
5%
44%
24%
5.5%
0%
3%
0.1%–5% 5%–10% 10%–15% 15%–20% 20%–30% 30%–40% Average
(mean)
8.5%
Figure 2
Technology investment lags
Respondents were asked how much they plan to spend on technology, now and in 2023. (Percent of revenues spent on technology)
8

Quick Take Policy makers strive to master global
manufacturing
Even before the virus, the subtext of ongoing U.S./China trade discussions put political
pressure on Western companies (and policy makers) to re-examine the structure of supply
and production networks. And at the intersection of the emergence of new technologies
and international competition lies a desperate need for more active industrial policy.
Several signs point to Western manufacturers beginning to adjust to a new reality,
predicated on technology mastery and a return to onshore investments. Intel recently
committed to building two new semiconductor factories in the U.S. (Arizona), with a price
tag of $20 billion, citing fierce competition from Asian manufacturers.⁴ What was once a
battle to strip out costs by outsourcing in the East is now turning into a battle for technology
superiority as onshoring strategies proliferate.
The European Commission recently published a vision for Industry 5.0 (going beyond
4.0), with sustainability and circularity concepts now part of the new mix.5
The burden of
sustainabllity could create a trillion-dollar market as manufacturers drastically redesign
product development and sourcing and distribution models. Policymakers have launched
strategies for human centricity and the importance of highly skilled roles to ensure the
development of people and technology in tandem.
The U.S. government published its industrial policy three years ago, and while the
framework examined AI and IoT, it lacked a strategy for the dichotomy between human
and machine work.6
Meanwhile, China will invest an eye-popping $1.4 trillion in digital
infrastructure over the coming years through its “Made in China 2025” program.7
Battlelines are being drawn, geopolitical competition is heating up, and global
manufacturing is the hinge.
The Work Ahead
Manufacturers have another reason to boost their technology
investments. The industry has long been urged to better
integrate its information technology (IT) and operational
technology (OT). Now, however, the industry must also integrate
product technology (PT) into the IT/OT mix to meet customer
demand for personalization. Take Tesla: The carmaker’s
software-defined features, such as battery life enhancement
(via an over-the-air update), are an example of the convergence
between IT, OT and PT. While not every company can be a Tesla,
every manufacturer can prioritize data and then use the insight
to drive intelligence across the value chain.
The factory of the future, with rapidly converging IT, OT
and PT, needs an IT investment level north of at least 11% of
revenue. Unlocking the transformative power of a digitized
manufacturing process, or a product that yields insights to
customers, will kickstart a revolution in how goods and services
are created.
9

The Work Ahead
Going beyond IoT to reconfigure operations
Investments lag in implementing process automation
tools and AI technologies to complement and extend
IoT. These technologies are needed to do the heavy
lifting on consuming and acting on the huge volumes
of process data now flowing from production workflow
environments, plant machinery and manufactured
products themselves.
10

The Work Ahead
One area where manufacturers are currently outperforming other industries in terms of tech investment is
IoT (see Figure 3). Nearly one-quarter of manufacturing respondents report widespread IoT implementation
(well above the cross-industry average of 16%), and over half report being at some level of IoT
implementation. Of course, the challenge lies in scaling these IoT deployments.
It’s likely that respondents expect IoT to trigger more data-
oriented technology investments in the future as these sensors
generate ever growing amounts of information. Physical
products can now be covered in sensors, feeding information
on pressure, temperature and viscosity, while advanced
analytics tools can analyze continuous process flows and
complement process-control systems.
In fact, the data trails generated by advanced sensors and
analyzed for meaning enable manufacturers to gauge
operational performance with real-time precision. For example,
Johnson & Johnson’s orthopaedic manufacturing plant
established in Ireland over 20 years ago uses IoT to enable its
legacy equipment to communicate with each another.J&J’s new
process-driven digital twins have resulted in a 10% reduction in
operating costs and a 5% reduction in machine downtime.8
Investments lag, however, in implementing process automation
tools and AI technologies like machine learning software to
complement and extend IoT, according to our study. These
technologies are needed to do the heavy lifting on consuming
and acting on the huge volumes of process data now flowing
from production workflow environments, plant machinery and
manufactured products themselves.
Sensors/
IoT
Software
bots for
automation
Analytics AI Physical
robots
AR/VR 3-D
printing
Autonomous
vehicles/
drones/
telematics
5G
25%
30%
23%
11%
24%
33%
6% 5% 5%
26%
27%
8%
5%
39%
14%
23%
9%
3% 5%
3%
14%
5% 3%
4%
Some pilots underway
Some implemented projects
Widespread implementation
Source: Cognizant Center fo the Future of Work
Figure 3
IoT is the bedrock for modern manufacturing
Respondents were asked about the progress made in implementing the following technologies to augment processes.
(Percent of respondents)
11

