Data-Driven Operations Are Key to Future of Manufacturing

Published
14 Jan 2021
2021
Share

Dai Di, Public Engagement, World Economic Forum, di.dai@weforum.org, +41 79 949 4637

· New report reveals many manufacturers struggle to implement data-driven operations

· Three-quarters of 1,300 surveyed manufacturing executives consider advanced analytics to be critical for success and more important today than three years ago

· Data security is among the biggest challenges for manufacturers to further scale and implement data-and-analytics solutions

· Read the full report here

Geneva, 14 January 2021 – In the near future, manufacturing companies will collaborate in hyperconnected value networks in which data-and-analytics applications drive productivity, new customer experiences and societal and environmental impact. A new white paper, Data Excellence: Transforming Manufacturing and Supply Systems, released today presents the challenges for manufacturers and provides the steps to overcome them.

According to the report, nearly three-quarters of 1,300 surveyed manufacturing executives consider advanced analytics to be critical for success and more important today than three years ago. However, only a few companies capture the full value that data and analytics can unlock to address manufacturers’ most pressing challenges. Less than 20% of surveyed participants prioritize advanced analytics to promote either short-term cost reductions or longer-term structural cost improvements. Only 39% have managed to scale data-driven use cases beyond the production process of a single product and thus achieve a clearly positive business case.

Surveyed manufacturers cited various challenges that impeded their efforts to further scale and implement data-and-analytics solutions within their plants and across networks:

  • They struggle to prioritize the right value-adding use cases from a broad range of applications
  • They have not put in place technological enablers, such as data security or advanced algorithms
  • They lack critical organizational enablers, such as skills and capabilities and effective internal governance

This study by the World Economic Forum, in collaboration with the Boston Consulting Group (BCG), features insights from a unique community of 40+ manufacturing organizations and leading academics and public sector representatives, identifying six priorities to capture value from data and analytics in manufacturing:

  • Define a data-to-value strategy and roadmap
  • Incentivize internal and external ecosystem partners
  • Build capabilities to capture and use data
  • Implement an open platform to unlock data silos
  • Enable connectivity for low-latency, high-bandwidth data flows
  • Ensure data security and privacy

“These findings will help accelerate our journey to support companies in devising a path forward to reach the next level of data-based manufacturing excellence, build trust among manufacturing, suppliers and customers, and unlock new value through the development of new data-driven ecosystems,” said Francisco Betti, Head of Shaping the Future of Advanced Manufacturing and Production at the World Economic Forum.

“Manufacturing is on the verge of a data‑driven revolution,” said Daniel Küpper, Managing Director and Partner of BCG and a report co-author. “But many companies have become disillusioned because they lack the technological backbone required to effectively scale data-and-analytics applications. Establishing these prerequisites will be critical to success in the post-pandemic world.”

As a next step, the community is co-developing a Manufacturing Data Excellence Framework, which comprises value-adding applications as well as technological and organizational success factors. Companies will be able to leverage this framework to accelerate the development of globally connected manufacturing data ecosystems.

Notes to editors

Read the full report here

Learn about the World Economic Forum’s impact: https://www.weforum.org/our-impact

View the best Forum Flickr photos at http://wef.ch/pix

Become a fan of the Forum on Facebook at http://wef.ch/facebook

Follow the Forum on Twitter at http://wef.ch/twitter

Read the Forum blog at http://wef.ch/agenda

View upcoming Forum events at http://wef.ch/events

Subscribe to Forum news releases at http://wef.ch/news

About The Davos Agenda
The Davos Agenda is a pioneering mobilization of global leaders aimed at rebuilding trust to shape the principles, policies and partnerships needed in 2021. It features a full week of global programming dedicated to helping leaders choose innovative and bold solutions to stem the pandemic and drive a robust recovery over the next year. Heads of state, CEOs, civil society leaders and global media will actively participate in almost 100 sessions across five themes. Media can register here.

All opinions expressed are those of the author. The World Economic Forum Blog is an independent and neutral platform dedicated to generating debate around the key topics that shape global, regional and industry agendas.

About us

Engage with us

  • Sign in
  • Partner with us
  • Become a member
  • Sign up for our press releases
  • Subscribe to our newsletters
  • Contact us

Quick links

Language editions

Privacy Policy & Terms of Service

Sitemap

© 2024 World Economic Forum