Sometimes I avoid change. This is only natural; a lot of people do, at least some of the time. I like things that are comfortable and familiar, things that I understand and know my way around. I may steer clear of change because I worry that new can be risky, and that I might result in being worse off in the end–-a tendency known as loss aversion. Beyond loss aversion, however, change can be particularly challenging because it tends to have a ripple effect–one change necessitates another, then another, until you find yourself having to update everything. Anyone who has ever upgraded just one piece of technology in their office, or even updated just one appliance in their kitchen, can understand this phenomenon.
Four ways to bring architectural innovation to your technology
By Joe Mariani, Center for Integrated Research
When technology can’t give you a strategic advantage, connections can. Recent research on how to create a strategic advantage in manufacturing shows that proprietary technology may not always create competitive advantage. In fact, it is the connection—the architectural innovation—combined with technology that may provide the greatest opportunity for businesses.
Unexpected risks. They’re all around us in today’s volatile, uncertain, complex, and ambiguous world (dubbed “VUCA” by the US Army War College). Manufacturers face challenges from powerful forces as technology, social, environmental, economic, and market trends converge, testing the mettle of even the strongest companies.
Hype and heightened expectations about how Industry 4.0 can help chemicals companies accelerate business growth and optimize operations is prompting executives to think through the advanced technologies they could implement within their company and with their partners in the value chain.
Posted by Michelle Drew Rodriguez
In the first two blog posts about the 2016 Global Manufacturing Competitiveness Index, I discussed country rankings and global competitiveness drivers uncovered in the Index which I coauthored with several colleagues at Deloitte (including Craig Giffi, Vice Chairman, US Automotive Leader and Tim Hanley, Global Manufacturing Leader) and in collaboration with the US Council on Competitiveness. The study follows earlier versions released in 2010 and 2013, and the findings are based on an in-depth analysis of survey responses from more than 500 chief executive officers and senior leaders at manufacturing companies around the world.
As a follow up to the posts on rankings and competitiveness drivers identified in the study, I also wanted to take a deeper look at how global manufacturing companies can succeed, which you can learn more about in the full study.
Five tips for global manufacturing success
Here are five key insights from the report that manufacturing executives should consider to position their companies for future competitiveness:
- Ensure talent is “the” top priority: A focus on creating differentiated talent acquisition, development and retention strategies to be regarded as “employers of choice,” as well as identifying and nurturing new models of collaboration that leverage key sources of talent outside of the organization will be key. As talent is ranked as the most important driver of competitiveness by executives around the world, the competition among nations and companies is expected to be fierce.
- Embrace advanced technologies to drive competitive advantage: Advanced technologies are increasingly underpinning global manufacturing competitiveness. Leading 21st century manufacturers have fully converged the digital and physical worlds where advanced hardware combined with advanced software, sensors, and massive amounts of data and analytics is expected to result in smarter products, processes, and more closely connected customers, suppliers, and manufacturing. Predictive analytics, the Internet-of-Things (IoT), both smart products and smart factories via Industry 4.0, as well as the development and use of advanced materials will be critical to future competitiveness.
- Leverage strengths of ecosystem partnerships beyond traditional boundaries: Adoption of innovation strategies aimed at embracing a broader ecosystem approach, developing and taking advantage of integrated manufacturing and technology clusters and partners, will be a growing imperative going forward. Competitiveness will be directly correlated to the strength and robustness of an organization’s collaborative networks and eco-systems.
- Develop a balanced approach across the global enterprise: Increasingly sophisticated tools and strategies will be required to optimize the global manufacturing enterprise from a talent, technology, operational, financial, tax and regulatory perspective. The core of this approach is achieving a successful balance across a variety of drivers, including talent management, innovation portfolio, cost competitiveness, manufacturing footprint and supply chain in challenging and rapidly evolving new markets. Indeed, both leading companies and countries are taking a more balanced approach by building a foundation for growth across multiple drivers of global competitiveness.
- Cultivate smart, strategic public private partnerships: Governments are becoming increasingly aware of the significant benefits a manufacturing industry provides to national economic prosperity. Likewise, manufacturing companies are keenly aware of the role government policy can play in their success. Therefore, many nations with unfavorable or overly bureaucratic manufacturing policies are working to improve and reform those, invest in greater economic development, and strengthen overall manufacturing infrastructure, while seeking to partner in more productive ways with businesses. Leading companies, in turn, are targeting new, smart and strategic public/private partnership models to help drive improvements not possible alone, resulting in non-traditional business-public sector alignments as the global competitive playing field undergoes a significant transformation at both the company and country level.
