2019 Manufacturing Trends Report
Microsoft Dynamics 3652019 ManufacturingTrends ReportPage 1
IntroductionSince the start of the First Industrial Revolution, manufacturing has been the force pushing industrial and societaltransformation forward. Today, we’re in the midst of another industrial revolution, as a new generation of sophisticated technologies is transforming manufacturinginto a highly connected, intelligent, and ultimately, moreproductive industry. The manpowered shop floor of thepast is being replaced by smart manufacturing facilitieswhere tech-savvy workers, aided by intelligent robots,are creating the products of the future.In this Fourth Industrial Revolution, machinery is outfittedwith smart sensors to collect comprehensive, real-timedata; artificial intelligence enables superhuman production efficiency and seamless quality assurance; blockchaintransactions significantly expand transparency and security; edge computing assures nearly uninterrupted connectivity; and impending 5G speeds allow for ever-largervolumes of data processing from anywhere.Modern manufacturers are no longer just makers, theyare the thread that connects the entire lifecycle of aproduct, and to thrive in this modern environment, theymust increasingly rely upon technology to power breakthrough innovations and drive more intelligent operations.The following will explore six emerging trends in manufacturing that we believe will help empower manufacturers to design more intelligent operations and increasethe speed of doing business.Page 2
Trends4IT and OT convergeIT systems merge with operational technologies11The rise of XaaSManufacturers evolve their business models24Intelligent manufacturingConnected intelligent systems make manufacturing smarter32Manufacturing technology evolvesNew technologies are revolutionizing manufacturing40Businesses adapt to an evolving workforceA new generation enters the workforce48Living in the age of uncertaintyUncertainty puts strain on businessesPage 3
IT and OT converge IT and OT convergeBusinesses integrate new and legacy systemsIndustrial IoT evolvesBusinesses welcome cobots (collaborative robots)Manufacturing goes green(er)Page 4
IT and OTconvergeIT and OT convergeIn the past, the management of industrial technology in manufacturing has beendivided between IT and operational technology (OT). Where IT provided topdown technology support for management and the back office, OT was builtfrom the ground up, monitoring and controlling machinery, equipment, tools,and assets.In this legacy role, OT has lived in a bit of a silo, where machines—manipulatedby human input—were programmed to perform very specific tasks. But in recentyears, advances in connectivity, big data, and the expansion of the Internet ofThings (IoT) have opened the door for a new breed of intelligent manufacturing technology that is impacting both IT and OT. Today, data-optimized smartmachines can receive input from a wide range of sources—from customer orderdata to production data—to enable more agile manufacturing, improve production efficiency, and provide greater visibility into operational performance.For the modern manufacturer, data is no longer just the purview of IT; from supply chain management to the operations floor, data is now ubiquitous across theorganization. As data becomes unified across the organization, IT and OT can nolonger operate independently and, as a result, are converging.This IT/OT convergence enables opportunities that have not been possible before. Through the integration of IT and OT data, business leaders can get accessto live dashboards that provide visibility across all parts of the organization. Connected systems can communicate to detect unbalanced load flows and automatically make corrections to prevent outages. Intelligent machines can identifyfaulty parts and select new assets to restore production. And with integratedcontrols, production management systems, and supply chain management systems that are integrated with other IT systems, manufacturers are able to intelligently route orders and automate work streams.Over the past several years, the trend towards IT/OT convergence has emergedPage 5Executive summaryThe IT systems used for data-centriccomputing are being merged with theoperational technology (OT) systemsused to control and monitor processesand devices, creating smarter, moreefficient operations.Highlights There are projected to be 36.13billion connected IoT devices by2021. Sales of collaborative robotsare projected to increase 159%between 2018 and 2020.Advances in connectivity, bigdata, and the expansion ofthe Internet of Things (IoT)have opened the door fora new breed of intelligentmanufacturing technology.
