(McKinsey Article — By Andreas Behrendt, Andràs Kadocsa, Richard Kelly, & Lisa Schirmers: June 2017) Several terms are used to describe the combined impact of digital connectivity, advanced analytics, artificial intelligence, and new cyberphysical systems in the production of physical goods. But whether it’s dubbed Industry 4.0, the industrial Internet of Things, or digital manufacturing—as we use in this article—expectations remain high regarding the benefits that disruptive technologies will create for manufacturers and technology providers. For some manufacturers, the primary benefits relate to improved productivity and reduced cost, but others expect more wide-ranging impact such as shorter time to market, more agile operations, increased ease of product customization, and even the opportunity to generate additional revenue streams through value-added services. Many companies are embarking on the journey to integrate digital and production, but approaches to capturing its value differ significantly.
(The entire article from which this summary was taken can be found in the July 10, 2017 edition of NACFAM’s weekly newsletter “Manufacturing Trends.” To receive this edition of the newsletter, send your request to email@example.com.)