Tag Archive: IoT

Will Technology Gain Critical Mass in Manufacturing in 2020?

January 6th, 2020

 

 

 

 

 

 

 

According to an Industry Week article, recent predictions say we are headed into the year where technology gains critical mass!  That is truly exciting for manufacturers as people and robots work in collaboration to achieve profitable growth and success. Of course, it isn’t all about robots but it provides a good visual for the conversation.

 

There are all sorts of technologies to consider including robots, collaborative robots, wearables, IoT, additive manufacturing, 5G, AI and more. By NO means should we jump on the next fad.  Yet, we should be aware of these technologies, the progress of the technologies and be ready to take advantage of opportunities. Your smart competition will be! When technology gains critical mass, not only will your competition have the edge but it will accelerate the rate of progress.  This means you will be left inching your way from the start gate when your competition passed you in the victory lap with profitable growth, superior customer experiences and happy employees. Are you considering your technological footprint?

What Should We Consider and/or What Impacts Could Arise?
Without a doubt, shift into high gear when it comes to getting educated on the technologies that support your industry and your supply chain partners. You do not need to throw bunches of money at this issue but gaining prudent proactive knowledge is a must. Understand your landscape and which technologies might provide an advantage in the marketplace. Be willing to invest in testing and trials.

Involve your team and extended supply chain partners in collaborating and brainstorming on win-win-win strategies to achieve key objectives. We live in a collaborative world.  We need to see our partners as partners – not vendors and the competition. From this point-of-view, in my ProVisors group of trusted advisors, the most successful members believe in referring business they could do themselves if they think it is slightly better off with their competitor. It is counter intuitive and ends up turning 1 + 1 into 4 with more business for all. The same will hold true with your supply chain partners.  With that said, being collaborative is not an excuse to be negligent. You have to watch out for cyber security and a host of other issues that could arise.

At a minimum, re-evaluate your technology roadmap.  Remember, this is identical to strategy in 2020. A strategy looking 5 years out is pointless, even a year out is suspect. Instead, you need a roadmap of guidelines with the flexibility to be resilient and the attentiveness to take advantage of opportunities as they arise. In essence, future-proof your manufacturing organization and extended supply chain.

Check out our new LMA-i, LMA-Intelligence series including Future-Proofing and contact us if you’d like an assessment path-forward plan to accelerate your bottom line and customer performance.



Blockchain, IoT, AI, Big Data. Will Anything Stick?

November 11th, 2019

Client Question
Should I really invest time and resources into technologies I don’t know will pay back?

For example, there is a lot of conversation about the value (or lack thereof) of blockchain, IoT, AI and more. This concern continues to arise and is on every executive’s mind. They do not want to be left in the dust “holding the bag” (old and slow) while their competitors race by. On the other hand, they do not want to dump all sorts of money into technology that might not prove effective in their industry. And, in some cases, what they could invest would be a drop in the bucket. It would be like trying to refill the Pacific Ocean with a pail. Remember that fabulous song by Harry Belafonte “There’s a Hole in the Bucket“?

My colleague Diane Garcia and I set out to find the latest answer to this question at the Association for Supply Chain Management International Conference. There were several panels and presentations on each of these topics, along with several exhibitors talking about the latest and greatest technology integrations.

The Answer
Undoubtedly, there is a lot of noise about these technologies. According to Gartner, AI augmentation will generate $2.9 trillion in business value and recover $6.2 billion hours of work productivity. So, it is easy to see why AI is gaining investment with the large companies and with leaders of large organizations.

I love this quote from Harvard Business Review, “Over the next decade, AI won’t replace managers, but managers who use AI will replace those who don’t.” That about sums it up! We need to at least be aware so that we can make good decisions when it comes to these technologies.

