Management 1
3 Things Successful Innovative Manufacturers are Doing
Reduction in cost and making manufacturing processes more efficient is the one of the top growth strategies of most manufacturing CEOs. This can be seen as change sweeping across the operating model like rearranging the plant layout, strengthening their footprint, adopting advanced manufacturing techniques like 3D printing to robotics.
Innovation in the business model is possibly the biggest challenge that manufacturing CEOs are facing. The fact remains that conventional operating models are undergoing a complete overhaul with agility being at the forefront to capture new market segments and sales channels.
Here are a few areas that sees innovative manufacturers targeting for maximum impact.
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Race with technology
While most companies plan capital investments over a five-year period, technology continues to evolve at the speed of light. Therefore, the traditional modes of investment and payback, as well as managerial speed needs to be adjusted to sync with the rapid technology evolution. Consumer electronics companies, for example, account for flexibility in adopting new technologies in their product development models.
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Keeping up with innovation
Innovation is the buzzword for manufacturers today. All too often, it is confined to a lab or small, focused team. Balancing profits from existing line of products versus getting employees to learn new technologies can be a tough situation for manufacturers. Today, innovative companies need to take in the various pros and cons of new technologies and focus on “continuous improvement” techniques.
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Look long term
While no one can really predict how technology will evolve in the next 10 years, top manufacturers are trying to draw a parallel between their innovation investments and long-term business goals. Manufacturers are choosing investments that will lower operating costs, reduced risk and speed up operational performance for their clients. They are trying to relay their ideas to their employees, suppliers, customers, and shareholders for a 360◦ integration of their innovation investments.
