ISG Study Finds Smart Manufacturing Success Nearly Doubled in the Last Year
May 22 2023 - 2:10PM
Business Wire
Survey of enterprises worldwide shows
productivity improvements, cost savings and supply chain resilience
are top motivators for smart manufacturing
58 percent of enterprises cite
organizational change management as their top challenge
Manufacturers are reporting significantly higher levels of smart
manufacturing success year-over-year, but say organizational change
remains a challenge, according to the results of the 2023 ISG Smart
Manufacturing Survey presented here today at an industry event
hosted by Information Services Group (ISG) (Nasdaq:
III), a leading global technology research and
advisory firm.
The ISG survey of more than 125 senior decision-makers involved
in smart manufacturing programs at multinational enterprises found
71 percent of manufacturers say they are achieving anticipated
results from smart manufacturing initiatives in 2023, up from 37
percent in 2022. At the same time, uncertainty over whether success
has been achieved has decreased significantly, down to 11 percent,
compared with 53 percent last year.
Presenting the survey results at the ISG TechXchange: Smart
Manufacturing event today in Chicago, Gaurav Gupta, partner and
global head of ISG Digital Engineering, said enterprises cite
productivity improvements, cost savings and supply chain resilience
as the primary objectives for smart manufacturing initiatives. The
first tangible smart manufacturing results are achieved within 12
months in 81 percent of reported cases, the survey found.
“Smart manufacturing is both relatively new and decidedly
successful,” Gupta said. “More than 60 percent of respondents to
our study started a smart manufacturing initiative within the past
four years, and those investments appear to be paying off, with
more than 70 percent reporting success as measured by cost savings
and the quality of manufacturing.”
Driven by that success, smart manufacturing initiatives are
growing, with 75 percent of programs employing at least 100
professionals in 2023, up from 40 percent last year. The proportion
of programs involving 2,500 or more employees has doubled in that
time as manufacturers increase their deployment of smart
manufacturing plans.
Change management has been the biggest challenge facing firms
adopting smart manufacturing over the past two years, with 58
percent of businesses placing it among their top three challenges,
and 22 percent naming it their single most important issue.
Respondents point both to a lack of change management strategy and
change management programs with conflicting priorities.
Regional challenges vary, as U.S.-based manufacturing companies
highlighted legacy equipment as their second biggest challenge
following change management, while European companies identified
funding, ROI, scalability, training and IT/OT/ET integration as
their top challenges after change management.
"Smart manufacturing is changing the workplace and the way the
business operates, and while companies are achieving their
technical goals, these programs will not be successful without a
strategy to ensure the technologies are used as intended," said
Alex Bakker, director of primary research for ISG and co-author of
the smart manufacturing study.
“It’s critical to have a change management strategy that
connects all elements of the value chain,” said John Lytle,
director, ISG Industrial Manufacturing and chair of the ISG event.
“Enterprises struggling with resistance to change, conflicting
priorities or unclear change management strategies should
prioritize a target operating model that synchronizes their people,
processes and technology to increase the business value smart
manufacturing is already delivering.”
Lytle said organizational workflows can simplify processes
across smart manufacturing initiatives, and organizational
structure should nurture a culture aligned to common business
goals.
“If enterprise tools and platforms enable collaboration, a free
flow of information, the removal of silos, and automation for
repeatable processes, the workforce will be empowered and the
culture will encourage leadership, continuous improvement,
adaptability and accountability,” he said.
Additional information about the ISG TechXchange: Smart
Manufacturing event is available on the event website.
Additional information on the ISG Smart Manufacturing Survey is
available on the ISG website. A summary of the study
can be found here.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading
global technology research and advisory firm. A trusted business
partner to more than 900 clients, including more than 75 of the
world’s top 100 enterprises, ISG is committed to helping
corporations, public sector organizations, and service and
technology providers achieve operational excellence and faster
growth. The firm specializes in digital transformation services,
including automation, cloud and data analytics; sourcing advisory;
managed governance and risk services; network carrier services;
strategy and operations design; change management; market
intelligence and technology research and analysis. Founded in 2006,
and based in Stamford, Conn., ISG employs more than 1,600
digital-ready professionals operating in more than 20 countries—a
global team known for its innovative thinking, market influence,
deep industry and technology expertise, and world-class research
and analytical capabilities based on the industry’s most
comprehensive marketplace data. For more information, visit
www.isg-one.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20230522005629/en/
Press: Will Thoretz, ISG +1 203 517 3119
will.thoretz@isg-one.com
Julianna Sheridan, Matter Communications for ISG +1 978-518-4520
isg@matternow.com
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