Deloitte – Exponential technologies more important than ever for manufacturers
Manufacturers will need to embrace exponential technologies such as 3D printing, advanced analytics, modelling and simulation, and internet of things (IoT) platforms if they are to thrive, according to a new study published by Deloitte.
The Exponential Technologies in Manufacturing report, compiled in partnership with Council on Competitiveness and Singularity University, highlights opportunities for manufacturers to embrace exponentials to drive future competitive advantage.
It also reveals that talent continues to be a key competitive differentiator, with talent shortages a “critical issue across the globe”.
- 3D printing: from the automotive design studio to the factory floor
- How manufacturing companies can navigate digital transformation in 2018
- Read the latest issue of Manufacturing Global here
Among the statistical highlights include the forecast for artificial intelligence (AI), which as a market is expected to hit $72bn in 2021, growing at a rate of 55.1% a year. Blockchain is forecast to grow at 61.5% a year to 2021, reaching a value of $2.3bn.
Manufacturers are key users of these technologies, demonstrated by the fact that 86 of the top 100 R&D spenders are from the industry.
However, Deloitte does acknowledge a “sluggish” uptake in exponential technologies, which it puts down to a number of contributing factors, such as:
- Inertia of big manufacturing companies that stifles change, speed and agility
- Complacency, created by decades of success
- Fear of failure at all levels of organisations
- Regulatory burdens and high compliance costs
- Talent constraints caused by lack of availability, relative unattractive perception of manufacturing, and retirement of baby boomers and subsequent loss of knowledge
- Lack of management commitment and vision
The report is unequivocal in its conclusion that exponential technologies are more important than ever for manufacturers.
It states: “Exponential technologies are indispensable tools to help manufacturers address the bigger concerns and challenges that are part and parcel of transformation ushered in by Industry 4.0 and to transform into DMEs.
“These technologies grow and enable change at an accelerating pace, and are often used in conjunction with each other to fundamentally disrupt processes and industries—and create opportunities.”
Further, it found that its participant executives “overwhelmingly agree that being able to leverage innovative, exponential technologies is a matter of survival in the increasingly “disrupt or be disrupted” manufacturing industry”.
ServiceNow pumps millions into EU service compliance
ServiceNow, the digital workflow company, has announced a multimillion euro investment to help EU customers meet compliance requirements.
The legal, technical and organisational safeguards will help companies to comply with the the Schrems II judgment and European Data Protection Board (EDPB) Recommendations issued in June 2021.
ServiceNow’s investment means all EU-hosted data will be exclusively handled within the EU, and the cloud-hosted digital workflow provider claims its solution will come “without impact on current delivery and service”.
ServiceNow upgrade: free of charge
There will be no cost for current customers to opt in to the data compliance solution, even though ServiceNow is investing an unspecified multimillion euro sum and hiring more than 80 new staff across the bloc.
Mark Cockerill, vice president legal, EMEA and global head of privacy at ServiceNow, said: “With any regulation change, cloud services companies have a choice. They can adopt a ‘wait and see’ approach or get proactive and help customers and partners innovate. At ServiceNow we are on the front foot, continually investing in our customers, allowing them to operate with the highest level of choice and control over their EU data.
ServiceNow upgrade: ‘peace of mind’
“Our new EU-centric service delivery model will give our current customers and partners peace of mind. For customers and partners operating in highly regulated industries, or in the public sector, or those that have yet to make the switch to the cloud, this model gives them certainty and simplicity when selecting the cloud service that best suits their needs.”
Carla Arend, lead analyst, cloud in europe for IDC, said, “The Schrems II ruling has led European organizations to revisit their cloud-related data protection policies and processes when it comes to international data transfers through cloud services.
“Contractual, privacy, and security safeguards and the assurance that data will be kept and handled in the EU help European organizations to comply with European data protection laws while taking advantage of global cloud platforms. Vendors, such as ServiceNow, that invest to support their customers in response to this ruling are providing essential choice to their customers.”