Navigating Digital for Manufacturing sector

Transcription

1 Navigating Digital for Manufacturing sector RAOTM Keynote Address Samiron Ghoshal, Partner, Advisory / Industry 4.0 Leader, KPMG 31 st January, 2018

2 Global trends influencing the manufacturing industry

3 Global Trends Manufacturers increasingly need to develop, produce and deliver more customised products in a shorter time to higher cost and quality standards Volume per product 1955 Mass production Customised production 2000 Globalisation Regionalisation Handcrafted production Personalisation 1850 Product variety Source: Bauernhansl et al: Industrie 4.0 in Produktion, Automatisierung und Logistik, Springer

4 Change in Business Models IMMEDIATE TO NEAR TERM LONGER TERM Operational efficiency Asset utilisation Operational cost reduction Improved worker productivity, safety and working conditions New product and services New business models Pay per use Software based services Product service hybrid Additive manufacturing Outcome based Pay per outcome (everything as a service) Uberization!! New connected ecosystems Platform-enabled marketplace Industry blurring (digital substitution) Circular economy Product Service Outcome 4

5 What Leaders do

6 WHAT LEADERS DO Integrate Leaders are integrating their strategy across the business, optimising value through both smart products and smart processes 10 6

7 WHAT LEADERS DO Seek for scale Leaders are pro-actively engaging with both their customer base and their supply base to realise the full potential of Industry

8 WHAT LEADERS DO Upgrade skills The leaders are leveraging high tech manufacturing to attract a new workforce and get ahead of the talent curve by recruiting from nontraditional tech sectors 12 8

9 Challenges for manufacturing industry in the Digital era

10 Some specific challenges in manufacturing Expanding the offering set Sector convergence Disruptive technology Access to the right skills and talent 10

11 However, according to our survey, now is the time Connectivity is pervasive, real time and portable Potential savings and growth opportunities fuel investment Low cost, reliable hardware Computing power is enabling machine learning and artificial intelligence Analysis enables new business models 11

12 Plenty of emerging technology applications available Advanced analytics digest disparate data to reduce forecasting errors Big data use internal and external signals to adapt planning Advanced analytics allow for cost reduction through detailed insights into supplier spend Robotic automation leads to zero FTE shop floor Augmented Reality glasses increase efficiency and reduce errors in warehouse picking and packing Autonomous vehicles increase the last mile efficiency for delivery and returns Augmented Reality allows for trying out products before a purchase which can lower the product return rate PLAN SOURCE MAKE DELIVER RETURN Social media provide information about localized variations in demand AI and machine learning automatically adjust to new information to improve demand forecasting Blockchain can facilitate transactional systems to become more resilient, transparent and secure Cyber-physical systems enhance quality control through sensors and control devices and move equipment maintenance from reactive to proactive Digital identifiers allow for real-time visibility of the status and conditions of tracked assets Linking physical goods with a unique digital identity through Blockchain enables tracking all goods to their origin and preventing fraudulent returns 3D printing supports transition to make-to-order Internet of Things connects physical devices and provides real-time data Cloud allows for decentralization of supply chain systems Accessible data visualization enables remote monitoring and data sharing Legend Fully mature and widely used Highly mature Moderately mature Ongoing development In initial stages of development 12

13 Yet only technology will not make you SMART Key barriers to a successful business transformation according to research 37% Underestimation of the significance 31% Inadequate or legacy technology 35% Lack of change management 30% Resource constraints 29% Metrics poorly defined 29% Existing corporate culture 19% Limited or poor decision making 19% Poor alignment with customers needs 13

14 Reality kicking in the hype phase is over Manufacturing s next act Digital manufacturing: The revolution will be virtualized Hopes for Industry 4.0 remain high Major implementation barriers to overcome before capitalizing on Industry 4.0 Technology & Solutions Value & Change 14

15 Digital transformation model - simplified DELIVERABLES STAGES 1 2 Strategy Vision DIRECTION SETTING Digital Vision Digital Strategy C-level agenda (+ high-level business case) Sr. management buy-in 3 Objectives 4 Culture & Change 5 6 Current maturity Solutions Business case Visibility on current state and transformation complexity Benefits statement FEASIBILITY STUDY 7 8 Customer research Plan 9 10 Model Strategy Mobilized organization High-level and Detailed design Target operating model BUSINESS & SOLUTIONS DESIGN Operation model Digital roadmap PREPARATION OF EXECUTION Change Execution planning Ready for implementation Target Application model Solution architecture Pre-diagnostic To facilitate and support clients to turn the digital ambition of the boardroom into a shop floor reality, use a proven digital transformation model Execution 15

16 5 key take-aways 1 Be bold. Industry 4.0 leaders are closing the gap between their ambition and reality 2 Think big. Driving enterprise value from Industry 4.0 will require scale through value chain integration 3 Start and end with performance. Focus on impacts and strategy, not technology 4 Plan ahead. You can t buy excellence in Industry 4.0; it takes work and a roadmap aligned with your strategic goals 5 Assess yourself. Understand where you stand versus your competitors 16

17 Thank you!

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