2021 Top Trends

in Manufacturing
Industries
Gartner Advanced Manufacturing Analysts

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What Got You Here, Won't Get You There

"The greatest
danger in times of
turbulence
is not the
turbulence;
it is to act with
yesterday's logic."
Peter Drucker

Digital is rapidly reshaping the leadership context

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 Uncertainty Is All We Can Predict

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 Growth

CEO

The Gartner Digitalization

CEO Survey
Flags Clear CEO

2022 Priorities Efficiency

CEO

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 Growth
CIO

Force
CEO
Multipliers

CIO Priorities Digitalization

CIO
Result From Creative
the Business CEO
Technology

Need Efficiency
CIO

Scalable
CEO
Foundation

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 Growth
Accelerating
CIO

CEO
Force Growth
Multipliers

Priorities Digitalization
Sculpting
CIO
Create Key Creative Change
Themes CEO
Technology

for 2022 Efficiency

Engineering
CIO

CEO
Scalable Trust
Foundation

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 Generative AI
Autonomic Systems Accelerating
Total Experience Growth
Distributed Enterprise
Gartner’s AI Engineering
Top Strategic Hyperautomation Sculpting
Technology Decision Intelligence Change
Trends for Composable Applications

2022 Cloud-Native Platforms

Privacy-Enhancing Computation Engineering
Cybersecurity Mesh Trust
Data Fabric

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2021 Top Strategic Trends in Manufacturing
Top Manufacturing Trends for 2021

Amplified Continuous Location

Resilient Delivery
Engagement Revenue Independence

• Digital + Product • Data Monetization • Anywhere • Hyperautomation

• Total Experience • Equipment as a Operations • Intelligent
• Ecosystem Service • Autonomous Things Composable
Partnerships Business
• Smart Factory

Business Technology
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 Amplified Engagement
Digital + Product Experience
Total Experience
Ecosystem Partnerships

Continuous Revenue

Location Independence

Resilient Delivery

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Predicts for Amplified Engagement

Digital + Product Experience: By 2025, 95% of the Top 50 Consumer

Goods manufacturers will have one or more of the following: a brand app
using AI, embedded technology in the product, use of digital assets (such as
videos), or integrated innovation with their IT and R&D teams.

Total Experience: By 2024, organizations providing a total experience will

outperform competitors by 25% in satisfaction metrics for both customer and
employee experience.

Ecosystem Partnerships: By 2024, 75% of the top 20 global consumer

goods companies will partner with another company to provide a digital
experience to augment their physical products/services.

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Digital + Product Experience: LG
Sense fabric type and weight, select the right wash cycle, as well as detergent amount.
Can also perform preventative maintenance checks Key Capabilities:

Customer
Engagement

Digital + Product

Ecosystem Partner

Source: LG
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 Total Experience
It’s not about the individual experience value, but the exponential value when they are truly interlinked.

Customer Experience (CX) Employee Experience (EX)

Needs less friction and more delight through a Needs faster, better access with empowerment
better user interface, more options to across multiple channels/platforms to delight
communicate, and more empowered employees. CX EX customers.

Multiexperience (MX) User Experience (UX)

Deliver better experiences with a simpler interface Provide an effortless, more intuitive navigation
across multiple touchpoints and modalities: MX UX in less time and across multiple devices.
voice, gestures, no-touch, etc.

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Total Experience: Coca-Cola Freestyle
Total Experience Opportunities

CX EX
Give customers greater control to Access data from kiosks to assess
create their own personalized drink which combination flavors will most likely
be success as mass produced products.

MX UX
Create connected experience Design pathways to offer a
between the kiosk or the app to manageable drink selection.
dispense a drink. Create constraints to avoid combinations
that would not be good together.

Source: Coca-Cola Company

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Steps to Increasing Value in Ecosystem Partnerships
Partnership of two or more businesses to create unique digital services

Value

Emerge Connect
Create internal requirements to evaluate
potential partners that include:
• Security
Connect • Privacy Rights
• Integration to back-end systems
• Data monetization rights

Identify potential cross industry partners and

Extract
assess based on the defined requirements

Improve

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 Amplified Engagement

Continuous Revenue
Data Monetization
Equipment as a Service

Location Independence

Resilient Delivery

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Predicts for Continuous Revenue

Data Monetization: By the end of 2024, 50% of heavy asset manufacturing

organizations will have failed to monetize their data.

