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Speed of Change in Recycling Manufacturing

September 10, 2020

Speed of Change in Recycling Manufacturing

ISB Global Speed of Change Recycling Manufacturing

 

Speed of Change in Recycling Manufacturing

Disruption

The Speed of Change in Recycling Manufacturing – The disruption caused by the pandemic has impacted our global economy, production is affected, supply chains disrupted, and many companies are facing financial impacts.

The manufacturing industry has been hit hard. It is being disrupted not only by today’s pandemic and resulting economic impact but also by trade dynamism, digitization, talent and the future of work. According to Deloitte research, manufacturing leaders need to rethink strategies and operations to overcome disruption and become resilient.

Investment in Business Model & Digital Core

Manufacturers now have a long, uphill battle—particularly if production capacities remain limited by social distancing precautions or if supply chain reliability suffers. As a result, IT spending is expected to fall by more than 3% in 2020. In a Deloitte survey in February 2020, 51% of the manufacturing leaders say they will spend their digital transformation investment on changing and transforming the business model and 35% on building out next-generation digital core.

These same manufacturing leaders say that the key business model for the next 10 years will shift to 50% product and 50% outcomes/solutions and that digital streams will account for one-third of overall revenues.

Therefore, manufacturers should create a holistic digital strategy for the coming years as a crucial element to overcome current disruptions and be prepared for what is coming.

Powering Digital Use Cases, Advanced Technologies & Digital Revenue Streams

The consensus from Deloitte’s industrial manufacturing leaders is that if manufacturers don’t embrace digitization, as many as 35 percent of today’s manufacturing companies could be out of business or significantly changed in 10 years. Deloitte advises that:

  • Manufacturers focus digital investments on building out the digital core to power Industry 4.0 use cases.
  • Further embrace Industry 4.0 to incorporate and benefit from advanced technologies like augmented and virtual reality, video analytics and machine learning
  • Change or transform the business model to support digital revenue streams and change the way customers are engaged through design, production, and service delivery.

Accelerate Application Development & Agility to Speed Change in Recycling Manufacturing

Now is the time to make bold decisions regarding digitization to not be left behind. So, how can manufacturing IT cope with the changes required to implement these decisions? And perhaps most importantly, how can IT teams accelerate application development to give their companies the agility needed in this era of crisis and digital urgency? According to results of the 2020 OutSystems State of Application Development survey, manufacturers suffer an agility deficit compared to many other industries.

Most manufacturers are failing to shorten application development backlogs. Just 23% of manufacturers have larger application development teams than a year ago—roughly half of the percentage reported by other industries.

If it seems like your firm’s Industry 4.0 initiatives and other transformation priorities are falling behind, you can boost your agility using several different approaches and technologies.

How to Adopt New Industry Initiatives

This report has actionable recommendations for manufacturers who want to become agility leaders, adopt industry 4.0 initiatives, and invest in digital capabilities to advance in the digital maturity curve. Investing in advanced technologies such as robotics, 3D prototyping, artificial intelligence and cognitive services to reinvent and improve processes is one way for manufacturers to become more digital and resilient. Just as important is investing in workflow automation like real-life tracking logistics and predictive and prescriptive servicing, allowing companies to become more digital and resilient. (Joaquim Duarte Oliveira, Deloitte, Business Consulting, Core Business Operations)