across numerous industries, fromhealthcare and transportation to defense and utilities. As many of theseindustries rely on heavy, expensiveequipment and highly specialized labor forces, the merger has been slowand tactful. But as technological advances in cloud-computing, remotesensors, and connectivity improve,it is becoming faster and easier formanufacturers to integrate the management of industrial technology andintegrate new systems with their legacy systems.In today’s world ofconnected, intelligentmanufacturing, theconvergence of IT andOT is an inevitability.In today’s world of connected, intelligent manufacturing, the convergenceof IT and OT is an inevitability, but thatdoes not mean this transition comeswithout challenges. To start, IT and OTteams must integrate independentsystems that were built and designedseparately. This means finding common ground to develop new infrastructure and implementing protocolsthat enable data sharing across systems.Convergence also requires securityenhancements. For many manufacturers, their OT standards are proprietary and very specialized. In the past,when these systems were set up asindependent, stand-alone tools, theopportunity for a breach was somewhat limited due to the tightly definedperimeters of the system. But as OTsystems become connected to widespread IT communication networks,the risk of a loss increases. As such,businesses integrating the OT and ITsystems must implement well definedstandards that scale across their network to ensure data and IP security.Page 6
Businesses integratenew and legacysystemsThe migration to intelligent manufacturing does not mean starting with ablank slate but rather effectively integrating new technology within theexisting manufacturing environment.And as new technology transformsmanufacturing into a highly connected, intelligent, and ultimately moreproductive industry, businesses mustalso find a way to enhance their legacysystems to keep up with emerging, increasingly sophisticated technologies.Integrating “dumb” machines with“smart” machines starts with enablingdata collection from those legacy machines. Manufacturers are increasingly retrofitting existing equipment withsmart sensors that collect comprehensive data in real time. This data can thenbe passed to execution, productionplanning, and ERP solutions to provide robust visibility into performance.As more manufacturers seek to maketheir legacy systems more intelligent,the market size for sensors and controllers has grown substantially andis projected to grow to 6.1 billion by2020, up from 5.1 billion in 2016.1 Theincreased availability has also drivendown cost for IoT sensors. Between2004 and 2018, the average cost ofa sensor dropped nearly 200% to anaverage cost of 0.44,2 making intelligent manufacturing more affordableand accessible for manufacturers ofall sizes.As manufacturers migrate operations to the cloud, companies thathave invested heavily in on-premisesplatforms must wrestle with the challenge of leveraging these systemswhile simultaneously migrating morefunctionality to the cloud. In comingyears, more companies will embracea hybrid data center model,3 whereon-premises legacy systems are devoted to data and records functionsthat require little customization—aswell as to storing information requiring a higher degree of control andsecurity4 —while those facets of acompany’s operations that requirecontinuous adaptation will be diverted to the cloud. Doing so will allowcompanies to reduce overhead costsrelated to IT, to take advantage of theflexibility and economies of scale afforded by XaaS offerings, and to makecontinued use of legacy systems.44 Average cost of a sensor in2018, nearly 200% less thanthe average cost in 2004.Integrating “dumb”machines with “smart”machines starts withenabling data collectionfrom those legacymachines.Page 7
Industrial IoT evolvesThe broad adoption of smart sensortechnology, connectivity improvements, and advancements in cloudcomputing have helped drive adoption and evolution of Industrial IoT.The Industrial IoT (IIoT) is poised tohave a major impact on manufacturing and the global economy, projected to create 15 trillion of global GDPby 2030.5Global IoT spend isprojected to reach 772 billion in 2018 andsurpass 1 trillion in2020. 15trillionIoT is projected to create 15trillion of global GDP by 2030.Number of IoT connectionsworldwide (in billions)14.8736.1341 50 60 71 84 10020162017201820192020Page 82021Global IoT spend is projected to reach 772 billion in 2018 and surpass 1 trillion in 2020. Manufacturers are projected to spend 189 billion on IoTin 2018, the largest amount from anyindustry, with the primary focus onmanufacturing operations and production asset management.6The IoT has many applications inmanufacturing, from predictive maintenance to cloud-based artificial intelligence to machine learning, thatenable superhuman production efficiency and practically seamless qualityassurance. Digitization is shifting thelandscape of traditional manufacturing; we are only at the beginning ofthis evolution, with many new opportunities ahead.
