Intro to Digital Manufacturing: How Technology is Transforming the Manufacturing Industry

Summary

In this video, Eric Kimberly, CEO of Third Stage Consulting, discusses the transformative impact of technology on the manufacturing industry. He highlights key technologies such as ERP systems, robotics, and IoT, which are integral to Industry 4.0, enhancing operational efficiency and competitiveness. Kimberly emphasizes the importance of digital supply chains, interoperability, and customer experience in the era of digital transformation. He also encourages viewers to download the annual digital transformation report for more insights and best practices.

Takeaways

• 🌟 Technology is revolutionizing manufacturing by providing competitive advantages through digital transformation.
• 🤖 Key technologies impacting manufacturing include ERP systems, manufacturing execution systems, robotics, and automation.
• 📈 Industry 4.0 is a pivotal trend, integrating robotics, IoT, and other tech to automate manufacturing processes.
• 🔗 The Internet of Things (IoT) plays a significant role by capturing data across various touchpoints in the manufacturing lifecycle.
• 🏭 Robotics are automating manual tasks, enhancing efficiency and precision in manufacturing operations.
• 🔄 Digital supply chains are becoming more agile, with technologies improving planning and prediction of material flow.
• 🔄 Interoperability is crucial for manufacturing as it allows different systems and technologies to communicate and integrate seamlessly.
• 🛒 Post-pandemic, there's a focus on enhancing supply chain visibility and agility to meet customer demands.
• 💡 Business intelligence tools are essential for analyzing the vast amounts of data generated by manufacturing operations.
• 📊 Real-time analytics and business intelligence are transforming decision-making in manufacturing, providing actionable insights.

Q & A

What is the main focus of the video script?

The main focus of the video script is to discuss how technology is impacting manufacturers and providing them with competitive advantages in the marketplace.

Who is speaking in the video script?

Eric Kimberly, the CEO of Third Stage Consulting, is speaking in the video script.

What type of firm is Third Stage Consulting?

Third Stage Consulting is an independent consulting firm that helps clients achieve success in their digital transformation journeys, with a focus on the manufacturing sector.

What does the term 'third stage of digital transformation' refer to?

The 'third stage of digital transformation' likely refers to a mature phase in a company's digital evolution where they have successfully integrated digital technologies into their operations to achieve significant competitive advantages.

What are some of the key technologies mentioned in the script that are changing manufacturing operations?

Some key technologies mentioned include ERP systems, manufacturing execution systems, robotics, robotic process automation, and Industry 4.0 technologies.

What is Industry 4.0 and how does it impact manufacturing?

Industry 4.0 is a trend that integrates robotics, manufacturing operations, the Internet of Things, and other technologies to automate the end-to-end cycle within a manufacturing organization, providing better visibility and automation throughout the entire lifecycle.

Why are digital supply chains important in the manufacturing sector?

Digital supply chains are important because they allow for better planning, prediction, and agility, especially in the face of challenges like the 2020s pandemic, which highlighted the need for more robust and responsive supply chain management.

What does the term 'interoperability' mean in the context of manufacturing technology?

Interoperability in manufacturing technology refers to the ability of multiple systems to communicate and work together seamlessly, providing a cohesive set of business processes and data sets to automate operations.

How has the customer experience been affected by technological advancements in manufacturing?

Technological advancements have enabled manufacturers to focus more on the end customer experience, providing better data and visibility into customer needs and demands, and offering a more consumer-grade experience.

What role do business intelligence tools play in the digital transformation of manufacturing organizations?

Business intelligence tools play a crucial role by providing real-time analytics and insights from the data captured by various technologies, helping manufacturers make informed decisions and improve their operations.

What additional resource does Eric Kimberly recommend for more information on digital transformation in manufacturing?

Eric Kimberly recommends downloading the annual digital transformation report published by Third Stage Consulting, which includes best practices, tips, lessons, and technology reviews.

Outlines

00:00

🌐 Impact of Technology on Manufacturing

Eric Kimberly, CEO of Third Stage Consulting, discusses the transformative effect of technology on global manufacturing. He emphasizes the significance of digital transformation and how it provides manufacturers with a competitive edge. Technologies like ERP systems, MES, robotics, and RPA are highlighted as key drivers of operational improvement. Kimberly suggests leveraging these technologies to define a digital strategy and roadmap for enhancing manufacturing operations. He also recommends downloading the annual digital transformation report for best practices and insights into leading manufacturing technologies.

05:01

🔗 Industry 4.0 and Digital Supply Chains

The script delves into Industry 4.0, which integrates robotics, IoT, and other technologies to automate manufacturing processes. It underscores the importance of MES, IoT, and robotics in providing a comprehensive view of the business process from raw material procurement to end-customer delivery. The concept of digital supply chains is introduced, highlighting how technologies like ERP, procurement software, and warehouse management systems are automating and optimizing supply chain management. The impact of the pandemic on supply chain visibility and agility is noted, with a focus on improving predictability and nimbleness in the 2020s.

