Don’t Transform Manufacturing: Reconfigure it. · is proprietary to Gartner, Inc. and/or its affiliates and is for the sole internal use of the intended recipients. Because this

© 2019 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This presentation, including all supporting materials,

is proprietary to Gartner, Inc. and/or its affiliates and is for the sole internal use of the intended recipients. Because this presentation may contain information that is confidential,

proprietary or otherwise legally protected, it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.

Simon Jacobson

@simonfkj

Don’t Transform Manufacturing:Reconfigure it.

2 © 2019 Gartner, Inc. and/or its affiliates. All rights reserved.

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“I would like all of us to put our

customers at the center of

everything we do. That sounds

obvious but it doesn’t always

happen. We must listen … then

respond in a fast coordinated

way”

— Guillaume Faury, CEO Airbus


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93%OF MANUFACTURERS CLAIM

MANUFACTURING OPERATIONS

ARE AN INTEGRAL COMPONENT

OF THEIR DIGITAL SUPPLY CHAIN

STRATEGIES

71% OF MANUFACTURING

DIGITIZATION EFFORTS ARE

SEPARATE BUT PARALLEL TO

DIGITAL SUPPLY CHAIN

INITIATIVES


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REVOLUTION TRANSFORMATIONRECONFIGURE

5 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates.

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Smart Manufacturing is acultural shift and a

reconfiguration of existing organizational

mindsets


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4 Ways To Reconfigure Manufacturing Operations

1. Disrupt How Outcomes Are Approached

2. Go Beyond Smart Factories

3. Shift From Project To Program

4. Prepare For The Big Unlearn


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8 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Secondary effects

will be more

disruptive than the

initial change


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Customer Experience

Disrupt How You Approach The Outcome

Transparency

Cost

Quality

Service Levels


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Data Needs To Be A Conversation Starter.

Not A Conversation Ender.


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Pace of

Discovery,

Learning and

Execution of

Change

Automated

Breadth of Data Access + Analytical Techniques, and

Organizational Capability

Manual, Ad Hoc,

Start, Stutter, Stop

Today’s Dialogue Is Narrow

Automated

Visibility

ImproveUnderstanding

Reconfigure Knowledge

Transform

Source: “Artificial Intelligence Will Make Manufacturing Smarter—But a Learning Curve Comes First”, Gartner, 2018


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Digitized Production SystemPrecisely Timed Decisions Improvement Without Emotion

What’s Achievable

Source: “Evolve Your Manufacturing Intelligence Strategy to Keep Pace With New Analytics Requirements” Gartner, 2018


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Dreams of Zero Touch, Zero Lead Time


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Digital Business* Optimization

Digital Business Transformation

Better Customer Experience

Improved Productivity &

Existing Revenue

New Business Models

Net-New Revenue Product

and Services

Digital Business Strategy

Where Does Manufacturing Fit?

*Client POV: Digital Transformation


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Product Life Cycles

Supply Network

Design

Cost Optimization

Planning Horizons

Ecosystem

Smart Factories

Synchronize With The Supply Chain Operating Model


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Digitization Plans For The Next Two Years

Base sizes vary by process/activity

Q: Please tell us what the state of each manufacturing process/activity will be 2 years from now?

22%

25%

14%

13%

18%

18%

19%

49%

45%

54%

46%

41%

40%

39%

29%

30%

33%

40%

41%

41%

43%

Lean & CI (n=142)

Asset Care/Maintenance (n=150)

Changeovers (n=147)

Reporting/KPI Management (n=121)

Quality (n=157)

Materials Logistics (n=131)

Production Planning (n=135)

Completely Manual Mostly Manual with Digital Support Automated With Digital


RESTRICTEDSource: “Survey Analysis: Lights Out Manufacturing is More Than Factory Automation” (G00329420)

Customer Service

Planning

(Short and Long Term)

Logistics and Delivery

Sourcing and Procurement

Manufacturing Operations

Converge and Influence Other Functions

mailto:https://www.gartner.com/document/3830065?ref=solrAll&refval=207319942&qid=993a1fb07800a46ec778039b2e569b66


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What Happens When Digital Defines Your Strategy


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Digital Hype Pressures The Manufacturing Improvement Portfolio Balancing Innovation with Core Competency

Mainstream Adoption

Emerging Practices

What should we prepare for?

Where should we focus today?

What should

be

completed?

Source: “Hype Cycle for Manufacturing Operations Strategy, 2018”, Gartner 2018


https://www.gartner.com/document/3884015



RESTRICTEDSource: “Toolkit: Self-Assess Your Manufacturing Operations Maturity” (G00349158)

Manufacturing

StrategyProcess Focus

Operational Visibility

Technology

Goals and Objectives

Organization and Culture

Manufacturing Network

Metrics

A Balanced Roadmap is Needed



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We Are Asking The Wrong Talent Question


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Inability to recruit and hire from the outside

No formal knowledge management process

Existing employees struggle to embed digital into

their day-to-day work

Lack of skilled workers inside the company to

support digitization plans

No formal career path/skills development

for existing employees

Lack of mentorship programs between

new and current employees

56%

52%

50%

50%

41%

40%

A Digitally-capable Workforce Requires More Than Fixing Recruitment

Q: When digitizing the manufacturing operations, what were/are/will your company's top constraints with respect to skills and talent?

Base: All Respondents, n = 205, Percentage of Respondents Sum of Top 3 Rank Shown

Percentages may not add to Sum due to rounding


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New Organization Models Nurture Natural Interaction

Cultivate Digital Dexterity

New Competencies

Source: How to Overcome Three Obstacles to Accelerate Innovation in Manufacturing Operations With Bimodal Gartner, 2017

https://gartner.com/doc/3714244?ref=shareSummary


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“Failure is so important. We

speak about success all the

time. It is the ability to resist

failure or use failure that

often leads to greater

success. I’ve met people who

don’t want to try for fear of

failing.”

— J.K. Rowling


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“50% of the time

we didn’t know

what we were

doing”


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Smart Manufacturing is acultural shift and a

reconfiguration of existing organizational

mindsets


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In Order To Succeed

▪ Distinguish “problem solving” from “opportunity creation”. This is a

mindset shift.

▪ Your existing capacity is your greenfield opportunity. Invest in—and

maximize—the core.

▪ Focus on the next level of performance and capability for the

customer—not just automating factories. Synchronize activities with

other supply chain functions

▪ Dedicate attention to people and process, not just technology.

Without process change you’ll just spend money.

© 2019 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This presentation, including all supporting materials,

is proprietary to Gartner, Inc. and/or its affiliates and is for the sole internal use of the intended recipients. Because this presentation may contain information that is confidential,

proprietary or otherwise legally protected, it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.

Don’t Transform Manufacturing:Reconfigure it.

[email protected]

617.851.9061

Documents

Don’t Transform Manufacturing: Reconfigure it. · is proprietary to Gartner, Inc. and/or its affiliates and is for the sole internal use of the intended recipients. Because this