The Work Ahead
The continuously growing deluge of operational and product
data needs sifting, organizing and analysis to convey meaning.
Machine learning, data analytics and process automation
tools working in tandem with IoT would enable manufacturers
to “see” process flows in new ways. In our study, a European
manufacturing COO said his company expected to save up to
10,000 person hours per month using AI and machine learning
tools to optimize core production processes.
Emerging manufacturing technologies
Our findings also point to technologies that are not, as yet,
seeing high levels of implementation but are being widely
explored. This next round of technology adoption will likely
include augmented and virtual reality technologies (AR/
VR), 5G and an expansion in 3-D printing. The technologies
set to transform the next few years of manufacturing will
focus on improving efficiencies for those on the factory floor,
providing support for massive amounts of data and ensuring
sustainability.

❙ AR/VR: With 19% of respondents either piloting or
implementing AR/VR — and an additional 26% exploring
or planning an investment — this technology is pegged
to become an indispensable tool for manufacturers to
see things differently. Many tasks in a live production
environment require workers to continually refer to
documentation to guide their work. To speed up work, some
manufacturers are using AR devices to enable workers to
keep their eyes on their work and the documentation at
the same time, without needing to look away. Annotated
guides and instructional videos can appear and hover exactly
above where they’re needed and can be voice-controlled or
dismissed with a swift motion or gesture.
Moreover, part-assembled products can have graphics
overlaid on them as employees move between workstations,
showing an operator exactly where to place bolts, route and
solder a wire or connect a critical component. When AR
is combined with IoT, real-time sensor data can be shown
on machines, highlighting operational issues that occur
outside normal servicing schedules. Because issues can
be addressed before problems occur, this capability can
improve efficiency, safety and worker effectiveness.
AR/VR and IoT can also be used to enhance the use of
digital twins. By viewing these objects at full scale, either in
the user’s physical space or within a digital representation of
any conceivable environment, and feeding them data from
their real-life counterparts via IoT sensors, manufacturers can
enable workers to easily access a real-time dynamic blueprint
of the factory as needed.

❙ 5G: Although it’s still at an early stage of adoption (only
7% of respondents have a 5G pilot or implementation
underway), over time the “mesh of machines” created by
IoT and 5G will serve as the foundation for new levels of
functionality and possibility. For example, Worcester Bosch, a
UK manufacturer of domestic boilers, has launched the UK’s
first 5G factory with ultra-low latency that makes it easier to
implement smarter manufacturing techniques on the fly. The
company can deploy AI and machine learning techniques
and insights quickly, without disrupting the production line
or supply chain through complex infrastructure changes.
The factory has already optimized machine performance
and increased output by 2%.9

❙ 3-D printing: Our research also identified a growing interest
in 3-D printing/additive manufacturing techniques, with
18% of respondents citing pilots or implementations, and
an additional 32% exploring or planning investments. With
3-D printing, manufacturers can rapidly prototype products,
as well as print replacement parts. For example, in medical
manufacturing, 3-D printers routinely produce dental crowns
and bridges, hearing aid shells, hip replacement joints,
jawbones and prosthetics, all configured precisely to the
patients’ requirements.
The long-term implications are profound because the ability
to transport parts across the world digitally could radically
transform entire value chains and reduce environmental
impacts. Further, innovative technology partnerships reveal
what could be around the corner: U.S. logistics heavyweight
UPS and 3-D printing/data analytics startup Fast Radius
jointly set up a facility in Chicago, designed to meet the
growing demand for rapid customized product shipments.
The facility is part of a global network of 3-D printing hubs
operated by UPS, completely transforming how goods are
produced, transported and sold.10
12