10:02

🤝 Interoperability and Customer Experience

Interoperability is defined as the ability of multiple systems to communicate and work together cohesively, which is crucial for complex manufacturing organizations. The script discusses the importance of integrating various technologies to automate business processes and manage diverse data sources. It also touches on the increasing focus on customer experience in manufacturing, driven by technological advancements and heightened customer expectations. Business intelligence tools are presented as essential for analyzing and making sense of the vast amounts of data generated, enabling real-time analytics and informed decision-making in manufacturing operations.

Keywords

💡Digital Transformation

Digital transformation refers to the integration of digital technology into all areas of a business, fundamentally changing how businesses operate and deliver value to customers. In the context of the video, digital transformation is central to how manufacturing organizations are leveraging technology to enhance their operations, as exemplified by the CEO of Third Stage Consulting discussing how their clients are reaching their 'third stage of digital transformation success.'

💡ERP Systems

ERP, or Enterprise Resource Planning, systems are integrated software solutions that manage a company's core business processes, often including product planning, development, manufacturing, sales, and marketing. The video mentions ERP systems as one of the software technologies that organizations are using to undergo digital transformations, indicating their importance in streamlining and automating business operations.

💡Manufacturing Execution Systems (MES)

MES are systems that monitor and control production processes on the factory floor. They provide real-time data to manage and optimize the manufacturing process. The video script refers to MES as a key technology impacting manufacturers by automating and capturing data on the shop floor, which is crucial for improving operations and efficiency.

💡Robotics and Robotic Process Automation (RPA)

Robotics involves the use of robots to perform tasks, while Robotic Process Automation (RPA) is the use of software robots to automate business processes. The video highlights these technologies as game-changers in manufacturing, enabling manufacturers to improve their operations by automating manual tasks and processes, thus providing a competitive advantage.

💡Industry 4.0

Industry 4.0, also known as the fourth industrial revolution, is characterized by the fusion of technologies such as robotics, the Internet of Things (IoT), and data exchange in manufacturing technologies. The video emphasizes Industry 4.0 as a theme that ties together various technologies to automate the manufacturing process, providing a comprehensive view of the end-to-end business process and enhancing visibility and automation.

💡Internet of Things (IoT)

IoT refers to the interconnection of everyday objects, allowing them to send and receive data. In the video, IoT is mentioned as a component of Industry 4.0, capturing data from sensors and devices, which is then integrated into the overall system to improve operational efficiency and decision-making.

💡Digital Supply Chains

Digital supply chains involve the use of digital technologies to automate and optimize the movement of goods from suppliers to end customers. The video discusses the transformation of supply chains through technologies like ERP and supply chain management solutions, which help manufacturers to better plan and predict material needs, enhancing agility and responsiveness.

💡Interoperability

Interoperability is the ability of different systems and devices to work together. In the context of the video, interoperability is crucial for manufacturers as it allows multiple technologies and systems to communicate and integrate, forming a cohesive solution that automates business processes. The video notes the increasing importance of interoperability due to advancements in integration tools and platforms.

💡Customer Experience

Customer experience encompasses all interactions a customer has with a company, from awareness to purchase and beyond. The video suggests that technology in manufacturing is not only about operational efficiency but also about enhancing the end customer experience. It mentions how customer expectations are driving manufacturers to provide a more consumer-grade experience, influenced by interactions with tech-savvy companies like Amazon and Alibaba.

💡Business Intelligence

Business intelligence refers to the strategies and technologies used by companies to analyze data and gain insights to improve business decisions. The video connects business intelligence tools with the broader theme of technology in manufacturing, highlighting how these tools can provide real-time analytics and visibility into operations, customer needs, and supply chain data, thus aiding in decision-making.

Highlights

Technology is significantly impacting how manufacturers operate and providing them with a competitive advantage.

Third Stage Consulting helps clients reach their third stage of digital transformation, particularly in manufacturing.

Software technologies like ERP systems and manufacturing execution systems are key in digital transformations.

Robotics and robotic process automation are enabling manufacturers to improve operations.

Industry 4.0 ties together robotics, manufacturing operations, and the Internet of Things to automate manufacturing processes.

Manufacturing execution systems automate and capture data on the shop floor.

The Internet of Things captures data from sensors and devices, integrating it into the manufacturing process.

Robotics is automating manual work in manufacturing, improving efficiency.

Industry 4.0 provides a comprehensive view of the manufacturing lifecycle, from raw materials to end customers.

Digital supply chains are being automated to improve planning and prediction of material needs.

The pandemic has highlighted the need for more agile and predictable supply chains.

