ing less rapid progress toward digital transfor-
mation than they envisioned a year ago.
The reasons for this discontinuous progress toward M4.0 are many and certainly differ by company and manufacturing vertical.
But, as the Factories of the Future survey
shows, M4.0 transformation barriers at many
companies can be traced back to limitations
of leadership and company culture.
M4.0 will present manufacturing leaders
with opportunities to create new business
models that combine smart products and digital services. It will also introduce new risks
and new competitors. Manufacturing leaders
will be required to think and act in new ways
and to model and encourage new behaviors in
Leaders, for example, will need to adopt a
new, more experimental approach to digital
transformation initiatives. They’ll need to
be willing to fail fast, in the style of Silicon
perience with new digital technologies and
Manufacturing Leaders in the M4.0 era will
also need to think differently about how their
companies are organized and aligned. Organizational stovepipes won’t work in an M4.0
era when competitors are weaving cross-func-tional digital threads that promote agility and
deliver value to customers in new ways.
And, finally, manufacturing leaders will
need to embrace and demand a new approach to decision-making up and down
their organizations that relies more on the
use of trusted, real-time data than tribal
We see manufacturing leaders striving to
improve in all of these areas. M4.0 winners
will be the ones who can get there first.
– Jeff Moad
Y COLLEAGUE DAVID BROUSELL HAS RECEN TLY DESCRIBED
the journey currently being made by many companies toward Manufacturing 4.0 as a “digital wagon train.” What he means is that progress often isn’t
smooth or consistently accelerating. Rather, it is frequently slow and halting
as manufacturers struggle to overcome barriers on the path to digital transformation. The Manufacturing Leadership Council’s latest Factories of the Future survey report,
published in this issue, is evidence of that wagon train effect. Many manufacturers are experienc-
LEADERSHIP JOURNAL .................... ....................
Tech is Only Part of the Transformation.