In summary, our full study offers a critical and timely jumping-off point for companies and economies as they make strategic investments in advanced manufacturing technologies and enact public policies designed to spur post-industrial era manufacturing growth. We hope, both government heads and company CEOs adopt key takeaways from this study to reshape the future of manufacturing.
Be sure to visit our GMCI Interactive Website to drill down into additional findings.
If you didn’t have an opportunity to view the first two post in the three part series, please be sure click the following links to read about additional findings from the Global Manufacturing Competitiveness Index study: competitiveness rankings and drivers of manufacturing competitiveness.
Join the conversation on @DeloitteMFG #GMCI16
Posted by Michelle Drew Rodriguez
In the first blog post I recently wrote about the 2016 Global Manufacturing Competitiveness Index, which I coauthored with several colleagues at Deloitte (including Craig Giffi, Vice Chairman, US Automotive Leader and Tim Hanley, Global Manufacturing Leader) and in collaboration with the US Council on Competitiveness, I primarily discussed country rankings revealed in the Index. The study is modeled from earlier versions we released in 2010 and 2013, and the findings are based on an in-depth analysis of survey responses from more than 500 chief executive officers and senior leaders at manufacturing companies around the world. A number of interesting findings arose this year.
Posted by Michelle Drew Rodriguez
In a study I recently coauthored with several colleagues (including Craig Giffi, Vice Chairman, US Automotive Leader and Tim Hanley, Global Manufacturing Leader) and in collaboration with the US Council on Competitiveness, executives indicated the United States is expected to be the most competitive manufacturing nation, moving China into the number two position by 2020. The study-2016 Global Manufacturing Competitiveness Index-by Deloitte Touche Tohmatsu Limited (Deloitte Global) and the Council on Competitiveness (Council)-follows earlier studies we released in 2010 and 2013. This year’s rankings are based on an in-depth analysis of survey responses from more than 500 chief executive officers and senior leaders at manufacturing companies around the world, and a number of interesting findings arose.
Posted by Joe Mariani
It’s not just for consumers and smart gadgets. Whether you call it the Internet of Things (IoT), Industry 4.0, Machine 2 Machine communication or any of the other names by which it goes, the connectivity of devices was among the most talked about technologies of 2015.i While many manufacturers and logistics providers have jumped on board and are using IoT to improve inventory visibility or flows through the production floor, there are still some hurdles to adoption. As we discussed in a recent article, the vast majority of IoT applications right now serve only to cut costs or increase efficiency. While the costs of sensors and computing have dropped in recent years, using IoT solely for cost cutting still may not be enough to justify the initial investment required.
Posted by Michelle Drew Rodriguez
Today’s manufacturing is increasingly driven by advanced technology and innovation–in some places, the most advanced, where the digital and physical worlds have fully converged. Manufacturing is a central part of our lives and more essential than ever to economic competitiveness and national prosperity. But today, we face an increasingly competitive global environment where America’s technology and innovation leadership faces fresh and persistent challenges.
Figure 1: Advance manufacturing industry facts
In the United States, advanced industries represent 17 percent of GDP. They are a catalyst for innovations that increase productivity and profit margins across the entire economy. They’re a source of high-skill, high-paying jobs—since 1975, average wages in US advanced industries have increased five times as much as in industry overall. And for every job created in technology-intensive manufacturing, 16 additional jobs are created. Today, advanced industries employ and support 40 million workers. These industries elevate an entire nation’s standard of living and generate the high-tech exports that drive a nation’s ability to compete globally.
High-tech manufacturing fuels innovation. Twenty-first century manufacturing competitiveness has brought the digital and physical worlds into full convergence and today advanced hardware meshes seamlessly with advanced software, sensors, big data, and analytics. The result? Not only smarter products and processes, but also more closely connected customers, suppliers, and manufacturers. In the United States, advanced industries employ 80 percent of the engineers, generate about 85 percent of new patents, perform 90 percent of private-sector R&D, and account for 60 percent of all exports.
Continue reading “Why advanced manufacturing matters”
Posted by Monika Mahto
As additive manufacturing nears everyday use, business managers must get onboard with the technology basics and underlying benefits
I’m headed to Bangalore for an annual tech conference. Over the years I’ve come to know a lot of other regular attendees, and we have debated and discussed many technologies as they move from the theoretical to the applied state. The evolution, development, and application of Additive Manufacturing (AM) has been one of our favorite topics–and just look at how far that technology has come. We are fast approaching using 3D printing in our everyday lives. It’s possible there may even be 3D printed parts on the large commercial aircraft I am about to board!
Continue reading “Getting business on board with additive manufacturing”