New Operational Capabilities. Bob Parker Group Vice President, Research

Transcription

1 New Operational Capabilities Bob Parker Group Vice President, Research

2 Research Context Value Chain Segments Asset Oriented Value Chain Engineering Oriented Value Chain Technology Oriented Value Chain Brand Oriented Value Chain Line of Business Chemicals, Metals, Pulp/Paper Automotive, Aerospace, Machinery, High-tech, Semiconductor, Fashion, Food&Beverage, Supply Chain Strategies Look at a segment across domains Product Lifecycle Strategies Operations Technology Strategies Look at a domain across segments Customer Experience

3 Agenda The Productivity Imperative Critical Operational Capabilities 3D Value Chains Essential Guidance IDC Manufacturing Insights Visit us at IDC-mi.com 3

4 Intelligent Economy = Challenges Informed and Resourceful Customers Complex Structures People Premiums Time Compression Information Deluge IDC Visit us at IDC.com and follow us on 4

5 The Productivity Imperative Platform 1 Mainframe to Client/Server Platform 2 Client/Server to Internet IDC Visit us at IDC.com and follow us on 5

6 Critical Capabilities Competitive Priorities for the Intelligent Economy IDC Manufacturing Insights Visit us at IDC-mi.com 6

7 Productivity Increase Productivity Reduce Costs Improve Business Processes Increase Revenue New Product Introductions Meet Compliance Improve Customer Acquistion Improve Security and Mitigate Increase Agility Expand Geographies Improve Multichannel Delivery Attract and Retain Workforce 0% 10% 20% 30% 40% 50% (%) Source: IDC Vertical View Survey, n=400 Process productivity at least half of all corporate standard processes will have automated data acquisition. At least a quarter will have self correction capabilities. On board service revenue will double its share of total industry revenue. Ecosystem productivity manufacturing companies should add 200 basis points of profitability by eliminating coordination waste in their ecosystem. Individual productivity two thirds of development efforts will be on portable interfaces (mobile first) and purpose specific applications Management productivity companies should be able to double their revenue without adding any net new management personnel.

8 Speed Time is measurable Speed can equal lower costs Calculated risk Critical to competitiveness IDC Manufacturing Insights Visit us at IDC-mi.com 8

9 Quality Is a top priority We are primarily a product quality-focused organization We are primarily a cost-focused organization We are primarily a servicefocused organization (%) Total Manufacturing AOVC BOVC EOVC But remains siloed Engineering efficacy Supplier performance Manufacturing Aftermarket IDC Manufacturing Insights Visit us at IDC-mi.com 9

10 Vitality Innovation High Aggressive Leaders Vitality Stability Innovation not Invention Low Laggards Defensive Performance over Leadership Low Stability High IDC Manufacturing Insights Visit us at IDC-mi.com 10

11 Resiliency Resilient Systems - The ability to adapt to changing circumstances while maintaining its central purpose Simple at the core, diverse at the edges Tight feedback mechanisms. Ability to marshal resources (swarm) DISORDER Alignment with only the closest neighbors produces nothing but a disordered swarm.. TORUS Raise the alignment and the chaotic swarm swirls into a doughnut shape called a torus FLOCK Maximize alignment across the flock and the torus shifts; everyone travels in the same direction. 11

12 Technology s Role Creating the 3D Value Chain IDC Manufacturing Insights Visit us at IDC-mi.com 12

13 10 Years after Nicholas Carr: Does IT Matter? Information matters evidenced based innovation Technology matters connected customers, assets, processes But the traditional IT organization may be obsolete The CIO s Lament: I d love to change the world, but I don t know what to do, so I leave it up to you IDC Manufacturing Insights Visit us at IDC-mi.com 13

14 3 Platforms Emerge Enterprise Reporting CFO and HR run Applications drive the data Keep score, stay compliant Evidence Based Innovation LoB run Data drives the applications Be resilient adapt to changing circumstances while maintaining purpose Digital Execution Operations run Context creates bidirectional app to data environment Be connected customers, assets, processes IDC Manufacturing Insights Visit us at IDC-mi.com 14

15 Corporate IT at the Intersection 4I2S Infrastructure Integration Insight Interface Security Sourcing IDC Manufacturing Insights Visit us at IDC-mi.com 15

