{"id":1321,"date":"2021-09-17T00:51:01","date_gmt":"2021-09-17T07:51:01","guid":{"rendered":"http:\/\/themanwhosoldtheweb.com\/blog\/?p=1321"},"modified":"2021-09-17T00:51:03","modified_gmt":"2021-09-17T07:51:03","slug":"key-pillars-of-digital-manufacturing-execution","status":"publish","type":"post","link":"http:\/\/themanwhosoldtheweb.com\/blog\/2021\/09\/key-pillars-of-digital-manufacturing-execution\/","title":{"rendered":"Key Pillars of Digital Manufacturing Execution"},"content":{"rendered":"\n
\"9575523281?profile=RESIZE_400x\"<\/a><\/figure><\/div>\n\n\n\n

Digital Transformation<\/a> in Manufacturing<\/a>, or Digital Manufacturing for short, is a matter of survival now for manufacturing concerns.  Manufacturing companies desirous of survival have no choice but to hop on the Digital Transformation bandwagon, rapidly.<\/p>\n\n\n\n

Business Transformation<\/a> of any kind is not an easy endeavor.  Change Management<\/a> of Digital Manufacturing is typically more difficult than any Change or Transformation Program that an organization may undertake.<\/p>\n\n\n\n

Forming a strategy to leverage digital technologies is the 1st step in transforming a manufacturing concern towards Digital Manufacturing<\/a>.  Bigger challenges are faced in strategy execution.<\/p>\n\n\n\n

For Transformation execution to be effective, CEOs must reconsider almost everything about the way their companies work; for instance, establish new Business Models<\/a>, reorganize their Organizational Design<\/a>, and also rethink their Leadership<\/a> style.<\/p>\n\n\n\n

Specifically, there are 3 key pillars of Digital Manufacturing execution that need careful consideration for the Transformation to be successful:<\/p>\n\n\n\n

  1. Business Model over Technology<\/li>
  2. Independence of Digital Operations<\/li>
  3. CEO-driven Digital Transformation<\/li><\/ol>\n\n\n\n
    \"\"<\/a><\/figure><\/div>\n\n\n\n

    Let us consider the key pillars a little more in detail.<\/p>\n\n\n\n

    Business Model over Technology<\/strong><\/h3>\n\n\n\n

    Shifting from old technology to new is easier than changing the Business Model of any concern, especially a manufacturing concern.  Customarily, manufacturers sell machinery, hand out software as complementary, and offer after sales repair and maintenance service for the machinery.<\/p>\n\n\n\n

    For Digital Transformation to be truly successful, the whole way of doing business has to change.  Manufacturers have to look at what they are selling i.e., outcome instead of a product.  What is important is manufacturers should be willing to do away with existing Business Models to create and capture new value.<\/p>\n\n\n\n

    Value creation is achievable in many ways using industrial Internet of Things (IoT)<\/a> by manufacturers.  All of the avenues for value creation should be used in parallel so as to gain the largest impact.<\/p>\n\n\n\n

    Value created through Digital Manufacturing can be captured in 2 ways:<\/p>\n\n\n\n

    1. Software as a Service and Subscriptions\/Licenses<\/li>
    2. Offering Success as a Service<\/li><\/ol>\n\n\n\n

      Independence of Digital Operations<\/strong><\/h3>\n\n\n\n

      Digital operations can create a meaningful impact only when they are independent of the main business.  Independence is important but so is proper linkage with the industrial business.<\/p>\n\n\n\n

      Initially, understanding regarding value provided by Digital operations may be very limited in the manufacturing business therefore cooperation may be inhibited.  Finding ways to link Digital operations with the manufacturing business must cater to the requirement of understanding how the machines work.<\/p>\n\n\n\n

      Resistance from the manufacturing business is expected when the 2 forces combine, especially when the Digital operations grow.  Delineating who handles customer relationship and all factors associated with it, is also a question that may spring up in cooperation between manufacturing and digital operations.<\/p>\n\n\n\n

      Ways to obtain gains from linking vertical business and the horizontal digital function must be found.<\/p>\n\n\n\n

      CEO-driven Digital Transformation<\/strong><\/h3>\n\n\n\n

      Sponsor of the Digital Manufacturing initiative has to be the CEO.  Only the CEO has the influence to decide the divergences between the old manufacturing business and the new digital business.<\/p>\n\n\n\n

