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Sleep well, CxO

October 28, 2011 - 0 Comments

What keeps a manufacturing CxO up at night? Many things, for sure, but what in particular would allow these weary executives to get their well-earned rest?

Cisco’s Chet Namboodri, Director of Manufacturing Industry Solutions and Marketing, has asked many customers and industry executives this insomnia question.  Here are their top 5:

  • Profitably growing the business;
  • Capitalizing (at least addressing) relevant markets in transition;
  • Engaging customers with valuable innovation;
  • Mitigating and managing risks inherent to a global manufacturing enterprise; and
  • Governing across that enterprise with compliance and controllership.

Based on their responses, he created a list of industry best practices which should help manufacturing CxOs stop counting concerns and begin counting sheep.

In his recent article in, he deep-dives into two of these best-practices — standardizing plant architecture:

By standardizing plant architecture, companies are able to:

  • Accelerate scale locally into the emerging economy with minimum startup
  • Maintain (possibly improve) quality and brand standards using local production
  • Leverage product and production expertise halfway across the world for improved ramp-up and operations
  • Manage disparate plant systems, designs, and strategies across a globally diverse set of operations and without costly disruptions

and utilizing new business models:

Having deployed over sixty such VCS rooms, GE is also speeding time to market and expanding access of their engineering expertise to customers and service technicians, by connecting to VCS rooms via mobile field devices. With this post-product-sale virtual customer engagement capability, GE is building new service models over the lifecycle of complex capital equipment — improving customer satisfaction and yielding upside revenue streams.

The benefits of these best practices – including 75% reductions in down-time, and ROI increases of over 150% — are definitely numbers that should help put a restless CxO at ease.

The concept of ‘the manufacturer as a service provider’ is particularly interesting and represents a paradigm shift in how a manufacturing company is viewed, not only by customers but also by the general public. The adoption of that shift and how to capitalize on it may also cause CxOs to lose sleep, but more likely because of excitement rather than stress.

Congratulations, Chet!

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