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Manufacturing ReinventedHow Technology is Changing the Future of Manufacturing

A TCS White Paper

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Author(s)

Vice President and Global Head, Manufacturing, TCSMilind Lakkad

• Milind heads the Manufacturing Industry Solutions Unit (ISU) that serves Automotive, Aerospace, Industrial Machinery and Process customers globally. Milind has spearheaded strategic programs in various process areas like product development, supply chain, sales and marketing and customer service, for a number of marquee customers in the Manufacturing Industry.

Head, Innovation & Transformation Group, Manufacturing, TCS

Sreenivasa Chakravarti

• Sreenivasa Chakravarti leads the Innovation and Transformation Group – the cutting edge domain consulting group and a part of the Manufacturing Industry Solutions Unit of TCS. Sreenivasa brings over 21 years of experience, ranging across Consulting, IT and Manufacturing. He brings in cross functional experience covering strategy planning and execution, sales and marketing, corporate planning, HR, IT and production.

Client Partner, US Automotive, Manufacturing, TCSRamit Rastogi

• Ramit Rastogi leads an important US-based automotive relationship for TCS. He has been with TCS for over 12 years and has worked in multiple roles in sales, consulting, delivery, large transition management and development of bespoke ERP solutions. He has a Bachelor’s degree in engineering and a Master’s degree in project management.

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Introduction

Manufacturing industry is undergoing high-impact changes

Constantly evolving technological landscape is driving reorientation of business models across industries

The ‘shift’ in the way manufacturing industry operates is attributed to:

• Competitive forces that drive creative differentiation

• Re-orientation of socio-economic drivers of consumption patterns

• Evolution in factors of production

Technology convergence is creating newer waves of competitive differentiation, resulting in what we refer to as the seven mega trends of the manufacturing industry.

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Mega Trends Impacting the Manufacturing World

• Manufacturers are devising mechanisms to reach end consumers, more aggressively than ever

• ‘Customer experience’ is gaining spotlight and fast becoming a source to create competitive differentiation

• Customer-centric business systems like, interactive portals/websites, POS, service contracts, etc., are on the rise

‘Consumerization’ of manufacturing

– from B2B to B2B2C

• Virtual collaboration platforms are gaining prominence as global manufacturers use it to work with dispersed suppliers to better understand product behavior

• Virtualization reduces testing time and ensures high product quality, along with reducing time-to-market

Virtualization and digitization

– global collaboration from product design to

customer service

• Scalable supply chain that provides increased visibility from the vendor to the consumer is absolutely essential

• Plays a key role in collaboration throughout the process, right from demand planning to co-innovation and product planning

Supply chain network economy

for better management of B2C aspirations

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Mega Trends Impacting the Manufacturing World

• Simplifying internal operations is a pressing need• Modular production facilities enabling ‘lift-n-shift’

operations are fast coming into play• Ability to mix-n-match product components is

another emerging trend

Complexity reduction & Modularization of

business

• Trends indicate an increasing use of materials that are high on performance, low on cost, and even lower on carbon footprint

• Applying next generation technologies to this new breed of materials is sure to create differentiated products

Product design, Material science, & Sustainability

• Mobility, connected marketing, social media, listening services, and analytics are accelerating a change in business model to B2B2CNext Gen Technology

• Large centralized manufacturing units are giving way to networks of smaller modular factories, which are closer to centers of demand

• Logistics and supply chain optimization are becoming increasingly critical

Evolution of the manufacturing model

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Changing Business Models

As mega trends gain ground, manufacturing industry is witnessing a change in business models. Our study of leading players in the four sub-industries – aero, auto, process, industrial equipment – revealed that the ‘center of gravity’ for each is shifting visibly.

Aero suppliers are increasingly aligning their business models to those of airplane manufacturers

Chemical industry, traditionally focused on operational excellence, is now exploring collaborative production options

Auto industry is leading the pack through technology-led product innovation

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Evaluating the Consumer’s Business Drivers is the key

To understand how business models are evolving, we studied some manufacturing companies and the consumers that buy from them. This in-depth analysis gave us clues to the ‘real’ pull factors that help manufacturing companies in creating newersources of differentiation.

Having a clear understanding of the consumer’s behavioral patterns and nature of business, is vital for manufacturers wanting to adopt the mega trends stated in this paper, and information technology plays a significant role in this adoption process.

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Call to Action: Leverage Capabilities of a Full Services Integrator

Manufacturers will need the support of a full-services IT partner to play in the 'digitized' business environment that is fast emerging. Service integrators need to play an industry-defining role to stay relevant in the emerging industry context.

The industry is looking to full services integrators for facilitating market entry, rapidly establishing manufacturing facilities, establishing market networks, providing design and deployment capabilities, participating in strategic cost reduction initiatives, etc.

In view of the changing expectations, service providers will need to measure themselves on newer parameters as shown below.

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Engage with us

About the Manufacturing Solutions Unit at TCSGlobal manufacturers are trying to reduce operational expenditure, invest in process improvement, utilize existing capacity optimally and increase efficiencies, while maintaining product quality and meeting safety and regulatory norms. TCS' Manufacturing Solutions provide you the bandwidth to innovate on business models, leveraging contemporary technology solutions.

For more information, please write to us at manufacturing.solutions@tcs.com

About Tata Consultancy Services (TCS)Tata Consultancy Services is an IT services, consulting and business solutions organization that delivers real results to global business, ensuring a level of certainty no other firm can match.

For more information, please visit us at www.tcs.com

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Thank You