Equipment as a Service: By YE23, 20% of industrial equipment

manufacturers will support EaaS with remote Industrial IoT capabilities up
from a current base of near zero.

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Data Monetization

or

Data Monetization Direct Data Monetization

▪ Improving process performance, • Bartering/trading with information
effectiveness, or risk
• Enhancing products or services with
▪ Developing new products or markets information

▪ Building and solidifying partner relationships

• Selling raw data through brokers
• Offering insights, analyses, reports and
▪ Publishing branded indexes
subscriptions
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Equipment as a Service
IOT-enabled Product as a Service payment is for usage of a physical asset, not purchased or leased

Manufacturer

Maintainer Operator

Manufacturer, Maintainer, and Owner could be one entity.

Operator is the “customer”.

Owner
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 Amplified Engagement

Continuous Revenue

Location Independence
Anywhere Operations
Autonomous Things

Resilient Delivery

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Predicts for Location Independence

Anywhere Operations: By 2023, 40% of organizations will blend virtual and

physical experiences, leading to increased workforce productivity and
customer reach.

Autonomous Things: By 2026, the use of autonomous things will displace

25% of warehouse logistics operators such as forklift drivers.

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Anywhere Operations
Embrace Remote Operations and Virtual Delivery

Far
Workers Customers

Near
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Autonomous Things: Ford Motor Company
Autonomous robots reduce costs and bring vehicles to market sooner.

Key Capabilities:

Anywhere Operations

Autonomous Things

Data Monetization

Source: Ford Motor Company

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 Amplified Engagement

Continuous Revenue

Location Independence

Resilient Delivery
Hyperautomation
Intelligent Composable Business
Smart Factory

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Predicts for Resilient Delivery

Hyperautomation: By 2025, manufacturers will lower operational costs by

25% by combining hyperautomation technologies with redesigned operational
processes.

Intelligent Composable Business: By 2023, organizations that have

adopted a composable approach will outpace competition by 80% in the
speed of new initiative implementation.

Smart Factory: By 2025 3 out of 5 manufacturers’ smart factory initiatives will

stall due to lack of supply chain integration.

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Automation Impacts on Job Tasks
Percentage of Respondents

Reduced overall time taken to complete the process 59%

Some repetitive tasks were removed 57%

Reduced risk of making a mistake 30%

Give me additional tasks as a result of automation 28%

Made my job more complex 20%

The automated process causes more errors 20%

0% 10% 20% 30% 40% 50% 60% 70%

n = 46, All Answering Manufacturing Respondents

Q. What was the impact of Automation technologies on your job?
Source: 2021 Gartner Employee Technology Survey

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Hyperautomation: BMW
Smart factory of the future has automated production with precision

Key Capabilities:

Autonomous Things

Data Monetization

Hyperautomation

Smart Factory

Source: BMW
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Intelligent Composable Business

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Smart Factory
74% of the participants in a 2020 Gartner Smart Manufacturing Strategy and Implementation Trends Survey report having a smart factory
initiative at their organization

Operating Model: Governance to align smart

factories with product supply strategy and how
the business works.

Enabling Use Cases: Combine different

technologies, data management techniques
and workflows to support specific processes or
transactions.

Foundations: Core smart factory building

blocks to ensure stability and consistency,
visibility, and control of production processes.

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Smart Factory: Bosch
All systems, sensors, products generate data, which is collected in a central repository for smarter AI

Key Capabilities:

Autonomous Things

Digital + Product

Machine Learning

Smart Factory

Source: Bosch
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2021 Top Strategic Trends in Manufacturing
Top Manufacturing Trends for 2021

Amplified Continuous Location

Resilient Delivery
Engagement Revenue Independence

• Digital + Product • Data Monetization • Anywhere • Hyperautomation

• Total Experience • Equipment as a Operations • Intelligent
• Ecosystem Service • Autonomous Things Composable
Partnerships Business
• Smart Factory

Business Technology
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 Thank You

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 Q&A

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 Case Study Example
of AI Usage in
Manufacturing

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