16 Value of Transformation Digitally Executed Product Economics Resilient SC Service Optimization Future Factory 3D Value Chain Intelligent Industries Data Driven Demand Oriented Now IDC Retail Insights Visit us at IDC-ri.com 5 Year Horizon

17 Value of Transformation Digitally Executed Product Economics 3D Value Chain Servitization Optimization Data Driven Connected Service Platforms Visual Decision Making Systems Eng. Demand Oriented Product Economics and Smart Services Field Service Excellence & Mobility Now IDC Retail Insights Visit us at IDC-ri.com 5 Year Horizon

18 Product strategies become increasingly global, multidisciplinary, innovation-based, and customer-focused Leaders will balance Vitality and Stability Innovation increases in products and materials Growing emphasis on Products as Service Platforms IDC Manufacturing Insights Visit us at IDC-mi.com 18

19 PLM initiatives will focus on value realization. Value through depth and breadth Customer-led and open innovation value of social networks Industry-specific PLM, packaged offerings focus on business value Visual decision making tools become pervasive, facilitate collaboration Value-driven 3D modeling /simulation tools -cloud changes the game PLM analytics deriving value from cost, materials, and performance data Value through integration. Drive service revenue (PLM+SLM for supporting product-as-a-service) Manage product complexity (PLM+ALM for integrating embedded software development) Reduce costs (PLM+ERP for connecting design and procurement) Improve manufacturing efficiencies (PLM+ MES for integrating design and mfg planning, execution) Increase market-driven innovation (PLM+CRM /Social Networks for improved customer alignment) LOB and IT alignment will be critical IDC Manufacturing Insights Visit us at IDC-mi.com 19

20 Servitization Optimization" will be core to future profitable revenue growth and leading manufacturers will make the necessary investments to enable these strategies Most manufacturers have aggressive service revenue goals Investments in Smart after sales service will create enduring, profitable revenue streams; e.g. Products-as-service platforms Leaders integrate service, engineering, and IT teams to modernize service supply chains; Focus on design-for-serviceability and CX Others may not get necessary executive support/investment for transformation to service-centric, and will miss service revenue goals IDC Manufacturing Insights Visit us at IDC-mi.com 20

21 Value of Transformation Digitally Executed Future Factory 3D Value Chain Manufacturing Intelligence Data Driven Future Factory Demand Oriented Standard Mfg. Ops. Platform Now IDC Retail Insights Visit us at IDC-ri.com 5 Year Horizon

22 On their way toward the factory of the future, 2014 will set the stage for a new manufacturing renaissance The manufacturing industry is back on stage as a source of wealth in the Western World. Aging workforce, unattractiveness of plant floor workplace and lack of skilled resources in the marketplace are emerging as top challenges During 2014 manufacturers will be busy making their factories more resilient and improve plant floor visibility. The end goal is making those factories faster to align themselves with the speed of the marketplace. During 2014 and beyond manufacturers will primarily invest in: Standardizing production processes across their network of factories Better coordination of plant floor operations by collating all operational processes under a common orchestration approach IDC Manufacturing Insights Visit us at IDC-mi.com 22

23 Summary Manufacturers should consider staging years to prepare for new levels of business productivity required for the intelligent economy. Operational executives must develop critical capabilities Productivity do more with less (management) Speed time is the new money Quality no product, process, or person left behind Innovation calibrated to market need, balanced Resiliency simple at the core, diverse at the edges IT must build the foundation for LOB led investment and deliver services, not projects Long live Lean Sigma

24 Long Term Planning Assumptions A 5 year horizon IT will move from a project centric organization that must be aligned to a service centric organization that will be evaluated on service consumption. 90% of enterprise IT shops will have a published service catalog. 50% of those will use market pricing. Process productivity at least half of all corporate standard processes will have automated data acquisition. At least a quarter will have self correction capabilities. On board service revenue will double its share of total industry revenue. Ecosystem productivity manufacturing companies should add 200 basis points of profitability by eliminating coordination waste in their ecosystem. Individual productivity two thirds of development efforts will be on portable interfaces (mobile first) and purpose specific applications Management productivity companies should be able to double their revenue without adding any net new management personnel.

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