The best takeaways from Digital Manufaturing Global Expert Survey

The best takeaways from Digital Manufaturing Global Expert Survey

At PackIOT we are consistently looking for ways to help the companies develop strategies for their digital transformation journey. We are always reaching for new content, reading reports, looking for articles to help our leads and customers to develop a good strategy and creating new free tools and resources to deliver value back to the manufacturing industry.

Earlier today, I read a McKinsey’s report named Digital Manufacturing Global Expert Survey: Escaping Pilot Purgatory. Although the survey was run three years ago – in a completely different environment – it still brings some valuable insights into how manufacturers’ struggles when moving towards digital transformation are not different from country to country. It also brings some concerning behaviors by those manufacturers that are contributing to build what McKinsey call “pilot purgatory”, which means that the manufacturing companies have significant activity underway, but are not yet seeing meaningful bottom-line benefits from them.

Different companies from around the globe often make the same missteps when it comes to Digital Manufacturing strategy and implementation. In order to escape these so-called “pilot purgatory”, and to capture and sustain the value from digital technologies, McKinsey recommended that organizations focus on six success factors, but we will filter for you the best ones:

“Approach the opportunity ‘bottom-line value backwards’”

It is easy for companies to be led by what is exciting when you have a lot of different digital solutions in the world. You should start by beginning with a clear view on how those solutions can address your operational pain points, how they create competitive advantage for your company and drive bottom line impact is key to ensure tangible returns: Determine the value-creation potential.

Understanding your company-specific situation will be key in determining the potential value at stake of a Digital Manufacturing transformation.

“Establish a clear vision for Digital Manufacturing and a phased road map to get there”

The concern that a lack of vision is a significant obstacle to digital transformation has grown over the years. And three principles can help manufacturing companies to create a real vision for Digital Manufacturing:

Think holistically: look down the road and make technology decisions based on what will build a long-term competitive advantage for your company.

Showcase the benefit: making the benefit of a particular technology clear to all is critical. Integrate pilots as showcases to train and inspire the organization.

Create an ROI road map: this road map should be based on both a clear definition of the size and nature of the business opportunity and a precise understanding of the IT and OT architecture and resourcing requirements.

“Drive the transformation from the top”

Capturing the full potential value from Digital Manufacturing requires a consistent approach by the executive-level leadership and P&L commitment. Top teams should appoint an executive-level transformation leader. Ensuring a sufficient pace and widespread adoption of Digital Manufacturing requires the commitment of the C-level and P&L owners.

Also companies should have integrated decision making. A fragmented or disjointed application of digital technologies will undermine the ultimate success of your digital transformation. Coordination across all plants, geographic locations or even different functions is essential.



Digital Manufacturing Global Expert Survey: Escaping Pilot Purgatory was created by McKinsey.