This ARC concept introduces the Information-Driven Enterprise strategy and provides a framework for industrial companies to use to determine how to best approach technology decisions.
New Technologies Drive Information Driven Enterprise
New information technologies such as cloud computing, mobility, social technologies, Internet of Things, big data/analytics, and 3D visualization have been getting a lot of attention in the industrial community. The reason is that each of these technologies and probably a few others as well, has the potential to disrupt and radically change the way manufacturers do business. Still, manufacturers tend to be conservative and slow to embrace new information technologies. When they do, they often demand concrete references from industry pioneers, together with hard ROI business cases, before considering any information technology investment.
However, this go-slow strategy can be far riskier than anticipated. New information technologies may disrupt not only what happens within the four walls of a plant, but entire business processes throughout the supply chain and across the value network, and do so in fairly short order. The manufacturing environment is increasingly dynamic and volatile. New business models such as Industry 4.0, Industrial Internet, Connected Manufacturing, and Collaborative Value Networks are emerging. In addition to a host of potentially disruptive technologies entering the marketplace, companies must also face rapid changes in government regulations, energy and raw materials availability, markets, and competition. By deploying leading edge information technologies, today's companies can thrive.
New competitors in new markets, unencumbered by legacy systems, may leapfrog to the latest technologies and, based on the new capabilities pro-vided, serve their markets in completely new ways. Existing competitors may seek to leverage technologies to attract your customers with better products and services. Customers will soon expect products themselves to be more intelligent (consider the advent of the connected car and the self-driving car) and accompanied by a portfolio of software and services from manufacturers.
Manufacturers that choose to stay at the back of the information technology pack will find it becoming increasingly difficult to reverse that decision. Not only is technology changing at an ever-faster pace, but the resulting hurdles that must be jumped to catch up will become ever higher. Those with better skills in software will be better positioned to succeed. Those who tend to run the latest software revs will be able to react more quickly when things change. So, what strategies can manufacturers adopt to help position them to take advantage of the latest round of technology changes?
This ARC concept introduces the Information-Driven Enterprise strategy and provides a framework for industrial companies to use to determine how to best approach technology decisions.