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Developing a Digital-First Operating Model for Manufacturing  - A Global CXO Survey Report

July 22, 2022 1833 0 Cloud Computing Cyber Security & Privacy Digital Transformation Manufacturing Industry 4.0

Developing a Digital-First Operating Model for Manufacturing  - A Global CXO Survey Report

The manufacturing sector has undergone significant upheaval, and while it’s made great strides forward, the sector still has some way to go on its digital transformation journey. To reach digital maturity, manufacturers will need to navigate several key shifts in the coming years –connectivity will go from single plant to pan-organization, focus will shift from plant instrumentation to workforce communication, and efforts to build digital trust will become even more intensive. To accumulate perspectives from across the world, Tata Communications in collaboration with 451 Research surveyed 186 Manufacturing CXOs to understand where they stood with respect to their digital readiness. The survey indicates that the state of digital transformation in the manufacturing industry is mixed while 80% are in the execution phase of digital transformation strategies, 57% have not even made it to the halfway point in their transformation journey. Facilitating new ways of working in a traditionally ‘bricks and mortar’ industry remains one of the most pressing problems for firms, as manufacturers expect 50% of the workforce to stay remote over the next three years.

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Key Findings

  • Enterprises are shifting attention from machine instrumentation to worker productivity, with 50% looking to replace paper-based and whiteboard shopfloor approaches with digital ones, as a top priority for the next 12-24 months.

 

  • 52% plan to increase spending on private cellular networks (4G/5G) and online meeting platforms to enable adoption of new technologies and boost productivity.

 

  • Securing the remote workforce is a big concern – with 25% stating that authentication, access control, auditing and secure communications remain difficult.

 

  • One thing CXOs don’t seem to be laying enough focus on is their supply chain security – with just 17% seeing the security of their partner ecosystem as a challenge.

For digital-first operations in manufacturing enterprises, connectivity needs to go from single plant to pan-organization. Digitization so far was often limited to a single machine or plant and will often rely on shop-floor observation and monitoring.  The next step to being a digital first operation is building connectivity that spans the organization.

The 5 big bets to support a successful digital transformation in manufacturing enterprises are:

  • Digital first calls for communications systems to be joined up

Most manufacturing enterprises now have a strategy for digital transformation and are aiming for a digital first approach, but many are still in the early stages of execution.

  • People and culture matters

The starting point for executing the transformation plans can start with either machines or people. A growth in the expected spending on private 4G/5G campus deployments can be expected to provide better services to the workforce but will also benefit the machine data of IIoT.

  • Workers will continue to work remotely

Manufacturers must provide remote service access for many different types of employees, which brings with it some security concerns, but the principles of remote access can assist those working onsite.

  • Operational effectiveness is the goal

Measuring and accurately controlling a manufacturing process and aiding the workforce to keep those operations running smoothly is fundamental to a successful manufacturing enterprise. Improvement in uptime, throughput, quality, and over all resilience, all impact the bottom line.

  • Manufacturers know they can’t go it alone

On top of back-office and financial systems security concerns, manufacturing enterprises have significant extra challenges to tackle, where remote access to the plant and systems can be an attack vector that impacts the physical plant.

Explore our global report to gain insights on how Manufacturing enterprises are developing their digital transformation journeys.

 


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