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Rethink manufacturing for the future

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Rethink manufacturing for the future

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Now is the time to rethink your manufacturing future. Our new guide provides ideas for manufacturers to respond and ensure survival, reset their business operations and ultimately renew their corporate culture. More: https://avana.de/30XsCkB

Now is the time to rethink your manufacturing future. Our new guide provides ideas for manufacturers to respond and ensure survival, reset their business operations and ultimately renew their corporate culture. More: https://avana.de/30XsCkB

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Rethink manufacturing for the future

  1. 1. 5 priorities for manufacturing resilience and responsiveness: Be ready for whatever comes next Rethink manufacturing for the future
  2. 2. Rethink manufacturing for the future Relish rather than fear the next manufacturing challenge The COVID-19 pandemic has affected every industry, organization and person. Even the most mature manufacturers have not encountered this level of turmoil before. We can never be this unprepared again. Now is the time to rethink your manufacturing future. The manufacturing industry is used to market challenges and uncertainty, but the scale, severity and suddenness of the COVID-19 crisis is unprecedented. This guide will provide ideas for manufacturers so they can respond and ensure survival, reset their business operations and ultimately renew their corporate culture. Being able to successfully address dramatic market changes isn’t easy and the path won’t be linear. However, that doesn’t mean that a bright future for manufacturers is impossible. 2 “… we see these challenging times as an opportunity to rethink how we do business…This will include transforming your company to have an even better customer experience and more efficient operations.” -MIT Sloan Center for Information Systems Research March 2020
  3. 3. Eyebrow (Segoe UI Lght 11 pt.) The current situation offers a rare opportunity for your organization and partner ecosystem to build momentum around what matters, and to stop everything else. Successful manufacturers are focusing on five priorities: 1. Cost Containment and Optimization: Immediately reduce operational costs and free up capital to accelerate growth opportunities. Manufacturers should identify new operational best practices and opportunities to automate. 2. Talent Agility: The workplace and factories for tomorrow will be optimized with digitally enabled workers in harmony with the latest AI, mixed reality and automation technologies. Employees will be empowered across all facets of the organization, from how they interact with customers, to innovating with new processes, tools and products, and even to setting the strategic direction of the company. 3. A Resilient Core: Tomorrow’s manufacturers should protect the core operations of their business and build a resilient and scalable operation. One that’s able to adjust to future challenges with a clear definition of the value they hope to achieve. This will include both operational resilience (supply chain, security, product development, risk management, etc.) and key financial management (cost management, cash flow, spend analytics, supplier performance analysis, etc.). 4. Customer Care and Operations: For manufacturers to be able to support the changing needs of their customers (and partners), it’s essential to create the capability to support new channels. Manufacturers need an enhanced focus on customer (and partner) communications, as well as security, sustainability, safety with good corporate citizenship and customer management. This includes hyper-personalization in engagement, buying, product development and service improvement processes. 5. Products and Services: Rapidly respond to changes that affect your product portfolio to minimize disruptions and anticipate how products and services will evolve in the near and longer term. Greater focus should be given to enhanced new product development, sustainable environmentally friendly practices, new partnerships and good corporate citizenship. Rethink how you operate Rethink manufacturing for the future 3
  4. 4. Rethink manufacturing for the future “By the end of 2020, according to IDC, one-third of all manufacturing supply chains will be using analytics-driven cognitive capabilities, thus increasing cost efficiency by 10% and service performance by 5%.” 4
  5. 5. Rethink to Respond, Reset and Renew your business Most manufacturers will pass through three phases as they recover from the impacts of the COVID-19 pandemic. Respond Manufacturers must immediately respond by evaluating their cost structures and focusing on sustainably reducing cost and ensuring cash availability. Manufacturers need to confirm that security, their supply chain and business continuity systems are adequate and fully functional. Focus on your people: Ensure you have a safe, secure work environment, enable remote working capabilities, and establish programs to retain and develop your most talented employees. Most manufacturers have already completed many of these actions, but those that haven’t need to make doing so a top priority. Reset The next step is to evaluate and potentially reset your approach to your business. Look at how you might be able to create products that have immediate value in addressing the COVID-19 crisis and be viable for the longer term. Examine how you might implement solutions or practices to increase the resiliency of your supply chain, and consider localizing your supply chain. Explore how you can leverage digital technologies to provide a quick, agile, personalized and potentially contactless engagement with your customers and partners. Digitalization, Industry 4.0 solutions and adopting emerging technologies are critical components to a successful reset for manufacturers, and time is of the essence. Microsoft CEO Satya Nadella recently noted that its clients have been undertaking “Two years of digital transformation in two months.” Renew One of the interesting features of this global challenge is the way businesses will be viewed once we’ve emerged out of the current restrictions. It’s becoming clear that the products and services for tomorrow will have to be sustainable, have a focus on a positive human impact and have a minimal negative impact on society. This crisis has created an obligation for all manufacturers to renew their commitment to corporate citizenship. This means more than providing a safe and secure working environment – that’s the baseline. It means creating a culture that enables and rewards your people for helping in the community. It means reducing or offsetting any negative impact your company has on the environment. And it means making social responsibility a fundamental value of how you do business. The workforce of the future is going to demand this from their employers; customers are going to demand this from the organizations they do business with. And not getting it right will have serious, if not fatal consequences for some manufacturers. Rethink manufacturing for the future 5