As it relates to AI, according to McKinsey Quarterly, across all functions, respondents report that the most significant benefits come from adopting AI in manufacturing! Coming in second is risk with supply chain management just behind in third place. So, if you are in manufacturing, you cannot afford not to at least consider the opportunities. Do you need to do this on your own? NO! We are seeing small companies come together to share resources and invest jointly to drive scale with results (and so they can compete with the large companies). There are also groups that facilitate this type of collaboration. At the most digitized companies, the adoption of AI capabilities is greater including machine learning, virtual agents, robotic process automation, computer vision and more.

According to Forrester, 90% plan greater investments in data and according to MIT Sloan, 85% view AI as a strategic priority. These two technologies cross over and seem to have the upper hand with the most immediately applicable technology.

With that said, there were even more sessions about blockchain and whether it was hype or hope. The bottom line on blockchain is that it is a real opportunity for certain industries such as the food industry (related to food safety).  It is still in early stages and will require a consortium of companies to come together to bring to reality.

According to a leader from FedEx, whether big or small, no one company will be successful on its own. Yet all the “big guys” are interested and participating. Stay tuned to see where it goes. Last but not least, IoT is integrated into many conversations about big data, AI, autonomous vehicles and more because it connects technologies. In manufacturing, IoT is connecting machines and data for predictive maintenance and the possibilities abound.

The bottom line: pay attention but resist exploring technology in isolation. Learn to collaborate.

Food For Thought
As much as these technologies should be on your radar, don’t get carried away and forget your fundamentals.

Do you have a scalable ERP system to support your business growth and profitability? If not, start there!

Do you have reporting and business intelligence systems so that you can slice and dice information to make instantaneous, informed decisions as key customer questions or business opportunities arise? If not, start there!

How about a simple CRM solution? Certainly in the Amazon Effect era, we must pay attention to customers.

Did you like this article?  Continue reading on this topic:

What is Ahead for Technology?
AI, Robots, IoT, Blockchain, Hike!
Systems Pragmatist



Survey says Automation Beats IoT

September 19th, 2019

According to Industry Week’s Tech survey, robots are hot! On the other hand, there is a bit of skepticism with IoT and wearables. In talking with mainly small and medium size manufacturers in answering the question of which technology is most important to your company’s success, AI/ automation came in at #1 by a long shot.  It was followed by data analytics software/ERP/MES and then additive/digital manufacturing.

The article discussed the fact that IoT has been quite successful at driving results but the larger companies are the ones pursuing it. Certainly, with our clients, the small and medium size clients have less resources and need to prioritize.  We are seeing the same set of priorities. With that said, there is a lot of interest in IoT as it relates to connecting equipment, vehicles and more.  However, it is a more complex topic with multiple vendors involved. It just hasn’t been rolled out in any significant way because manufacturers and distributors see more potential for customer and bottom line improvement with automation/AI, ERP systems and additive/digital manufacturing. Are you considering any of these options?

What Should We Consider and/or What Impacts Could Arise?
Since we work with clients that are small and medium closely-held organizations to private equity backed to multi-billion dollar enterprises, it is interesting to note what is in common across the board. Certainly, there is no doubt that almost every executive is at least thinking about automation and robots!

Are you keeping up on the latest thinking on the benefits of technology? We NEVER support technology for technology’s sake. In fact, it is a common mistake for clients to get carried away with the latest and greatest concepts and lose sight of the return to the customer experience and the bottom line. With that said, you have to be aware of what’s out there and be continually evaluating what might make sense for your business.

I just talked with a commercial banker about collaborating on a robotics education session. Why not seek out information and figure out which technology will align with your business strategy and objectives? Then, put together a trial to test the concept without a significant financial commitment. There are also resources to collaborate with to share in these learning opportunities.

For example, we are creating a consortium for advanced manufacturing and logistics excellence in the Inland Empire focused on just this topic. Also, our non-profit APICS Inland Empire group, which is a chapter of the Association for Supply Chain Management, provides symposiums, webinars and tours related to these types of topics. You’ll find more information on these types of topics on our resilient supply chain series.

