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5 Key Priorities for the Digital Era in Manufacturing

As the manufacturing sector looks ahead to a new era in industrial automation, how can businesses position for success?

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Blog | Connected Enterprise
Recent ActivityRecent Activity
5 Key Priorities for the Digital Era in Manufacturing
As the manufacturing sector looks ahead to a new era in industrial automation, how can businesses position for success?

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There’s a lot to be said for the power of perseverance in business. This past year has brought a previously unimaginable set of challenges to manufacturing that have tested the sector’s resolve and its capacity to find creative solutions to common problems.

From a Rockwell Automation perspective, we’ve observed how different companies have reacted over the course of many turbulent months. There was evidently no singular ‘COVID-19’ experience; different companies were at different levels of readiness in terms of how quickly they were able to respond to emerging challenges. For some, the business demands associated with the series of lockdowns has prompted senior leadership to accelerate digitalisation plans, taking massive strides in their transformation roadmap.

For others, it was a wake-up call that, if their business didn’t change now, it would be forced to play catch-up in future as the landscape rapidly shifts.

Digital Transformation in Real-Time

When the first COVID-19 spike hit in early-2020, organisations in every sector had very little time to make sense of the situation and build a coherent plan. At Rockwell Automation, we shared the sense of collective uncertainty, but were quick to realise the severity of the virus and the rules that we applied to our organisation were stricter than the government directives at local levels.

Among our customer base, we were encouraged by how quickly executive teams were prepared to ask us for support in order to get on the front-foot and tackle their challenges proactively. On one extreme, our customers in industries such as Oil & Gas were seeking to improve efficiency to react to sudden fluctuations in demand or, in the case of our OEM customers, restrictions on regular operations such as field visits to their customers. On the other, we found manufacturers in critical industries such as Life Sciences and CPG were looking to rapidly adapt to growing and unanticipated demand in the market, combined with the threat of supply chain issues.

The experiences and challenges have offered some valuable insight into where leaders are placing their priorities as they look to the future and seek to embrace automation in order to strengthen their operations.

5 Priorities for a Digital Future

1. Security

Since March 2020, cyber-attacks have increased tremendously. The pharmaceutical industry, for example, experienced a 50% rise in attacks last year compared with 2019. This included a high profile data breach targeting several companies working on COVID-19 treatments, due to the sensitive nature of the IP contained in the stolen documents. Even within our organisation, we’ve experienced more than double the number of cyber-attacks than pre-COVID-19 levels. Our customers are experiencing huge challenges in how to keep systems running, protect their intellectual property and help staff, now often working remotely, to remain secure.

 
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2. Flexibility

The pandemic highlighted the need for fast and responsive decision-making, especially under conditions of great uncertainty. This became apparent during the early stages of COVID-19, as we saw manufacturers shift towards production of goods such as ventilators and sanitisers. While these weren’t always their conventional business lines, they were able to adapt their core capabilities in order to expand the range of items produced.

The pandemic provided a taste of a future where manufacturers will need to operate on more dynamic lines, capitalising on opportunities to deploy their core skills across different business lines. Going forward, we expect to see businesses become more attuned to the fact that they can’t ‘do everything’ and need to assemble a network of partners and service providers to augment their own business value and increase their ability to respond to market changes.

3.  Resilience

Supply chains have been an area of key focus over the past year. Businesses are more sensitive to the risks of their supply chains breaking down or becoming throttled, as a result of unforeseen events such as a virus outbreak at a factory or port congestion due to sudden demand shocks.

On one hand, this has brought greater interest in simplifying supply chains – bringing supply ‘closer to the customer’ in order to reduce links in the chain and decrease risk. On the other hand, it’s highlighted a growing trend of demand for transparency. Customers increasingly want to know the origin of goods - digital technology, through serialisation and sensor-based tracking, offers companies an opportunity to do that.

4. Sustainability

Sustainability has been a growing conversation in boardrooms for years, often diluted by empty-handed promises and lip-service.

Now sustainability and business growth are inextricably linked. Consumers globally are really taking sustainability into the heart and soul of their buying choices, and looking for businesses to show leadership in creating a sustainable footprint.

This extends across all areas, including packaging, supply chains and corporate travel. For example, organisations are now more commonly scrutinising whether staff really need to be on-location, such as at mining sites or off-shore rigs, or whether similar results could be achieved through the use of AR and remote technologies.

5. Innovation

When looking to the future of Industry 4.0, it’s apparent that the leaders will emerge not solely from doing things better (making iterative improvements on current operations) but also from doing things differently (re-imagining processes entirely).

These businesses will look for inspiration outside of manufacturing and take their playbook from non-traditional sources such as software companies – thinking about how they can blend their brownfield and greenfield operations, along with their hard assets (machinery) and soft assets (data) to enable rapid developments and improvements.

They will not operate as stand-alone businesses, but as part of an ecosystem of skills and expertise that can be deployed to go beyond what’s possible in the industry 3.0 era.

Augmenting Human Skills

In this new industrial future, we see the role of people changing considerably. The digital era will not replace people, but instead create new roles and ways of augmenting distinctly human qualities such as reasoning and creativity. This new era will enable vastly enhanced decision-making, empowered by AI and contextualised data.

The experience of the past year has highlighted to businesses the importance of their people and the need to blend human and digital to succeed in Industry 4.0, combining predictability and resilience with coordination and problem-solving.

As an organisation and as a partner to businesses in multiple different sectors, we’re clear about what our vision is and our purpose in this new era: we support our customers to make the world safer and more productive and we are doing that by enabling companies to automate more effectively and efficiently.

Find out more about industrial automation, and the advantages it can bring to your business, at our Management Perspectives hub. There you’ll find more blogs, podcasts, webinars and videos that will help you capitalise on the potential of Industry 4.0.

Published February 3, 2021

Tags: The Connected Enterprise, Digital Engineering, Management Perspectives

Mark Bottomley
Mark Bottomley
Regional Vice President, Strategic Accounts and Sales Specialists EMEA, Rockwell Automation
Mark Bottomley is Regional Vice President, Strategic Accounts and Sales Specialists EMEA for Rockwell Automation. In his role, Mark is dedicated to delivering the company’s strategy to bring the Connected Enterprise to life. Under his leadership, Rockwell Automation integrates control and information to help make industrial companies and their people more productive and the world more sustainable. Mark accelerates the company’s approach in his region by focusing on understanding customer needs and their best opportunities for productivity, combining our technology and domain expertise to deliver positive business outcomes.
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