Quick Take Are you on track to remove 50% of carbon in
the next 10 years?
Scientists and activists have worried about climate change for decades, but a marked
change in global sentiment means policymakers are intensifying scrutiny of carbon
emissions, and by turn, global manufacturing. Countries are legislating for net-zero
emissions typically by 2050, but some are talking as early as 2035. Some are going even
further, with Germany’s Supreme Court pressuring policy makers to protect future
generations and mandate stronger legislation now.11
Some calculations cite manufacturing as one of the major sources of greenhouse gasses
of any sector worldwide, which means any legislation demands fast action.12
The critical
question is how to transition production processes from a mantra of cost reduction to one
of low carbon.
Moreover, sustainability will not just be a matter of meeting legislative targets. Customers
today are demanding their products be sustainably produced from the first step in the
process to the last, and this will only increase going forward. Making manufacturing green is
now simply a matter of good business. For more on this topic, see our report “Green Rush:
The Economic Imperative for Sustainability.”)
Forward-looking companies are preparing by adopting the concept of low-carbon
manufacturing (LCM) across operations. LCM provides a lodestar, with clear goals to reduce
carbon intensity across processes. LCM mechanisms frame material innovation and guide
product development, R&D activities, sourcing decisions and technology investments to
reduce, reuse and recycle materials.
It’s good for business as well as future-proofing against change. For example, consumer
pressure about plastic pollution has led to biodegradable polymers replacing traditional
petroleum-based plastics, without the need for legislation.
The concept of “remanufacturing” in the automotive industry, reusing durable and alloy
steel in engines and steering systems, spreads the practice of circularity to other industries
before legislation forces the issue. In addition, additive manufacturing is starting to replace
the traditional manufacturing techniques of moulding and forming, reducing waste and
carbon.
In the not-too-distant future, sourcing decisions could spur the use of material innovations,
even green steel. The world’s first large-scale fossil-free steel plant is scheduled to open in
2024, with a planned production capacity of five million tons of high-quality net-zero hot-
rolled, cold-rolled and galvanized steel (not enough to feed an entire global industry but a
good start).13
The Work Ahead
13

The Work Ahead
New tasks prime a workforce makeover
Given license to think, act and do — in effect, to
be empowered — the augmented workforce in
manufacturing could become a source of value creation,
applying digital insights to technical work and raising
corporate performance as a result.
14

The Work Ahead
Workers newly armed with the ability to exploit data, analytics or machine learning can be equipped to add
value in new and innovative ways, using human insight and judgment to master sophisticated technical
process work with skill, dexterity and flair.
To gain more insight into this dynamic, we subdivided
manufacturing respondents into a subset of 60 executives,
or one-fifth of the sample, who identified themselves as heads
of innovation, senior vice presidents of R&D and senior directors
of product development functions. These roles best exemplify
where changing ways of work in manufacturing will be early and
most pronounced.
These executives revealed the significant changes they foresee
in how people will work, including more specialized tasks (48%)
and greater levels of collaboration across teams (53%). A near
majority significantly agrees that process flows will accelerate as
technology and data transform the work people do.
Given license to think, act and do — in effect,to be empowered —
the augmented workforce in manufacturing could become a
source of value creation, applying digital insights to technical
work and raising corporate performance as a result (see
Quick Take, next page). For example, the head of production
at a mining processing company in our study said he fully
expects the productivity of his company’s machine operators to
increase as digitization accelerates. As better insights emerge
between the technical tweaks applied during the mining
process and the bank of machinery knowledge, the company
expects better productivity by minimizing extraction errors and
miscalculations.
More
collaboration
More
specialized
jobs
Talent
shortages as
a result of
changing skills
requirements
Accelerated
pace of industry
disruption
Better tools
for decision
making
Greater
technical
expertise
required
Permanent
jobs will be
displaced by
‘talent on-demand’
models
53%
48% 48% 47% 47% 47%
43%
Response base: 60 senior-level executives in innovation, R&D and product development roles
Figure 4
New tasks prime a workforce makeover
A subsets of respondents with roles in innovation, R&D and product development were asked how work would change between now
and 2023. (Percent of respondents who said ‘to a significant extent’)
15

