Manufacturers are pouring in moneyto set up smart factories56% of the survey respondents have invested more than US $100 in last five years
Distribution of manufacturers based on their smart factory investments in the last five years
Smart factories to add
from $500 billion to $1,500 billion in the next 5 years annually*
*in eight major economies
We estimate that smart factories can more than double operating profit and margin
Manufacturers predict quality indicators to
improve annually at 12 times the rate of growth since 1990 thanks to smart factories
IndustrialManufacturing
Automotive Aerospace & Defense
Energy & Utilities
Pharma, Life Science,
BioTech
Consumer Goods
Average realized overall productivity gains from smart factories so far
What is a smart factory?A factory that makes intelligent use of cutting edge digital technologies and smart features to gain considerable advantage in terms of productivity, efficiency, quality and flexibility.
The Size of the Smart Factory Prize is Too Large to Ignore
Manufacturers across segments are already harnessing the potential of smart factories
12x 2x$500 bn $1,500 billion
A research by Capgemini's Digital Transformation Institute
Digital masters are reaping the rewards of their digital maturity
How can manufacturers become digital masters?
Digital Maturity Matrix
However, only 6% of manufacturers are truly advanced in their digital transformation
Digital Intensity dimension: - measures the level of digitization of crucial processes, and the level of use of digital technologies.
Transformation Management Intensity dimension: - measures management aspects such as smart factory vision, governance, and the digital skills of manufacturers’ workforce.
All the surveyed countries and industries, on average, are quite far from becoming digital masters
Proportion of categories based on digital maturity across industries
Realized Gains - Beginners Vs. Digital Masters
Contact us: [email protected]
The information contained in this document is proprietary. © 2017 Capgemini. All rights reserved.
Manufacturers across countries are enthusiastic in embracing smart factories
Smart Factories: How to realize the potential of the digital industrial revolution
North America Western Europe India and China
US54% France
44%
Germany46% India
28%
China25%
UK43% Sweden
39%
Italy33%
Audi’s €1 bn smart factory in San José
Chiapa, Mexico
Faurecia’s $64 million smart
factory in Columbus,
Indiana
Adidas’ high-tech
Speedfactory in Ansbach, Germany
Siemens’ smart plant in
Amberg, Germany
GE’s “brilliant Factory” in Pune,
India
ABB’s smart plant in Beijing,
China
Penetration level: 50 - 60% 40 - 50% 30 - 40% 20 - 30%
Percentages indicate the share of companies in the respective country that has a smart factory initiative ongoing
17% 18%
16% 17% 18%
17%
29% 27% 27% 26%
24%
21%
Productivity Direct laborCost
Raw Material,Logistics &
Tranportation
OverallEquipment
Effectiveness(OEE)
Quality & Scrap Selling, General &
Admin Costs
Beginners Digital Masters
Fashionistas Digital Masters
Beginners Conservatives
Establish a roadmap and rally supportof key leaders
Measure and monitor business valueof digital initiative and kill unprofitableones
Bridge the digital talent gap bypartnering with ecosystem players
Craft a holistic vision; establish afoundation of strong leadership andgovernance
Invest in digital initiatives aligned withthe vision
Launch proofs-of-concept anddemonstrate early wins
Ensure agility is factored in yourgovernance models
Prioritize and execute on your digitalinitiatives
Scale your initiatives to theorganizational level
Maintain focus on your roadmap
Sustain the momentum by keepingyour people engaged
Strive for a digital culture and mindsetas you advance your initiatives
Source: Capgemini Digital Transformation Institute analysis
20% 19%17%18% 17%18%
Capgemini Smart Factory Framework
84% 85% 80% 81%
65%
86%
13% 11% 15% 16%
20%
11%1% 1% 1%
1%
1% 4% 5% 3%
14%
4%
Aerospace and
Defense
Automotive and
Transportation
Consumergoods
Energy & Utilities
Industrialmanufacturing
Biotech & Pharma
Beginners Conservatives Fashionistas Digital Masters
5% 4% 5% 5% 6%
11%
6%7% 6% 7%
6%
4%
5% 6%7%
5%
28%
16%
18% 18%
56%
20%
1%
1%
Less than$50M
Between$50 - $100M
Between$100 - $250M
Between$250 - $500M
More than$500M
Both Greenfield & Brownfield Brownfield Greenfield Yet to be decided
Fashionistas 1%
Beginners 78% Conservatives 15%
Digital Masters 6%
Low High
Low
Hig
h
Transformation Management Intensity
Dig
ital I
nten
sity
Manufacturing Digital Transformation
Complex System Simulation: Product, Process, Flow
Industrial Cybersecurity: Product, Process
Smart System
Collaboration
Usage feed-back
Digital Twin
Remotemonitoring
AutonomousOperations
OperationsTechnology
Product Quality
Preventive &Predictive
maintenance
Mobility &Remote
Augmented /Virtual reality
Health SafetyEnvironment
Operations Management
PLM Digital AssetManagement
IndustrialControl System
ManufacturingIntelligence
DigitalOperator
DigitalMock Up
From Scan… to Print
Product and Asset Management
3D Continuity
3D Platform
IoT Platform
Smart Factory