The European manufacturing is steering towards a new era marked by intelligent automation and a strong emphasis on supply chain sustainability. A recent ISG Provider Lens™ report unveils this transformation, highlighting the integration of advanced technologies like AI and digital twins in manufacturing processes. This shift not only signifies an evolution in production techniques but also a commitment to sustainable practices.
Innovative Technologies Transforming Manufacturing
European manufacturers are currently at the forefront of a technological revolution. The 2023 ISG Provider Lens™ Manufacturing Industry Services and Solutions report for Europe reveals an increased adoption of AI, digital twins, and Industry 4.0 connectivity. These technologies enable the creation of smart factories capable of delivering innovative products and solutions. Simultaneously, there’s a growing focus on sustainability and responsible sourcing. Manufacturers and service providers are collaborating in areas like reverse logistics and data analytics to align with long-term sustainability goals across supply chains.
Supply Chain Resilience and Sustainability Focus
The ISG report underscores a rising emphasis on supply chain sustainability, propelled by global regulatory pressures and lessons learned from the COVID-19 pandemic. Manufacturers are diversifying their supply chains to enhance reliability and resilience. Digital twins have emerged as a pivotal technology in this context. They facilitate the efficient implementation of future factory concepts by allowing manufacturers to quickly identify and rectify potential errors and inefficiencies, effectively translating high-level strategies into actionable shop floor practices.
The Future Factory and Service Provider Roles
The convergence of AI, IoT, digital twins, and the blending of Information Technology (IT) and Operational Technology (OT) are set to redefine factory operations, as noted by Jan Erik Aase, a partner and global leader at ISG Provider Lens Research. The report also delves into how enterprises are leveraging service providers to develop new business models and revenue streams in the aftermarket sector. Additionally, it evaluates the capabilities of 31 providers across various quadrants, identifying leaders in the industry who are pivotal in shaping the future of smart manufacturing.
The ISG Provider Lens™ report not only offers a glimpse into the current state of European manufacturing but also sets the stage for what’s to come in this rapidly evolving sector.