Interoperability describes how multiple systems can communicate and integrate within manufacturing operations.

Manufacturers rely on interoperability due to the complexity and diversity of their business processes.

Modern integration tools and platforms have made achieving interoperability more viable.

Technology is enabling manufacturers to focus more on the end customer experience.

Customer expectations are driving manufacturers to provide a consumer-grade experience.

Business intelligence tools are essential for analyzing data captured by advanced manufacturing technologies.

The digital transformation report provides best practices, lessons, and technology reviews for manufacturers.

Transcripts

technology is totally transforming how

manufacturing organizations throughout

the world work but how exactly is

technology impacting manufacturers

that's what I want to talk about here

today

[Music]

my name is Eric Kimberly I'm the CEO of

third stage Consulting we're an

independent consulting firm that helps

clients throughout the world reach their

third stage of digital transformation

success and many of our clients are in

the manufacturing space we work at the

number of global manufacturers in all

parts of the world we're finding more

and more over time that technology is

significantly impacting how

manufacturers operate and it's providing

game-changing capabilities that really

give them a competitive advantage in the

marketplace you certainly have software

Technologies like Erp systems a lot of

organizations are going through digital

transformations of some sort you have

manufacturing execution systems you have

robotics robotic process automation a

lot of different technologies that are

enabling manufacturers to improve their

operations and I'm not going to dive

into each of those Technologies in this

video but what I do want to talk about

in this video are some of the key

technologies that are totally changing

the way manufacturers operate and the

idea here is to give you some ideas on

how you might leverage some of these

Technologies to define a digital

strategy and roadmap to help improve

your manufacturing operations now for

more information on this topic I

encourage you to download our annual

digital transformation report it's a

report we publish each year that

provides a number of best practices tips

and lessons from digital Transformations

throughout the world and it also

includes a ranking of some of the top

leading Manufacturing Technologies that

can help enable digital transformation

within your manufacturing organization

so I encourage you to download that

report to provide some additional best

practices and background information to

help you through your digital

transformation Journey

one of the most important themes that

we're seeing within the manufacturing

technology space is industry 4.0 now I

have a video on my YouTube channel which

you can find right here that talks about

what exactly industry 4.0 is so I

encourage you to look at that video or

watch that video if you'd like to learn

more detail about industry 4.0 but to

summarize it here what industry 4.0 is

is really a way to tie together robotics

manufacturing operations internet of

things and other Technologies to really

help automate the end-to-end cycle

within a manufacturing organization

some of the key components of Industry

4.0 include manufacturing execution

systems which are technologies that

automate and capture data on the shop

floor as

assembly lines and work in progress is

moving through the end-to-end business

processes it also includes internet of

things to capture data not only in the

sensors and in the shop floor but

potentially in other devices as well

could be customer devices or other

third-party devices and other data

points that's integrated into the

overall Internet of Things

and then of course those robotics as

well so you have robotics that's

automating much of the work that was

done manually by humans in manufacturing

or producing or assembling different

materials so the good thing with

industry 4.0 is it's really providing a

more complete comprehensive view of the

end-to-end business process from

procurement of raw materials all the way

through production manufacturing

warehousing and ultimately to your end

customers and it's providing better

visibility and greater visibility into

Data throughout that entire end-to-end

lifecycle and it's also providing

automation tools through that end-to-end

lifecycle as well so industry 4.0 is

something that's totally transforming

and changing the way technology is used

in manufacturing organizations

throughout the world

[Music]

