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3 Keys for Digital Transformation in Manufacturing

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Digital transformation is driving manufacturers to plan and conduct business differently, offering boundless opportunities. But business leaders may ask…what exactly is it and why should I care? This presentation boils it down to a definition and set of three key outcomes that enable manufacturers to make better decisions, have greater enterprise visibility and operate with greater efficiency.

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3 Keys for Digital Transformation in Manufacturing

  1. 1. 1 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. 3 Keys for Digital Transformation in Manufacturing Dave Morfas Director of Product Marketing, Plex
  2. 2. 2 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. Overview • What is Digital Transformation • Why manufacturers care • How Digital Transformation applies to you • How you benefit • 3 keys that manufacturers can use to guide the Digital Transformation journey
  3. 3. 3 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. We Have an Evolving Digital Economy World’s Top 5 companies are digital Internet (digital) economy is the world’s 5th largest https://hbr.org/2016/10/the-missing-political-debate-over-the-digital-economy https://www.bcg.com/documents/file100409.pdf
  4. 4. 4 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. Manufacturing is Evolving in Parallel – With the Help of Technology 46% Technology had an effect on manufacturer growth Source: State of Manufacturing Technology Survey, 2016 Nearly 20% Are making their next technology investment in smart/connected tools
  5. 5. 5 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. Digital Transformation is an Evolving Strategy • Automating processes • Becoming data-driven • Connecting machines and people
  6. 6. 6 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. Operational Challenges Abound Source: CIO Survey, IDG, January 2016; Q - From an IT perspective, what are your top challenges with respect to your business operations today? Top IT Business Operations Challenges
  7. 7. 7 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. And Manufacturing Challenges Stack Up Manual processes Errors Paper-based processes Poor visibility Lack of traceability Waste Scrap Information silos Quality Efficiency Faster decisions Accurate decisions Cost pressure Profit
  8. 8. 8 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. System Complexity is Growing Source: CIO Survey, IDG, January 2016Source: CIO Survey, IDG, January 2016 Manual processes Errors Paper-based processes Poor visibility Lack of traceability Waste Scrap Information silos Quality Efficiency Faster decisions Accurate decisions Cost pressure Profit Complexity See increase in complexity in their organization’s ERP ecosystem 70%
  9. 9. 9 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. UNLOCK THE POTENTIAL OF PEOPLE Informed, engaged, and effective workforce CONTROL THE PLANT FLOOR Real-time visibility and control at the manufacturing moment CONNECT THE BUSINESS TO EVERYTHING Streamlined communication, collaboration, and connectivity MAKE DECISIONS WITH CONFIDENCE AND SPEED Holistic contextual view of the enterprise 3 Keys for Digital Transformation in Manufacturing Control Control Connect Better Decisions Unlock Control Connect Transform Unlock
  10. 10. 10 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. Look Familiar? Get rid of manual, error-prone processes Eliminate paper handoffs 10 Maintenance Work Orders Quality Reports Gage Control Work Instructions Bulletins Production Records
  11. 11. 11 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. Plant Floor – You Can’t Manage What You Can’t Measure…or Track Shipping Inventory Production Inspection Quality Engineering Maintenance
  12. 12. 12 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. SENSORS Digital Transformation Helps Control and Connect the Plant Floor
  13. 13. 13 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. ANALYTICS SENSORS Advanced Analytics Makes Data Actionable
  14. 14. 14 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. Plants Customers Partners Supply Chain HQ Digital Transformation Helps Connect Everything and Everyone
  15. 15. 15 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. “Connectedness” is Key to Managing Manufacturing How critical is improving the level of ‘connectedness’ between your systems, supply chain and system users as a way to drive the following business outcomes? Source: CIO Survey, IDG, January 2016: How critical is improving the level of ‘connectedness’ between your systems, supply chain and system users as a way to drive the following business outcomes? 90%For improving operational efficiency 82%For improving productivity 80%For improving communication and collaboration
  16. 16. 16 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. A Connected, Digital World Ushers in Industrial Internet of Things (IIoT) IIoT The network of physical objects — devices, sensors, machines, tools, vehicles, buildings, and products — that collects, measures, receives, transmits, acts, and exchanges data in an industrial application
  17. 17. 17 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. Digital Transformation Promotes IIoT • Smart manufacturing/IIoT listed as a key factor in near-term growth • Manufacturers are on the cutting-edge of modern technologies • Modern technologies drive high data capture Connected devices employed in manufacturing operations today 94% 79% 50% 46% 37% 32% 24% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Hand scanners Consumer mobile devices (e.g., phone, tablet) Sensors IP-enabled tools and machines Low-power Bluetooth devices Quality scanners Smart thermostats or lighting controls
  18. 18. 18 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. Digital Transformation Helps Unlock the People Potential
  19. 19. 19 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. Fear Not: People are Still Core to the Future of Manufacturing • Manufacturing is changing • Skillset demands are changing What do you see as the biggest obstacle to your company’s growth next year? 28% 22% 5% 4% 3% 9% 17% 9% 3% 0% 5% 10% 15% 20% 25% 30% Shortage of skilled workers Lower-cost competitors Inability to take advantage of new technology New competitors Regulation Shortage of capital Weak demand among U.S. customers Weak demand outside the U.S. Other (please specify) Source: State of Manufacturing Technology Survey, 2016
  20. 20. 20 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. Digital Transformation Supports Untethered Workers
  21. 21. 21 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. Modern Digital Solutions are the Way Forward Yesterday’s Software Systems • Accounting focus • Plant is an afterthought • Rigid processes • Limited access & visibility • Disconnected data • Versionless, always current software • Plant floor to top floor connectedness • Flexible, collaborative processes • Always-on, real-time data • Single source of truth Modern Software Systems VS.
  22. 22. 22 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. Cloud – The Right Path to Digital Transformation Percentage of respondents that valued the following capabilities that cloud technologies deliver 1. Connectivity to systems, machines, suppliers, customers (98%) 2. Continuous innovation (97%) 3. Common data model (96%) 4. End-to-end solution (96%) 5. Lower cost IT resource requirements (96%) 6. Access to the customer community (93%) Source: State of Manufacturing Technology Survey, 2016
  23. 23. 23 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. “We automatically report production at a highly detailed level, increase equipment uptime, and ensure a consistently high- quality part output. It completely changes the way we do business.” – Marwood Metal Fabrication Results: Reporting, Quality, Uptime
  24. 24. 24 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. “The automated, paperless system saves time and effort, and helps with ISO compliance.” – Newman Technology Results: Time Savings, Eliminate Errors
  25. 25. 25 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. With the Cloud model, it has allowed us to access information from anywhere, anytime. We are no longer chasing data from one source to another. It is now readily available to help us make informed and proactive decisions.” – Hatch Stamping Company Results: Data access, better decisions
  26. 26. 26 | Plex Systems, Inc. privileged and confidential information. Copyright ©2016 Plex Systems, Inc. All rights reserved. Summary • It’s about transforming the business • Eliminate archaic, manual paper processes and errors • Gain visibility and control of your plant floor • Connect machines, people, and your enterprise • Unlock your people potential to focus on business improvements • Embrace innovation, modern tools and capabilities

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