“We want to build intelligencethat augments human abilities andexperiences.”-Satya Nadella, CEO, MicrosoftBusinesses welcomecobots (collaborativerobots)With advancements in IoT, cloudcomputing, and artificial intelligencehas come advancements in manufacturing robotics. Initially developedin 1995 through research grants fromGeneral Motors,7 cobots—collaborative robots—are becoming a biggerpart of the workforce. By 2025, Barclays Equity Research projects the cobot market size will reach 12.23 billion, more than an 8x increase from2018 ( 1.35 billion).8The use of robots in manufacturingis nothing new, but this new generation of cobots is not your averagemachine. Today’s cobots are built withartificial intelligence and machinelearning that power cognitive capabilities. These robots are able to usecomputer vision to quickly inspectlarge quantities of items for flaws, automate the transportation of materials throughout a facility, and avoidhazards using predictive intelligence.3960 100 Cobots—collaborative by design—are being used to augment humanlabor rather than replace it. By takingon dangerous, physically strenuous,and repetitive tasks, these machinesare making factories safer and moreefficient for their human counterparts.And while many fear the loss of jobsdue to automation,9 research suggests that AI will not only improve labor safety and work conditions, but itwill actually add jobs to the market.10Innovations in robotics have madecobots more adaptable, compact,safer, and more affordable. They aremost useful when they’re poweredby AI and by people that can enabletheir full potential. From startups toglobal conglomerates, manufacturers around the globe are realizingincreased productivity and reducedcosts by augmenting their humanworkforce with robot power.Page 9Projectedsales ofcollaborativerobotsworldwide150(in thousands)9058201820192020
Manufacturing goesgreen(er)More than ever, consumers and governments are holding companies accountable for the environmental impact of their offerings, and evidenceshows that they’re willing to pay forit: a study by Nielsen revealed thatnearly three-quarters of all Millennialsand Gen Z would pay a premium forsustainable products and services.11As green business practices movefrom the realm of moral imperativeto economic driver, more and moremanufacturers are taking concretesteps towards becoming environmentally conscious. This “greening” of thefactory floor is happening in severalways.Manufacturers are optimizing theirfacilities and production processes toreduce their overall energy consumption. This includes steps like installingenergy-efficient heating and coolingsystems and lighting. Improvementsin energy consumption not only reduce environmental impact, but theyalso reduce costs.Companies are also taking steps toreduce the amount of waste, greenhouse gases, and other pollutioncreated as byproducts of the manufacturing process. Increasingly, manufacturers are investing alternative-energy sources, such as wind and solar,to power their operations, and usingrecycled, recyclable, and reusable materials whenever possible.12Nearly three-quartersof all Millennialsand Gen Z wouldpay a premium forsustainable productsand services.Many companies are also conductinglifecycle assessments of their productsto evaluate the environmental impact.This includes everything from packaging design to reduce waste, productdesign to reduce harmful materialsand improve recyclability, and the useof lean manufacturing practices tomake production more efficient andenvironmentally friendly by reducingstorage and material-managementdemands.13Forward looking manufacturers areleaning on technology to reduce theirenvironmental footprint. Cloud-basedcollaboration tools, from shared-documents to video conferencing, makeit easier for teams to work togetherfrom remote locations while reducing the need to travel. Companies arenow deploying computer vision andsmart sensors on the production lineto improve efficiency, detect hazards,and reduce waste. And blockchaintechnology is proving a valuable toolin ensuring the source and efficacy ofraw materials.Many large companies, from TeslaMotors and Method Soap to Appleand Proctor & Gamble, have all madecommitments towards greener, environmentally sustainable practices. AtMicrosoft, we are proud to be a leader in this area. We have been operating at 100% carbon neutrality since2012 and even though our datacenterare already 100% powered by renewable energy sources, we continue towork to improve our energy sourcing.Additionally, we continue to invest innew energy technology, from biogasto fuel cells, to accelerate the availability of new types of clean energy.Improve operationsTo compete in today’s fast pace environment, manufacturers must work faster and smarter. At Microsoft, we areempowering manufacturers to do more with tools that streamline processes, provide greater visibility into operations,and deliver actionable insights.Streamline operationsTo meet rising customer demands,modernmanufacturersmuststreamline operations to providegreater transparency, improve delivery times, and build better products. From productivity tools, likeOffice 365, to intelligent automation capabilities in Dynamics 365,Microsoft is helping manufacturersoperate more effectively and efficiently.Get greater visibilityTo effectively guide their organizations, manufacturers require visibility into all areas of their business. Bycombining unified data in the cloudwith powerful data visualization tools,like Power BI, Microsoft providesmanufacturers with a single source ofvisibility into their operations—fromthe shop floor to transaction data—so they can make more informed decisions.Page 10Be more proactiveTo grow their businesses, manufacturers must look beyond the pastand into the future. Microsoft empowers leaders with tools to helpthem identify emerging trends,predict outcomes, and automatically optimize workflows. This allows manufacturers to becomeless reactive and more proactivewith their business strategies andoperations.
