Manufacturing companies have traditionally been slow to react to the advent of digital technologies and their related impact across the manufacturing value chain and operating model. While there are a few manufacturing companies that have made rapid advances in deriving significant benefits from digital, their number is still small. For instance, in a recent industry survey, only 25% of the interviewed executives believed that the manufacturing sector would be highly impacted by digital transformation over the next five years. Our study found that digital innovation is critical when it comes to addressing manufacturers’ key business drivers and creating value.

1. Are Manufacturing
Companies Ready
to Go Digital?
Manufacturers are not digitally mature
Only
of manufacturers believe
digitization can help
improve market share
38%
37%
Only
of executives believe that
manufacturing sector will
be highly impacted by
digital transformation
over the next 5 years
Less than 10% of
manufacturers leverage
digital technologies to
transform
expect digitization to
drive revenue growth
25%
Digitizing Manufacturing End-to End
Digital product design
Helps predict performance
and avoid the risk of
building real prototypes
Accelerates product
development
Drives Innovation
GE’s crowdsourcing project
received over
3,000 ideas
Samsung’s virtual prototyping
platform resulted in improving
performance by
> 50%
Digitizing the factory shop-floor
Cuts engineering and
manufacturing costs
Minimizes time-to-market and
manufacturing lead time
Bombardier’s digital
factory models reduce the size
of the factory by 50%
compared to previous standards
Builds agility and efficient processes
Minimizes inventory costs
Digitizing the supply chain
Traces product quality in real-time
Creates efficient and
transparent logistics processes
Caterpillar’s
Cloud Supply Chain Visibility
solution increased visibility
from 0% to 65%
Dynamically integrates
external suppliers and
outsource entire functions
of the value chain
ABB’s collaboration
application helped improve
spend transparency to 90%
Digitally customizing marketing,sales and services
Helps targeted marketing to
global consumers at effective cost
Allows integrated monitoring
of product performance and
predictive maintenance
BMW used eBridge
- a digital marketing tool to
increase the conversion rate
to sales
Marketing insights help build
profitable customer relationships
while generating new revenue
streams
Sources:
1. Oxford Economics (2011): “The New Digital Economy – How It Will Transform Business”, global survey of 363 business executives across industries
2. Crowd Sourcing, “GE’S ECOMAGINATION CHALLENGE BREAKS OPEN INNOVATION RECORDS”, 2012
3. Carbon Design Systems case study on Samsung
4. 3ds.com: “Virtual Ergonomics Solutions”, 2010
5. Journal of the Microsoft Global High Tech Summit, “Value Chain Partnerships Adding Value to the Value Chain Agility”, 2007
6. Caterpillar, “Now you see me…”, 2008
7. eBridge case study
8. Word of Mouth Marketing Association Case Study
9. Telligent, “Texas Instruments Case Study”, 2013
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