9 May
2019

Will You Be Able to Catch Up to Industry Leaders? - Part 1

Leaders in terms of adoption of 4.0 technologies are making significant progress. Do you have what it takes to unlock the same potential? Learn more about their practices in this first article.

Artificial Intelligence
Smart Factory
Technology
IIoT
Will You Be Able to Catch Up to Industry Leaders? - Part 1

Over the past decade, the manufacturing industry has experienced what some may call "productivity stagnation and demand fragmentation", leading to a serious need for innovation. That's where the Fourth Industrial Revolution comes in. This revolution is bringing tremendous increases in efficiency with minimal worker displacement. McKinsey & Company has identified sixteen of what they named "lighthouses", being the world's most advanced companies implementing 4.0 technologies. As mentioned, "they demonstrate how forward-thinking engagement of technology can create a better, cleaner world through new levels of efficiency in manufacturing. Likewise, they illustrate how Fourth Industrial Technology at scale can transform the nature of work itself by upskilling and engaging human workers"

Screen Shot 2019-05-14 at 3.47.21 PM

 


So what trends are driving this shift? Connectivity, flexible automation and intelligence. Technology adoption can have huge impacts on organizations. a McKinsey Global Institute analysis revealed that companies considered as laggards will have an important gap to bridge between companies that are currently opting for technologies such as artificial intelligence within the first five to seven years of falling behind. Those seen as forerunners are to expect a cumulative 122% cash flow change while followers will see impacts nearing 10%.

 

Screen Shot 2019-05-14 at 3.47.09 PM

 

What does it mean to be a lighthouse?

What is it that these organizations do differently in their strategies, decision-making and daily operations? We will uncover what it is they do differently to fully take advantage of 4.0 advancements.

  • Injections in human capital: Lighthouses are not aiming to replace their operators by 4.0 technologies. Instead, they invest in technologies that contribute to making their operators' tasks and routines less repetitive, more interesting, diversified and productive. In fact, a McKinsey report states that actually less than 5% of occupations consist of tasks that are completely automatable. On the other hand, 62% of professions have minimally 30% of their work that can be automated.
  • Resetting benchmarks: Essentially, these organizations are redefining standards for operational and financial key performance indicators. By doing so, operations are altered, leading to performance increases. Consequently, with 4.0 technologies, they are able to further engage in continuous improvement initiatives.
  • Open innovation and collaboration: To succeed in your shift to 4.0 manufacturing, it's important to surround yourself with the right enablers. More often than not, lighthouses are involved in ecosystems that foster innovation such as universities, start-ups, small-medium enterprises, and other technology suppliers.
  • Minimal replacement of equipment: Your current equipment does not represent a barrier to innovation. Hefty investments in your facilities are not necessary to implement 4.0 technologies. Many of these lighthouses only transformed existing, underdeveloped operations.

Now that you've learned more on the characteristics that make lighthouses front-runners in terms of innovation, the second article will cover some methods and value drivers to scale this shift within your factories. 

Stay tuned!

To consult McKinsey & Company's full report, click here.

 

Want to learn more?
Download the ebook
Related blog articles

Related articles

Back to the blog
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
22
May 2019

Quel type de leader 4.0 êtes-vous?

French
23
Oct 2019

How To Know If You Are Receiving Reliable Data from Your Production Line

English
19
Apr 2021

Learn How to Improve Raw Materials Yield by Connecting Your Scales and Checkweighers

English

Related articles

Back to the blog
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
23
Jan 2024

Optimizing Company-wide Operations: Data Analytics in the Manufacturing Industry With Worximity

Explore how Worximity is reshaping manufacturing by harnessing real-time data analytics, bringing efficiency and innovation to Industry 4.0 while empowering departments beyond production management.

English
9
Jan 2024

Manufacturing Trends to Lookout for in 2024

As we look at manufacturing trends for 2024, pressure to stay on top of current trends and maintain competitiveness are at an all-time high

English
21
Dec 2023

Les coûts multiples liés aux problèmes de contrôle de la qualité

Mesurer les rejets et les défauts de qualité est essentiel dans un contexte d’initiatives de production Lean et d'amélioration continue. Découvrez les principaux coûts liés aux rejets de qualité en lisant cet article.

French