IDC FutureScape: Worldwide Manufacturing 2018 Predictions
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1 IDC FutureScape: Worldwide Manufacturing 2018 Predictions Kimberly Knickle, Vice President Simon Ellis, Vice President November 8, 2017 IDC
2 Logistics Today s Speakers Submit any questions to insights@idc.com You can download slides using the Attachments tab For additional IDC FutureScape topics, visit and click on the Events tab Kimberly Knickle Vice President To learn more about IDC s IT Executive Programs visit Join the Conversation in the IDC Community: Simon Ellis Vice President IDC 2
3 IDC FutureScape: Worldwide Manufacturing Ecosystems and Experiences: By 2020, 60% of G2000 manufacturers will rely on digital platforms that enhance their investments in ecosystems and experiences and support as much as 30% of overall revenue. Embedded Intelligence: By 2021, 20% of G2000 manufacturers will depend on a secure backbone of embedded intelligence, using IoT, blockchain, and cognitive to automate large-scale processes and speed execution times by up to 25%. Data Capitalization: By 2020, 75% of all manufacturers will participate in industry clouds, although only one-third of those manufacturers will be monetizing their data contributions. IT-OT Organizations: By 2019, the need to integrate operational technology and information technology as a result of IoT will have led to more than 30% of all IT and OT technical staff having direct project experience in both fields. Customer-Driven Design: By 2019, 50% of manufacturers will be collaborating with customers and consumers on product designs through crowdsourcing, VR, and product virtualization, with up to 25% improvement in product success rates. The Service Gig Economy: In 2020, AR and mobile devices will drive the transition to the gig economy in the service industry, with "experts for hire" replacing 20% of dedicated customer- and field-service workers. The Thinking Supply Chain: By the end of 2020, one-third of all manufacturing supply chains will be using analytics-driven cognitive capabilities thus increasing cost efficiency by 10% and service performance by 5% Supply Chain Commerce Networks: By 2020, 80% of supply chain interactions will happen across cloud-based commerce networks, improving participants' resiliency and reducing the impact of supply disruptions by up to one-third. Market-Driven Assets: By 2020, 25% of manufacturers in select subsectors will have balanced production with demand cadence and achieved greater customization through intelligent and flexible assets. Intelligent Assets: By 2019, 15% of manufacturers that manage data-intensive production and supply chain processes will be leveraging cloud-based execution models with edge analytics for real-time visibility and operational flexibility. IDC 3
4 Drivers for Manufacturing Accelerating Digital Transformation (DX) - Technology-Centric Transformation Altering Business and Society DX Delta - Leaders and Disruptors Widen Performance Gap Platform Disruption Unleashing Digital Innovation s Power for Scale Human vs Machine - the Impact of AI and Automation Sense, Compute, Actuate The New Data-Centric Paradigm Innovation Impasse Legacy Systems Constraining Transformation Empowering the Material World Revolutionized Processes Expand Technology Reach For additional details on the above Drivers, please refer to IDC FutureScape: Worldwide Manufacturing 2018 Predictions (Doc # US ) IDC 4
5 IDC FutureScape: Manufacturing Predictions Highlights 1. Ecosystems and Experiences: By 2020, 60% of G2000 manufacturers will rely on digital platforms that enhance their investments in ecosystems and experiences and support as much as 30% of overall revenue. 2. Embedded Intelligence: By 2021, 20% of G2000 manufacturers will depend on a secure backbone of embedded intelligence, using IoT, blockchain, and cognitive to automate large-scale processes and speed execution times by up to 25%. 3. Data Capitalization: By 2020, 75% of all manufacturers will participate in industry clouds, although only one-third of those manufacturers will be monetizing their data contributions. 4. IT-OT Organizations: By 2019, the need to integrate operational technology and information technology as a result of IoT will have led to more than 30% of all IT and OT technical staff having direct project experience in both fields. For additional details on the above Predictions, please refer to IDC FutureScape: Worldwide Manufacturing 2018 Predictions (Doc # US ) IDC 5
6 Prediction 1 By 2020, 60% of G2000 manufacturers will rely on digital platforms that enhance their investments in ecosystems and experiences and support as much as 30% of overall revenue. IT Impact IT Governance - Requirements definitions for openness and security, enterprise architecture Platform Owners Include capabilities that draw participation and create business value Source of truth" for business interactions Guidance Evaluate pre-assembled digital platforms Explore your options for integration and security Consider standards and next gen security Revisit your ecosystem and experiences requirements frequently IDC 6
7 Prediction 2 By 2021, 20% of G2000 manufacturers will depend on a secure backbone of embedded intelligence, using IoT, blockchain, and cognitive to automate large-scale processes and speed execution times by up to 25%. IT Impact Guidance Responsibility for building the case for large scale IoT roll outs Bringing together the tools to incorporate artificial intelligence and machine learning Learning blockchain and educating stakeholders on the best use cases, what's real, what's not Focus on the business outcomes, rather than the technology or performance measures. Keep experimenting on how you can best integrate new technologies for embedded intelligence Embedded Intelligence IoT Blockchain Cognitive IDC 7