now just as industry 4.0 is transforming

the way manufacturers operate their core

manufacturing operations you also have

digital Supply chains Supply chains are

being automated and being provided with

better data capturing better data both

internally and externally to allow

manufacturing organizations to better

plan and predict where raw materials and

finish materials need to be at what time

ever since the pandemic especially we're

seeing here in the 2020s that

organizations have a lot of work to do

to improve their supply chains and make

their supply chains more predictable

more Nimble and more agile so leading

manufacturing organizations are using

supply chain Technologies to help

improve the way that they run their

supply chains and there's a number of

different technologies that you can use

to enable a digital supply chain things

such as Erp or enterprise resource

planning technology you have core Supply

Chain management solutions that are

Technologies focused exclusively on

Supply Chain management and there are

also other point solutions that can

automate just certain parts of your

supply chain so things like

procurement software that focuses on

really optimizing your procurement

process and you also have transportation

management software that manages trucks

and Logistics of moving your products

from warehouses to customers

and then you also have warehouse

management technologies that help

automate the warehouse itself the whole

pick pack and ship and the cycle

counting physical inventory process so

there are a number of different

Technologies out there that you have to

choose from to help enable a digital

supply chain now and in the future and

that's something that we see more and

more manufacturing organizations doing

here in the 2020s

another technology Trend we're seeing in

the manufacturing space is the term

called interoperability and

interoperability is a way to describe

how multiple systems can talk to one

another and provide a cohesive set of

business processes and Technologies and

data sets to automate and provide

operations for manufacturing

organizations

now this is especially important for

manufacturing organizations even though

it's something we see in other

Industries as well because manufacturing

organizations are very complex they have

a diverse set of business processes and

Technologies and data coming from

multiple sources that require in many

cases a best of read or multiple

technology sort of solution and while

it's possible that you could go find a

single enterprise-wide technology like

an Erp system to automate most of your

manufacturing operations it's rare that

you're going to find one technology that

can automate everything end to end from

your procurement all the way through

your Supply Chain management through the

manufacturing and warehouse management

Logistics all the way to your end

customers so manufacturers more than

most Industries really rely on this

concept of interoperability and what

interoperability entails is making sure

that you're open to multiple

Technologies and at the same time you

assess how well those different

Technologies can talk to one another and

integrate into a cohesive solution

easier said than done of course but it

is some something we're seeing more

organizations focus on in the

manufacturing space and the reason that

this has become more important and more

viable in recent years is because now

more than ever you have better

integration tools and better platforms

to enable this sort of interoperability

model 10 or 20 years ago it was very

painful to go through a deployment with

multiple systems because it was so

difficult to tie together the

integration points and the architecture

and the data flow between different

systems but now you have other

Technologies in the marketplace that

enable interoperability better than we

have seen in the past there's products

like palantir snowflake even the force

platform within Salesforce these are

platforms you can deploy almost like

middleware but different more advanced

version of middleware that can tie

together multiple Technologies and

provide a way to tie together multiple

data sets and multiple business

processes within your manufacturing

operations so interoperability is one of

the key technology trends that we're

seeing within the manufacturing space

here in the 2020s

given the potential of technology in the

manufacturing space what it's doing is

allowing manufacturing organizations to

focus more on the End customer

experience it's providing better data

better visibility into what customer

needs and wants are what customer demand

is and really focusing on

satisfying that customer demand in

addition to there being more opportunity

with technology to provide a better

customer experience you have customer

expectations that manufacturers provide

more of a consumer level or consumer

grade type of experience of interacting

with their organizations in other words

you have a group of customers that are

used to dealing with Amazon and Alibaba

and social media Outlets really easy to

use Technologies they're also used to

self-service and they're used to getting

what they want when they want it so

customers are largely driving and

demanding from manufacturers a different

way of operating a different way of

thinking in a different way of

satisfying customer expectations so the

combination of better Technologies with

increasing demand and requirements from

customers themselves is largely what's

driving a focus on customer experience

within manufacturing organizations now

while this isn't by itself a technology

Trend per se it is an end result that

many men manufacturers are focused on

achieving with some of the technological

trends that I'm talking about in this

video so far

[Music]

all these different technologies that

I've talked about so far today are sort

of wrapped together with business

intelligence you think about industry

Ford Idaho and advanced Supply Chain

management and some of the other things

I've talked about here today and what

that entails is the capturing of more

data you've got more information more

potential visibility into your

operations into your customer needs into

your overall supply chain but that data

is only useful if you have a way to

report on it in a way to make meaning

from it so business intelligence tools

are a way to complete that Loop in the

process so with business intelligence

tools which can either be a standalone

business intelligent tool that bolts on

to other Technologies or many

Technologies provide business

intelligence modules as part of their

core capabilities you can use these

tools either way that can help you have

that visibility through better real-time

analytics business intelligence and

other quantitative measures so business

intelligence is something that's totally

transforming the way manufacturers

Operate Now versus how they have in the

past so these are just some of the

things I encourage you to think about as

you think about defining your digital

strategy for your manufacturing

Organization for more best practices and

lessons and ideas and Technology reviews

that might help you identify some

potential software options I encourage

you to download our digital

transformation report which is an annual

report we publish each year that

provides a number of independent

software reviews and rankings the best

practices tips lessons all that good

stuff that can be a way to complete your

research into technology Trends in the

manufacturing space so I encourage you

to download that white paper in the link

below I've also included links to other

resources that I think will help you in

your digital transformation Journey as

well so I hope you found this

information useful and hope you have a

great day

[Music]

thank you my name is Eric Kimberling I'm

the

I forgot my title just as industry 4.0

is

game changing yeah nope and there's one

more that I forgot yeah why am I here

assume my key card's not going to work

because I can't remember what I do here

but how exactly is technology affecting

um nope nope that's not it okay do you

ever like go through the editing and you

edit like what I just did and they're

like damn it he said to start over and

he'll just scratch everything you just

edited because so I encourage you to

download that guy

that enable automated and digitized

there it is again

both figuratively

okay products flow Within

let me just say that whole thing over

wow that was a mess