Quick Take Mercedes-Benz sees human-to-machine
tasks proliferate
As more and more manufacturing work becomes knowledge-intensive, digital-oriented and
non-routine, the workforce will be empowered to deliver higher rates of flexibility and speed.
Human-machine integrated tasks will allow the right mix between flexibility and decision
making, coupled with reliability and safety.
For example, Mercedes-Benz executives found that their inflexible processes presented a
growing challenge: Its most profitable customers increasingly wanted individualized S-class
sedans, but the automaker’s assembly systems couldn’t deliver on those customization
demands.14
To meet these needs, the carmaker replaced some of its “dumb” robots with AI-enabled co-
bots and redesigned its processes around human-machine collaboration. At the company’s
plant near Stuttgart in Germany, human workers guide co-bot arms to pick up and place
heavy parts, becoming an extension of the worker’s body. This system puts the worker in
control of the build of each car, requiring less manual labor and more “piloting” of the robot.
The company’s human-machine teams can adapt to changes on the fly.
We can now start to predict how the interplay between people and machines could start to
look in a fast moving, collaborative environment. As robots evolve into smart, context-aware
co-bots working on the production line, a co-bot arm might, for example, handle repetitive
actions that require heavy lifting, while a person performs complementary tasks that
require dexterity and human judgment, such as assembling a hard-to-reach substructure or
production part, without risk to the people doing it.
In many cases, co-bot programming can be done by a line operator. For example, in the
same Mercedes plant, the co-bots can be reprogrammed easily with a tablet, allowing them
to handle different tasks depending on changes in the workflow. Such agility has enabled
the manufacturer to achieve unprecedented levels of customization. Mercedes can
individualize vehicle production according to the real-time choices consumers make at
dealerships, from the vehicle’s dashboard components to the seat leather to the tire valve
caps. As a result, no two cars rolling off the assembly line at the Stuttgart plant are the same.
The Work Ahead
Skills renaissance needed
As manufacturing digitizes, people clearly need a different
set of skills to excel. Employers need their workforce to be
flexible, agile and digitally literate. Data literacy, analytical
insight, machine learning, machine-handling techniques and
co-working with robots will be crucial skills in the work ahead,
according to manufacturing respondents.
This will change how leaders find talent and put their best
people to work. As our study shows, skills in decision making,
strategic thinking, fabrication and learning are at the forefront in
the minds of respondents (see Figure 5, next page).
16

The Work Ahead
The skills sought from the workforce cluster around digital
literacy and traditional production skills. For example, a
supervisor at a Swedish industrial products maker in our study
foresees the need for skilled machine operators, as well as more
technical roles on the production floor, such as data scientists,
software developers and even e-commerce specialists.
The ability to operate and manage computerized and automated
technologies that dominate the production environment today
demand new levels of digital literacy; our study reveals the
heightened focus on using data to make better decisions,
reaching the top required skill by 2023. Fabrication skills (building
metal structures in auto manufacturing for example, by cutting,
machining, welding, stamping, etc.,) are predicted to rise in
importance as well, revealing the challenge manufacturers face
finding and putting their best people to work (see Quick Take,
next page).
Undoubtedly, higher levels of automation and greater use of
precision machinery requires better problem-solving skills
from the people who use them; for example, while automation
relieves some direct tasks, it can’t deal with errors or variations.
Human workers will be required to troubleshoot errors on
production lines and provide the flexibility and customization
that machines cannot.
Grippers provided by Robotiq are a great example of where
humans and machines can work in tandem. While Robotiq’s
machines can run autonomously, workers can customize tasks
on the fly if they have the right programming skills, cutting the
time required from days to minutes.15
Response base: 285 manufacturing senior leaders
Figure 5
The future workforce demands new skills
Respondents were asked to rate which skills had become more important than previously and which would become more
important by 2023.
Innovation
Decision making
Analytical
Leadership
Strategic thinking
Selling
Fabrication
Interpersonal
Communication
Learning
Decision making
Strategic thinking
Fabrication
Learning
Leadership
Analytical
Interpersonal
Communication
Global operating skills
Customer care
IMPORTANCE 2023
2020
1
2
3
4
5
6
7
8
9
10
17

