There has been an increased emphasis on digitalisation within manufacturing. While some may see this as a means of reducing cost, Simon-Kucher believe the bigger profit opportunities will come from focusing on the topline (revenue side of the profit equation).
One of the most striking similarities between manufacturing and the high-octane world of Formula One is how both are trying to marry up the unstructured insights and ‘gut feelings’ of their respective experts with more structured telemetry and analytics.
Many companies are either talking about or investigating how they can start to unlock the benefits of digital transformation, yet most are still unsure of where to start and what potential business outcome improvement it can deliver.
Modern manufacturers (and Formula 1 race teams) need real-time insights right where the action is. But how do you gain data-centre level compute power without the time involved with sending information to be analysed and the results returned?
Why would British outsourcing giant SERCO be looking to acquire the troubled Babcock engineering group? Well, the President’s vows to boost the US Navy’s fleet from 280 to 355 ships by 2034 might have something to do with it.
Growing regulatory change and uncertainty is impacting the vast majority of process manufacturers, but they are responding by investing in new technologies and leveraging the cache surrounding 'Made in America'.
Industry commentators believe that, over time, every machine on every factory floor will have its own digital twin. Some have even been so brazen as to suggest that at least half of large industrial companies will adopt this self-learning technology by 2021.
From entrepreneurial ventures through to multinationals, intellectual property is key for capturing the value of innovation, and a good IP strategy needs to be tied to, and will help deliver, business objectives.