The rise of XaaS The new X-economiesThe Servitization of ManufacturingManufacturers re-evaluate their value chainManufacturers move from B2B to B2B2CBrands go direct-to-consumerThe gig and sharing economies growOn-demand and micro-manufacturing go mainstreamPage 11
The rise of XaaSThe new X-economiesExecutive summaryOn-demand servicesProjected to grow to nearly 57 billion in 2018, on-demand services representperhaps the largest of these categories.14 A model popularized greatly by Uber,on-demand businesses are launching for just about every category imaginable,from printing and dog walkers to babysitters and massages. While many of thesebusinesses are service based, the growth in on-demand services has also drivengrowth in on-demand and micro-manufacturing.HighlightsMillennials, burdened by high unemployment, low wages, and high debt, haverapidly embraced new business models that offer them the latest products withgreater flexibility and lower costs. In today’s market, startups have led the waywith these new offerings, but manufacturers—either through acquisitions orinternal development—are beginning to evolve their business models to theneeds of the modern consumer. These models fall into one of a few categories:Sharing economyThe sharing economy—where consumers “share” products and services directlyinstead of purchasing via a retailer or distributor—is another business model thathas grown in popularity over the last several years. Perhaps the most commonlyknown example of a sharing economy business is Airbnb, where travelers canrent homes and rooms directly from other individuals. The sharing economyis projected to grow to 86.5 million U.S. users by 2021, up from 44.8 million in2016.15 While the sharing economy helps reduce waste, it also poses a threat tomanufacturers, as consumers may opt to “borrow” goods opposed to buyingnew products. As such, manufacturers are being forced to re-evaluate their business models to participate in this new economy.Subscription box servicesSubscription box services have become incredibly popular due to their highlytargeted nature and ease of use. They also present a unique opportunity formanufacturers to sell direct to consumers. Companies like Birchbox, ClubW,Page 12Driven by growth of the IoT and thecloud, many organizations are movingfrom product models to service models,giving their customers more optionswith greater flexibility. On-demand services are projectedto grow to nearly 57 billion in2018. By 2021, 20% of G2000manufacturers will depend ontechnologies like IoT, blockchain,and machine learning to automatelarge-scale processes. 3.9 million people regularly workedin the gig economy in 2017; by2021, that number is projected toreach 9.2 million.The sharing economyis projected to grow to86.5 million U.S. usersby 2021, up from 44.8million in 2016.