  6. 6. TIP: An interesting trend is partnering with new companies. According to IDC, by 2022, driven by rising customer expectations, 25% of manufacturers will be engaged in cross-industry collaboration, resulting in a 10% revenue increase. Over the course of the coming 12 to 18 months, we expect organizations will increasingly shift their attention to how they can renew and grow and position themselves for the future. Business model innovation will be mobilized through experiments actively sponsored by the C-suite, while emerging technologies will help organizations drive increased efficiencies and differentiation in the market. Throughout each phase, you’ll need to consider different dimensions of your priorities: Cost Containment and Optimization, Talent Agility, A Resilient Core, Customer Care and Operations, and Products and Services. Rethink manufacturing for the future 6
  7. 7. Respond Reset Renew Cost Containment and Optimization Assess projects that can be stopped or delayed to immediately reduce costs. Improve digital production, supply chain and collaboration solutions. Prioritize spending to ensure viability of key suppliers. Assess departmental efficiencies and consumption-based technology usage. Assess local and remote (global) supply chain efficiencies. Migrate risk (supply chain, regulation, remote working). Prepare for multiple cycles of demand-supply realignment. Invest in technology/automation solutions with long-term benefits. Innovate with Industry X.0 solutions, to embrace the new way of working. Talent Agility Create a comprehensive communication and collaboration plan. Adapt using remote working technology, develop virtual teamwork, and leadership skills. Protect staff health, security and safety. Focus on talent acquisition and retention, growing digital capabilities and talent internally. Provide greater employee support including, flexibility for work-home balance and collaboration tools for production. Rethink the new approach to working - reskilling, upskilling and cross-training programs. Enable a formal innovation culture and program. Combine IT, HR and line of business, to drive superior employee experience. The Resilient Core Invest ensure viability if key suppliers and safety of key workers. Ensure business continuity, have a clear definition of the value expected and migrate remote working risks. Build resilience into the business and create flexibility to scale, with diverse supply chains/supplier ecosystems, while initiating any M&A strategies. Increase security and training. Enable an innovation-led, security-focused and agile culture. Introduce cloud, automation at scale and enterprise wide, worst-case scenario planning. Increase “re-shoring“ localization of supply chain where needed. Customer Care and Operations Create human-centered responses within digital channels using automation to handle high volumes. Protect your image with abundant information and “self education“ capability about your products. Envision superior digital experience with hyper- personalization in engagement/buying, product development, and improvement processes. Implement “complete“ systems for true “customer 360“ analysis. Make Industry X.0 ambitions a reality with data-driven recommendations for personalization and asset management. Develop an innovation culture for increased digital dialogue focused on new, diverse and digitally savvy customers. Products and services portfolio Pivot production to priority areas. Stop or postpone investment in non-relevant areas. Target product areas that require immediate attention. Identify potential new partnerships and incentive schemes. Scale and automate product development and operations. Create agile platforms for rapid launch of new products/services. Rationalize your portfolio and retrain staff, to embrace industry X.0 solutions. Identify and test new flexible business models aligned to Industry X.0. Expend partner ecosystem for core products. Innovate with virtual skilling, product design or field service solutions. Drive personalization. 7 TIP: Industry 4.0 has been adopted by many manufacturers, but this is not the end game for industrial digitalization. We suggest that in today’s world of perpetual change, the solution is not another industrial revolution, but a transformation of products and how we make them. Known as Industry X.0, this transformation comprises new technologies like IoT, analytics, AI, mixed reality and digital twins to unlock new revenue streams and work with customers, employees and partners on a whole new level. As your manufacturing operation moves through the Respond, Reset and Renew phases, your five priorities will shift. This summary of the different dimensions of each priority will guide you on your path and help you assess where you’re at on your recovery journey: 5 priorities to consider as you Respond, Reset and Renew Rethink manufacturing for the future 7
