… or does investing in the digital revolution seem like jumping out of a perfectly good plane without a parachute?
“Industry 4.0” refers to the fourth industrial revolution: the age of digital technologies such as the internet of things, artificial intelligence, cloud computing, drones and other emerging technologies. This revolution will not only disrupt businesses and industries but will affect the lives of every human being on this planet. According to the World Economic Forum, “the combined value – to society and industry – of digital transformation across industries could be greater than $100 trillion over the next 10 years.”1 McKinsey reports that over the next decade, one of the major impacts of this digital transformation will be on the $10-trillion-plus global manufacturing sector.2
Manufacturing puts the “Industrial” in “Industrial Revolution”
By definition, industrial revolutions are led by manufacturing – and today’s manufacturers are already seeing the impact of Industry 4.0. Digital manufacturing technologies are beginning to disrupt every link in the manufacturing value chain, from research and development, shop floor operations, and supply chain to marketing, sales, service and even business models. Digital connectivity between suppliers, factories and consumers is unlocking enormous value and altering the manufacturing landscape. IDC predicts that when the numbers come in on 2018, spending on digital transformation in process and discrete manufacturing alone will exceed $333 billion.3 These investments will be focused on disruptors such as smart manufacturing, automated operations, smart asset management, optimization of the supply chain, services in connectivity, and in-house IT infrastructure that will allow the business to be relevant and competitive in the digital economy.
Although manufacturing leaders are bracing for these disruptive forces, most are unsure of the best direction forward. If you’re a manufacturer, you already know that early adoption of Industry 4.0 can result in being the first to own a market or claim a target market, but you also know that significant investments in new technologies may put the very existence of your organization at risk. The disruptive technologies of Industry 4.0 are only one facet of the revolution; the unprecedented challenge facing you will be to integrate digitization and emerging technologies within your existing operations and culture, while continuing to delight your customers. To many executives, investing in a journey toward Industry 4.0 may seem like jumping out of a perfectly good plane without a parachute. But what if you jumped with a parachute? What would that parachute look like?
Achieve a soft landing with Operational Excellence 4.0
According to a recent report by BTOES Insights, 53.1% of global executives believe that the key challenge they face today is achieving operational excellence, mainly around changing and improving their company culture.4 As the pressure to make the leap to Industry 4.0 increases, manufacturers are finding a new and powerful ally: Operational Excellence 4.0.
With Operational Excellence 4.0, you can elevate your thinking to the system level to not only prepare for the coming business disruption but follow a new, holistic understanding to execute a robust strategy of excellence. Just as humans, in addition to a healthy, balanced diet, need a stimulating mental and physical ecosystem for survival and growth, the manufacturing industry cannot survive and grow on new technology alone. For your company to thrive in the future, you must take a more holistic approach that integrates technology with your culture, your workforce needs and your strategy execution. OpEx 4.0 is the parachute you need to feel confident that you are taking calculated risks for ultimate success.
If you’re ready to take the leap and skydive into Industry 4.0, make sure you’re well-equipped with Operational Excellence 4.0 as your parachute.
To get your Manufacturing 4.0 parachute, click here.