Embracing Digital Transformation to Capture New Value

1. The Digital Manufacturer
Embracing Digital Transformation to Capture New Value
The Digital Manufacturer
#DigitalTransformation

2. To help manufacturers learn how to capture new value
with DigitalTransformation, Cisco Consulting Services
undertook a global survey of 625 senior
IT decision makers in 13 countries.
79% believe digital disruption will drive impact
at their companies in the next 3 years.

3. When embracing DigitalTransformation, manufacturers
face consistent themes
in challenges and pressures.
Business
Models
Organization
al Structure
& Integration
Workforce
Changes
Business
Processes
IT Capabilities Offerings
Customer
Service

4. Digital BusinessTransformation must span
technology change and organizational change,
to drive success in manufacturing.The goal is to
think like an agile technology company to capture value
that is now being left on the table.

5. Manufacturers that embrace Digital Transformation can drive
significant business outcomes over the next 10 years by
improving core contributors to profitability.
Customer ExperienceSupply Chain & LogisticsInnovation
SustainabilityEmployee ProductivityAsset Utilization

6. Digital technologies, not manufacturing technologies, will
have the greatest impact – but they must be seamlessly
integrated.
37% 33% 32%
625 respondents
Which technologies can most change how you
manage production over the next three years?
[choose up to three]
Q
Cloud
M2M / IoT
Big Data analytics

7. Digital Transformation takes Connected Machines
to the next level by creating the foundation for
new applications and outcomes.

8. Digitization is pivotal in manufacturing’s evolution, especially as
connecting across an entire ecosystem — not just the plant floor —
becomes increasingly critical.
67% of respondents viewed Service Oriented Revenue Models as
depending “to a large or very large degree” on digitization.

9. In a climate of disruption
and global market
pressures,
manufacturers want to
differentiate with new
service-oriented
revenue models.
However, new services
increase complexity,
and greater complexity
creates profitability
challenges.
This is the Service
Dilemma.
Digital Transformation will accelerate the
transition to service-oriented models.
1 2 3
To resolve the Service
Dilemma, manufacturers
must drive organizational
and technology change —
what we call digital
business transformation.
The payoff:
19% profit increase
over 10 years.

10. To fully digitize the organization, three foundational
capabilities must be developed across the
manufacturer's business –
hyperawareness, informed decision making,
and fast execution.

11. Want to learn more?
Download the whitepaper.
The Digital Manufacturer:
Resolving the Service Dilemma