  8. 8. 8 Around the world, manufacturers are releasing themselves from legacy siloes, systems and processes to rethink how they do business and position themselves for the future. Speed is critical, but employee and customer experiences are also higher priorities than ever before. Break with convention, adapting fast Rethink manufacturing for the future TIP: Some manufacturers are already using immersive mixed reality devices that combine cloud and AI services, to help employees learn, communicate and collaborate more effectively, wherever they’re located. Innovative supply chain solutions Read this article about the NHS Ventilator Challenge. Global companies came together to make ventilators for the NHS. Optimizing operations and the workplace Read Bernard Looney’s LinkedIn post about BP’s use of Microsoft Teams. Industry X.0 and talent innovation See how ABB Turbocharging engineers use mixed reality and remote assist to solve problems in the field Take a moment to see how some manufacturers are responding directly to Covid-19 or have been positioning themselves to support a wide variety of business challenges. Examples range from innovative supply chain solutions for new and urgent equipment, to Oil and Gas companies focused on both responding and renewing to simply survive the latest global challenge, to a producer of consumable products, innovating with new Industry X.0 technologies and worker upskilling. 8
  9. 9. Rethink manufacturing for the future “Organizations have been judged on their response [to COVID-19] – and that judgment will far outlast the virus itself.” – Fjord Trends 2020 The path ahead won’t be linear The current global disruption requires changes to be made in weeks that previously would have taken years, but change is urgent. To rethink your business, quickly identify strategic bets to make your operations more resilient and your products and services more desirable to customers. For example, think about how you can build on your remote working experience to create a truly elastic digital workplace. Or how you need to rapidly scale your operating model with the cloud. Perhaps you can optimize your production processes, customer care and business operations to make the most of revenue opportunities through this global disruption and beyond. It may be time to explore some ideas on how supply chains can use platforms that support applied analytics, IOT, artificial intelligence and machine learning, while also ensuring end-to-end transparency. Even as we continue to deal with the ramifications of this global crisis, we must prepare for what comes next. We will regularly face disruptions – societal, industrial, technological. We need to expect this. Your organization and people must be in a constant state of readiness to respond, reset and renew. Regardless, you can be sure the path ahead won’t be linear. Renew ResetRespond 9
  10. 10. 10 Get started today The manufacturing industry is used to market challenges and uncertainty, but the scale, severity and suddenness of the COVID-19 crisis is unprecedented. Advancements in technology have enabled successful manufacturers to embrace transformation and adopt technological and cultural change. Digital technologies in manufacturing have come a long way from being just efficient working practices, to being significant strategic differentiators for a competitive advantage. As you rethink your business, look for opportunities to reuse existing capabilities to drive new revenue streams, and continually test and learn to turn your strategic bets into outcomes. Manufacturing enterprises are depending on their technology partners to bring an end-to-end value proposition. And that’s exactly what Avanade provides. Spanning your people, processes and digital technologies, we’ve curated a number of solutions to accelerate positive business outcomes: Elastic Digital Workplace Protect your people and productivity while managing costs. Elevate the performance of your business operations by expanding your secure remote working plan. Henkel re-invented productivity with a new workplace solution. Responsive Customer Care Adapt and modernize your customer care operations. Shift to AI-enabled virtual assistants, remote field assist, click-to-chat, and enable your workforce to service and support. BDR Thermea’s connected services platform reduces customer service visits by 60%. Turbocharge Azure Migration Accelerate your move to the cloud and optimize as you go to maximize business value, increase business agility and scalability, and drive innovation across the organization. Pernod Ricard used a cloud platform for improved automation and customer insight. Supply Chain Resilience Rapidly assess vulnerabilities and strengthen your supply chain with Microsoft Dynamics, analytics and automation. Theramex incorporated intelligent operations to build its business structure and get its finance, human resources, supply chain and inventory systems up and running. Secure Enterprise The risk posture for businesses has changed rapidly over the last several months. Our Secure Enterprise team helps you identify platform and system vulnerabilities. A leading pharmaceutical manufacturer enjoys secure collaboration through Microsoft 365 solutions. Intelligent Industry Solutions Combine analytics, automation, IOT and artificial intelligence with platforms like Microsoft Teams and Dynamics to solve challenges such as tracking the movement of people and complicated business operations. thyssenkrupp Materials Services, uses data to help strike a delicate operational balance. Rethink manufacturing for the future
  11. 11. 11 Contact us today to help your organization identify the strategic bets that will make your operations more resilient and your products and services more desirable to customers. Avanade can help you accelerate to respond, reset and renew your business. About Avanade Avanade is the leading provider of innovative digital and cloud services, business solutions and design-led experiences on the Microsoft ecosystem. With 38,000 professionals in 25 countries, we are the power behind the Accenture Microsoft Business Group, helping companies to engage customers, empower employees, optimize operations and transform products, leveraging the Microsoft platform. Majority owned by Accenture, Avanade was founded in 2000 by Accenture LLP and Microsoft Corporation. Learn more at www.avanade.com. © 2020 Avanade Inc. All rights reserved. The Avanade name and logo are registered trademarks in the U.S. and other countries. Other brand and product names are trademarks of their respective owners. North America Seattle Phone +1 206 239 5600 America@avanade.com South America Sao Paulo AvanadeBrasil@avanade.com Asia-Pacific Australia Phone +61 2 9005 5900 AsiaPac@avanade.com Europe London Phone +44 0 20 7025 1000 Europe@avanade.com Rethink manufacturing for the future

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