Quick Take Four steps to accelerating workforce
transformation
Employees who traditionally were responsible for executing only physical tasks will
transition toward engaging in more cerebral activities. As a result, the industry needs a
digitally literate workforce, fully equipped with technical insight to perform specific tasks.
It will be essential for manufacturers to institutionalize knowledge capture across
the organization and drive career development strategies to train, retain and cultivate
employees to be future value generators. (For more on this topic, see our report
“The Renaissance of Blue-Collar Work.”)
Here are four ways to get started on an upskilling strategy:

❙ Evolve performance metrics to drive the right behaviors. Rather than focus reward
systems solely on production volume and production margin, plan to align pay with
improvements in customer satisfaction ratings (i.e., net promoter scores), work speed
(i.e., process throughput) and supply chain efficiencies (i.e., KPIs on inventory cycles and
carbon use).

❙ Turn your best people into knowledge brokers. Provide substantial learning
opportunities so that workers can quickly move, if needed, to a different position or
be redeployed into another team that can use their skills. Turn your best workers into
knowledge brokers, having conversations across the organization to know who’s working
on what at any given time. Brokers can then use this insight to share best practices
across the organization, and benefit from the reputation they develop for their new skills
and know-how.

❙ Reform recruitment strategies. Change recruitment practices to attract workers
considered to be future “value generators.” Consider developing apprenticeship
schemes to attract less experienced workers into the organization or co-developing
outreach programs with employer/industry associations and partnering with schools and
educational institutions to increase awareness of what a fulfilling and purposeful career
in manufacturing could be.

❙ Rethink the career model. Longer-term career planning and different routes toward
career progression are needed. Manufacturers will need to reconstruct career models
to provide continuous development opportunities and foster a growth mindset among
employees. Career routes need to be constructed into higher skilled, more senior roles
for staff, which means providing the workforce with the digital skills to learn continuously,
and the ability to improve on the job.
The Work Ahead
18

The Work Ahead
Modernizing manufacturing
Collaboration between humans and machines finds a
natural home in manufacturing. To capitalize on this
symbiosis however, the traditional risk-averse approach
needs to be swept aside.
19

The Work Ahead
Manufacturers have a window of opportunity to take aggressive steps to modernize their business
and operating models, their processes and the roles and tasks that people do, all with an eye on how
manufacturing will evolve in the next stage of the digital economy.
To successfully move into this new world, manufacturers should
consider the following bold steps to accelerate into the future:

❙ Raise investment in technology above 11% of revenues.
While European manufacturers are leading the way in terms
of technology investments, tech spending in this sector still
lags other industries, which seems misaligned for a sector
reliant on its relationship with machines. To take advantage
of the efficiencies and innovation technology can bring,
manufacturers must look not only at their peers in other
regions for their investment strategies, but also more widely
across industry lines.

❙ Double-down on upskilling people for the changes
ahead. Manufacturing work is changing, and along with it,
the skills necessary to succeed. Ensure that relevant training
programs are in place. Build diverse and multifunctional
teams with an open culture of collaboration and agile
working practices to overcome competition and adapt to the
shifting global manufacturing landscape.

