Earlier this year Oxford Economics released a study on Manufacturing Transformation, which takes a look at how manufacturing will change over the next decade and beyond, and how businesses must transform in order to keep up with these new trends.
The study finds that successful transformation is grounded by three broad themes:
- Rethinking strategy and planning
- The service imperative
- Innovation everywhere
Service, innovation, and strategy and planning is now vital as traditional means of creating advantage are running out of steam. Over half of Oxford Economic’s survey respondents said they have already wrung out almost all savings in their manufacturing operations today.
While this indicates there is still work to be done on the operations side, 71 percent of surveyed executives believe that optimizing operations has become the industry’s price of entry rather than a source of differentiation.
When manufacturing executives were asked which specific strategies they expect to drive revenue and profitability in the next three years, they identified the following as their top 3 strategies: Voice of the customer initiatives (68 percent), performance-based service contracts (65 percent) and the ability to design, build, and service anywhere (58 percent).
For the complete list of the strategies manufacturers will use to drive revenue and profitability along with some significant regional, industry and business function differences, download the full Manufacturing Transformation report or read the Manufacturing Transformation eBook.