© 2018 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
VP Research, Supply Chain
@simonfkj
Transforming Manufacturing Operations In The Digital Age
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93%OF MANUFACTURERS CLAIM
MANUFACTURING OPERATIONS ARE
AN INTEGRAL COMPONENT OF THEIR
DIGITAL SUPPLY CHAIN STRATEGIES
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71% OF MANUFACTURING DIGITIZATION
EFFORTS ARE SEPARATE BUT
PARALLEL TO DIGITAL SUPPLY CHAIN
INITIATIVES
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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.
4 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates.
Digital Pressures The Manufacturing Improvement Portfolio
Peak of Inflated
Expectations
Plateau of
Productivity
Expecta
tio
ns
TimeInnovation
Trigger
Trough of
Disillusionment
Mainstream Adoption
Corporate Production Systems
Synchronized BOMs
Network Design
OEE
Security
Digital Manufacturing
Supplier Quality
Emerging Practices
IoT
AR/VR
Cloud
AI
Digital Twin
Digital Thread
Smart Robots
Cyber Physical
Systems
Mobile
Factories
Source: “Hype Cycle for Manufacturing Operations Strategy, 2018”, Gartner 2018
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Digital Pressures The Manufacturing Improvement Portfolio
Peak of Inflated
Expectations
Plateau of
Productivity
Expecta
tio
ns
TimeInnovation
Trigger
Trough of
Disillusionment
Mainstream Adoption
Corporate Production Systems
Synchronized BOMs
Network Design
OEE
Security
Digital Manufacturing
Supplier Quality
Emerging Practices
IoT
AR/VR
Cloud
AI
Digital Twin
Digital Thread
Smart Robots
Cyber Physical
Systems
Mobile
Factories
Separate Logic And Emotion
Source: “Hype Cycle for Manufacturing Operations Strategy, 2018”, Gartner 2018
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Can You Change the
Wheels on a Moving Bus?
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INTERNAL or RESTRICTED
1. Disrupt How Outcomes Are Approached
2. Automate Beyond The Factory
3. Unlearn and Hack Your Culture
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1. Disrupt How Outcomes Are Approached
2. Automate Beyond The Factory
3. Unlearn and Hack Your Culture
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Customer Experience
Digital Doesn’t Change The Outcome. It Alters Your Approach.
Transparency
Cost
Quality
Service Level
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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
Change How Your Access and Use Production Data
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 SystemImprove Material Yield Improve Without Emotion
What Can Be Achieved
Source: “Evolve Your Manufacturing Intelligence Strategy to Keep Pace With New Analytics Requirements” Gartner, 2018
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1. Disrupt How Outcomes Are Approached
2. Automate Beyond The Factory
3. Unlearn and Hack Your Culture
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New Operating Models Go Beyond Smart Factories
Product Life Cycles
Network DesignLifecycle Cost
Demand
Customer
Smart Factories
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Cultivate Ecosystems Of Connected Processes and Data
Two years from now Today
Partner
Partner
Partner
Partner
Partner
Production
Plan Source Deliver Service
Partner
Partner
Partner
Partner
Manufacturing Processes/Activities That
Are Completely Digitally Automated
Base: All Respondents, n = 205, excludes don’t knows
Which of the following manufacturing process/activity are completely digitally automated today and which will be two years from now?.
24%
36%
32%
22%
33%
46%
43%
34%
Changeovers
Product Release
In-process QA/QC
Incoming Inspection
32%
34%
37%
43%
41%
40%
Production Planning
Materials Logistics
Reporting/KPI Management
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Production Data Is The New Influence: Are You Aligned?
Source: “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
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1. Disrupt How Outcomes Are Approached
2. Automate Beyond The Factory
3. Unlearn and Hack Your Culture
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INTERNAL or RESTRICTED
Smart Manufacturing is a mindset shift and a change to
existing organizational
culture
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Inability to recruit and hire fromthe outside
No knowledge management process for capturing undocumented knowledge from subject matter experts
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%
Becoming Digital Is More Than Recruitment Internal Skills and Talent Concerns Require Attention
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, Life Sciences = 41
Percentage of Respondents Sum of Top 3 Rank Shown
Percentages may not add to Sum due to rounding
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Nurture Natural InteractionHuman Machine Collaboration
Develop Digital Dexterity
New Competencies Learn Intelligently
#fail
Source: How to Overcome Three Obstacles to Accelerate Innovation in Manufacturing Operations With Bimodal Gartner, 2017
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INTERNAL or RESTRICTED
1. Disrupt How Outcomes Are Approached
2. Automate Beyond The Factory
3. Unlearn and Hack Your Culture
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INTERNAL or RESTRICTED
You Can Change the
Wheels on a Moving Bus!Source: “Self Assess Your Smart Manufacturing Strategy” & “Understanding the 5 Stages of Gartner’s Maturity Model for Manufacturing Operations” , Gartner, 2018
© 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and 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.
ReconfiguringManufacturing Operations In The Digital AgeSimon Jacobson
617.851.9061