❙ Nurture local talent by focusing at the local level.
Concerns of global talent shortages can be mitigated
by working with local technical colleges and universities
to evangelize and train students on careers in the
manufacturing industry. Promotion of the Fourth Industrial
Revolution and the digital skills required for it will not only
allow manufacturers to grow and attract highly sought-
after talent but also provide critical entry-level roles as the
marketplace becomes more difficult to break into.

❙ Keep perspective on global best practices. The trend
toward more nationalistic industrial policies doesn’t mean
global collaboration needs to suffer. Global manufacturing
bodies that espouse best practices such as the Global
Lighthouse Network can be a source of innovation and
inspiration at a time when isolation from competitors could
lead to potential stagnation.16

❙ Encourage pilots but adhere to a roadmap. Too much is
spent on trying out technology vs. envisioning a critical path
to change. Use your newly diverse, multifunctional and highly
skilled workers to envision how new technologies and ways
of working could be deployed to meet your goals. Through
agile working practices, manufacturers can quickly set aside
projects that don’t show value and scale those that show
value aligned with the strategic roadmap.
Natural partners in manufacturing:
humans and machines
Collaboration between humans and machines finds a natural
home in manufacturing. To capitalize on this symbiosis however,
the traditional risk-averse approach needs to be swept aside.
The prospect of receding into obsolescence for manufacturers
that do not invest in not just cutting-edge but proven
technology is very real.
Other industries have shown the havoc wreaked by new players
that disrupt the market. Under-investment in the people and
technologies that are driving the Fourth Industrial Revolution
will open manufacturing to this shock not just from those that
enter with new technologies, new ideas and human-centric
policies but also those global competitors that understand the
criticality of digitizing manufacturing processes to thrive in a
post-pandemic world.
Manufacturers have a window of
opportunity to take aggressive steps
to modernize their business and
operating models,their processes
and the roles and tasks that
people do, all with an eye on how
manufacturing will evolve in the next
stage of the digital economy.
20

The Work Ahead
Cognizant commissioned Oxford Economics to design and
conduct a study of 4,000 C-suite and senior executives,
including 285 from the manufacturing industry. The survey was
conducted between June 2020 and August 2020 via computer-
assisted telephone interviewing (CATI). Approximately one-third
of the questions were identical to those included in the 2016
Work Ahead study, allowing us to compare responses and track
shifting attitudes toward technology and the future of work.
Respondents were from the U.S., Canada, UK, Ireland,
France, Germany, Switzerland, Benelux (Belgium, Luxemburg,
Netherlands), Nordics (Denmark, Finland, Norway, Sweden),
Singapore, Australia, Malaysia,Japan, China, Hong Kong, India,
Saudi Arabia and UAE. They represent 14 industries, evenly
distributed across banking, consumer goods, education,
healthcare (including both payers and providers), information
services, insurance, life sciences, manufacturing, media and
entertainment, oil and gas, retail, transportation and logistics,
travel and hospitality, and utilities. All respondents come from
organizations with over $250 million in revenue; one-third are
from organizations with between $250 million and $499 million
in revenue, one-third from organizations with between $500
million and $999 million in revenue, and one-third with $1 billion
or more in revenue.
In addition to the quantitative survey, Oxford Economics
conducted 30 in-depth interviews with executives across the
countries and industries surveyed. Interviewees who responded
to the survey have a track record of using emerging technology
to augment business processes. The conversations covered
the major themes in this report, providing real-life case studies
on the challenges faced by businesses and the actions they
are taking, at a time when the coronavirus pandemic was
spreading around the world and companies were formulating
their strategic responses. The resulting insights offer a variety of
perspectives on the changing future of work.
The following figures represent the demographics of the 4,000
respondents from the full global study.
Methodology
33% U.S.
Germany 6%
Switzerland 1% 1% Ireland
France 6%
UK 5%
Japan 4%
India 4%
China 4%
Australia 3%
Singapore 3%
Hong Kong 3%
Saudi Arabia 3%
8% Benelux
(Belgium, Luxemburg, Netherlands)
Canada 3%
7% Nordics
(Denmark, Finland, Norway, Sweden)
UAE 3%
Malaysia 3%
Respondents by geography Respondents by role
13% Vice President
13% Chief Operating Officer
13% Director reporting to
senior executive
13% Senior Vice President
12% President
12% Chief Executive Officer
12% Chief Financial Officer
12% Other C-suite Officer
(Percentages may not equal 100% due to rounding)
21

