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A new report launched today by the World Economic Forum reveals that the semiconductor, electronics and pharmaceutical sectors are leading the way in the digital transformation of manufacturing.

the Manufacturing Transformation Outlook Report 2022 offers new insights and discoveries from the new Global Smart Industry Readiness Index Initiative (SIRI)which aims to create the world’s largest datasets and benchmarks on the state of manufacturing worldwide.

In collaboration with the Singapore Economic Development Board (EDB), the report draws on data from nearly 600 manufacturing companies in 30 countries that have undergone the Official SIRI Assessment (OSA): a two-day independent examination of a plant or factory. The report outlines the current state of industrial transformation across different industries and features detailed case studies of how different stakeholders – ranging from manufacturers to industry associations and governments – are actively leveraging the SIRI program to accelerate their transformation journeys. digital transformation.

The top 5 of the most digitally mature sectors in 2019 and 2022.

Main conclusions:

1. Semiconductors, electronics and pharmaceuticals lead the 2022 maturity rankings, with logistics advancing
Despite their leadership position, these top three industries are not immune to current challenges such as continued value chain disruptions, global chip shortages, and industrial decarbonization. These developments will reshape the global manufacturing landscape and companies in these cutting-edge sectors – as long-time pioneers of innovation and adopters of new concepts and technologies – must proactively confront these topics to redefine them as opportunities for all. .

2. A high level of diversity exists in various industrial sectors; more tailored approaches are needed to better support industry transformation
Governments and solution providers tend to apply “one size fits all” approaches to support manufacturers on their digitalization journeys, such as state-level grants for the adoption of new automation equipment or forums industry-led studies of global enterprise use cases. . The impact and effectiveness of such general interventions have been limited.

3. The most digitally mature companies are looking to integrate their already digitized processes and systems, while the average manufacturer is still looking to digitize existing business processes
New digital and material technologies, coupled with integrative design principles, have opened up a world of possibilities for manufacturers. Over the past couple of years, most manufacturers have taken the first steps towards digitalization in response to pandemic-related challenges. Companies that started earlier are now taking their digitized processes to the next level.

4. Top companies have focused significantly on connectivity to enable greater integration and information
In today’s digital economy, connectivity is rapidly joining automation as a key driver of success. The best companies recognize the importance of connectivity. Many have already established interoperable and secure networks within their production sites, where equipment, machines and computer systems can interact and exchange information with few restrictions.

5. Manufacturers should put more emphasis on updating and expanding their workforce digitalization and retraining strategies
With the advent of digitalization, fields of activity and working arrangements are changing rapidly. As manufacturers formalize their digitization strategies to upgrade their manufacturing and business processes, there is also a need to re-examine how they organize their workforce and workspaces as work at remote is becoming more prevalent in the digital age.

6. Key performance indicators related to productivity and quality are the main areas of focus for multinationals and SMEs, but flexibility and speed are rapidly emerging priority areas
Exponential growth in demand, changing consumer habits and chronic supply chain disruptions during the pandemic have prompted some business groups to focus on flexibility and speed-related KPIs to bolster the adaptability and resilience. Initiatives that demonstrate such changes include manufacturers’ efforts to reorganize their supply chains according to regional geographic markets, the practice of dual/triple sourcing, and the adoption of hybrid inventory management models that include elements both “just in time” and “just in case”. “Strategies.

7. Data confirms that SME-dominated sectors are less mature than multinational-dominated sectors
Exponential growth in demand, changing consumer habits and chronic supply chain disruptions during the pandemic have prompted some business groups to focus on flexibility and speed-related KPIs to bolster the adaptability and resilience. Initiatives that demonstrate such changes include manufacturers’ efforts to reorganize their supply chains according to regional geographic markets, the practice of dual/triple sourcing, and the adoption of hybrid inventory management models that include elements both “just in time” and “just in case”. “Strategies.

8. Multinationals and companies ahead of the maturity curve are more likely to plan for the long term
To support the international deployment of SIRI, a new non-governmental non-profit organization – International Center for Industrial Transformation (INCIT) – was also created. As a neutral and independent entity, INCIT will work with public and private sector manufacturing-related organizations to catalyze and support industrial transformation across geographies and industries.

As part of the launch of the report, the Forum and the EDB will jointly host a webinar on February 24, 2022, 11:00 a.m. CET / 6:00 p.m. SGT. The webinar will include a presentation by the Forum on the key findings of the report, as well as a panel discussion by key industry leaders. To register for this webinar, go to the event page registration page.

Jeremy Jurgens, Managing Director of the World Economic Forum, said: “The Global SIRI Initiative is one of our fastest growing initiatives, having grown internationally in more than 30 countries over the past 18 last months. Through this report, we hope to revolutionize the way the global manufacturing community approaches digital transformation; from a method based on anecdotes to a method based on a standardized methodology and supported by quantitative information. »

Beh Swan Gin, Chairman of EDB, said, “Our partnership with the Forum has made SIRI an independent international benchmark for accelerating the pace of manufacturing transformation around the world. The information and real case studies presented in this report will enable public and private sector actors to develop tailored interventions and uncover new opportunities that digital transformation can provide.

Raimund Klein, Managing Director of INCIT, said: “We are confident that the findings of this second edition of the Manufacturing Transformation Insights report will modernize the way the global manufacturing community approaches digitization. As we move toward the new post-COVID normal, we urge manufacturers – of all sizes and across industries – to take decisive action by leveraging the SIRI program to put themselves on the right transformation trajectory.