Digital technologies create tremendous opportunities for growth and transformation at manufacturers, but few have taken full advantage of them. The game-changing tools around data analytics, artificial intelligence, advanced robotics, augmented reality, and others promise great benefits when they are combined with the connective power of the Internet of Things (IoT). But the 300 manufacturing CEOs surveyed in our latest survey (as part of a wider, online survey of a total of 1,300 CEOs) do not expect to realize them quickly, even though they are under pressure from investors for rapid results.
Manufacturing CEOs are confident in their leadership, with two thirds saying they're prepared to lead a radical transformation of organization's operating model. Nearly all believe that technological disruption is an opportunity and not a threat. Despite this optimism about the goals, CEOs are concerned about how to execute a digital transformation strategy and seven in 10 say the lead times on digital transformation often seem overwhelming.
Most say the board of directors has an unreasonable expectation for a return on the investment in digital transformation. To reconcile the demand for quick results with the long-term strategy, CEOs should start quickly to develop a transformation plan that will produce some rapid benefits even though the big gains may not be felt for several years.
“The right first step is to lay out a long-term strategy and roadmap, start the journey and think broadly about the new business opportunities that will come from digital connectivity.” Doug Gates Global Sector Chair, Industrial Manufacturing KPMG International
Digital technologies create tremendous opportunities for growth and transformation at manufacturers, but few have taken full advantage of them. In this 8th edition of the Global Manufacturing Outlook report, our findings from a survey of 300 CEOs and interviews with manufacturing industry executives and KPMG partners show there is no time to waste in building a comprehensive digital transformation strategy.