The Work Ahead
Euan Davis
Associate Vice President, Cognizant’s Center for the Future of Work, EMEA
Euan Davis leads Cognizant’s Center for the Future of Work in EMEA. A respected speaker and thinker,
Euan has guided many Fortune 500 companies into the future of work with his thought-provoking
research and advisory skills. Within Cognizant’s Center for the Future of Work, he helps ensure that the
unit’s original research and analysis jibes with emerging business-technology trends and dynamics in
Europe, and collaborates with a wide range of leading thinkers to understand how the future of work will
look. Previously, Euan held senior analyst, advisory and leadership positions at Forrester Research, IDC
and CEB.
Euan can be reached at Euan.Davis@cognizant.com
LinkedIn: linkedin.com/in/euandavis/
Twitter: @euandavis
Manoj Mathew
Vice President, Industry, Cognizant Digital Business & Technology
Manoj Mathew is a Cognizant Digital Business & Technology VP who focuses on the product,
manufacturing, service and logistics space and leads advisory engagements in the Industry 4.0 space
across EME and APAC markets. He has over 20 years of experience defining and delivering connected
product solutions for mission-critical applications such as deep-water drilling, connected car solutions,
gas turbine monitoring, autonomous agriculture and building-monitoring solutions.
Manoj’s current focus is on smart products and smarter businesses — helping manufacturers transform
their processes to leverage ever-increasing pools of sensor data and live telemetry.
Manoj earned his degree in electrical engineering and is based in the Netherlands.
He can be reached at m.mathew@cognizant.com
LinkedIn: www.linkedin.com/in/simplymanoj/
Duncan Roberts
Manager, Cognizant Center for the Future of Work
Duncan Roberts is a Manager at the Cognizant Center for the Future of Work. He joined the company
in 2019, working as a digital strategy and transformation consultant in industries ranging from satellite
communications to educational assessment and has advised clients on how to best utilize technology to
meet strategic objectives while also turning around projects that had been in danger of failure.
Prior to Cognizant, he developed applications for emerging virtual and augmented reality hardware,
leading to working directly with large companies on experiences for their launches. He also advised
small startups on using blockchain solutions for advertising within VR and AR. Duncan brings his passion
for technology and experience in industry to researching the impact of virtual space on the workplace.
Prior to Cognizant, Duncan worked for one of the largest publishing houses in Europe, playing a leading
role in the publishing digital revolution, helping to transform the company’s operations end-to-end
and launching innovative products. He holds a master’s degree in philosophy and classics from the
University of St. Andrews.
Duncan can be reached at Duncan.Roberts@cognizant.com
LinkedIn: www.linkedin.com/in/duncan-roberts-16586022/?originalSubdomain=uk
Twitter: @dgrobertscfow
About the authors
22

