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Analytics: Building a Winning Strategy in Manufacturing

Machinery, supply chains, and raw materials have always been core concerns in manufacturing. Today, another asset is just as critical — data.

General Electric Chairman and CEO Jeffrey Immelt said it well: “The industrial world is changing dramatically, and those companies that make the best use of data will be the most successful.”

I certainly agree. If manufacturers want to gain the agility, innovation, and hyper-awareness needed to compete and win, they must start thinking like technology companies. That means leveraging data — and the real-time insights derived through analytics — in impactful new ways.

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As Manufacturers Go Digital, Customer Value Expands

Every single day, I’m reminded that a digital revolution is taking place—from researching local coffee places on the dashboard of my car to ordering coffee on my mobile device—it’s clear that our lives are becoming more digitized. This is also apparent for the businesses and industries that manufacture the goods that we use everyday. In order to compete today, manufacturers must respond to complex and constantly changing demands from their customers. That requires the agility, rapid innovation, and fast execution that only digital manufacturing can deliver. Too many manufacturers, however, still lack these critical capabilities and suffer from fragmented and siloed organizational structures.

This was reinforced by new research from Cisco on the current and future state of digital disruption in manufacturing. The study included economic analysis, interviews with manufacturing industry thought leaders, and a survey of more than 600 senior leaders from 13 countries, representing both industrial machine builders and end-user manufacturers.

Our research confirmed that manufacturers get it. They understand that a digital revolution is taking place, and they want to be part of it. Seventy-nine percent believe that digital disruption will drive a moderate to major impact at their companies in the next three years. Moreover, they see digital technologies such as cloud, IoT, and analytics as having the biggest impact on their production — not more manufacturing-centric technologies such as robotics and 3D printing.

However, in terms of driving new value, many are faltering. Their service strategies, for example, are seen as a key opportunity for new revenue, but they are not driving expected levels of growth.

Digital business transformation is the solution, but it can’t be done in a piecemeal fashion; it must be implemented across the entire organization and beyond, throughout the ecosystem. Analytics, cloud, machine-to-machine connections, and collaboration tools all enable new opportunities for sharing data insights. Getting those insights to the people (or machines) who need them most, on the other hand, can be challenging. In this context, silos — between IT and operational technology (OT), engineering and design, and so forth — are the enemy to progress.

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The Digital Manufacturer: Advancing a New Revolution in Efficiency and Quality

With robotics and automation, manufacturers have advanced our industry over the last few decades, driving innovations and improvements in productivity and efficiency that were once only the imagination of science fiction writers and TV/movie producers. Today, however, the next wave of transformation is required—in order to take companies and the industry to even grander levels—with a digital revolution in manufacturing.

Pressures on manufacturers from global market upheavals, changing customer expectations, and digital disruption require companies to take every competitive advantage—at every step in the supply chain and beyond. To meet these demands and market transition, manufacturers must have deep organizational and technological progress, what we refer as digital business transformation.

To explore some of the mounting pressures on manufacturers—and the exciting opportunities to capture new value with digitization—Cisco recently undertook and released a comprehensive research study. This research includes Read More »

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Car makers driving The Internet of Things (part 1 of 2)

Intelligent Cars

I don’t watch too much TV, but I did take some time this weekend between my honey-do’s and soccer transport tasks to keep up with bay area football – it was a good weekend for that.  As expected, there were plenty of car ads.   I was struck by how the high-end auto manufacturers are really focusing on “intelligent” cars – competing in fact.  Cars are now aware of their surroundings (obstacle sensing), aware of their driver (attention assist), able to call emergency assistance, making lots of decisions every second and richly communicating with its driver … or maybe more appropriately stated “passenger”:

These are really smart cars, and they are getting smarter.  It is foreseeable now to imagine automated driving making the driver a true passenger. Read More »

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