Stitch Fix, and NatureBox are just thetip of the iceberg when it comes tothe subscription box market, whichnow provides services for dogs owners, coffee lovers, mountain climbers,gold miners, and sock enthusiasts. 57billionProjected size of the ondemand economy in 2018.Online consignmentWhen eBay and Craigslist launched inthe mid-1990s, they provided individuals with the opportunity to use theinternet to sell used goods. Nearlytwo decades later, a new set of online consignment stores has emergedto help streamline this process. Siteslike thredUP, Swap, and TheRealRealallow shoppers to sell and purchaseused clothes, jewelry, toys, and luxuryfashion accessories online. Similar tothe sharing economy, online consignment stores pose a unique threat tomanufacturers, and a unique opportunity for those willing to think differently about their business models.XaaSAs cloud computing becomes moreubiquitous, Anything as a Service(XaaS) business models are also becoming more popular. The principlebehind XaaS is that businesses canprovide better, more cost-effectivesolutions to customers via subscriptions or pay-as-you-go models thanvia traditional software licensing models. The most commonly known XaaSmodel is Sof
Trends 4 IT and OT converge IT systems merge with operational technologies 11 The rise of XaaS . Intelligent manufacturing Connected intelligent systems make manufacturing smarter 32 Manufacturing technology evolves New technologies are revolutionizing manufacturing 40 Businesses adapt to an evolving workforce A new generation enters the .
2019 Alfa Romeo Giulia 2019 BMW X7 2019 Alfa Romeo Stelvio 2019 BMW Z4 2019 Audi A3 2019 Buick Cascada 2019 Audi A4 2019 Buick Enclave 2019 Audi A5 2019 Buick Encore 2019 Audi A6 2019 Buick Envision 2019 Audi A7 2019 Buick LaCrosse 2019 Audi A8 2019 Buick Regal 2019 Audi Allroad
Trends in Care Delivery and Community Health State Public Health Leadership Webinar Deloitte Consulting LLP June 20, 2013. . Current state of Accountable Care Organizations (ACOs) and trends. Current state of Patient-Centered Medical Homes (PCMHs) and trends. Introduction.File Size: 2MBPage Count: 38Explore further2020 Healthcare Trends and How to Preparewww.healthcatalyst.comFive Health Care Trends For 2020 Health Affairswww.healthaffairs.orgTop 10 Emerging Trends in Health Care for 2021: The New .trustees.aha.orgRecommended to you b
Data Center Trends And Design. Data Center Trends & Design Agenda IT Trends Cooling Design Trends Power Design Trends. IT Trends Virtualization . increasing overall electrical efficiency by 2%. Reduces HVAC requirements by 6 tons/MW. Reduces the amount of equipment needed to support the load,
HONOUR BOARD VOLUNTEERS 2019 - CURRENT David Staniforth Boorowa 2019 Bruce Gruber Boorowa 2019 Lindsay Cosgrove Boorowa 2019 Dennis Osborne Boorowa 2019 John Cook Boorowa 2019 Sue Cook Boorowa 2019 Mick Hughes Boorowa 2019 Daryl Heath Boorowa 2019 Lesley Heath Boorowa 2019 Russell Good Boorowa 2019 John Peterson Boorowa 2019 Heather Bottomley Boorowa 2019 James Armstrong Boorowa 2019
long trends. Trends shaping the future of work Earlier Deloitte research identified seven disruptive trends that are shaping the future of work (see Figure 1). these trends can be grouped into two categories: socio-demographic trends and enabling technology trends. For example, the diversity of the workforce is increasing as we live longer and
2 ALASKA ECONOMIC TRENDS AUGUST 2014 August 2014 Volume 34 Number 8 ISSN 0160-3345 To contact Trends authors or request a free electronic or print subscription, e-mail trends@ alaska.gov or call (907) 465-4500. Trends is on the Web at labor.alaska.gov/trends. Alaska Economic Tr
FinTech waves – Italian FinTech Ecosystem 2020 2 Research goals and methods 3 Executive summary 5 Update post COVID-19 8 1 Financial services trend 10 Global trends 11 Europe trends 13 Italian trends 16 2 The FinTech market 26 FinTech environment 27 Global trends 29 Europe trends 39 Italian trends 45 3 Italian FinTech ecosystem 53 4 The investor
Agile Software Development is not new, in fact it was introduced in the 1990s as a way to reduce costs, minimize risks and ensure that the final product is truly what customers requested. The idea behind the Agile approach is that instead of building a release that is huge in functionality (and often late to market), an organization would adapt to dynamic changing conditions by breaking a .