8 Prediction 3 By 2020, 75% of all manufacturers will participate in industry clouds, although only one-third of those manufacturers will be monetizing their data contributions. IT Impact Security architectures and data governance Increased collaboration with OT to create secure connectivity within operations Applying big data analytics and cognitive/artificial intelligence to large quantities of information Guidance Avoid proprietary industrial platforms Review your options and prioritize transparency Create business value from the data, through analytics and/or by combining information sources IDC 8
9 Prediction 4 By 2019, the need to integrate operational technology and information technology as a result of IoT will have led to more than 30% of all IT and OT technical staff having direct project experience in both fields. IT Impact Focusing less on gatekeeping and more on collaboration and satisfying business objectives New talent will be less IT-focused, more business executionfocused. Supporting ongoing training for this new breed of employees Guidance Develop a plan to allow new technical subject matter experts to balance technical responsibilities with operational requirements Take advantage of investments in digital training programs Integrate ongoing training with hands on learning environments such as fab labs and learning factories IDC 9
10 Q&A Today s Speakers Kimberly Knickle Vice President Simon Ellis Vice President Ecosystems and Experiences: By 2020, 60% of G2000 manufacturers will rely on digital platforms that enhance their investments in ecosystems and experiences and support as much as 30% of overall revenue. Embedded Intelligence: By 2021, 20% of G2000 manufacturers will depend on a secure backbone of embedded intelligence, using IoT, blockchain, and cognitive to automate large-scale processes and speed execution times by up to 25%. Data Capitalization: By 2020, 75% of all manufacturers will participate in industry clouds, although only one-third of those manufacturers will be monetizing their data contributions. IT-OT Organizations: By 2019, the need to integrate operational technology and information technology as a result of IoT will have led to more than 30% of all IT and OT technical staff having direct project experience in both fields. Customer-Driven Design: By 2019, 50% of manufacturers will be collaborating with customers and consumers on product designs through crowdsourcing, VR, and product virtualization, with up to 25% improvement in product success rates. The Service Gig Economy: In 2020, AR and mobile devices will drive the transition to the gig economy in the service industry, with "experts for hire" replacing 20% of dedicated customer- and field-service workers. The Thinking Supply Chain: By the end of 2020, one-third of all manufacturing supply chains will be using analytics-driven cognitive capabilities thus increasing cost efficiency by 10% and service performance by 5% Supply Chain Commerce Networks: By 2020, 80% of supply chain interactions will happen across cloud-based commerce networks, improving participants' resiliency and reducing the impact of supply disruptions by up to one-third Market-Driven Assets: By 2020, 25% of manufacturers in select subsectors will have balanced production with demand cadence and achieved greater customization through intelligent and flexible assets. Intelligent Assets: By 2019, 15% of manufacturers that manage data-intensive production and supply chain processes will be leveraging cloud-based execution models with edge analytics for real-time visibility and operational flexibility. IDC 10
11 Meet the Analysts KIMBERLY KNICKLE Vice USA SIMON ELLIS Vice President USA Click here to learn more about all of IDC s FutureScape 2018 Predictions. 11
12 IDC Helps You Succeed on Your DX Journey PLANNING EXECUTION COMPETITIVE ADVANTAGE SPEED Digital Strategy Crafted Digital Roadmaps Created Technology Investments Made Technology Partners Selected IDC helps you define your digital strategy and strategic priorities IDC helps you prioritize the programs and use cases for your digital roadmap and develop the IT capabilities required for DX IDC helps you identify the technologies that will provide you with a unique differentiator IDC helps you vet technology partners that can bring your innovations to market faster IDC s IT Executive Program is committed to supporting your business globally in your Digital Transformation journey. We help clients mitigate risk, apply innovation, speed time to market, and drive business outcomes across IT and the line of business. Cost and Options For information on IDC workshop pricing and options please contact your IDC Account Manager, call , or insights@idc.com. 12
13 IDC is Uniquely Qualified to Assist with Your DX Initiatives 450+ digital transformation use cases for inclusion in your digital roadmap Dozens of KPIs specifically developed for the digital enterprise Digital maturity benchmarks to assess how your organization compares with peers Research on the most appropriate organizational structures for your stage of DX Architectural maps for an enterprise digital platform Blueprints of DX capabilities IDC 13
14 IDC s CIO & Tech Exec Forum Join IDC s exclusive LinkedIn forum designed for IT executives for learning opportunities, direct access to IDC s industry experts and complimentary research Please note: Membership is restricted to technology executives (i.e., CIOs, CSOs, CISOs, VPs, etc) or their equivalent involved in the purchase, evaluation or recommendation of IT products/services within their organizations. IDC 14
15 IDC Offers Unmatched Global and Local Expertise More than 1,100 Analysts located in over 50 countries worldwide, with 49% of analysts in emerging markets Significant primary demand-side research more than 300,000 end users surveyed annually Providing global, regional, and local expertise on technology & industry trends in over 110 countries IDC,
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