The next horizon for industrial manufacturing: Adopting disruptive
digital technologies in making and delivering PART II
What we learned from
our research—and found reinforced by our client experience and industry
observation—is that companies often make the same few mistakes when defining
and implementing strategies for technology-enabled transformation in
manufacturing and delivery. As a result, they struggle to move beyond what we
call “pilot purgatory” and fail to capture sustainable impact at scale.
Fortunately, we also found a few real-world examples of companies that achieved
effective roll-out by paying close attention to a handful of success factors.
These “lighthouse” cases provide inspiration for other manufacturers in
developing a vision for how technology can create value, building a solid
business case, and charting an effective course for enterprise-wide implementation.
Our research identified
six success factors that fall into three categories: strategy, infrastructure,
and organization (Exhibit 6).
Exhibit 6 SEE THE ORIGINAL ARTICLE
Strategize the transformation process
Too many organizations
pursue a digital manufacturing journey that ultimately fails to create enough
value to justify the cost, time, and management attention involved. To avoid
this fate, successful companies establish a solid business case built on two
principles:
Start from bottom-line
value and work back. With so many
digital manufacturing solutions on the market, it’s easy—but dangerous—for
companies to get sidetracked by what looks exciting. To deliver tangible
results, they need instead to begin with a clear view on how these solutions
can address operational pain points, create competitive advantage, and drive
bottom-line impact. For some companies, for instance, 3-D printing enables
competitive differentiation through leading-edge designs that would be
impossible to manufacture in any other way; for others, it is no more than an
expensive distraction. As a rough guide, asset-heavy companies would be well
advised to treat predictive maintenance as their top priority, while
labor-heavy companies should focus on digital performance management.
Establish a clear
vision and a phased road map. More than half the respondents in our survey (59
percent) saw lack of vision as a significant obstacle to digital
transformation, up from just 15 percent reported as recently as 2017. Three
principles can help manufacturing companies create a vision for digital
manufacturing:
·
Think
holistically across the ecosystem over the long term. Spot solutions may generate
excitement to fuel broad-scale change, but tend to leave value on the table.
Look past the immediate fix and your own capabilities to develop sustainable
solutions that build long-term competitive advantage.
·
Showcase
early wins to solidify buy-in. However compelling the vision, it will fail
without widespread organizational support. Create one or more “lighthouse”
facilities to demonstrate how individual use cases reinforce one another to
transform outcomes.
·
Create
an ROI roadmap. Scaling up calls
for careful management of technologies, use cases, process changes, cultural
shifts, and investments. To navigate these complexities, create a road map
informed by the size and nature of the business opportunity and your
requirements for IT and OT architecture and resources.
Innovate the infrastructure
Having addressed
strategy and business benefits, companies can then turn to the critical
elements of technology stack and ecosystem.
Design a comprehensive
technology stack. Almost half (44 percent) of survey respondents regarded IT
deficiencies as a major challenge in implementing digital manufacturing. In defining
your optimal technology stack, bear five watchwords in mind:
·
Comprehensive. Ensure your stack spans
collection, connectivity, data, analytics, and applications, and is specific to
your operational model.
·
Scalable. Your stack must enable rapid
scaling and support future growth. Pay particular attention to your
data-ingestion pipeline and complementary analytic capabilities.
·
Analytics-enabled. Software and infrastructure
systems provide the raw material, but analytics produces the insights that
generate value. Only 20 percent of organizations have a data lake that covers
more than half their plants, and only 25 percent use an advanced analytics
platform at scale. Companies that integrate their data and extract more
insights from it will create more value.
·
Integrated. Integrate data from IT and OT
to help you develop digital-manufacturing use cases that meet your business
needs.
·
Secure. Address cybersecurity at
every step, taking special care over the connections between legacy and future
systems.
Build the stack and develop an ecosystem of
technology partners.
Every stage of the
process, from developing a technology stack to rolling it out, must be tightly
managed to ensure cohesion and seamlessness. We recommend following three
guidelines as you move forward:
·
Minimize
architecture complexity. Navigating
the complex landscape of solution providers presents many challenges. When
building components into your technology stack, make as much use of industry
standards as possible to ensure interoperability across the organization.
·
Use
external partnerships to access functional and integrative expertise. Select a few partners with
deep functional and integrative expertise and develop solutions with them where
possible. Our research shows that more than 40 percent of organizations are
either building their own IT/OT systems in house or tailoring externally
sourced systems to their needs, creating a wide range of systems that need to
be bridged. The right partners can help you ensure seamless integration and
functionality.
·
Drive
agile execution across organizational silos. As well as forging external partnerships, break
down organizational silos and build your own capabilities for collaborating
across functions.
Mobilize the organization
Digitizing an entire
production system requires tremendous change that goes well beyond technology.
People are critical to success, and harnessing their energies requires you to:
·
Drive
transformation from the top. Capturing the full potential from digital
manufacturing calls for a consistent approach in which you:
o
Ensure
executive-level leadership and P&L commitment.Appoint an executive-level
transformation leader to drive digital manufacturing—something that only about
a third of manufacturers have done so far. Consider taking your whole top team
to digital immersion sessions and “go and see” visits to understand the new
capabilities and ways of working you will need to develop. Accelerate the pace
of your transformation by committing P&L to the effort.
o
Integrate
decision making across countries and functions. Any fragmentation in the way
you apply digital technologies could jeopardize the success of your
transformation. Coordination across plants, locations, and functions along the
value chain is essential, yet far from universal: only a third of companies
report having a globally coordinated digital-manufacturing effort.
·
Get
on top of the capability gap. To foster an organizational culture that
facilitates individual and team development:
o
Encourage
innovation. Create an
environment that promotes creativity and innovation to give your transformation
the best chance of success. Consider launching an innovation challenge for your
organization, ecosystem, and academic partners to generate ideas and allow you
to co-create new offerings with suppliers and external experts.
o
Focus
on talent. More than
two-thirds of companies see attracting, managing, and retaining top talent as
the biggest challenge in implementing digital manufacturing. Secure the
capabilities you need by combining in-house training with hiring from outside
and collaborating with solutions providers, research institutions, and
academics.
A holistic approach to
transforming manufacturing through technology involves the fundamentals of your
organization and your business as much as the technologies themselves.
Following the guidelines suggested in this article will help you accelerate
implementation, bridge the gap between pilot success and enterprise-wide
roll-out, and unlock new sources of value.
By Kevin Goering, Richard Kelly, and Nick
Mellors
https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/the-next-horizon-for-industrial-manufacturing?cid=other-eml-alt-mip-mck-oth-1811&hlkid=4677593a878646529137da15dd8100cb&hctky=1627601&hdpid=40950bab-bdef-4ff9-9eb4-9ea21456999b
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