 

 



Blockchain Service Has Gone Mainstream

June 11th, 2019

 

Although according to most experts, blockchain hasn’t lived up to its promise yet especially in comparison with IoT, robotics and more, it has just gone mainstream. Of course, who else but Amazon has just made blockchain service platform generally available. Undoubtedly, that will disrupt many of the techies running around to be the first at blockchain! With that said, big names such as IBM have poured a lot of resources into blockchain, so it is likely to go somewhere. For example, IBM and Syniverse just completed a pilot program for roaming solutions using blockchain technology.  And, IBM has interesting projects going with Nestle, Volkswagen, and Albertsons (the world’s 2nd largest grocery chain).

Have you thought about how blockchain might impact your industry?

What Should We Consider and/or What Impacts Could Arise?
There has been a lot of hoopla about blockchain for several years although progress has been slower than many other technologies. Regardless of how popular, it is important to understand key technologies that might impact your industry or your supply chain partners. Certainly, in blockchain’s case, it is relevant to industries where a chain-of-custody might be needed such as food. That is why two of the companies mentioned above relate to food, Nestle and Albertsons. Yet it doesn’t matter if you relate to food or another blockchain-related industry, it is quite likely your industry or your supply chain will be impacted in some way. For example, you might use the same supplier or transportation system.

The bottom line is to stay abreast of what might impact your industry, company, customers, suppliers and related geographies. Thinking ahead will enable you to take advantage of opportunities and successfully navigate around barriers. You’ll find more information on these types of topics on our resilient supply chain series.

 



Boom or Recession? What is the State of the Economy?

May 6th, 2019

In the last few months, I’ve attended sessions on the global, national and regional state of the economy. Every executive, trusted advisor and colleague wants to know: Are we headed for a recession?

The bottom line answer is that there are no signs of a recession in the foreseeable future in terms of the economy. Instead of worrying, it might be just the time to take advantage of the opportunity. As Roy Paulson, president of Paulson Manufacturing said in our 2019 Predictions from Manufacturing & Logistics Executives report, “…expect to see more talk of tariffs, threats and waving of hands, all the while, those of us in exporting will be busy making deals, signing contracts and getting business done.”

Similarly, in manufacturing, there was concern over the worsening ISM (Institute for Supply Management) index even though it remained far above (54.2) the level that indicates expansion (50) yet the index rose significantly in March to 55.3, signaling great growth and stabilization. The largest contributor was from employment which had the biggest gain in 3 years. All cylinders seem to be firing.

Yet many remain concerned for the next shoe to drop due to the volatility and uncertainty of these tumultuous times. Perhaps it is time for us to get comfortable with volatility and pursue new product introductions, technology (automation, AI, IoT) for those that will add value in our businesses and experiment with innovative ideas. What better time will there be to get in front of the curve so that we can pass by the competition if/when a recession hits?

One tip to implement this week:
There are countless studies that prove that those people who remain calm, invest smartly while others panic and stay the course to what they know will add value to their business thrive. Perhaps we should take a page from their book.

Of course, stay up-to-date on the latest trends and don’t hide your head in the sand as issues arise.  Spend the 80/20 of your day looking for opportunities. What new ideas have you had lately? Have you asked your front line employees for ideas? Are you willing to invest in their education and give them the chance to fail?

When I was VP of Operations at PaperPak, I worked with a CEO who was constantly thinking about the ways for us to succeed. Gas prices rose (which we obviously couldn’t control), which had the potential to create pure havoc with our profitability (with a Board that didn’t consider gas prices a reasonable excuse). Instead of panicking, he would consult with key people throughout the organization and create opportunities to get ahead of the issue. We rose from the ashes more times than I can count because we kept focused, thinking of opportunities instead of becoming defeated by some rather significant curve balls.

Give it a try this week at the next sign of volatility and disaster. How can you turn it into an opportunity?