10 Global Manufacturing Predictions for 2018

Recently the IDC (International Data Corporation) released a report highlighting the top predictions for Global Manufacturing for 2018. These predictions cover a number of IT and technology related advancements and adopted notions, these include, Digital transformations, AI (Artificial Intelligence), IoT (Internet of Things), Data, Analytics and Cloud Network’s.

It’s no secret that these changes / predictions or even notions have been widely talked about, in my last blog, “9 Expected Supply Chain Innovations” I talked about many of these predictions, but this is the first report I have read that aligns them to Global Manufacturing and provides predicted timeline against them.

The World of Manufacturing is changing rapidly, and the introduction of Digital technology is among the main catalysts for that rapid change. It really is a case of “Digital or Dead”, and any global Manufacture that has not yet embarked on a journey of exploration into this new and exciting world, maybe caught short.

The only prediction that I will make is on what I believe will have the greatest impact, I believe Cloud Network’s including, Visibility and End-2-End Supply Chain Management, Big Data and Analytics will be the major trends for early mainstream adoption.

But let’s look at those predictions made by IDC and see what you think.

Prediction 1: By 2020, 60% of G2000 Manufacturers will rely on digital platforms that enhance their investments in ecosystems and experiences and support as much as 30% of their overall revenue.

Prediction 2: By 2021, 20% of G2000 Manufacturers will depend on a secure backbone of embedded intelligence, using IoT, Blockchain, and Cognitive, to Automate large-scale processes and speed execution times by up to 25%.

Prediction 3: By 2020, 75% of all Manufacturers will participate in industry clouds, although only one-third of those Manufacturers will be monetising their data contributions.

Prediction 4: By 2019, the need to integrate operational technology and information technology as a result of IoT will have led to more than 30% of all IT and OT technical staff having direct project experience in both fields.

Prediction 5: By 2019, 50% of Manufacturers will be collaborating directly with customers and consumers regarding new and improved product designs through Cloud-Based Crowd-sourcing, Virtual Reality, and product Virtualisation, realising up to a 25% improvement in product success rates.

Prediction 6: In 2020, augmented reality and mobile devices will drive the transition to the GIG economy in the service industry, with "experts for hire" replacing 20% of dedicated customer and field service workers, starting with consumer durables and electronics.

Prediction 7: By the end of 2020, one-third of all Manufacturing Supply Chains will be using Analytics-Driven Cognitive Capabilities, thus increasing cost efficiency by 10% and service performance by 5%.

Prediction 8: By 2020, 80% of Supply Chain interactions will happen across Cloud-Based commerce networks, dramatically improving participants' resiliency and reducing the impact of supply disruptions by up to one-third.

Prediction 9: By 2020, 25% of Manufacturers in select sub-sectors will have balanced production with demand cadence and achieved greater customisation through intelligent and flexible assets.

Prediction 10: By 2019, 15% of Manufacturers that manage data-intensive production and Supply Chain processes will be leveraging Cloud-Based execution models that depend on edge analytics to enable real-time visibility and augment operational flexibility.

You can read the full report here - LINK

Whilst many of the above predictions focus on the short term, i.e. the next 1-5 years, mainstream adoption will be spread over the next 10, but make no mistake, many companies, and I do mean many, are well along this journey of change.

As always, love to hear your thoughts, and please share. 

Chris