      CEOs have to drive the Digital Manufacturing shift.  Leading from the front to make everyone understand that Digital Transformation is a very serious and important endeavor.<\/p>\n\n\n\n

      CEOs must have the will and resolve to challenge incumbency, obliviousness, and existing state of affairs.  While remaining firm on the strategic direction, CEOs must be flexible enough to experiment, learn, and adjust course.<\/p>\n\n\n\n

      Interested in learning more about Digital Manufacturing?  You can download an editable PowerPoint on Digital Manufacturing here<\/strong> <\/a>on the Flevy documents marketplace<\/a>.<\/p>\n\n\n\n

      Editor’s Note:<\/strong><\/h3>\n\n\n\n

      If you are interested in becoming an expert on Supply Chain Management (SCM), take a look at Flevy’s Supply Chain Management (SCM) Frameworks<\/strong> offering here<\/a>.  This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts.  By learning and applying these concepts, you can you stay ahead of the curve.  Full details here.<\/a><\/p>\n\n\n\n

      Want to Achieve Excellence in Supply Chain Management (SCM)?<\/strong><\/h3>\n\n\n\n

      Gain the knowledge and develop the expertise to become an expert in Supply Chain Management (SCM).  Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts.  Click here for full details.<\/a><\/p>\n\n\n\n

      Supply Chain Management (SCM) is the design, planning, execution, control, and monitoring of Supply Chain activities.  It also captures the management of the flow of goods and services. <\/p>\n\n\n\n

      In February of 2020, COVID-19 disrupted\u2014and in many cases halted\u2014global Supply Chains, revealing just how fragile they have become.  By April, many countries experienced declines of over 40% in domestic and international trade. <\/p>\n\n\n\n

      COVID-19 has likewise changed how Supply Chain Executives approach and think about SCM.  In the pre-COVID-19 era of globalization, the objective was to be Lean and Cost-effective. In the post-COVID-19 world, companies must now focus on making their Supply Chains Resilient, Agile, and Smart.  Additional trends include Digitization, Sustainability, and Manufacturing Reshoring.<\/p>\n\n\n\n

      Learn about our Supply Chain Management (SCM) Best Practice Frameworks<\/strong> here.<\/a><\/p>\n\n\n\n

      Do You Find Value in This Framework?<\/strong><\/h3>\n\n\n\n

      You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library<\/a>.  FlevyPro<\/a> is trusted and utilized by 1000s of management consultants and corporate executives.  Here\u2019s what some have to say:<\/p>\n\n\n\n

      \u201cMy FlevyPro subscription provides me with the most popular frameworks and decks in demand in today\u2019s market.  They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions.  I strongly recommend FlevyPro to any consultant serious about success.\u201d<\/p>

      \u2013 Bill Branson, Founder at Strategic Business Architects<\/p><\/blockquote>\n\n\n\n

      \u201cAs a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power.  For us, it is an invaluable resource to increase our impact and value.\u201d<\/p>

      \u2013 David Coloma, Consulting Area Manager at Cynertia Consulting<\/p><\/blockquote>\n\n\n\n

      \u201cFlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients.  In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over!  The quality of the decks available allows me to punch way above my weight \u2013 it\u2019s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.\u201d<\/p>

      \u2013 Roderick Cameron, Founding Partner at SGFE Ltd<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

      Digital Transformation in Manufacturing, or Digital Manufacturing for short, is a matter of survival now for manufacturing concerns.  Manufacturing companies desirous of survival have no choice but to hop on the Digital Transformation bandwagon, rapidly. Business Transformation of any kind is not an easy endeavor.  Change Management of Digital Manufacturing is typically more difficult than any Change or Transformation Program […]<\/p>\n","protected":false},"author":3,"featured_media":1326,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[1161,277,242,1151,311,1160,1162,771,543],"class_list":["post-1321","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-business-model-over-technology","tag-business-transformation","tag-change-management","tag-digital-manufacturing","tag-digital-transformation","tag-digital-transformation-in-manufacturing","tag-independence-of-digital-operations","tag-manufacturing","tag-organizational-design"],"_links":{"self":[{"href":"http:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/posts\/1321","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/comments?post=1321"}],"version-history":[{"count":4,"href":"http:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/posts\/1321\/revisions"}],"predecessor-version":[{"id":1325,"href":"http:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/posts\/1321\/revisions\/1325"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/media\/1326"}],"wp:attachment":[{"href":"http:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/media?parent=1321"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/categories?post=1321"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/tags?post=1321"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}