The Work Ahead
1 “Superfeet to Provide 30,000 Respirator Masks for Local Healthcare Workers and Hospitals,” Cision, March 31, 2020,
www.prnewswire.com/news-releases/superfeet-to-produce-30-000-respirator-masks-for-local-healthcare-
workers-and-hospitals-301032559.html
2 Rob Davies,“Dyson and Airbus Expect Green Light to Start Making Ventilators,” The Guardian, March 25, 2020,
www.theguardian.com/world/2020/mar/25/airbus-dyson-firms-waiting-uk-green-light-produce-ventilators-
coronavirus
3 Jennifer Schenker,“Meet the World’s Most Advanced Factories: Five Are in Europe, Three in China and One in the US,”
The Innovator, Sept. 14, 2018, https://innovator.news/meet-the-worlds-most-advanced-factories-801a1e4567f3.
4 Kif Leswing,“Intel Is Spending $20 Billion to Build Two New Chip Plants in Arizona,” CNBC, March 23, 2021, www.cnbc.
com/2021/03/23/intel-is-spending-20-billion-to-build-two-new-chip-plants-in-arizona.html.
5 “Industry 5.0,” European Commission, https://ec.europa.eu/info/research-and-innovation/research-area/industrial-
research-and-innovation/industry-50_en.
6 “Strategy for American Leadership in Advanced Manufacturing,” National Science & Technology Council, October
2018, https://trumpwhitehouse.archives.gov/wp-content/uploads/2018/10/Advanced-Manufacturing-Strategic-
Plan-2018.pdf.
7 “China Has New US$1.4 Trillion Plan to Seize the World’s Tech Crown from the US,” South China Morning Post, May
2020, www.scmp.com/tech/policy/article/3085362/china-has-new-us14-trillion-plan-seize-worlds-tech-crown-us.
8 Charlie Taylor,“Cork Hip Joint Factory Among World’s Best Due to Internet of Things,” The Irish Times, Sept. 5, 2018,
www.irishtimes.com/business/technology/cork-hip-joint-factory-among-world-s-best-due-to-internet-of-
things-1.3618490.
9 “The 5G Factory of the Future,” Ericsson, www.ericsson.com/en/cases/2020/the-5g-factory-of-the-future.
10 Tia Vialva,“Fast Radius Raises $48M to Accelerate Industrial AM in Series B Led by UPS,” 3D Printing Industry, April
4, 2019, https://3dprintingindustry.com/news/interview-fast-radius-raises-48m-to-accelerate-industrial-am-in-
series-b-led-by-ups-152653/.
11 Kate Connolly,“’Historic’ German Ruling Says Climate Goals Not Tough Enough,” The Guardian, April 29, 2021,
www.theguardian.com/world/2021/apr/29/historic-german-ruling-says-climate-goals-not-tough-enough.
12 “What Contributes to Carbon Footprint in Manufacturing?” Larry Burton,July 2, 2021, https://resource.temarry.com/
blog/what-contributes-to-carbon-footprint-in-manufacturing.
13 ”Accelerating the Decarbonisation of Steel Production,” H2Green Steel, www.h2greensteel.com/.
14 H.James Wilson and Paul R. Daugherty,“Collaborative Intelligence: Humans and AI Are Joining Forces,” Harvard
Business Review,July-August 2018, https://hbr.org/2018/07/collaborative-intelligence-humans-and-ai-are-joining-
forces.
15 Robotiq website: https://robotiq.com/.
16 The World Economic Forum’s Global Lighthouse Network website: www.weforum.org/projects/global_lighthouse_
network.
Endnotes
23

© Copyright 2021, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means, electronic, mechanical,
photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is subject to change without notice. All other trademarks mentioned
herein are the property of their respective owners.
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About Cognizant
Cognizant (Nasdaq-100: CTSH) is one of the world’s leading professional services companies, transforming clients’ business, operating and technology
models for the digital era. Our unique industry-based, consultative approach helps clients envision, build and run more innovative and efficient businesses.
Headquartered in the U.S., Cognizant is ranked 185 on the Fortune 500 and is consistently listed among the most admired companies in the world. Learn
how Cognizant helps clients lead with digital at www.cognizant.com or follow us @Cognizant.
World Headquarters
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Teaneck, NJ 07666 USA
Phone: +1 201 801 0233
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About the Center for the Future of Work
Cognizant’s Center for the Future of Work™ is chartered to examine how work is changing, and will change, in response to the emergence of new
technologies, new business practices and new workers. The Center provides original research and analysis of work trends and dynamics, and collaborates
with a wide range of business, technology and academic thinkers about what the future of work will look like as technology changes so many aspects of
our working lives. For more information, visit Cognizant.com/futureofwork, or contact Ben Pring, Cognizant VP and Director of the Center for the Future
of Work, at Benjamin.Pring@cognizant.com.
See the full Work Ahead study series: www.cognizant.com/theworkahead

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