From securing connected operations in the age of edge computing to easing the burden of technical debt, manufacturing executives converged in Marco Island, Florida, last week to discuss the industry’s most pressing issues.
The focus of the Manufacturing Leadership Council’s 2024 Rethink conference—also sponsored by RSM—was on accelerating digital transformation in the manufacturing sector and how businesses can develop smart factories that thrive in the future.
Read our top takeaways from RSM industrials senior analysts:
1. Automation remains a priority
Over the last two decades, manufacturing has made significant strides in embracing digital production models. However, the landscape keeps evolving as new technologies emerge, presenting both opportunities and challenges. Leading manufacturers are now reaping benefits from data analytics, artificial intelligence and machine learning, but many still struggle to keep up with the pace of digital change. One Rethink session examined a future in which connected workers harness the power of human-centered automation, augmentation and AI.
2. Business model innovation is paramount
Creating a strategy and adopting a business model to take advantage of Manufacturing 4.0 technologies makes it easier for manufacturers to navigate change and allows them to reinvent their business models to focus on value-added services. The conference’s keynote session focused on “how advanced technologies can help discover new products, service-based revenue opportunities, and new business operating models.”
3. Companies need to assess their technical debt
How can companies determine whether maintaining an existing system is more costly than installing a newer, better solution? One panel discussion—which included RSM Industrials Senior Analyst Matt Dollard—examined how businesses can assess if they’ve reached the tipping point, how this type of debt can be paid off, and how to create a smart strategy that will avoid accumulating technical debt in the future. Assessing so-called technical debt can be difficult but using a framework to quantify operational and financial impacts can make clear why it is critical.
Read more manufacturing industry insights from RSM.
4. Connectivity and artificial intelligence remain top of mind
Safety in manufacturing has evolved well beyond the physical. As manufacturers become more interconnected—combining traditional information technology functions, new Internet of Things devices and operational technology on the factory floor—strong cybersecurity measures and thorough risk management are paramount. One Rethink panel focused on the vast AI manufacturing use cases and zeroed in on the importance of securing data and overall data integrity, which requires a defined governance model.
5. Supply chain visibility enables greater agility
Harnessing the power of enabling technologies is one of the most effective ways to improve visibility and drive efficiencies across the supply chain. AI-driven simulation tools and digital twins can help companies better anticipate supply chain disruptions and help them understand when to adjust their plans accordingly. Obtaining visibility beyond Tier 1 suppliers can be difficult, but it is essential to create an agile, resilient and cost-optimized supply chain.
