The Digital Manufacturer

The Digital ManufacturerEmbracing Digital Transformation to Capture New Value

The Digital Manufacturer

#DigitalTransformation

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To help manufacturers learn how to capture new value with Digital Transformation, Cisco Consulting Services

undertook a global survey of 625 senior IT decision makers in 13 countries.

79% believe digital disruption will drive impact at their companies in the next 3 years.

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When embracing Digital Transformation, manufacturers face consistent themes

in challenges and pressures.

Business Models

Organizational Structure

& IntegrationWorkforce Changes

Business Processes

IT Capabilities Offerings Customer

Service

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Digital Business Transformation must span technology change and organizational change,

to drive success in manufacturing. The goal is to think like an agile technology company to capture value

that is now being left on the table.

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Manufacturers that embrace Digital Transformation can drive significant business outcomes over the next 10 years by

improving core contributors to profitability.

Customer ExperienceSupply Chain & LogisticsInnovation

SustainabilityEmployee ProductivityAsset Utilization

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Digital technologies, not manufacturing technologies, will have the greatest impact – but they must be seamlessly

integrated.

37% 33% 32%625 respondents

Which technologies can most change how you manage production over the next three years?[choose up to three]

Q

CloudM2M / IoTBig Data analytics

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Digital Transformation takes Connected Machinesto the next level by creating the foundation for

new applications and outcomes.

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Digitization is pivotal in manufacturing’s evolution, especially as connecting across an entire ecosystem — not just the plant floor — becomes increasingly critical.

67% of respondents viewed Service Oriented Revenue Models as depending “to a large or very large degree”

on digitization.

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In a climate of disruption and global market

pressures,manufacturers want to differentiate with new

service-oriented revenue models.

However, new services increase complexity,

and greater complexity creates profitability

challenges.

This is the Service Dilemma.

Digital Transformation will accelerate the transition to service-oriented models.

1 2 3

To resolve the Service Dilemma, manufacturers must drive organizational and technology change —

what we call digital business transformation.

The payoff:19% profit increase

over 10 years.

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To fully digitize the organization, three foundational capabilities must be developed across the

manufacturer's business – hyperawareness, informed decision making,

and fast execution.

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Want to learn more? Download the whitepaper.

The Digital Manufacturer: Resolving the Service Dilemma